Main focus of Monday, January 30, 2012

Athens rejects German budget controls

Finance Minister Venizelos is concerned about Greece's "national dignity". (© dapd)

Athens has rejected the German proposal for an EU budget commissioner to be appointed to oversee Athens' finances. If the debt-stricken country continues to resist it will have to leave the Eurozone, some commentators write, while others doubt the measures called for by Germany will be at all productive.

Kainuun Sanomat - Finland

If Athens won't accept an EU budget commissioner it must be possible to exclude Greece from the Eurozone, writes the liberal daily Kainuun Sanomat: "The cradle of democracy is not even prepared to discuss the loss of its right to self-determination. And yet Greece still expects to receive another 130 billion euros in aid from the EU and the IMF after it has reached an agreement with its private creditors. This shows once more how dangerous it is to allow the debtor to gain the upper hand. ... Greece is fleecing its creditors. Athens may have been forced into greater budgetary discipline but its reactions to the demands have been as unclear as the revelations of of the Oracle of Delphi. ... Only the threat of being thrown out of the Eurozone will bring Greece to its senses. This requires the recapitalisation of European banks since they must be in a position to compensate for the losses this move would entail." (30/01/2012)

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Die Welt - Germany

In demanding an EU budget commissioner for Athens Berlin is making itself even less popular, warns the conservative daily Die Welt: "A budget commissioner alone is of little use. ... Greece must set up an administration and a tax authority that meet Western standards. At the same time, like everywhere else in Europe, a basis for sustainable economic growth must be created. Greece can only regain its self-determination through growth. Even with no budget commissioner the Greek state can neither function nor make its own decisions without foreign help. It is up to Athens to improve things as swiftly as it can. It may be doubted whether the German plan for temporary foreign control over Greek finances would prompt the Greeks to recognise their faults. But as a provocation the plan for a budget commissioner has worked perfectly. Germany has accepted the role of the bad cop. (30/01/2012)

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La Stampa - Italy

Berlin wants Athens to renounce its sovereignty in financial policy. But Germany's proposal is not properly thought through, criticises the liberal daily La Stampa. "One can understand why the Germans are so bitter. But apart from the fact that introducing an EU budget commissioner to supervise Greece's budget is not legally feasible it wouldn't help anyway. This is not about sending an outsider in to make the decisions. It's about implementing the decisions. If the Greek tax authorities are unable to track down tax evaders, ordering them to do so in German is hardly going to make them any better at it. ... The question is whether Greece's bankruptcy and the contagion of other countries like Portugal can still be prevented." (30/01/2012)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Germany, » Greece, » Europe
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