The Irish Times reports today that “Germany has confirmed it drafted proposals to intervene directly in the Greek budget if it consistently fails to implement reforms.”
If the Greeks aren’t able to succeed themselves with this, then there must be stronger leadership and monitoring from abroad, for example through the EU," said German economics minister Philip Rössler, the first member of chancellor Angela Merkel’s cabinet to confirm the proposal to appoint a "budget commissioner".
Zero Hedge Comments: “While over the past 2 days there may have been some confusion as to who, what, how or where is demanding that Greece abdicate fiscal sovereignty (with some of our German readers supposedly insulted by the suggestion that this idea originated in Berlin, and specifically with politicians elected by a majority of the German population), today’s quotefest from German Economy Minister Philipp Roesler appearing in Germany’s Bild should put any such questions to bed.
‘And from this point on, Greece would be advised to not play dumb anymore vis-a-vis German annexation demands. So from Reuters, "Greece must surrender control of its budget policy to outside institutions if it cannot implement reforms attached to euro zone rescue measures, the German economy minister was quoted as saying on Sunday.’
Zero Hedge further notes that: … “A government source in Berlin said Germany’s proposal was aimed not just at Greece but also at other struggling euro zone members that receive aid and are unable to make good on their obligations.”
It’s Official: German Economy Minister Demands Surrender Of Greek Budget Policy, Says It Is First Of Many Such Sovereign "Requests" – Zero Hedge, 29th 1st 2012 -
Germany has ‘budget control’ plan, Irish Times, January 29, 2012 -