Tuesday, 23 August 2011

German Cabinet Minister Calls For Asset-Stripping Of Bailout Countries

German labour Minister Ursula von der Leyen backed calls on Tuesday to demand collateral for Euro zone bailouts, such as gold reserves or stakes in state industry. But "her comments did not appear to be the German government's official view."

So far German government officials have only made off-the-record comments about Finland's requirement for Greece to put up collateral, saying they worry this could spark copy-cat requests from other countries (inc themselves).
Greece agreed last week to provide AAA-rated Finland with cash collateral for the loans, in a plan that did in effect spark requests for similar treatment from Austria, the Netherlands and Slovakia.

When questioned about the above comments, another unnamed senior German minister said "the key issue in euro zone bailouts is linking aid to strict conditions."

As we have been saying, the bailouts are a cover for asset-stripping of periphery nations by German banks and businesses.

Of course, in order to not frighten the European electorate, Germany cannot be the first nation to openly insist on assets-for-bailouts. So they are encouraging others not to do so.

Note how quickly they caveat the comments as "not official government policy". It is government policy,... its just unofficial.

As part of the Greek bailouts, Greece has to sell off E50bn in state assets. Who is deciding which assets, when, how, and to whom these assets will be sold?
Deutsche Bank.

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