Western European News Digest
Euro System Breaking Apart Before Christmas?
Dec. 6 (EIRNS)Several European news dailies and journals hint that Europe and the euro are heading for a giant crisis before the end of the year. The German weekly Der Spiegel's Dec. 6 cover story, titled, "The Last Battle," states that among German government experts, "there is growing fear that the next crisis case will erupt before Christmas," and when it occurs, there will be "a breakup of the Eurozone with a financial crash following right awaya scenario which could easily dwarf the consequences of the Lehman default."
Also Tagesanzeiger, a leading Swiss news daily, warns that Europe and the euro may have to expect a "Lehman moment."
'The Irish People Will Reject the Bailout'
Dec. 9 (EIRNS)Kevin O'Rourke, a professor at Trinity College in Dublin, has written an article for the Dec. 2 Eurointelligence, in which he says that the Irish-EU deal could be overthrown, either by the vote on the budget, or the vote in the general election. And even earlier than that, the Irish people could "vote with their feet."
O'Rourke is a member of the pro-EU Center for Economic and Policy Research. "It is no longer even certain that the budget will be passed in December, says O'Rourke. "Brussels may not have a Plan B, but they had better prepare one nonetheless.
"Irish citizens may bring down the bailout of foreign bank creditors by voting at the ballot box, but if they do not, they will bring about a default of some kind by voting with their feet. We now face a negative spiral in which austerity causes emigration, which increases the burden of the debt, which ultimately leads to more austerity....
"Iceland is an obvious model for us. In a referendum, her voters have already rejected a proposal to pay back their banks creditors, who will take major losses. Now they have elected a constitutional assembly charged with drafting a new constitution. Ireland probably needs this more than does Iceland; I wish I were more confident that we will follow the latter's example."
German 'No' Stops Plan for EU Bailout Orgy
Dec. 7 (EIRNS)Even maximum pressure built up at a conspiratorial gathering in Brussels on Dec. 5, on the invitation of EU president Herman van Rompuy, did not extract a concession from the German government, for more bailouts of the banks. The meeting included IMF managing director Dominique Strauss-Kahn, European Central Bank president Jean-Claude Trichet, EU Commission president José Manuel Barroso, EU commissioner for finances Ollie Rehn, Belgian Finance Minister Didier Reynekens, and Luxembourg Prime Minister and Finance Minister Jean-Claude Juncker. German Finance Minister Wolfgang Schäuble, who was also there, kept to his strict "no."
Schäuble was supported in his opposition at yesterday's Eurozone finance ministers' meeting, by his Austrian counterpart Josef Proell and Dutch Central Bank governor Nout Wellink; German Chancellor Angela Merkel received the backing of the Polish Prime Minister Donald Tusk, who, after meeting with her in Berlin yesterday, said that, although his country is not a member of the Eurozone, he shares Merkel's views on these issues.
Warnings of Schachtian Revival Through the ECB
Dec. 6 (EIRNS)It has not occurred often, that the German media compare the financial policies of the EU and European Central Bank to the Nazis' policies in the 1930s; but today, Germany's Der Spiegel runs an article containing warnings by former Bundesbank President Helmut Schlesinger:
" 'It was right to introduce a bailout package for Greece and the Eurozone,' he says, 'but wrong for the European Central Bank to commit itself by showing a willingness to purchase government bonds.' " In Schlesinger's opinion, this breaks a taboo against mentioning what is commonly referred to in Germany as the Mefo bond. Mefo is an acronym for the Metallurgische Forschungsgesellschaft (Metallurgical Research Company), a shell company which was founded by the Nazis. Its bonds were used by the German Reichsbank in the 1930s to finance the country's military buildup. "In order to ease the burden on the government budget, the Nazis started up the printing presses," Schlesinger said. The Mefo bonds were invented by Nazi Economics Minister Hjalmar Schacht in 1934.
Blair's Ally Robert Cooper Strengthens Grip over EU
Dec. 7 (EIRNS)Robert Cooper, a senior member of former British Prime Minister Tony Blair's Cabinet, was appointed to the post of Counselor in the European External Action Service (EEAS), the latest name for the EU's Foreign Affairs Diplomatic Service. Cooper is well known for his decade-long crusade against the concept of the Westphalian sovereign nation-state. His 2004 book, The Breaking of Nations: Order and Chaos in the 21st Century, received the Orwell Prize, a British award for political writing. Cooper's appointment was made by Baroness Catherine Ashton of Upholland, the EU Commission's first vice-president and High Representative for Foreign Affairs and Security Policy.
"He will undertake specific tasks that require high-level engagement at an intensive level, working with the Policy Board," said Ashton. Cooper is also a member of the George Soros-founded European Council of Foreign Relations, headed by another Blair "wonderboy," Mark Leonard.
If Paris and Berlin hoped that with the nomination of Ashton they might have prevented Blair from controlling the EU's foreign policy, with the Cooper nomination, the Brutish grip over the EU should be evident to all.
Anarchist Groups Threaten Royal Wedding
Dec. 11 (EIRNS)British anarchist groups are broadcasting that they will target the royal family from now on; they warned that the attack on Prince Charles and his wife was "just the beginning," and warned of "many more assaults on royals." According to the Daily Express, a campaign is building to stage a demonstration on Prince William and Kate Middleton's wedding day. Websites linked to a range of groups have posted obscene messages about the couple, while trying to combine a demonstration against the royals with a May Day protest against big business.