In the Monday, May 23 article in the Wall Street Journal, “New Call To Greece To Sell Off Its Assets”, the author quotes Luxembourg Prime Minister Juncker as saying that Greece should set up a state agency to sell off state assets the way the Germans sold off East German assets during the 1990’s. This statement was part of an interview with Der Spiegel which has been published today, Monday, May 23.
Clearly they are trying to establish Germany as the model for all of Europe to follow. They even suggest that Greece put “foreign experts” on the staff of such a state agency. Of course Greece will object that this is a threat to its national sovereignty — to put Germans in power in Greece.
Jean-Claude Juncker says that Greece should only consider “soft restructuring” of its bond debt after it has set up such an agency. That would increased confidence in the markets and prevent a potential world-wide reaction to Greece’s debt problems.
These fiats were issued after the Euro Zone’s “Big Four” held secret talks in Luxembourg over the weekend.
Germany must find a way other than breathing down Greece’s political neck and causing riots and protests in the streets of Athens to enforce its will.
