Tuesday, June 12, 2012

€100 billion new debt without referendum or even explanations

Nothing is clear. Neither in Madrid nor in Brussels the main actors speak out neatly. The details of the deal are murky and even more murky are the reasons behind it. 

What they tell us is that the European Union will lend to the Spanish banks (which banks? why?) some not too well defined €100 billion (36% of the Spanish government's budget). What is not said too clearly but we must all know is that the Kingdom of Spain is guaranteeing those loans and that, if banks can't or simply do not pay, the Spanish state will be held responsible. 

All that generosity with the banks comes while the salaries of public servants and all kind of social services or even economic stimulus like construction contracts are being slashed down. 

The Spanish people has not been asked but they (we, because we Southern Basques are also Spaniards against our will) are being held hostage as in Greece or Ireland. Hostages that are being treated quite brutally, so the Stockholm syndrome is not likely to come as result.

What is also not likely to come as result is any sort of stability either. While stock markets rallied briefly upon the announcement, they collapsed soon after.

Not only Spanish citizens are feeling that they are not being treated fairly, with all the corrupt banksters and their political cronies at large and getting even more money at their expenses, while they get nothing but cuts, other countries in trouble are as well. The Cypriot authorities suddenly decided that their turn has arrived and are also waving quite frantically for an emergency loan for their banks, a loan that will amount to "only" €3-5 billion - they say: the Bankia affair also began with a mere €5 bn and some Cyrpiot banks are quite big.

Ireland, who underwent a situation similar to that of Spain two years ago, also feels that she was badly treated in the day and is asking for a renegotiation. 

Finally the online rumor is that France is not in good shape either and comes next. Although others think that first will be the turn of Britain (not in the Eurozone but with plenty of problems of their own).

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