Germany: 'We're Happy to Give the Greeks Anything, Just Not Money'

Spiegel ^ | 03/04/10 | Sebastian Fischer and Severin Weiland

[TigerLikesRooster]

Berlin Plays for Time

'We're Happy to Give the Greeks Anything, Just Not Money'

By Sebastian Fischer and Severin Weiland

Greek Prime Minister George Papandreou is pinning his hopes on German Chancellor Angela Merkel, who he is due to meet in Berlin on Friday. Merkel, however, has already said that financial support for the debt-stricken country will not be on the agenda.

It is one of the most sensitive subjects in Berlin: aid for Greece. One wrong word by a top German politician and the already nervous markets could become even more jittery. Instead, politicians are keeping their mouths shut and holding their breaths.

Greek Prime Minister George Papandreou will meet with Chancellor Angela Merkel on Friday in Berlin. Given the tense situation, the meeting promises to be explosive. As a precautionary measure, Merkel has already said that financial support will not be on the agenda.

Instead, the meeting is an attempt to make sure the Greek government stands by its obligation to gain control over its budget deficit through spending cuts. On Wednesday, Papandreou announced new austerity measures in Athens. The mood in Greece is tense. Under the proposals, wages will be reduced, taxes will be raised and gasoline prices will go up -- measures that are guaranteed to drive the unions into the streets to protest against the recently elected Socialist government.

[longtermmemmory]

you can only sell your home ONCE.

BTW: the word on the popular street is the Greeks are now REALLY pissed over that who island land grab offer.

The Greeks have an expression “an angry man will burn the house to kill the termites.”

[Kenny Bunk]

Spain and especially Italy, are much richer, because they are much more industrialized and agriculturally productive than Greece, which is really a pretty small place with a numerically small population.

So, althought they are in huge trouble, Spain and Italy have a much better financial cushion. What enabled Greece to foolishly enlarge its public sector was the many years they were on the Euro-dole, along with Portugal and Ireland. They received huge yearly subsidies from the EU, which according to plan then stopped. Ireland made the best use of the money in improving infrastructure and education and was ready (sort of) for the cut-off.. Portugal and Greece used their free money to make things worse!

[wolf78]

I would think the US % would be much higher now. What years were used for Germany and Greece.

Germany: 12% was 2002/2003, but total numbers have since decreased. Was 11%-11.5% in 2006%. Probably around the same right now.

Also, do you know if the US figure includes the state and municipal sectors?

AFAIK yes. Same for Germany which is also a federal republic (most of the police, school system etc. is state responsibility).

[wolf78]

Well i´m not 100% shure for Germany (But i think it´s the same there) because i live in Austria. But the “13th and 14th” month pay is law here. So every employer has to pay it.

It's not the same in Germany, where a christmas bonus in the form of a 13th "Monatsgehalt" is a bonus most often agreed upon between unions and employers. So if you e.g. work for Daimler / Mercedes, you get it. But as it's a bonus it's sometimes subject to economic performance of the company, e.g. during the current crisis you only get half or so. Or it's being completely scrapped in return for employment guarantees.

[darkside321]

Well thanks for the info.
I really didn´t know this.

lg aus Österreich

[M. Espinola]

The last two times in was the German war machine the conquered the bulk of Europe & beyond — this time it’s German banks.