There are strange times. Killer bacteria and a German-Spanish “cucumber war” dominate the headlines for weeks. It comes to the illness and death into perspective by the EHEC pathogen. Politicians, central bankers and the media say about the future of the euro: If Greece does not help the European Monetary Union will be destroy. Greece is without debt restructuring and without giving the creditor to large portions of their claims. The policy was transfigured by Greece, Portugal and Ireland in regards to rescue for euro bailout; especially Germans have learned the lesson.
The Euro-scepticisms is palpable. Suddenly politicians must change their lines of argument to stop the conflagration of euro scepticism that prevails in the country. There is talk now for better fiscal discipline, which going to enforce it in the peripheral member states in the south and northwest of the euro zone. They staged again, instead of their responsibility to demand.
Involve private creditors at the expense of the Greek debt crisis
What do you think about the renewed demand from Finance Minister Wolfgang Schäuble to involve private creditors at the expense of the Greek debt crisis? It comes to a term extension held by the banks, which according to Greek government bonds would lead to ECB that the rating agencies would lower the credit ratings for Greece. Apparently, the ECB sees its fundamental commitment to an independent monetary policy at risk. To rescue bankrupt states and incur corresponding losses in is not one of their missions. For the ECB refinancing operation cause losses if both, the banks that the bonds have provided as collateral, as well as the Greek government will become insolvent.
To secure the ECB, states could adopt the euro zone to the ECB a guarantee. Economically, it is no risk, because they are the owners of the ECB. The ECB could then refinance the Greek banks at current levels, even in the event of a debt restructuring. The independence of monetary policy would be maintained. If private investors want to participate in the losses, which shall become known, we must not allow now to get off.
Because this exit would mean that, the expiring bonds would be financed with tax money from other countries in the euro zone.