|Merkel, Putin and Hollande at the Kremlin (2015)|
Anyone following the news in Ukraine can see that the cease-fire hasn't got a ghost of chance, with Russia still fully supporting the rebels' advance in the East. Yet, both Hollande and Merkel confidently talk about taking new sanctions and Kerry echoes them. One wonders how anyone can still believe in the power of sanctions. Surely Putin doesn't care.
As to the Greek bailout extension, it's a sham: this coming Monday (23 February), as reported in the New York Times:
"Greece must send its creditors a list of all the policy measures it plans to take over the next four months. If the measures are acceptable, European finance ministers could sign off on an extension of the bailout agreement on Tuesday."
|Varoufakis and Tsipras (Facebook)|
To Germany, of course. The fundamental idea is that a newly elected government in the Euro-zone cannot change the commitments taken by a previous government, i.e. the austerity measures forced upon Greece by Germany. Therefore the new government led by Tsipras and his dynamic finance minister Varoufakis must continue with the reforms and austerity policies called upon by the infamous "troika", the European Union, the European Central Bank and the International Monetary Fund.
Back to square one.
|Italian Military Mission (Olycon)|
But the Security Council did not respond - in practice, both Egypt and Italy were told to calm down and forget it.
I am worried. The world is fast sinking into anarchy, the West is doing nothing to stop it and not even using its prime instrument to prevent war: the United Nations. After Gaddafi was ousted, no serious effort has been undertaken to help Libya recover and rebuild - a tiny UN mission was sent to Libya, with no means to operate on the ground, and all the UN Representative can do, is warn that Libya is falling apart. Yes, it's rapidly becoming a failed state like Somalia, and it's sitting on Europe's doorstep.
Paul B. Kazarian, one of the "vulture investors" of Hilary Rosenberg's famous book, the €318 billion Greek debt is worth only one tenth of its value as a result of the series of adjustments to the Greek debt over the years that include restructuring, maturity extensions and interest rate reduction. He argues that if one applied international accounting rules and took into account the assets owned by Greece, the overall net debt figure would fall to €32 billion. "You are suffocating a country with a figure that has no relevance", he argues, "Just take the fricking loss and move one."
Not many people agree with him, such views are always scary to conservatives and particularly so in German circles. Yet, historically, sovereign state debts have always been treated this way: that is exactly what happened in the United States, for example when the Second Bank of the United States collapsed in 1836, sending thousands of UK investors scrambling for their money. This was not the end of the United States' dollar, so why should a Greek (near) default be the end of the Euro?
When will our European leaders wake up and start facing the far more important challenges of Ukraine and Libya? Europe, quo vadis, where are your values, where are you going?