More Financial System Woes Ahead as EU Rejects Varoufakis Plan, Greece “Risks Bankruptcy”

Remember the scandalous near bankruptcy the EU imposed on Cyprus in March 2013? Well the first chapter of the Greek crisis was behind that and in Athens matters now appear to be headed towards a further showdown.

EU's Troika and Piraeus Bank "sealed the fate of Cyprus" in 2013 and now Greece may be forced to default. (Credit Pressproject screengrab)

EU’s Troika and Piraeus Bank “sealed the fate of Cyprus” in 2013 and now Greece may be forced to default. (Credit Pressproject screengrab)

Headlines published March 8 suggest Greece risks bankruptcy after Europe is said to have rejected (Finance Minister) Varoufakis‘ payment plan, according to reports by Bloomberg and Zero Hedge.

Meanwhile an extraordinary prizewinning German TV investigation has just been published to YouTube. It shows how the EU mishandled the bailouts affecting Ireland, Spain and Cyprus during the 2011- 2013 European Debt Crisis.

Running at just on an hour it is a gripping tale of perfidious, ruthless, questionable — even undemocratic — decision-taking by the Eurogroup Finance Ministers whose primary aim appeared to be to remedy at all costs, the bad investments made by major German, French, US, UK and other big name banks at the expense of EU taxpayers.

Watch it below:

Greece Cyprus France Germany and The Secret Bank Bailout (HD 1080p) – German TV Award 2013

You too might care to ask, if you’ve not already done so, why long-suffering EU taxpayers are made to bail out dodgy gambling and high risk-taking by private businesses which in a free market economy should be allowed to fail?

The answer — unsatisfactory though it may appear  — is given by Germany’s unloved Finance Minister Wolfgang Schäuble. He makes clear in the video that no EU bank can be allowed to fail because the domino effect would bring the whole global finance system crashing down (again).

Too big to fail and too big to jail remains Europe’s biggest unresolved financial issue when it comes to its devious and dubious banking system.

Indeed the ongoing economic fallout is leading to severe political blowback across the EU and threatening the future of the 64–year-old post-World War II political settlement (Treaty of Paris 1951) embodied by today’s European Union.

In Greece Syriza supporters have made clear they have had enough of what they regard as a “German-imposed” humanitarian crisis; Irish voices claim the huge burden that Dublin’s bailout of German and French banks brought is unsustainable and Ireland will default in time. (Watch the clip at 27:14 “Ireland will sooner or later default, no country on earth in history has ever paid back [such huge sums]”).

Harald Schumann the German investigative reporter behind the revealing video.  (Credit pressproject screengrab)

Harald Schumann the German investigative reporter behind the revealing video. (Credit pressproject screengrab)

In Spain voters remain furious at the corruption surrounding the massive burst investment bubble fuelled by reckless German, French and other banks and the Syriza-like anti-austerity party Podemos is now leading the polls for the next Spanish election.

In France with more than 10% unemployment, a stagnant economy and ongoing social unrest Socialist PM Manuel Valls told iTele TV, March 8:  “far-right leader Marine Le Pen (leader of the Front National) could win the 2017 presidential election”. He added, according to the Associated Press: “I fear for my country”.

He was speaking ahead of March 22 regional elections in which his Socialist Party is set for major losses and his remarks are the “bluntest to date by a top (French) official”.

Here are some earlier reports in French News Online reflecting the scandalous treatment dealt out to Cyprus by Eurogroup ministers all in the name of saving bankrupt EU banks at any cost. The section on Cyprus, from about 48:26 minutes on in the video above, offers revealing interviews with senior Cypriot politicians and bankers and is especially enlightening. Indeed a slurry of recent news and blog reporting on the ongoing drama facing Greece suggests the “double kneecapping” — as one Cypriot official in the above clip describes it — that Brussels administered to Cyprus, has been deployed again in Athens.

Iceberg Cyprus Set to Sink Euroland Titanic

Iceberg Cyprus Set to Sink Euroland Titanic

Moves to steal money from people’s bank accounts as per the initial audacious Brussels ultimatum to Cyprus, might yet stoke the biggest bank run ever seen in the EU and even collapse the euro, reports suggest. Even if the initial foolish plans (see here) have been dropped, the knock on damage across Europe is not […]

Cyprus: European Economic Heart Attack Ahead?

Cyprus: European Economic Heart Attack Ahead?

Some call what just happened to deposit holders in Cyprus banks ‘daylight robbery’, others suggest the European economy is now likely to suffer the equivalent of a heart attack. An Irish analyst labelled it an EU “smash and grab raid”. Initial Internet reactions appear overwhelmingly negative as seen below.  The Zero Hedge website warns of much […]

Ask Cypriots: Are Banks Criminal Enterprises?

Ask Cypriots: Are Banks Criminal Enterprises?

The EU’s Dick Turpin bailout imposed Friday March 17 on Cyprus is a warning to savers across Europe and that includes France: you could lose as much as 10% of your hard-earned cash if you leave it in a bank rather than stuff it under your mattress. For the financial Mafia that has captured Washington, Brussels, London […]

The Zero Hedge report on fast breaking events in Greece says: “There will be little laughter in cash-strapped Greece, however, if the Sunday Times is correct in its report that the ‘Eurogroup finance ministers are to reject radical reform proposals from Greece at a meeting in Brussels tomorrow.’
“The Greek finance minister Yanis Varoufakis will present a seven-point plan in a desperate attempt to unlock a €7.2bn (£5.2bn) cash injection — the final payment under a bailout plan agreed three years ago. According to a source close to the discussions, European officials believe Greece needs to do more ‘on the ground’.
“As the Times concluded, Greece is hoping for a favorable response because unless the cash injection is approved, Greece faces a ‘full-scale default.’
“Unfortunately for Greece, moments ago Germany’s Frankfurter Allgemeine Zeitung confirmed the bad news, when it said that the EU commission has rejected the Greek request for speedy aid payments, cites Valdis Dombrovskis, EU commissioner for the euro. The commissioner adds that the Varoufakis letter ‘lacks specific enough action plan and that the reform steps must be approved by Greek parliament and be implemented’.”

Meanwhile the Athens-based website Press Project, has published serious allegations of malfeasance regarding the Eurozone’s resolution of the March 2013 Cyprus crisis: “The allegation: Cyprus received loans only on the condition that its banks sold their branches in Greece to a competitor in Athens at a fraction of their value. ThePressProject publishes exclusively in Greece the investigation of German journalist Harald Schumann for the newspaper Tagesspiegel. Did the troika defraud billions at the expense of thousands of depositors in Cyprus? Did Eurozone Finance Ministers and officials of the European Commission, the ECB and the IMF perpetrate a billion euro robbery? It sounds absurd. But the allegation is based on facts and documents. They show that officials in Brussels and Frankfurt imposed a highly controversial agreement on the country, under the terms of which customers of the Cypriot banks lost three billion euros, which a Greek bank then received as profit. So far parliamentarians and the European courts have not dealt at all with this question, and one reason for this is that the Cypriot government does not dare to speak publicly. It is is dependent on the goodwill of the ECB and the European Commission. Now, however, hundreds of Cypriots have appealed to the European Court of Justice and the Central Bank of Cyprus intends to launch an investigation…”

Greece  faces the Cyprus treatment (Credit pressproject screengrab)

Greece faces the Cyprus treatment (Credit pressproject screengrab)

: Ken Pottinger

Read more on the EU banking crisis:


Related Posts Plugin for WordPress, Blogger...

If you enjoyed this post, make sure you subscribe to our RSS feed!

One Response to More Financial System Woes Ahead as EU Rejects Varoufakis Plan, Greece “Risks Bankruptcy”

  1. Pingback: Here’s Why the Greek Crisis is Turning into a Strategic Issue for Europe | FrenchNewsOnline

You must be logged in to post a comment Login