The direction of French policy on Greece was made crystal clear yesterday (9th June) as spelt out on several posts on my blog over the course of the day, by Christine Lagarde, (now looking almost certain to be next IMF head, (unless a surprise new candidate emerges during the course of today,) in China and Jean-Claude Trichet in Frankfurt.
It appears for the moment that the French view is likely to win the day, particularly as the apparent plan to hand cheap Greek national assets to banks voluntarily rolling over their bonds rather than take a haircut up to 50% of face value, in exchange for privatised ,previously Greek state-owned properties, has the added benefit of meeting theTrue Finns’ demands of involvement of the private sector in any further Greek rescue. (The so-called strong Euro Group members cannot afford to lose a AAA contributor for the next phase of their disgraceful plot).
This latest sticking plaster will be strictly short term, for it is impossible to foresee any scenario where the Greek people will accept the legitimacy of the new ownership. Last evening the Greek premier Papandreou absolutely ruled out any referendum on the unfolding disaster, read here. For that reason alone, if the questions of morality, honour and decency can themselves first be ignored, Britain’s Government should insist that no bank that has been bailed out and remains largely owned by the British state, should be permitted to join such a scam almost certain to end in yet more substantial losses.
This presents a problem for Nick Clegg, as the present Chancellor, George Osborne, while in opposition seemed unnecessarily close to certain bankers, both in the financing of his office and vacation destinations. His friend, boss and now (poor country) Prime Minister, David Cameron, presumably approved of such arrangements. Nick Clegg, Deputy Prime Minister, should therefore absolutely insist that before this next step in the Greek bail outs proceeds, that the banks of the Euro Group countries, be required by their Governments, to purchase any remaining Greek bonds still held by Britain’s taxpayer funded institutions, at full face value and thereafter do with them as they wish. The Euro Group having sunk so low and wasted so many billions of soon to be worthless Euros up to this date, are unlikely to baulk at taking on such further commitments if faced with the alternative, an apparently to be dreaded “credit event”.
Britain must call a halt to further connivance in the fall of the euro currency! Are you reading or listening Mr Clegg, can you for once now put your country before the interests of your pension provider?