– Theater Of The Absurd: Spain To Provide 14% Of Funds For Third Greek Bailout (ZeroHedge, March 2, 2015):
The ink is not even dry on the much fought extension of the Greek bailout, so hated in Greece because it perpetuates the “austerity” memorandum conditions and already Spain, which as a reminder is suddenly not on very good speaking terms with the Syriza government, is stoking the anti-austerity fire in Athens even more when moments ago Spain’s Guindos revealed that not only is a third Greek bailout imminent, and will cost Europe’s (and America’s via the IMF) taxpayers between €30 and €50 billion, but that Spain, whose banks were completely insolvent as recently as 2 years ago and were only “saved” thanks to the ECB’s direct and indirect (repo) bond monetization pathways will provide between 13% and 14% of the funding!
- “THIRD GREEK RESCUE’ TO BE EU30B-EU50B: SPAIN’S DE GUINDOS
- SPAIN TO PROVIDE 13-14% OF EU30B-EU5O 3RD GREEK RESCUE: GUINDOS
What makes the announcement doubly ironic (the broke bailout out the insolvent, or is the bankrupt saving the liquidating?), is that after yesterday’s allegation by Tsipras that there was a “conspiracy” between Spain and Portugal to derail the new Greek government, earlier today German Finance Ministry spokesman Martin Jaeger tells reporters in Berlin that “Tsipras’ remarks that Spain and Portugal took negotiations over Greece’s bailout to the brink of failure in a bid to avoid domestic political consequences was “a very unusual foul play.”
He was further quoted as saying that “we should not interfere in the affairs of our partner governments” and that “we don’t do that in the euro group. This isn’t how we do business.” Jaeger continued that “we have a very high recognition for what both countries have achieved in the past few years on their reform path.”
He concluded by saing that Greek govt’s behavior doesn’t correspond to the “usual pattern” which forms the basis of Eurogroup negotiations. “A lot of trust has been lost in past weeks.”
Then the EU itself showed once again quite clearly that in the case of banker interests vs common Greek people, it will side with the former, after earlier today EU Commission spokeswoman Mina Andreeva told reporters in Brussels that “Greece, the euro area and international authorities “struck a very clear deal last week” adding that Greece’s sctions on aid review more important than words.
“What matters now beyond any public statements is that Greece implement its reform commitments swiftly and with a termination, and this will be key to a successful conclusion of the review and the strengthening of the Greek economic recovery.”
But what actions does Greece need when the second it is forced to actually implement reforms, here comes Spain, yes don’t laugh, and bails it out. Again.
Completing the comedy is that the “suddenly very concerned” Spain, just hours earlier Spain’s deputy minister for the European Union Inigo Mendez de Vigo said that “Greece should do less talking, do more reforms.”
But why if Spain will be so kind as to provide the funding needed for the next Greek bailout (one which we predicted in November is inevitable), and the bailout after that, and the one after. In fact, why reform anything if Mr. Draghi “will get to work” in perpetuity, making the old “democratic” model in which elected politicians decide how to fix the country dead as the dodo.