Greek president rejects German interference

Relations between Germany and Greece, strained since the beginning of the economic crisis in 2009, appeared to reach a new low point amid the exchange of barbed comments between the two countries.

President Károlos Papoúlias was uncharacteristically blunt in his response to repeated criticism about the Greek economy and politics. He accused the German minister of finance, Wolfgang Schäuble, of making insulting comments, including the suggestion that Greece should not hold elections now, because its politicians are incapable of keeping to the terms of a new bail-out. “We all have a duty to work hard to get through this crisis,” he said during a visit to the Ministry of Defence. “I will not accept Mr Schäuble insulting my country. I don’t accept this as a Greek.

“Who is Mr Schäuble to insult Greece? Who are the Dutch? Who are the Finns? We always had the pride to defend not only our own freedom, not only our own country, but the freedom of Europe.”

The comment that appears to have sparked Papoúlias’s response was a suggestion by Schäuble that Greece should follow Italy’s example by forming a “technocratic” government. He also cast aspersions on the record of Greek politicians in the past.

“After [the technocrats have completed their work] the democratic process can resume with the effects that we have all seen over the last few decades.”

Kenny promised “constructive engagement”!

The French minister of finance, François Baroin, and his German counterpart, Wolfgang Schäuble, have unveiled a “green paper” describing plans for Franco-German tax convergence. According to the document, France and Germany will aim to harmonise their corporate tax rates by 2013.

Remember before the election that Fine Gael was not going to put a cent into Anglo-Irish Bank?

Well, would you give our corporation tax rate much chance?

This week the finance ministers of all twenty seven EU member-states will meet to discuss economic governance legislation put forward by the Commission, which would give it greater powers in assessing and correcting financial instability. There will also be a Franco-German presentation on plans for a common consolidated corporate-tax base. It will be interesting to hear Noonan’s take on the event!

Meanwhile the EU commissioner for taxation and customs union, Algirdas Šemeta, has assured the British House of Lords that the implementation of a financial transaction tax would “minimise the risk of relocation,” saying that it is expected to raise €60 billion throughout the region every year.

Remember “own resources” in the Lisbon Treaty?

Does Enda Kenny know about this? (Parte Dois) "Sonnets to the Portugeuse"

The German minister of finance, Wolfgang Schäuble, was caught by a cameraman at the euro-zone ministers’ meeting promising Portugal an adjustment to its programme after a deal with Greece is concluded—the first time an EU minister has publicly spoken of such plans.

EU Observer reported that Schäuble is telling his Portuguese counterpart, Vítor Gaspar, that after the Greek deal is done the German government will approve a loosening of the conditions attached to Portugal’s €78 billion bail-out programme.

“If at the end we need to make an adjustment to the programme, having taken large decisions about Greece . . . this is essential. But then, if necessary, an adjustment of the Portuguese programme will be prepared,” he says.

The Portuguese minister, not unexpectedly, says,
“Thank you very much.”
“No problem,” Schäuble replies.

And we thought the “independent” European Central Bank made these decisions!

And Kenny, on his own admission, didn’t even ask.