German Politician Threatens a Veto on Future Bailouts For Greece

A German politician has said, in no uncertain terms, that Germany will not blindly continue to bailout Greece if they cannot meet austerity requirements.

Michael Fuchs of the Christian Democrats said:

Even if the glass is half full, that won’t be sufficient for a new aid package. Germany cannot and will not agree to that … We long ago reached the point where the Greeks must show they are capable of delivering a shift. A policy of the last, last, last chance will not work anymore and must come to an end.

The comments come a weeks before the “Troika” (European Commission, International Monetary Fund, and the European Central Bank) are expected to release their findings on the Greek government’s ability to implement the austerity measures required for further assistance.

Without more bailout funds Greece would almost certainly have to leave the euro, something that Angela Merkel has said would carry too many risks for the rest of the eurozone. However, as Fuch’s comments indicate, an increasing number of German politicians are comfortable with the idea of Greece leaving the single currency.

Both of Merkel’s coalition partners, the Christian Democrats and the Christian Social Union, have made it clear that a Greek exit would be tolerable.

There has been speculation for some time over the political stability of the bailouts. While governments and alphabet soup organizations have been spending taxpayers’ money to support countries with histories of fiscal irresponsibility some Europeans are beginning to express their dissatisfaction.  

There are serious doubts that the Troika will find results that will please Fuchs and his colleagues. Without bailout funds the Greek exit of the eurozone will be accelerated. The effect on domestic politics will be significant. Left wing politicians will intensify their anti-austerity rhetoric and call for more government spending in the face of an exit from the euro.

When Greece leaves the eurozone it will be the right thing to have happened. It is too bad that it looks like the exit will happen years too late under very unfortunate circumstances.  

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  • R C Dean||

    Without more bailout funds, I believe the Greek government runs out of actual cash money before the end of the month.

  • Brutus||

    There's never enough, is there?

  • Drake||

    If you start printing deachmas or pesetas or whatever really fast, there should be plenty.

  • Brutus||

    That's what's made Zimbabwe the gleaming shrine of prosperity it is today.

  • Drake||

    And that's were we all seem to be headed. Some will just get there earlier.

  • Hugh Akston||

    How dare Ze Germans question the wisdom of the Bailouts Forever! school of fiscal policy?

    Don't they know from watching the US economy that you can build a sandcastle in midair if you just move your hands fast enough?

  • Death Rock and Skull||

    Flush the shit down.

  • ShagNasty||

    I'm starting to get seriously worried about the Euro debt crisis and its implications regarding the future of America's economy. It seems like most of the countries with any considerable concentration of wealth are engaging in unsustainable deficit spending.
    Its starting to look like spain and italy are going the way of greece soon. The combined ecenomic strain of bailing out these countries, and those countries not importing as many goods is going to throw all of europe into a deep recession/depression. This will lead to reduced revenue from american goods being sold to europe. This will reverse the (arguably non-existant) US recovery. Politicians in america will respond with irresponsible deficit spending in the name of stimulus. California will continue to be retatded and go bankrupt. The federal government will oblige, sealing our fate and plummeting the entire western world into a Debt Apocolypse complete with mass starvation, rioting, looting, and roving bands or murderous thugs.

  • ShagNasty||

    second to last sentence was supposed to read, "California will continue to be retatded and go bankrupt., requireing a bailout."

  • Fatty Bolger||

    You forgot dogs and cats living together.

  • LibertyMark||

    I find that I'm interested in these doom and gloom scenarios. I fear them, but I also find them fascinating, almost wanting them to happen just to see what goes down. Kind of like when a hurricane is bearing down on the Texas gulf coast where I live.

    But, just the other day, my 14-year-old daughter asked, out of the blue, "What do you think the future will hold for kids my age? Do you think things will be ok?" That was sobering for me.

    So, I'll work the optimistic angle. You know, a free people working together and for their own betterment will make a just and prosperous society.

    Oh... a "free" people. Why am I optimistic again?

  • ||

    We're all buying eachother bonds and pretending that this represents a bailout for both sides.

  • ||

    Speaking of which, perhaps the PIGS could get together and form a new kind of monetary union. One where they borrow money from eachother and repeatedly bail eachother out instead of paying it back. It would be interesting to see how long this could be sustained.

  • GILMORE||

    You know who else was a German who spoke in no uncertain terms?

  • Ptah-Hotep||

    Hayek

  • Ptah-Hotep||

    Wrong place.

  • Almanian 1||

    Willy Brandt?

  • BakedPenguin||

    Heidegger? Oh wait, no uncertain terms.

  • Almanian 1||

    "...Heidegger, Heidegger was a boozy beggar who could drink you under the table.

    David Hume could out consume [something, something, something]...

    And Rene Descartes was a drunken fart, "I drink therefore I am!"

  • Stormy Dragon||

    "David Hume could outconsume Schopenhauer and Hegel
    And Wittgenstein was a beery swine who was just as sloshed as Schlegel"

    The Descarte line is actually from two verses later in the song.

  • Adam330||

    Who is this guy? Does he have any actual power? Or is he just a back bencher? If so, then yawn.

  • Fatty Bolger||

    deputy parliamentary leader of Merkel’s Christian Democrats (CDU)

    Not a back bencher. Major party leadership.

  • Almanian 1||

    TOP. Men.

  • Anonymous Coward||

    Without more bailout funds Greece would almost certainly have to leave the euro, something that Angela Merkel has said would carry too many risks for the rest of the eurozone.

    The plebians might dare to wonder why the Emperor has no clothes, despite his protestations to the contrary.

  • ||

    Without more bailout funds to pay their bloated public sector payroll, Greece would almost certainly have leave the Euro to avoid layoffs.

  • Almanian 1||

    something that Angela Merkel has said would carry too many risks for the rest of the eurozone

    I read this and keep hearing:

    "But I want to face the peril!"

    "No! It's too....perilous..."

  • Libertarian||

    Is it too late for Romney to change his VP pick? Now THAT would be multi-culturalism.

  • Paul.||

    He should pick Obama. So he could, you know, win.

  • Stormy Dragon||

    Is it just me, or does that photo make him local like the evil german bad guy from an action movie?

  • Paul.||

    or does that photo make him local like the evil german bad guy from an action movie?

    No, his German-ness makes him look like an evil german bad guy from an action movie.

  • Stormy Dragon||

    Yeah, but he seems an unusually German looking German.

  • Drake||

    I think he's laughing at me because I couldn't pass an engineering course.

  • ||

    I suspect the Greeks can extract a bit more Nazi Guilt from the Germans. I kind of wonder how the Italians manage to accomplish it though.

  • Paul.||

    Lot of German speakers in northern Italy.

  • Brutus||

    The Germans ought to remember that as soon as they skedaddled from Greece, the Greek Communists tried to take the country over.

    Greece has been a fucked-up backwater since the Athenian city-state imploded.

  • Paul.||

    I think it all went downhill after Aristotle.

  • johnl||

    It's the Germans who should leave the Euro. The Greeks aren't organized enough to pull off a currency change.

  • ||

    Without more bailout funds Greece would almost certainly have to leave the euro

    I am calling you on your shit Feeney.

    Why would Greece "have to leave the Euro"?

    So it can print its own money and inflate itself out of debt? There is a lot of ifs and buts and thens and whats in that equation....and none of them add up to "have to leave the euro".

    It may be the most likely (see how that is very different then "have to"?)...Greece did bankrupt itself so it will probably choose to bankrupt itself even more through some inflationary currency scheme...but it does not have to by any means.

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