By Mathew D. Rose, a freelance journalist in Berlin
The austerity policy dictated to the Eurozone by Germany has failed to generate a recovery. The news goes from bad to worse – and even worse. Nowhere is that more tangible than in Greece. Just to repeat the otherwise well known facts for the German readers of Naked Capitalism, who are withheld such facts in their own media: 1 million people have lost their jobs (approximately 25 percent of the working population); youth unemployment is well over 50 percent despite massive immigration; a third of business have closed, salaries have sunk almost 40 percent; pensions have been reduced almost by half; the economy has contracted by a quarter; there has been a 43 percent increase in child mortality and the health system has broken down; the Greek economy is in deflation; and, since the imposition of the austerity programme in 2010 the public debt has increased from 130 percent of GDP to 175 percent.
All these figures hide the most important fact: What is occurring in Greece is not so much an economic crisis as a humanitarian disaster. That the Greeks have raised the question of the appropriateness of austerity by precipitating elections is proof that democracy has survived these pernicious times and deserves our greatest respect. I sincerely do not believe that German democracy would have survived under similar conditions.
The democratic process in Greece is a threat for Germany and its allies, the political elites in Europe. They have a serious problem with democracy. When in 2011 the then prime minister of Greece, George Papandreou, announced a referendum to determine if the Greek people wished to adopt the imposed austerity programme, he was forced from office by the Germans and EU and replaced by a hand selected EU bureaucrat, a former vice-president of the European Central Bank. With the balance sheets of German and French banks in danger due to their extensive exposure to Greek bonds, that was no time to be consulting the Greek people.
Helping the Greek people in their time of need has never been an issue for the Germans and the EU. We know from Timothy Geitner’s book “Stress Test” that at the inception of the Greek crisis “EU leaders were obsessed with crushing terrible Greeks” and Germany’s finance minister, Wolfgang Schäuble was just as obsessed with throwing Greece out of the Eurozone (which he still is).
We further know from files leaked to the Wall Street Journal that within the IMF in 2010 Argentina, Brazil, India, Russia and Switzerland all argued that a portion of Greece’s debt owed to private banks should be cancelled before any bailout from the IMF. They knew all too well that the planned Troika (European Central Bank, EU Comission and IMF) “bailout” was intended to rescue the European banks, predominately those of Germany, France and Britain, with their high exposure to Greek government bonds, leaving the Greek people in an even direr situation. The head of the IMF, the French politician Christine Lagarde, denied this the existence of this dissent for years. Two years later Greece’s debts were reduced by half, but by then most of the debt lay with the EU and IMF, the banks and other financial institutions having exited the Greek bond market.
There has been no tangible solidarity or compassion shown by EU leaders during the Greek crisis – except with their banks. Today the Troika pertinaciously demand increasingly destructive “reforms” from Greece, but have neglected the two most important: a purging of the corrupt political elite of Greece that was responsible for the crisis and clamping down on the systematic tax evasion of Greece’s oligarchy.
The two parties that have dominated Greek politics since the demise of the dictatorship in 1974 and are responsible for the crisis, New Democracy and PASOK, are still in power, enjoying support from the predominant EU parties, who are no less corrupt than their counterparts in Greece. There has been little progress in pursuing major tax evaders of the past and present. The head of the General Secretariat of Public Revenue responsible for tax compliance comes from PwC, a firm that has recently found itself in the middle of the affair concerning corporate tax dodging in Luxembourg.
Germany does not want change. It is more interested in keeping its Greek Quislings in power. No wonder that in Germany there is currently a campaign by the political elite and their media bullying the Greeks and falsely mobilizing public sentiment against a potential Syriza government. The German government is threatening to throw Greece out of the Eurozone, although such a procedure is not foreseen in the laws regulating the common currency. This is the prerogative of the stronger, claiming that Greece is bound by contract to repay its debts to the EU, but on the other hand not in the least interested in the regulations of the Eurozone contract.
What the Germans seem to have in mind is a financial blitzkrieg against Greece should Syriza win, reducing the land to economic rubble and dust, an example for other potential refractory Euro nations. This has been justified by claiming that Syriza is blackmailing Germany with a default, but then Germany claimed its invasion of Poland in 1939 was also an act of self-defence. Things do not change.
This sort of rhetoric has not issued from other Euro nations. In fact we are hearing nothing with the exception of the French President Francois Hollande, who stated in an interview: “The Greeks are free to choose their own destiny. But, having said that, there are certain engagements that have been made and all those must be of course respected.” This has little in common with Germany’s threats of “awe and destruction”.
Germany’s current policy has little to do with the Euro, but is a reaction of a challenge to their hegemony in Europe. The idea behind the European Union was to extirpate cataclysmic wars within the continent. Now it seems that such practices have returned – using economic means, much like we are seeing with Russia.
Should Syriza win the elections later this month, and a government is formed that wishes to renegotiate the so-called bailout imposed upon the Greek nation, then it is the responsibility of the Eurozone members to negotiate. Should a compromise not be forthcoming and all sides agree that Greece’s exit from the Eurozone is necessary, then it is still the responsibility of the member nations and those of European Union to see that this is done in an orderly and humanitarian fashion. Greece is part of the “European family”, as the union has been labelled in more auspicious times, and has no intention and no reason to leave the European Union, even if it should withdraw from the Euro.
Germany’s threats are certainly not in the spirit of the EU, but reflect its rekindled dreams to dominate the continent, signaling the return of the same brutal nationalism and large nations throwing their weight about that has plagued Europe for centuries and almost led to its destruction in the Second World War.
Admittedly Germany does have a number of serious issues to deal with.
First, any sort of rebellion against Germany’s hegemony in Europe could easily spread. Europeans are increasingly fed up with austerity and German financial – and unsuccessful – dogmatism.
Second, Syriza is a leftist party and that is anathema to a politically reactionary nation like Germany.
Third, should Greece default activating German government guarantees, Germany’s much heralded balanced budget for 2015 could be in jeopardy.
Fourth, the European perception of Germany is increasingly that of a bully dragooning small nations. Furthermore, having to negotiate with Greece will domestically appear to be a sign of weakness and would be grasped upon by the up and coming rightist, anti-EU party “Alternative for Germany”, which is drawing voters from Chancellor Merkel’s Christian Democrats.
There is a further question: Is Germany simply trying to influence the Greek elections with its threats and posturing? Forty years ago as the dictatorships in Greece, Portugal and Spain collapsed; to prevent the success of leftist parties, the German government channelled large amounts of money to parties on the right. To do this, they used the dubious publically financed foundations of the German political parties: the Konrad-Adenauer-Stiftung, Friedrich-Ebert-Stiftung, Hans-Seidel-Stiftung and Friedrich-Naumann-Stiftung. The funds were surreptitiously provided by the Foreign Office (Auswärtiges Amt), packed in suitcases and the couriers from the foundations provided with diplomatic passports. From the foundation offices in the above mentioned nations the suitcases could be inconspicuously given to a member of a sister party of the foundation. These German foundations had closed their offices in Greece many years ago, only to reopen them in 2012. It could well be that suitcases full of cash are once again travelling south from the Foreign Office in Berlin to Athens.
What is especially fortunate for Europe is that this challenge to German hegemony and the corrupt political class of Europe is coming from the Left. To leave this issue to the rising ultra-right and neo-fascist parties would have been calamitous, giving them the reputation as champions of democracy in Europe. A new force seems to be rising in Europe, once again giving a voice to a European perspective of social justice and peace. One can only hope that prosperity will follow – should Germany not instigate a second Götterdämmerung for Europe. You never know with the Germans.
70 comments
Comments are closed.
I think you mean emigration rather than immigration
About this:
“Today the Troika pertinaciously demand increasingly destructive “reforms” from Greece, but have neglected the two most important: a purging of the corrupt political elite of Greece that was responsible for the crisis and clamping down on the systematic tax evasion of Greece’s oligarchy. ”
What is the author of the piece suggesting? Should foreigners purge the political elite in Greece? If so, how?
The simplest way would be to exact and demand meaningful tax reform and capital controls. Make the elite pay what is due, and prevent them from sending their capital fleeing across Greek borders. As seen by the humanitarian crises that is unfolding in the country, the Bundesbank indeed has the leverage to extract a pound of flesh from any group it chooses. That it leaves the wealthy and corrupt politicians whole and in power says a great deal about the Germans true motives and class biases.
But speaking of “capital fleeing across the border”, shouldn’t we also consider the capital that fled France and Germany and went to Greece in the form of hot money? Monkeyed Greece to be a member in the first place? I bet most of that money originated in tax havens like the Caymans and Malta, found its way to German and French banks, now they want a Greek bag holder to fess up on all of the taxes he owes? Hard to tar the Greeks with a moral brush for tax evasion….considering the estimated $37 trillion in offshore money, much of which went yield-seeking in Greece.
To be perfectly honest I do not see an explanation on how the Troika can purge the Greek political elite in your post. Maybe I could understand if you broke it down into smaller pieces?
What leverage does the Troika have on the Greek political elite?
Can the Troika imprison the Greek political elite?
Can they nationalise the assets of the Greek political elite?
How large portion of the Greek political elite is corrupt?
How can the Troika force Greek tax-authorities to become more efficient in pursuing Greek oligarchs?
He also wrote this:
“The democratic process in Greece is a threat for Germany and its allies, the political elites in Europe. They have a serious problem with democracy.”
I believe this includes the Greek elites. He also gives a glimpse of hope as to the “how” in his closing paragraph.
As for “foreigners” and “elites”, all I can proffer is that “elites” are “elites” and the rest are the rest everywhere, i.e., the 1% and the 99%.
There’s a good argument to be made that the Troika’s policies further entrenched Greece’s elites. After all, only the local elites could have implemented the Troika’s prescription. Neoliberalism reinforces corruption everywhere it goes.
If Syriza leads the next government and if Germany follows through with a scorched earth policy, Greece could seriously stir the pot by turning eastward towards Russia and Eurasia for economic support.
Yes, they should climb aboard the Silk Road projects. They would have more of a future there than with the EU.
Also, as an Orthodox society, they would be advised to stop presenting their asses to be kicked by the Catholic, Calvinist, & other Protestant societies. Leave them to chew on each other, just like in old times. Of course, now these religious beliefs are vestigial, as their True God is NeoLiberalism who, like Moloch of old, requires the sacrifice of their children, on the evidence something they willingly do. “I give, in order that I might receive.”
” Germany claimed its invasion of Poland in 1939 was also an act of self-defence. Things do not change.”
“One can only hope that prosperity will follow – should Germany not instigate a second Götterdämmerung for Europe. You never know with the Germans.”
Glib, much?
The Greek Government caused as much trouble for its citizens by being corrupt and fraudulent, as does the current German Government by being inflexible. The Greeks, however, voted for those corrupt and fraudulent governments and have continued to do so. It is by no means a given that Syriza will win (although they are doing better than Golden Dawn, thank heavens). Your dependence on historical cliches is, um, unhelpful, to say the least.
The Germans also voted for their racist governments too.
And I am talking about the current one.
That would be the German Government that condemns its own Islam hating citizens? Racist how?
It is the German goverment and media that played the card of lazy tax cheating corrupt Greeks that the German population believes because of their preconceived racist notions.
“In an unusually pointed interjection, German Chancellor Angela Merkel on Sunday declared that multiculturalism in Germany was a failure and said it was an illusion to think that Germans and foreign workers could “live happily side by side.”
Racist government? The German government would argue it is acting in the best interest of Germany. Greek governments are selling out Greece. The chief complaint about the Merkle government is that it acts in the interest of German banks, not the German Volk. It’s not racism, unless we now distinguish the difference between the 1% and the 99% as racial.
And it did this by saying that Greeks are lazy and corrupt tax cheaters and continually talking down to them. If it was honest in itd dealing from the get go then I would agree with what you wrote. But that is not the way it riled up its population against Greeks.
It could also act in the best interest of Germany with out having destroy and vilify the Greek population. It could of done that but didn’t. Greeks just had to be punished.
Greeks > Corrupt and Fraudulent.
Germans > Inflexible.
Glib much?
I’m taking the point that the German have been inflexible with regards to the Euro from the article, but also adding that said article does not seem to see that Greeks have played a part in their own misfortunes.
But the Germans are not Corrupt and Fraudulent in euro dealings are they? They are only inflexible.
“Your dependence on historical cliches is, um, unhelpful, to say the least.”
Which historical cliches? The Germans as Nazis or the Left as the Saviors?
Good point. Both.
Sorry, you are wrong.
2012 was the first time that Greeks could vote following Papandreaou’s forced withdrawal by the EU and the imposition of technocrat Lucas Papademos (a Vice-president of the ECB) in a temporary government that lasted sufficiently long to vote in the Austerity ‘memoranda’. This election was marred by an unprecedented barrage of daily Grexit threats from the EU, ECB, IMF, Angela Merkel and Wolfgang Scheuble – never mind that this was a lie and that no legal mechanism exists for withdrawal and still doesn’t. The results were a tie between SYRIZA and right-wing ND and the Greeks went to the polls a second time. Again the threats occurred, including statements that Greeks’ savings would be lost and ND won with under 2%, a result which when analysed was produced by elderly pensioner swing voters afraid of destitution.
Since ND had insufficient seats to form a majority a coalition was formed with its traditional opposition party PASOK, whose share of the vote had plunged to 12%, and a small 3rd party.
Mind you the 1.8% vote difference was secured on ND’s promise to renegotiate the memorandum. This never happened.
Worse, under Troika/ND at no time were Troika’s plans /reforms explained to parliament, and when memorandum bills came to vote no time was given for discovery and debate but 800 page documents were delivered 24 hours ahead of the vote, and voted through by the majority government voting en bloc. All of these votes have been accompanied by propaganda threats from Berlin, EU, ECB, IMF etc. Meanwhile important legislation has been decreed into law by the Prime Minister 26 times so far without informing parliament , through misuse of the emergency decree, a law drafted decades ago for use in times of war or natural disaster.
In 2013 ND’s ties to the fascist Golden Dawn were revealed in a scandal, though this was apparent already through ND’s non-prosecution of GD abuses up to and including murder, and calls from the Prime Minister’s entourage for an ND partnership with GD in a ‘coalition of the right’. US intervention forced ND to prosecute GD after the 2nd murder [of rapper Pavlos Fyssas]. Your “thank God” comment is unfortunately wrong.
There is a general perception in Greece that the present elections have been engineered by Germany, since the presidential vote precipitating it was brought forward 3 months with no apparent need. The election hinges around Germany’s intention to force on Greece an unneeded 30 bn loan [increasing the debt load to 200bn] with ‘conditionality’ overseen exclusively by Germany. Details of the conditionality revealed so far include the immediate slashing of the pensions (slashed 11 times so far) and minimum wage by 20% – the new minimum wage would be an absurd 416€ a month before taxes, down from an absurd 530€. The coalition government had already been betrayed by Germany which refused the debt reduction deal once Greece produced a surplus (achieved Dec. 2013) it had held out as a carrot since 2012, and the coalition knew that its 1-seat majority would evaporate once put to vote.
Meanwhile Germany’s Grexit threat propaganda have been in full swing (and ECB, EU) since the election started until stopped by the EU countries over the weekend after the bond crash last week.
I write this from Athens so that you can become aware of the gross and illegal external interference in the democratic process, based on lies. If even 2% of frightened, uninformed voters believe Germany’s claims, another slim majority would be delivered to ND, and the new loan – that even the ND government doesn’t want – will go through.
Thank you for your insights and for educating me on some aspects. The news in the UK seems to paint Golden Dawn as largely in retreat as a political organisation although its racist attacks are still highlighted.
With regard to the democratic process, you may think I am being unreasonable here, but those measures were still enforced by Greeks upon Greeks. Panic propaganda is always used by foreign governments to get the result which they think will be in their own best interests, not that particular country’s. The history of the world post WWII proves that point. Although not in the Euro, we in the United Kingdom are already being given the points of view of Barak Obama/state Department (USA), Germany and EU about our discomfort within the EU. We’ve got another two tears of that before any particular mooted referendum. We also had that during the recent referendum on whether Scotland should become independent. We are a global world. What do we do?
According to polls mentioned in spanish media, about 70% Greeks wouldn’t like to exit the euro. It seems thus that a “grexit” is not in the agenda. Nevertheless, i don’t see any good reason for Greece (or Spain, Italy, France…) to support the euro. All the advantages that the common currency had and has have been largely surpassed by the disadvantages. The common currency has evolved into a economic battlefield in which the loosers are overwhelmed taxpayers destined to diminishing incomes in the foreseeable future. Something that M.D. Rose describes so well in this piece.
“You never know with the Germans.” This end phrase is the one too much. I am utterly disappointed with what NC has become in terms of geopolitical views(:
I will stop reading thus block after over 6 or 7 years (cannot remember Yves first steps). We can certainly accept debate within the E-C and arbitration on monetary policy within the single currency zone is most welcome, here and elsewhere.
This post is clearly something different. Something I utterly dislike.
Bye
By the way, I am no German or affiliate of any kind.
The Germans have already behaved brutally towards Greece. Rose describes the huge human costs. But apparently calling that out offends your tender sensibilities.
I think “brutal” is a bit inflammatory, some of this is definitely cultural. My German friends tell me that taking on a debt is like a sacred covenant, you pay it back no matter what. Greek tradition views things differently, you figure out ways to get out of it. Mashing all of the European cultures together is still the foundational problem of the entire euro project
Would the unpaid 2nd world war reparations from Germany to Greece be considered as a debt ?
According to Germany, no. Excuse me, ‘nein’.
That is a very good question. Got a link?
More convenient anti-PIIGS propaganda:))
Ironic too, since Germany has been the world’s biggest debtor and received twice the world’s biggest debt forgiveness – Dawes Plan, London Conference – at the cost of the Allies including Greece.
Yves,
it’s beneath you, and your usually excellent website; one that flies the OWS flag, that purports to understand that most of the issues are caused by an “elite” who feel themselves above nationalistic interest in the pursuit of self-interest, to not only post an article with blatantly racist overtones but to then get in a hissy and try and defend it when you are called on it. Like Daniel, I have lurked here for years but, if this is the way articles will be going then this will be just another blog thats fallen by the wayside.
With all due respect, the article is harsh but your charge re rascism is not only a cheap and inaccurate shot, it is actually a perverse reversal of what is going on in Germany, where the German press too often refers to Greeks as shiftless, lazy, and even worse to justify their treatment.
People are being ground into abject poverty and squalor, and you are upset at German conduct being called out as inconscionable? I have friends who are academics, studied and lived in Germany, have sympathy for the culture, and they describe Germany’s conduct in terms even more harsh than Rose does, because it is vengeful and wanton destruction that is eventually going to destroy the Eurozone. It fully deserves to be excoriated.
If calling out conduct that deserves to be criticized for its unconscionable human costs offends your tender notions of political correctness, you should be reading other sites.
No, Yves, with respect, we are calling out this article for resorting to lazy stereotypes of Germans being warmongering invaders (the Poland reference, blitzkrieg), who have not learnt from their past (the Gotterdamerung reference). Sure, Germany is not behaving the way people who want to see peace love and harmony spread economically through the Eurozone would like to see, but those references are infantile.
I’m sorry but most of the commentariat disagrees with you. We routinely say at least as bad things about the US. This site has never gone for political correctness. Michael Hudson early on compared Germany’s austerity policies to a financial war. And the language used in the German media towards Greece and periphery countries is routinely dehumanizing and vengeful. Moreover, there have been deliberate efforts to increase the human costs. For instance, immigrants from the Baltics routinely transit northern Greece on their way to northern Europe. There had never been any effort before to block this influx. Suddenly, after austerity was imposed, these migrants were barred from transiting, leaving a large population with no means of support on the hands of the prostrated and broke Greek government. Similarly, the Trokia’s plans included selling Greek beaches and national assets like the Acropolis. Looting a country is what victors in war do. Those comparisons are apt even if you don’t like them.
Yves – I was reading one comment after the next until I came to “daniel” and thought “well, there are indeed readers out there with a brain”. Only to then see that you defended this overly vituperative attack on the Germans in a reply. You even look to the “commentariat” for backing, completely ignoring the fact that the Germans are the “new” Jews about whom it is perfectly alright to cast aspersions, every commentariats favorite pasttime! Let´s see: their intelligent, cultured, organized, successful, rich, arrogant – yea, those are definitely the characteristics of a good punching bag just like they were for the Jews. To see this site get on its high moral horse about a country pursuing policies that are to its advantage is amusing at best. Since when is Germany responsible for Greece´s well-being? All that is really happening is that the chickens of the stupid Euro monetary union are coming home to roost. I have lived here for 20 years so I experienced the “Teuro” (teuer = expensive in German) and said back then (2001?) that it obviously wouldn´t work – to the dismay of my idealistic Europe-loving German friends (who would be totally dismayed to hear themselves being characterized as they are in this article).Furthermore, any references to “Gotterdämmerung” and “blitzkrieg” has no business in a serious discussion – it´s just obvious German bashing and, as “daniel” observed, UNHELPFUL!
I thought the idea behind the EU was that “We are all in this together”? What is UNHELPFUL is to kick Greece while it’s down, which is what Germany does by virtue of it’s control of EU policies. In the end, these policies end up punishing the regular Greeks, and indeed the entire European South, while corrupt Greek elites get rewarded for their cooperation. How is that helpful? How is it helpful to cast the entire South as lazy welfare queens? Did you object to that?
Really dude?! Way to accept the motivations of the hegemon at face value.. FYI, some Germans are questioning the direction of their country under Iron Frau Angie in much more vehement language. For your easily shocked/offended sensibilities, I recommend that you listen to this clip of Dr. Sahra Wagenknecht of Die Linke: https://www.youtube.com/watch?v=lIi4a7ri-dc.
Not too sure why you deem this post offensive or anti-German for that matter.
I regularly meet with German friend’s, all on the left of the political spectrum, and all are aghast at the present German Federal Government and the lack of transparency across the Federal Republic. Indeed, Frau Merkel seems not to like criticism aimed at her, the governing coalition or the Bundesbank – I know this for a fact as my one German friend is a journalist and treated with contempt for dishing the dirt, which many in Germany prefer swept under the carpet and not highlighted. Further, its opinion that the German press/media is nowhere as competent as its English peers, particularly when it comes to uncovering scandals, and my God, he believes the ECB is a scandal and is fully aware its dominated by German opinion, of which he’s none too happy.
Obviously he’s from the Northern industrial heartland, which is why we get on together as our politics and academic interest are quite similar. Great people in my opinion with a government and elite they don’t deserve, but is this not the case in most western democracies presently?
I remember reading somewhere ( forget where) that while Merkel may well have been ideologically opposed to Communism, her “deep psychology” was still affected by growing up in that society, and she might well be viewed as a “Market Stalinist”. Anything to that view?
Surely the core issue is that the greek government lied in order to qualify for entry to the EU, and are now protecting their best interests which are to extract as much as they can from the EU while giving nothing back. Joining the EU wasn’t the reason for the demise of the Greek economy, it was a lack of tax receipts in a country where not paying any taxes is considered normal.
Surely the core issues are:
1. Re-structuring debts that cannot be repaid might shift the balance books of wealthy lenders towards the red.
2. Doubling down on debts that cannot be repaid – by revenue shattering austerity; interfering in elections; and continued lending at usurious rates (that last one is the friggin’ carrot in the current construct!) – exacerbates a prolonged economic downturn that continues to make the wealthiest lenders wealthier, with catastrophic outcomes for the most vulnerable.
Thoughtful and disturbing.
The Germans also voted for their racist governments too.
And I am talking about the current one.
The Eurozone is turning out to be one of the biggest mistakes in history.
Maybe from a bourgeois pov, but from a imperial pov, it is the best since Hitler’s gang was practicing occultism.
There is another important aspect to this, as it isn’t just Greece that is suffering from Troika austerity. Ireland is turning into a slow motion version of Greece,not to mention Spain etc. If Syriza can succeed in getting a better deal for the Greeks this will inevitably give hope to others in the other slower sinking ships – which I’m sure is another consideration for the Troika, as they sit in their bunkers hoping for a financial miracle weapon while sacrificing their citizens to protect a rotting construct.
Perhaps it is not entirely on target to view this in terms of “German Neo-Nastyism”? Perhaps there is an element of pan-Eurpoean Upper-Class TroikaNazism at work?
Different clue: read my takeaways from Merkel’s profile in the New Yorker. Frankly I do think that Merkel’s Germany is a newly assertive, tone-deaf force of malevolence.
OIF,
Great & informative comments in that earlier thread. Your perspectives on politics & society in Eastern & Central Europe are extremely illuminating. Thanks for sharing them here with us.
These rabidly anti-German screeds are becoming tedious. To listen to Rose (and some other NC contributors) we are potentially only weeks away from Angela Merkel leading Panzer Lehr in a stirring rendition of Deutschland Über Alles as the Reichskriegsflagge is raised over the Acropolis.
Again.
It’s like austerity and neoliberalism is a specifically German disease that the Godless Krauts are forcing down the throats of helpless Europeans. Greece’s own elites are of course entirely blameless, and everyone knows that other European governments as well as that of the United States are unalterably opposed to austerity and wholeheartedly reject neoliberalism – tragically, they are just too weak to stand up to the relentless bullying of the Teutonic Übermenschen.
Match for that straw?
Your exaggerations conceal some realities:
1) Germany is the big dog on that block. The rest of Europe did NOT want to see Germany reunified, as I was told at the time; the EU and the Euro were meant, in part, as restraints on Germany, not as weapons in its armory.
2) Europeans are much ,more historically aware than most Americans – and WWII happened on their soil, not ours. Present circumstances really are looking more and more like the Nazi occupation, and sooner or later that will come back to haunt them. Like this month.
Your comment does not exhibit that superior historical awareness. “Present circumstances really looking more and more like the Nazi occupation” — no less!
Actually, a much more accurate historical analogy is the bullying that Prussia applied between 1815 and 1871 against other German states in other to submit them to its economic, fiscal, diplomatic and political schemes, and eventually resulted in the German unification.
Free-trade area (the Zollverein)? Check. Fiscal system based on the Prussian model? Check. Monetary harmonization based on the Prussian currency system? Check. Supranational organization (deutscher Bund) with Prussia as one of the leaders (with Austria) that forced changes in the German states’ constitutional setup and repeatedly intervened to repress liberal movement questioning the current political or economic arrangements? Check. Diplomatic initiatives that ignored the supranational parliament when its decisions did not fit the interests of Prussia? Check. Permanent upmanship and competition with the other major founder, rival and ally in the German union (i.e. Austria)? Check.
The history of Germany after Napoleon and before 1871 is often kind of nebulous in the conscience of most people — it looks as if nothing really major happened then. In fact, the bumpy road to German unification is fascinating and eerily reminiscent of what has been taking place in the EU.
Drawing on your own superior historical awareness, isn’t the dynamic you’re describing paralleled by the way the English bullied the reluctant Welsh, Scots and Irish into becoming supporting cast members in the creation of the United Kingdom (the name itself is suggestive, isn’t it?) Of course the English didn’t do this by forming a customs union but by the more direct and efficient means of militarily subjugating their non English neighbours in the near abroad. For a time they even lorded over part of Belgium and a large part of France.
When you think about it their unparalleled success as imperialists is obviously rooted in the Englishman’s unquenchable thirst for expansionism and dominion over others.
The situations were quite different.
As you aptly point out, England skipped the economic and political links and went on to subject its neighbours militarily right away. Prussia did resort to war to squelch the last attempt by other German states to get rid of its domination — but this took place towards the very end of the unification process, after almost every state had been economically and legally ensnared by Prussia.
The major difference, though, is that all the German states — and this includes countries that in the end did not participate in the unification, such as Austria, Luxembourg, and Liechtenstein — considered themselves and called themselves “German”, and generally aspired to a German unification. No such thing happened in the British Isles: Scots, Welsh or Irish never viewed themselves as English, did not want to be “unified”, and the definition of “Britishness” was an after-the-fact (and rather muddy) endeavour.
So what is happening in Europe is definitely more comparable to what happened in the mid 19th century. Several states viewing themselves and calling themselves “European”, aspiring to a unification, and that are being slowly but surely subjected to a German-defined economic, legal and political system — which may eventually result in a Germany-dominated Europe, just like the unification process resulted in a Prussia-dominated Germany.
As for the “Englishman’s unquenchable thirst for expansionism and dominion over others”, quite so. Except that some time at the end of the Middle Ages the Englishman realized that those blokes on the continent are really too querulous, too refractory to foreign domination, and ultimately too strong, even when they persistently follow stupid military tactics, to be reduced to abject submission. Better keep them “busy” among themselves, and go on conquering more vulnerable countries.
Prussia did resort to war to squelch the last attempt by other German states to get rid of its domination — but this took place towards the very end of the unification process, after almost every state had been economically and legally ensnared by Prussia.
When exactly did other German states attempt to get rid of Prussian domination? Does this war actually have a name? And before you come back with something lame like the Austro-Prussian War please do your homework.
The major difference, though, is that all the German states…considered themselves and called themselves “German”, and generally aspired to a German unification.
This is exactly correct. The only problem is that it directly contradicts your previous point and the whole thesis of your previous post. German unification was not in the dynastic interest of certain princely heads in the German Confederation, but it was broadly desired by Germans both inside and outside of Prussia. The idea that it was FORCED on unwilling Germans outside Prussia is utter nonsense. The achievement of unification was celebrated in Germany with the same fervor that Americans celebrate their victory in the War of Independence.
Several states viewing themselves and calling themselves “European”, aspiring to a unification, and that are being slowly but surely subjected to a German-defined economic, legal and political system — which may eventually result in a Germany-dominated Europe, just like the unification process resulted in a Prussia-dominated Germany.
Could you please specify exactly what specifically German economic, legal and political system is being foisted on an unwilling Europe? The real problem here is that Germany is 2015 is STILL the single most powerful country in Europe, as it has been since unification, and in spite of losing two world wars. Some people find that utterly distasteful. That’s their problem, not Germany’s.
Except that some time at the end of the Middle Ages the Englishman realized that those blokes on the continent are really too querulous, too refractory to foreign domination, and ultimately too strong, even when they persistently follow stupid military tactics, to be reduced to abject submission.
Translation: the English got their asses kicked all the way back to Merry Old England. Which is why British accounts of the Hundred Years War contain long and loving accounts of Poitiers, Crecy and Agincourt, followed by some vague, terse acknowledgement that the conclusion of the war didn’t quite live up to the initial promise.
“When exactly did other German states attempt to get rid of Prussian domination?”
1866.
“Does this war actually have a name?”
It is called “deutscher Krieg” — the war between the alliance of the German states and Austria on one side and Prussia and some smaller allies on the other.
“The idea that it was FORCED on unwilling Germans outside Prussia is utter nonsense.”
While unification was desired and welcome, Prussia bullied other states so that the economic, monetary and constitutional framework preceding it reflected its interests — and not, for instance, those of Bavaria, Württemberg or Austria.
“Could you please specify exactly what specifically German economic, legal and political system is being foisted on an unwilling Europe?”
The monetary system (BCE, stability and growth pact, etc), with its economic and legal quirks, is essentially set up according to German specs.
The Act of Union with Scotland came after the English bailed out the Scots for their failed economic experience in the Darien scheme.
But you can hardly blame us. Our annoyance with both Scots and Irish were that both were used as bases by the French to provoke wars and rebellions and destabilise them.
I’m English. We have a very dodgy history, about which we can be self-righteous and pompous and downright arrogant, but it does take two to Tango – take a look at the French, Dutch and the Spanish, equally with regard to “unquenchable thirst for expansionism and dominion over others”. It’s more of a European thing.
I agree with the politcal and economic arguments Rose makes here, but the stupid sterotyping of “the Germans” is just not helpful.
“This has been justified by claiming that Syriza is blackmailing Germany with a default, but then Germany claimed its invasion of Poland in 1939 was also an act of self-defence. Things do not change.”
‘Germany’s threats are certainly not in the spirit of the EU, but reflect its rekindled dreams to dominate the continent, signaling the return of the same brutal nationalism and large nations throwing their weight about that has plagued Europe for centuries and almost led to its destruction in the Second World War.’
This is unambiguously offensive.
I knew and liked Matthew D. Rose, when he was a muckraking journalist in Berlin. But this article is over the top. His last line says it all: “One can only hope that prosperity will follow – should Germany not instigate a second Götterdämmerung for Europe. You never know with the Germans.” Bascially Matthew D. Rose is accusing Germany of formenting WW III. For an uninformed reader facts may bear out as much but they don´t.
First of all he conveniently neglects to mention that Germany is not really sovereign.You don´t need the revelations of Snowden to know that. It is quite enough to look at the Ukraine crisis. The Greek crisis proves that as well. Anybody who follows the conservative side of German political opinion knows that the Greek bail out by the ECB was opposed because it amounted to a bail out of the banks. It would have been much better to let bondholders and banks suffer for their profligate lending. Just as you do if banks lend to any other deadbeat.
Remember Germany´s main industry is industry not banking. More than 50 percent of German retail banking is done by either municipal or cooperative banks who also underwrite the industrial backbone of the country, the so called Mittelstand. Those people puke when they read how the big banks didn´t loose a penny over Greece. And it is very questionably whether the largest “German” bank (Deutsche Bank) can be called German at all. It is an ongoing scandal how the Wall Street types who have taken over Deutsche have enriched themselves at the ultimate expense of German tax payers. Witness also the very questionable role of Goldman in the whole Greek drama or that of former Goldman associate Mario Draghi. The whole way the
Greek crisis proceeded was very much against the interest of a large sector of German banking and very definately the interests of German industry. Anybody who reads German and follows Handelsblatt and FAZ will attest to that. All the talk about German imperialsim obscures these very basic facts.
Considering the impact of the austerity programs Rose is dead right but regarding the Greek oligarchy he is completely wrong. Its crazy to imagine that Germany has the slightest interest in Greece being rocked by riots or in any way being unstable. But that is the result if there isn´t better tax collection and if the Greek oligarchy isn´t reigned in. After all the Euro is the common currency and whatever happens in Greece impacts Germany.
Finally though – and that is my greatest criticism of Rose – he must know but doesn´t convey to his English speaking audience that most of what is going on is simply posturing. The negotiations between Europe (Germany) and Greece have reopened and each side is threatening and bluffing on the way to an agreement. Germany is trying to indirectly support Samaras by threatening Greece with Grexit if Syriza is elected and Syriza is trying to convince the Greek electorate of the opposite. Germany is playing good cop bad cop (SPD Vice chancellor Gabriel being the good one) to Greece´s opposite game which has Samaras and Syritza in the starring roles.
If you really want to know where things are heading read yesterdays “Frankfurter Allgemeine Zeitung”. The lead commentator on economic affairs writes that in the end there will be a deal and Greek debt effectively forgiven. And that no matter who wins the elections. Here the link: http://www.faz.net/aktuell/wirtschaft/kommentar-dem-letzten-akt-entgegen-13354546.html
It is in the interest of both parties. In Germany´s view the money is anyhow gone and a breakup of the Euro is fraught with danger. Most worrying from a German point of view is that Greece will return to her old ways and load up with debt again. There Syritza comes in. If Syriza wins and finally establishes an effective tax regime and reforms the bureaucracy you can bet that Germany will do her utmost to support them.They will just not say it out loud. And Matthew D. Rose should know that. He knows Berlin muncipal politics better than most German journalists and knows very well that the city was never better administered than during the time when the “Linke” governed the city together with the Social Democrats.A decade ago Berlin was exactly in the same situation as Greece is in today. A city overburdened with debt that had been incurred by an impossibly corrupt clique of politicians. Nobody in the federal government shed any tears at their demise. Same thing will happen if Syriza proves to be able to reform Greece.
I agree with the article in general, but I disapprove of the anti-German tone. While the treatment of Greece in the last 7 years is unexcusable, the situation is unsustainable for both Mediterranean and Germanic Europe.
Greece, Italy, Portugal, Spain etc. may be sitting with crumbling economies, societies and horrible demographies, but the Germans (and the Dutch more so) are sitting on a mountain of worthless paper in the face of cuts in the welfare state, shrinking wages, aging infrastructure and (in NL) a popped housing bubble.
Whenever Southern Europe finally defaults on its debts – and the sooner, the better – Germanic Europe will be left with nothing but insolvent banks, insolvent trading partners and insolvent pension funds. Eventually someone in the Netherlands and Germany will start asking: so what were all those trade surpluses for?
The system is not working for anybody involved: not the Greek, not the Italians, not the French, and surely not the Germans.
Please stop blaming “Germany” as such: ordinary Germans are as dissatisfied with the situation as anybody else – and if they are not, they will be soon. It is not a North-South divide, but a cleptocrat-everybody else one.
This certainly stir up a lot of feelings.
I think it is wise to make a distinction between the German government (political) elite, and the German people. The media in Germany are probably feeding the people with propaganda that makes them hate the Greek people. What a nice community. Would be a laugh if not tragic.
This video clip gives an idea of how voters may be abused in upcoming election – Uh kind of – an offer you really can´t refuse. And with connections between ND and GD – hm – you can figure that out. – I pray that German money will not be involved too – and I´m not even religious.
http://whenthecrisishitthefan.com/2014/11/13/clientelism-our-new-deputy-minister/
Why is a challenge from the Left, rather than the Right better? I note the bias that the Left is just the Left while the Right is the ULTRA-Right. Funny how neo-LIBERALISM – not neo fascism – got us into this mess but the only good solution is apparently from the Left. I should think things are so desperate that any non-violent challenge from any direction would be welcome. The real issue is whether democratic change is actually possible in the current system. Or are we already in a post-democratic world but afraid to admit it?
It’s disappointing to see the old Left/Right quarrel rear it’s ugly head once again. The 1% can give themselves another pat on the back.
Neoliberalism is not leftist, as you imply. America being bizzaroland, the putative American “left” came to be called “liberals”, but in fact liberalism as an economic ideology is of the right. Neoliberalism is simply the ultimate expression of corporatism, and has violently dealt with any leftist government beginning with Allende’s in Chile.
And please don’t give me this crap about the left being the left while the right being the ultra right. In this day and age of neoliberals like Obama being called the extreme-left, it sounds very silly.
A Grexit Gleiwitz? ;-)
This seems to be a common attitude nowadays, but I have call Rose on it.
Wanting to dominate other countries is imperialism, not nationalism. Nationalism is merely wanting to control one’s own country.
Yves could it be true? Merkel may? , Just may! lose out to an extreme crowd if things keep going south economically, excuse the pun! The hard workers of Germany are simply not going to except any more throwing away of their hard earned money to finance a bunch of euro slackers,both groups, The bankers and the untouchables! The Dream of a Unified Europe. to avoid constant wars was many an Emperors goal, only ,THIS TIME instead of beginning with Political normalization thru bloody battles, the Ancient Elite Foundational Heritage Class just forced the euro on everyone and as turns out it is sort of enslaving by its entailed devalueization and indebting of each country , trying to equalize their debt ! Not the Greeks fault if they default! wow is that like ” If the glove fits you must aquite” anyway! Pushing austerity is a type of invasionary tactic, in disquise . their just not using bullets! (yet) Its a war of attrition at this point, too many here calling out the corruption when that is a world wide problem not peculiar to the Greeks, Pure Distraction! To leave the EU and not stay will not be a revolt just a survival menuver and it will happen no matter what the armchair intellectual emachinations! That event will be the quintessential influence in the next Deutschland elections! This could affect the weaker EU members in succession causing greater and greater downward pressure ! Lending itself to extreme hasty decisions and austerity severity is already extreme! , thats when bad decisions are made do you not agree???????Youth Unemployment is 50 % in some EU states , Pressure cooker, I ask?
The Naked Capitalism comment section really needs a “like” “dislike” button badly!