Thread: Will Greece Be the First to Leave the EU?

The EU is not working for all the countries involved so why is the US on a path to the same system?
Will Greece Be the First to Leave the EU?

By Dale Hurd
CBN News Sr. Reporter

Monday, July 06, 2015

The question in Europe Monday is whether Greece will remain in the European Union.

In an historic referendum Sunday, 61 percent of Greeks said "no" to a plan from the nation's creditors for more austerity measures in return for more rescue loans.

"I'm very proud of the Greek people, very, very proud. We don't want to be slaves," Niki Kalomiri, one of many residents who voted no, said.

The Greeks in essence have called the bluff of E.U. leaders, who warned that a no vote would mean they'd be bounced out of the European Union.

The referendum may have given Greece a stronger hand to negotiate more favorable terms or it could mean its departure from the E.U. -- a move many say will bring about the collapse of its banking system and a return to its national currency, the drachma.

French President Francoise Holland said he will bend over backwards to keep Greece in. Still, following the referendum the future is unclear.

Greek Finance Minister Yanis Varoufakis resigned after Sunday's vote. He told George Stephanopolous on ABC's "This Week" the U.S. should watch the results of the referendum carefully.

"I think the United States have [sic] a great interest in seeing that the austerity drive that started here in Greece -- end. And see that we have a rational economic policy, not just for the sake of Europe, but for the sake of the global economy," Varoufakis said.

E.U. leaders now may have to backtrack on their threats to throw Greece out of the E.U. or deal with the fallout.

Martin Schulz, president of the E.U. parliament, warned a no vote meant Greece would be out. But after the no vote, he seemed to change his tune.

"It's now up to the Greek government to make proposals which could convince the 18 other member states of the eurozone and the institutions in Brussels that it is necessary, possible and even effective to renegotiate," Schulz said.

And talks are underway. Polls show most Greeks want to remain part of the European Union. Still, there's concern that anti-E.U. sentiment could spread amidst the fear and political turmoil.

"I would have voted no because we are slaves to Germany," Rome resident Federica Aspetti said. "Enough, we should really follow Greece's example."

The European Central Bank will decide if the emergency stimulus for Greece can be extended.

If it doesn't get an emergency injection of cash, the country will run out of cash in the coming days.
http://www.cbn.com/cbnnews/finance/2...-Leave-the-EU/

REFORM OR ELSE: GERMANY WARNS GREECE AND A DIVIDED EUROPE


The Associated Press

by LIAM DEACON6 Jul 2015100

Germany is demanding new coercive powers to legally compel, or “force member states,” to abide by structural reforms and binding EU-IMF fiscal “programmes”. This pits Europe’s economic powerhouse against France, a country with a record of failing to follow EU dictates and is expected to defend national sovereignty.

The leaders of the two nations, Angela Merkel and President Hollande, will hold emergency talks later today where their opposing views will be forced into the public spotlight.

After the Greek people voted resoundingly to reject the will of Brussels, basic democratic principles are looking increasingly irreconcilable with a centralized European project and a fundamental divide is opening across the continent over how to respond. The Netherlands, Finland and Austria are siding with Germany; Italy and other southern European states are siding with France.

The split is likely to dominate talks on “completing economic and monetary union,” alongside Britain’s renegotiation, which begin this autumn.

“The only instrument we have to force member states to do these reforms is the programme approach,” a senior German conservative told The Times. “In countries such as France and Italy, that need reform but have no programme, we see the lack of possibilities to force them to take the necessary steps because it is up to national politicians to decide. In a currency union, you do not have full sovereignty,” he said.

Meanwhile, French socialist and EU economic and monetary affairs commissioner, Pierre Moscovici, said, “… especially at a time when the popular vote is turning its back on Europe, I think we should not be too intrusive. We favour ownership of our recommendations on structural reforms. It is very difficult to impose on national sovereignty if you don’t want the people to be angry.”

Before the Greek referendum France was already pushing for a more lenient deal for Greece, particularly after an IMF report released on July 2nd confirmed that Greece’s debt repayment, as laid out by the EU, was not “sustainable.”

Germany’s hard stance on Greece was reaffirmed yesterday when their economic affairs minister, Sigmar Gabrie, told the Tagesspiegel Newspaper that Greece has just “torn down the last bridges on which Greece and Europe could have moved towards a compromise… With the rejection of the rules of the eurozone … negotiations about a programme worth billions are barely conceivable,” he said.

Binding programms imposed on Ireland, Portugal and Spain are seen as a huge success in Germany. Wolfgang Schaeuble, Germany’s finance minister (who is well known for his lack of little sympathy with the Greek predicament) has seen his approval rating soar to a record 70%, and 45% of the Germany people favor a Greek exit, according the new poll.
This morning Italy’s premier, Matteo Renzi, said he would encourage other EU leaders to move away from an EU model controlled by France and Germany.

“Greece is part of Europe, and the other people of the European Union owe its people their solidarity. This will in the coming days be the principle guiding Italy’s actions and I hope this will be true also for the representatives of the Greek people, other European partners and the EU’s institutions,” he said in a statement obtained by The Local.

http://www.breitbart.com/big-governm...ivided-europe/