Saving the Eurozone does not depend on Germany: Our letter to the Financial Times

From Professors Stuart Holland and Yanis Varoufakis  

Europe is deadlocked in assuming that resolving the Eurozone crisis must be unanimous. Yet it does not need this. It could do so by ‘enhanced cooperation’ which needs support by nine or more member states while, on a motion for an enhanced cooperation policy, only those supporting it vote.  This could be adopted both to mutualise a share of the debt of most member states at lower interest rates and to issue bonds to fund recovery.

Is there a precedent? Yes. The introduction of the Euro itself was a de facto case of enhanced cooperation. Most member states joined it, some did not. On an enhanced cooperation basis, Germany and other member states such as Austria, the Netherlands and Finland could keep their own bonds just as the UK kept sterling rather than joined the euro.

Nor need Germany bankroll the rest of Europe to gain bonds for recovery. These could be funded by a share of global surpluses rather than transfers between member states. The BRICS have been calling for EU bonds from the onset of the financial crisis and would invest in them. They want the Eurozone both to survive and to grow to sustain their exports, as does the US. 

Financial sector insiders confirm that they woud subscribe European bonds at less than 2 per cent.  The central banks of the emerging economies and sovereign wealth funds could do so for less. The ECB could hold them, although not service them without fiscal transfers.

But the European Investment Fund, which one of us proposed to Jacques Delors to issue Union Bonds, and now is part of the European Investment Bank Group, has confirmed to the Economic and Social Committee of the EU that it could issue recovery bonds without a Treaty revision. These would co-fund projects by the EIB and be serviced from the joint revenues from them without needing a common fiscal policy.

Besides, while many member states are deep in debt after salvaging banks, the EU itself has next to none. It had none at all until May 2010 when the ECB began to buy up some member states’ debt and some non-performing bank debt. The US should be as lucky as Europe is now. The EU, deeper in self-doubt than in debt, has a late starter advantage. 

The institutions and procedures are already in place. They do not need Treaty revisions. Projects which have gained planning approval yet have been stalled by lack of national co-finance during the Eurozone crisis are, in Barack Obama’s words, ‘spade ready’ to go.  Europe could cut the Gordian knot on debt on the basis of enhanced cooperation, preserve the euro and ensure a New Deal style economic recovery. 

78 Comments

  • Who will enter into a mutual debt alliance with Greece? Answer: nobody. Who will with Ireland, Portugal, Cyprus? Answer: nobody. Who is left? France, Italy, Spain. Will France do this together with Italy and Spain and put its rating and finances in danger? When hell freezes over…

    This ain’t gonna work. A country will only want to enter this alliance if there is a much bigger, much stronger country in it, too, i.e. there is something to gain. Today this top member would be Germany. Without Germany, it would be France. And France will react exactly like Germany.

    • No no no this will work! If one assumes that Eurobonds work, this must work too.

    • Pssst. Don’t say it too loud. That’s not what the audience of this nice blog wants to hear!

    • tmk

      “Pssst”

      You just couldn’t hold it. That is the effect of too much beer.
      Now go clean yourself ,although i am quite sure you kind of like it that way.

    • @TMK
      So TMK it seems that from 01:40 to 02:21 you haven been posting comments at a blog you dislike and you have been trying to communicate with as you say “delusional and misguided” people. It seems to me that you have some sort of mental or psychological problem, because a normal person wouldn’t bother… Please try to get a life…Oh, and don’t answer to this post too, because by doing so you will just verify your illness (sorry for the complexity of this sentence)

  • Although fact that it could legally work is interesting and surprising, I continue to think that this would do little to reduce the structural trade imbalances and would only result in confronting the same issues at a later date not even to mention that the pricing of such bonds would probably be simply measured by its weakest link. Absent fiscal transfers to compensate for the enormous german trade surpluses (unlikely) or a split currency union with one currency devaluing and the other strengthening (more likely) with debt forgiveness down the road, all other solutions appear as can kicking down the road, no?

    • No, no! You are wrong! I would solve everything. Greece just needs some more money and everything is fine with Greece!

    • TMK:

      There is no need to obsess about the preferential treatment Greece is correctly receiving.

      In fact shouldn’t you be in some Spanish or Italian blog right now taking care of business?

    • tmk

      Greece DEMANDS everything stolen from the likes of you that now have the nerve to play the righteous ones to steal even more.

      The only thing you could solve is the composition of your stool.

  • Am I to understand that this proposals is that if, say, Greece, Spain, Italy, Portugal and France are convinced that mutualized debt is the right way to go, thy should just do it instead of waiting for or demanding Austria, Finland, Gernamy and the Netherlands to join in?

    If so, this is exactly what I propose since four years. Halleluja.

    • “Sounds a lot like securitising sub prime loans!”

      The GIPSIFs can securitise between themselves whatever they want.

      They just should stop demanding others to pay for their doings and omissions.

      Unfortunately, stupid high treasonist bitch Merkel tonight shovelled over another huge amount of German taxpayer’s money to the banks of the GIPSIFs, w/o any strings attached.

    • vss

      Demand others to pay for THEIR doings and omissions??????
      Without any strings attached??????

      Your self-denial is legendary.

      I see you called Merkel a traitor only to excuse all the other crimes.
      I guess scapegoating in Germany is a national sport.

  • Weeeell ,observing my feelings i see that i have started not to give a damn about what is going to happen with the euro.

    Gordian knot ,enhanced cooperation etc..
    All these are nice expressions but the European leaders are not Alexander the Great and they certainly hadn’t been taught by Aristoteles who was taught by Plato ,who was taught by Socrates.
    There is no such lineage to expect such a higher decision.
    Hell ,there is no such lineage in Greece.

    • “When a Greek looks into a mirror, he sees Alexander the Great” (Nikos Dimou)

      Yes, all greeks are like Alexander the Great! That’s why Greece is such a prosperous role model for the entire world today. I met some Chinese business partners yesterday and the first thing they asked me was “Dear friend, tell us about Greece, we’d like to become like them. You know that we copy many things and we want to copy the Greeks. They are the cradle of civilization, descendants of Alexander the Great, Plato and Socrates, aren’t they?”

      I said “Yes, of course” and then I started to explain to the Chines how the excellent Greek system works. So in ten years you all will have to thank me if I managed to convince the Chinese to copy Greece because Europe (without Greece) must really find a way to keep its leading position and to let the Chinese behind them. I am a bit afraid that the Chinese are too clever and find out that the Greek model succs faster than the Greeks themselves. So they might not only stop copying it but I might also loose my business partner, but it was worth a try.

    • tmk

      At least when we make something happen usually we make it by our own selves.

      You only had one big success ,being the industrial nation that you are ,and this with huge amounts of real free cash by others.
      Now you shout to the whole world that you didn’t deserve it.

      Parasites of the world unite. TMK for president.

      As for the Chinese ,they are so clever ,that they will get your money as they must do ,and then become a leading power by seeing how stupid you are to not use creatively the geopolitical advantages of Greece.

      Of course. You only know how to steal.

    • I dont know if the Greek model sucks but the German one sucks by definition.It only works if the others are not following it.I would love to see Germany exporting to aliens if we all imposed austerity in the early 00s….you better be damn sure y’all would have to either export to aliens or dont export at all…..You will learn this the hard way now..

  • Yanis, we have to hope that this letter gets the attention it deserves. My guess is it won’t. The neoliberal bankers and their apologists sense victory over democracy, labor, and Europe’s social contract, a long held goal of far right politicos the world over, and if they can crush sovereignty, working people, and the social contract in Europe, oh boy, the “greed is good” crowd will have triumphed beyond their wildest dreams of even a few years ago.

  • Dear Yanis, I’ve been reading you for a while now and must say I’m impressed. You do not write like an economist, but like a human being, which is more than refreshing, but also deeply moving. However, it looks as though you too appear to have bought into the idea that solving this crisis is simply a matter of shuffling paper, preferably monetary paper. Or should I say virtual paper (but there is no virtue in this). I am not an economist, only a poor poet, with a blog that enables me to express myself both as a poet and a thinker, for whatever that might be worth, and for the last few years many (though by no means all) of my thoughts have tended toward what is misleadingly termed “economics.”

    Here’s what I wrote recently on this topic: “Huike asked Bodhidharma to pacify his mind, to which the great sage replied: “Bring me your mind and I will pacify it.” By the same token, we might ask all those wishing to save “the economy” to first tell us what it is, and where it is, so we can go there and rescue it.” No economist is capable of thinking such a thought, only a poet, so maybe I might have something to contribute after all.

    I am convinced that the root cause of the present dilemma is NOT debt, banks, bubbles, hedge funds, welfare states, unions, pensions, etc., nor is it the Euro or even the dollar — per se (though some of the above are culpable, certainly) and certainly not “the economy.” The root cause is greed and exploitation. Not just any sort of greed, however, or any sort of exploitation. To learn more about my views, I urge you to take a look at my blog, aptly called Mole in the Ground, after an old folk song, written no doubt by a miner. Here’s the link: http://amoleintheground.blogspot.com/ Please join me there, and comment. I’d greatly appreciate learning your ideas about what I have to say. Thank you.

    • You are right! He does not write like an economist. But your statement is funny: “… but like a human being.” Now I understand: There are “economists” and there are “human beings”.

    • tmk

      No ,there are those that do not forget that ,to be something, is first and foremost a small part of human nature.

      Others forget it. Like those of limited intellectual capacity to even consider that one can be a lot more than a title.
      A person called tmk comes to mind.

  • Please Yannis, do it! We in Holland can’t here the words bailout, Eurozone, Eurobond. etc. anymore! Do whatever you like. Even for open minded people like I am it was enough.
    Nobody told us what kind of big casino our politicians made by entering our country in the Eurozone. Nobody told us about the stupidity to leave our Dutch gulden (Florin) We don’t believe in the future of the Eurozone anymore.
    Your mistake and from your colleges is that the problem is not economic, but it is psychologic. We are no Europeans, we never were, we never will be. That is the problem my dear Yannis. You don’t see european flags and signs like in Greece in Holland. There is simply no european feeling here. Or solidarity. And that is the plain true…

    (Sorry for my poor English)

    • “We are no Europeans, we never were, we never will be.”

      There is no European people. Not even a European press (in terms of newspapers).

    • Dear friend, I share your suffering. But I must say that I feel a lot of sympathy and solidarity with Portugal, Ireland, Spain and Italy. They try hard, you know…

      EST EUROPA NUNC UNITA ET UNITA.. la la la. That’s what I will sing when Europe is completed, e.g. Greece is not part of it.

    • martin, it was no plain casino….

      A Huge Break in the LIBOR Banking Investigation

      This is a huge story:

      On Wednesday, Barclays won the race to reach a deal with U.S. and British regulators, beating UBS, which was reportedly the first bank to begin cooperating with international antitrust authorities.

      Barclays agreed to pay at least $450 million to resolve government investigations of manipulation of Libor and the Euro interbank offered rate (or Euribor):

      $200 million to the U.S. Commodity Futures Trading Commission, $160 million to the Criminal Division of the U.S. Department of Justice and
      $92.8 million to Britain’s Financial Services Authority.

      I wrote about the Libor investigation in the current issue of Rolling Stone, in “The Scam Wall Street Learned From the Mafia,” about muni bond bid-rigging.

      Throughout this spring, while the Carollo bid-rigging case played out in a Manhattan courtroom, negotiations between banks and regulators were going on in this far larger cartel-corruption case.

      It’s been clear for some time now that a number of players had begun cooperating, and the only question was which bank was going to settle first.

      Despite widespread expectation that it would be UBS, it turned out to be Barclays.

      You know how in “Law and Order” Jack McCoy always puts the two murder accomplices in separate rooms and tells them both that whoever talks first wins?

      Something like that happened here. In any case, the Department of Justice filing on the settlement contained excerpts of emails and other evidence that recall the taped phone conversations in the Carollo case:

      Once again, we have seemingly incontrovertible evidence of wide-scale market manipulation. From Alison Frankel at Reuters:

      “The CFTC’s Order Instituting Proceedings and the Justice Department’s Statement of Facts cite truly eye-popping emails, instant messages and other evidence indicating that between 2005 and 2008 Barclays employees agreed to manipulate the rates they submitted to the banking authority that oversees the daily Libor report for seemingly anyone who asked them to monkey with it:

      – Senior Barclays officials concerned that the bank would look weak if it reported too high a borrowing rate;

      – Interest rate swap traders trying to improve Barclays’ derivatives trading position;

      – Even former Barclays traders begging for favors. We’re talking naked, blatant manipulation. Here’s one exchange cited in the DOJ filing:

      Trader: “Can you pls continue to go in for 3m Libor at 5.365 or lower, we are all very long cash here in ny.”

      Libor rate submitter: “How long?”

      Trader: “Until the effective date goes over year end (i.e. turn drops out) if possible.”

      Submitter: “Will do my best sir.”

      This is unbelievable, shocking stuff.

      A sizable chunk of the world’s adjustable-rate investment vehicles are pegged to Libor, and here we have evidence that banks were tweaking the rate downward to massage their own derivatives positions.

      The consequences for this boggle the mind. For instance, almost every city and town in America has investment holdings tied to Libor. If banks were artificially lowering the rates to beef up their trading profiles, that means communities all over the world were cheated out of ungodly amounts of money.

      First there were huge bid-rigging settlements for Chase, UBS, Bank of America, GE and Wachovia. Now we’ve got a $450 million settlement for Barclays for Libor manipulation, and one imagines this won’t be the end of it.

      Anyway, more on this to come soon, and if you’re wondering, yes, there should be a lot more press on this.

      Read more: http://www.rollingstone.com/politics/blogs/taibblog/a-huge-break-in-the-libor-banking-investigation-20120628#ixzz1z8HHNKHw

    • O.k. TMK. Greece is not part of the new Europa Union.

      Enjoy your barbaric alliance of sorts and let us know how soon you are in need of some class.

    • Then I guess it was a mistake for you to agree to enter the E.U. Why did you in the first place? Because everyone else was doing it? The Dutch don’t strike me as fashion victims. Could it be because Holland as well as Germany had a captive market to which they could sell their goods and arms? It’s good while you’re making a buck, but as soon as the druggie can’t pay you for the “stuff”, the finger pointing and shakedown starts.

    • tmk

      They try hard for what? Giving their wealth and livelihood to thieves like you?

      So you will sing about Europe by using Greek words?
      Europe is Greece.

      Find another song.
      Something with sausages will suit you best.

    • martin, the not-so-ordinary casino has its’ own rules for the hard players involved in rigging Libor & Euribor interbank lending:

      […] In a statement to the Commons on Thursday, the chancellor, George Osborne, played down the prospects of any of those involved facing criminal prosecution because rigging Libor [the London interbank offered rate] is not a criminal offence under the City’s regulatory regime.

      Barclays has been fined £290m in the UK and the US for its “serious, widespread” role in manipulating two City interest rates used to determine the cost of borrowing.

      Investigations into other banks are continuing.

      http://www.guardian.co.uk/business/2012/jul/01/vince-cable-criminal-investigation-barclays

      …and the perpetrator’s reply in the wake of this global scam?

      […] The Barclays chief executive Bob Diamond, in charge of Barclays Capital at the time the breaches occurred between 2005 and 2009 & regarding the false information about the interest rates it had to pay to borrow money in an effort to paint a false picture of the bank’s health to markets:

      a – apologises and
      b – says he and three other key executives would waive their bonuses for this year.

      http://www.guardian.co.uk/business/2012/jul/02/timeline-key-events-libor-barclays?intcmp=239

      great lines for stand-up comedy don’t you reckon?

  • I just received wonderful news from the Rhine hinterlands.

    Our Greek legions (aka Italian squad) have reclaimed the barbaric lands and have imposed football austerity throughout the reconquered territory.

    For any of the barbarians still having withdrawal symptoms, we suggest (a) try harder and (b) in case (a) does not work out then an immediate vacation to the Greek islands for a minimum 60 days (the arbeit model is broken already).

    • You are right! The arbeit model succs, arbeit succs! These Germans should take option (b) and learn from the Greeks how “not to work” works. That’s what Greeks are good in. That’s at least something, isn’t it?!

    • TMK:

      With one tiny correction. That when you take vacations in Greece actually Greeks are working to enhance your pleasure.

      As to the Deutcher Arbeit model, I think yes it’s broken beyond repair because it induces rampant consumerism onto others.

    • tmk

      Of Course it is.
      We work with respect to Nature ,not steal the resources of other human beings and children dying in the third world ,for eating bloodwurst and drinking beer.

  • Finally a good proposal that is not founded on someone else paying. On top of that Target2 needs to be capped & more interest charged & a mechanism needs to be introduced to reduce the balance.

    • I think there should be customs duties and import quotas. There mustn’t be so many exports to Greece any longer which are never going to be paid. That would be more effective.

    • n eu d ,tmk

      Where were you when everybody payed for Germany to reform herself slowly and without austerity?
      And for what? For having killed millions.

      You didn’t deserve this generosity.

      And noone asked your money. Your own government betrays you.
      But you do not mind ,since what your government wants is what people like you want.

      You are definitely the worst kind of human being upon this earth. And you give your fellow Germans that have a brain ,a bad name.

    • Demetri, do not worry we will betray our government next year. We will kick Merkel out of office and all her loyal voters will vote for Nazis & communists just like in Greece!

      The Euro brings peace & prosperity to Europe, NOT

      What a shithole the French got us into iby enforcing this worthless currency on many Europeans.

    • Although I don’t want nobody to leave the EZ. It will though stop Germany from blackmailing the rest of the EZ, and make them an equal member. Very nice.

    • I don’t think you need this absolutely great idea to use the exit door. The exit door is wide open for Greece, especially at the moment.

      Or did you mean that Germany will leave the Euro Zone if the country was not “allowed” to join the noble club of Club Med Euro Bonds? I think the Germans would be sooooo sad! Maybe you are right, maybe they’d feel huffy and just leave.

    • Equal member? Paymaster! I am really scared when I think abou the election in Germany next year. We will see the Versailles effect all over again…

    • Equal member? Germany?

      For years everybody was their paymaster and now that the time has come to prove they worth something at a basic human level ,they play it superior with their manipulative and utterly destructive ,parasitic economy.
      And they love it.

      They are only good for farting sausages and stealing the livelihood of others.

  • I read your blog with interest, but am dismayed at your mention of the ‘Economic and Social Committee of the EU’. If you are counting on the EESC to influence anybody or anything we will all be dead and buried before that happens!

  • I read your blog with interest, but am dismayed at your mention of the Economic and Social Committee of the EU. If we expect the EESC to have any influence on the outcome, we are delusional and misguided.

    • “we are delusional and misguided.”

      That’s what you are anyway, especially the prof.

    • tmk

      Yes we are. As when we were saying that the Earth is round.

      Although certain German scientists go to great lengths to prove that everybody is wrong and in reality the Earth is a big bockwurst.

      Oh well……Germans.

  • This is great! I fully agree with you! Let every country mutualize debts except for those who don’t like that (e.g. Germany, Netherlands, Finland, Estonia … well, all those That is true democracy! Strange that nobody got this idea before, don’t you think? They just decided to introduce a Tobin Tax by ‘enhanced cooperation’, but they didn’t consider enhanced cooperation for Euro Bonds even though some particular countries seem to talk about debts mutualization from morning till evening. Weird, isn’t it? I think none of them is as smart and creative as you are, professor!

    Well, dear commentators, who seriously thinks that the day will come on which France decides to share debts with Italy and Spain but without any of the solvent Northern economies? If that happens, I promise you I eat my shirt.

    Now, who thinks that the day will come on which any country agrees on sharing debts with Greece without real power over the Greek budget? If that happens, I promise I eat my shirt and my trousers!!! LOL

    Well, professor, I always thought this blog is very weird. I always thought this was an entertainment blog with some mickey mouse economics for all those leftist Greeks who need some shared self-pity during these hard times and a so called “expert” who explains to them that all this is an international conspiracy and that Greece is a victim. But now you made me suspicious. Maybe I was completely wrong, maybe you are really serious with all that “We teach the Troika a lesson” recommendations and “Euro Bonds with Greece by enhanced cooperation” and you just suffer some kind form of perception disorder? Professor, they might ask you if you were drunk if you send that to the Financial Times! 🙂

  • All those solutions are not scientific. There is no proof that any of them would work without causing side effects and instabilities in some other aspect of world economy. Build a mathematical model, see if it is applicable and apply stability theory in order to prove that with the proposed input the financial system will reach the desired state. Engineers have done for airplanes, ships, bridges and many other things that we use every day with much success. Leave blogs to journalists.

    • You would be shocked to find out that the US crisis (that actually triggered everything that followed) had much to do with the way the subprimes were valuated based on mathematical models.Oh and btw engineers dont have to deal with 743635347345352363634 variables.

  • I was thinking something like this too, few weeks ago, actually the EU has zero debt, so if it starts issuing 5 years bonds we will be able to buy 5 years time. If “keynesian” theory about fiscal stimulus is right, issuing debt for investment would boost economy at point the debt will be also repayable.
    Of course this would be quite a scaring bet, I don’t know how many politicians would dare the risk, but yes there’s this possibility, even if we don’t know how many probabilities our politicians will try this.

    But there’s an other point, if the EU would be doing this with an enhanced cooperation, this could not be backed by the BCE, so the whole issuing will be backed only by taxpayers from the 9 (or more) countries taking part to the program, and so there is still the risk of having the common bonds priced with high interests, especially if the 9 countries are those which already have huge debts. If the interests was higher then the multiplier we would be off.

    Maybe what we can do are blue/red bonds *within* an enhanced cooperation. This means replacing the Maastricht compliant part of the debts with commonly issued bonds and orderly default on the rest. I am not sure how practicable could be, but maybe…
    I don’t even see too much advantage in this, perhaps the only advantage would be to create an economic area within the eurozone larger then Germany… so to have much bargaining power, but unless this is backed by a kind of federal something it’s difficult to make that power effective, but a federation without territorial contiguity will hardly work…

  • What I have to say to certain people posting comments on the blog is that jealousy is the highest form of flattery and Greeks thank them for it. All civilizations and nations endure crises and downturns as well as the apex of glory and fortitude. Greeks in as recently as WWII have reached the pinnacle of accomplishment while other nations can only claim that they were barreled over by the wermacht. Before you spit your venom, it would be prudent to learn from history otherwise you are destined to repeat it. Many a peoples far stronger than any on the globe today have doubted the Greeks and all have been sent to the fine print of history. You can tell as many Chinese businessmen you can get your words to about how Greeks are “lazy” and “useless.” You are only strengthening your own con.

  • TMK

    Ha! You took every comment and twisted it like your own filthy intestines.

    Look who is talking.
    You are the biggest example of the criminal acts of your government.

    And stop changing usernames.

    • tmk

      We are proud that people like you ,do not like us.
      Otherwise we wouldn’t be able to face ourselves.

      Truly your existence ,gives human beings a reference point ,to know what is important and what not.

      You are not.

  • @2012GR, most of us are not against a free-trade zone, many of us were from the beginning against a single current!
    This because our Florin was one of the best currencies of the world like the Swiss Frank. It was from 1680 and when I was young were the coins out of silver!
    And now? Now we are playing with monopoly money. What do you expect? What do you expect from us? Be happy by giving our money to the south and never get it back? Because that is the plain true! Greece will never be able to pay back the money! By the way, I paid all my life for my pension. And were did they invest most of it? Because it was in the Eurozone? Yes…in South Europe. Best regards, Martin.

    • Martin

      Why will Greece not be able to repay the money now?
      I repeat ,NOW. Not before the crisis.
      And not only Greece.

      Because of the so called refinancing operations that were initiated only to cover the banks.

      For one more time. Wake up people.

      It is so amazing how lame human nature is. And they (powers that be) know it very well.
      That instead of people finding the truth ,they will settle in accusing others.

      http://www.craigwilly.info/?p=987#more-987

      This also goes for the so called investments in South Europe that were magically vanished. And where to? Back to the hands of the elite and Germany.

      Best Regards ,Demetri.

    • @martin, Holland:

      Your points are well put and worthy of respect (even if I disagree with some) however please don’t blame the wrong people for the fact that your pension funds or banks invested in Southern Europe.
      I’m sure the fund has (or should have) the requisite governance to assess where they should invest. Moreover EU governments all have a responsibility to regulate such investments by funds, banks etc.
      If these organizations made poor investment decisions, THEY have a responsibility to you.

      Blaming Southern Europe for being in an economic crisis is at best disingenuous, when they’re being forced by core EU governments (including Holland) to accept loans in order to bail out your banks and your insurance funds at the cost of their own banks and pension funds.

      Forcing millions of innocents to suffer in order to pay for the poor investments of your financial elite, is hardly grounds for moralizing.

      Yes I’m aware of the terrible economic mismanagement in the EU periphery, but that doesn’t change the fact that millions of people are completely innocent of any wrongdoing.

    • Dear Demetri, DiJordan,

      I don’t think you are paying back to the elite! Fist, the money your government has borrowed was given by a very low interest. And our government gave billions and billions to save our banks and some are state owned now (like ABN) Many shares of that banks are in the hand of our pension funds. (they are private)

      And we also have problems (of course not like Greece) to recover from that huge crises. Another problem is that if we give more money (don’t forget Holland given VERY MUTCH money to Greece!) we will get in trouble ourselves! (rating!)
      And our politicians will have problems too because we have elections in September and don’t forget the anti-Europe lobby is getting stronger and stronger….. (PVV+SP)

      http://en.wikipedia.org/wiki/Party_for_Freedom
      http://en.wikipedia.org/wiki/Socialist_Party_(Netherlands)

      Best Regards, Martin.

      Professor, me I ask what is your opinion about this subject?

    • “and don’t forget the anti-Europe lobby is getting stronger and stronger….. (PVV+SP)”

      Thank god! The governments in the North must learn the hard way, that they cannot betray their people. I hope sincerely that we will have extremists in all parliaments in the North and people in the streets that have nothing to eat.

      Only this way theses idiots will learn what an idiocy their European dream is.

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