Eurozone Geniuses Come Up with an IMF-esque Bailout Commission
Pic credit: Tim_d via Flickr
And, um, it's only slavery when you do it wrong.
Europe has a solution to the Greece problem, it appears, and it smells suspiciously like a bailout.
Germany expressed support for creating a "European Monetary Fund" that could bail out indebted nations in the euro zone, showing how Greece's debt crisis is forcing Europe to rethink the institutional design of its common-currency area.
German Finance Minister Wolfgang Schäuble said he would "present proposals soon" for a new euro-zone institution that has "comparable powers of intervention" to the International Monetary Fund.
In an interview with German newspaper Welt am Sonntag, Mr. Schäuble said the euro zone should draw lessons from the Greek crisis, which has exposed the region's lack of tools for dealing with a member country at risk of defaulting.
Not so fast, you little bailout whores, it's a little late for Greece:
Any European Monetary Fund would take too long to create to be of use for Greece's current problems, European officials say. But the idea is part of a wider debate in Europe about the need for euro-zone governments to more closely align their economic and fiscal policies. They now share a common monetary policy but have no parallel political union.
The European Union's treaties prevent existing European Union institutions from bailing out a struggling country, and national governments such as Germany's, fearing voter ire, don't want to risk their taxpayers' money directly on nations such as Greece.
Awwww, such a sad tale. And that's exactly why the world needs another vampiric scam masquerading as a "rescue" organization of the IMF ilk.
So because the EU treaty forbids a bailout, the EU has chosen to create a bailout fund for future use? That sounds promising. Can't get an IMF loan? Screw it, who needs 'em!
Check out myths and facts of the Greece problem via VOX. And of course VOX is right, sovereign nations can never go "bankrupt". They already are, it's called the magic of government accounting.