Western European News Digest

LaRouche Presages Norway Terror Incident

July 20 (EIRNS)—Lyndon LaRouche warned as early as July 13 that unless Glass-Steagall is implemented in the United States and in Europe, the entire trans-Atlantic region is going to plunge into chaos. And under those circumstances, the kind of each-against-all warfare among the European financial oligarchy is likely to lead to some high-level assassinations. Saturday's deadly "terror" attack in Oslo, Norway must be examined with this perspective in mind.

Empire Propagandists Demand End of National Sovereignty in Europe

July 20 (EIRNS)—A propaganda offensive directed against Germany, for the creation of supranational fiscal and economic control of what has remained in terms of national affairs in Europe, was launched on the eve of the EU crisis summit tomorrow.

The IMF's Luc Everaert arranged a special international conference call with journalists, Tuesday, telling them in warning tones that the euro "could succumb if countries put sovereign pride over the common good [!]," adding that "without a true recognition of Eurozone oneness, even with national and cultural differences, and then making decisions demonstrating that recognition rather than denying it, one cannot have a currency."

Then, in a special interview with Brussels-based Euronews, Jacques Attali (former advisor to French President Mitterrand, who helped force the euro down the throat of the Germans, with the help of Britain's Margaret Thatcher) called Germany "the sick man of Europe," and attacked the Germans for not having a "long-term strategy.... It is all about moving closer to European federalism but without putting the Germans in a position to oppose it, rather trying to make our German friends understand that it is in their interest to make progress towards European federalism."

Greeks Denounce EU Bailout Deal

July 22 (EIRNS)—While Greek Prime Minister George Papandreou returned from Brussels as if in triumph from the latest Eurozone bailout, which piles another EU159 billion of debt on his country, he was welcomed with denunciations by the Greek parliamentary opposition. Papandreou idiotically proclaimed that Greece was "relieved from the nightmare of default," while Finance Minister Evangelos Venizelos, not to be outdone, babbled that the Greek banking system is the "safest in Europe."

Within hours of these statements, Fitch Rating agency said that the so-called "rescue" plan was indeed a "default event."

Among numerous other denunciations, Coalition of the Radical Left MP Evangelia Ammanatidou Paschalidou spoke to the point: "Unfortunately, it is the Greek society that is facing the tragic blow of a bankrupt policy." She warned that there is no future with the government's bankrupt policy.

Sinn Fein on EU Deal: No Gain for Ireland; Burn the Bondholders

July 22 (EIRNS)—The European Summit's phony bailout deal is being seen in Ireland as just that. Commenting that the deal presented no gains for Ireland, Sinn Fein finance spokesperson Pearse Doherty went after Irish Prime Minister Enda Kenny's triumphalism over gaining a two-percentage-point reduction of interest rates, as illusory.

"With our national debt set to exceed 200 billion by 2014, this interest rate reduction will do nothing to address our national debt. The only way to reduce this debt is by burden-sharing with senior bondholders and loss-sharing with the ECB. Unfortunately these issues are explicitly ruled out for Ireland in this evening's agreement, and it seems that Enda Kenny, by signing up to this agreement, which rules out any type of private sector involvement in Ireland's debt crisis, has ditched any attempts to impose losses on senior bondholders in Anglo Irish Bank.

Some in Germany Revolt Against Euro Bailouts

July 22 (EIRNS)—Two anti-bailout members of national parliament (Bundestag), Frank Schäffler and Klaus-Peter Willsch, organizers of a dissident group of more than 40 Bundestag members, have called for a special session of parliament in the coming days, despite the Summer recess. "If the Greeks are getting money, the Bundestag must be consulted first," Willsch told Mitteldeutsche Zeitung. "This is especially urgent, if a buy-up of Greek state bonds is intended, which would be in open violation of an existing decision of the parliament."

The spirit of revolt is also felt in this week's issue of Wirtschaftswoche, which, under the headline, "With the D-mark, back to the old strength," writes that a German return to its former national currency is possible. It could be done overnight; the Bundesbank experts know how to do it.

Full Glass-Steagall Back on British Agenda

July 21 (EIRNS)—A Glass-Steagall banking reform is reportedly back on the agenda of the British Independent Commission on Banking (ICB), according to today's web newspaper CityAM. The move follows pressure by the House of Commons Treasury Select Committee to give consideration to a full structural separation between retail and investment banking.

Putting this separation back on the ICB agenda is a response to a tremendous number of requests the ICB has received since the publication of its interim report earlier this year. That report called for what appeared to be a rather anemic version of "ring-fencing" between retail and investment banking, and has the endorsement of Treasury.

The ICB's final report is expected to be released on Sept. 12, but now it is suggested it could be postponed.

Nuclear Phaseout Leaves Germany Without Engineers

July 19 (EIRNS)—One of the real problems that waits for a solution in Germany is the widening engineer gap. June 2011 showed an all-time high of demand for more than 76,000 engineers that are not available.

According to the VDI, the national association of engineers, the undersupply of young engineers hits the machine-building and car-making sectors predominantly, with 31,000 engineers lacking. The electric engineering sector lacks 18,300; construction is next with a lack of 10,600. Baden-Württemberg, the German state with the highest concentration of machine-building and car-making, is suffering from the worst undersupply, with 20,600 engineering jobs that cannot be filled. Bavaria is next on the list, with a shortage of 13,000, followed by North Rhine-Westphalia with 12,600.

Willi Fuchs, director of the VDI, said the problem has little to do with the young generation, which, as such, is not hostile to or disinterested in technology; it rather has to do with the media and the schools, which do not promote a pro-technology view.

U.S. Targets Credit Suisse in Tax-Evasion Probe

July 17 (EIRNS)—The U.S. Department of Justice has targetted Credit Suisse, the second-largest Swiss bank, in its ongoing criminal investigation of banks that help U.S. residents illegally avoid paying U.S. income taxes. Credit Suisse disclosed the probe July 15. According to the Swiss daily Tages-Anzeiger, the move is intended to force Credit Suisse to release information about its U.S. clients, as UBS did in 2009, and is part of a broader investigation. The probe dials up the pressure on Switzerland, which has been trying to cut a deal to end the investigation, and include a provision that no Swiss bankers go to jail.