Brussels, Frankfurt Fear Greece Could Call the EU’s Bluff

Even British intelligence scribbler Ambrose Evans-Pritchard is afraid Greece will call the Eurozone’s bluff and, if necessary, leave the Eurozone. Evans-Pritchard quotes Manolis Glezos, Syriza MEP and veteran resistance fighter, saying:

“If they decide to kick us out, the damage will be greater for them.”

Glezos said that while Syriza does not want Greece to leave the Eurozone, “You cannot attend the negotiating table without carrying this option along.”

Evans-Pritchard also cites Greek Prime Minister Alexis Tsipras telling Der Spiegel:

“If we were to hold a referendum tomorrow with the question, ‘do you want your dignity back or a continuation of these undignified policies,’ then everyone would choose dignity regardless of difficulties that would come with it.”

Tsipras then compared the Eurozone to a woolen sweater, saying:

“Once it begins to unravel, you can’t stop it any more.”

The German media got all bent out of shape following an airing of a hard-hitting German documentary on the Greek debt crisis in which Greek Finance Minister Yanis Varoufakis is quoted offering some pretty critical remarks on the competence of European authorities when they lent the Greek government billions. Aired on March 9, the same day as a Eurogroup meeting, Varoufakis describes Greece as the most bankrupt country in the world, yet.

“Clever people in Brussels, in Frankfurt, and in Berlin knew back in May 2010 that Greece would never pay back its debts. But they acted as if Greece wasn’t bankrupt, as if it just didn’t have enough liquidity. In this position, to give the most bankrupt of any state the biggest credit line in history, like third-class corrupt bankers, was a crime against humanity.”

The German mass-circulation tabloid Bild ran the quote on its front page, and demanded that European leaders stop providing Greece with further financial support.

Evans-Pritchard then pointed to the European Central Bank, writing:

“This moment of decision may already be close. Last week, Greece requested a EU2 billion increase in emergency liquidity [assistance] (ELA) ceiling in order to offset deposit flight and keep banks afloat. The ECB granted EU500 million. This has been exhausted.”

On top of this, the ECB will hold an emergency session at its headquarters in Frankfurt, Wednesday, to review the ELA. Apparently the ECB has decided to hold the review every week, instead of every two weeks, as a means of increasing the pressure. ECB President Mario Draghi on March 5 already complained that the ECB has already lent EU100 billion to Greece’s banks, or 68% of the country’s gross domestic product.