Cypriot Bail-Out: Seriously Mrs. Merkel?

The drama that unfolds in the Euro-zone seems to be never ending. This weekend another member of the block has applied for a bail out. One of the Mediterranean nations-Cyprus, applied for a 10 billion € bail out, but that is not where the shock ends!

Cyprus had a very strong currency and a thriving economy before it joined the Euro-zone, but just like Ireland is now forced to a humiliating bail-out. Only this time the European leaders have agreed that it must be the bank account holders that will take the burden of the loans' repayments.

The inhabitants of the island nation will see their savings in the Cypriot banks be a subject to taxation, in order to pay for the bail out. Such move of course has been suggested by Mrs. Merkel and her party in Germany, in order to reassure the German voters that they won't be the ones who will pay the bill again.

Mrs Merkel made it clear that every depositor in Cyprus is responsible for the situation the country is in now, so they should be the ones who must help the country now with their savings. That reminds of the constant smear campaign against another two nations that were bailed out, Greece and Ireland.

The Greeks were lazy and tax evading, while the Irish overspending so it is justified for them to go through the harsh austerity that has been imposed on them. All with the cooperation and tolerance of these two countries' leadership! Nations that receive a bail out from their "partners," must be forced to be responsible and abide to the rules they have signed; that is the excuse the European leaders are giving us, for the harsh measures that some Europeans have to live with now days.

What I long to hear coming out of any European leader's mouth is a word that will place some blame on the European banks and bankers. And of course the real perpetrators of this crime, the European governments themselves. Both of them are to blame for the irresponsible practices and policies that led Europe in this mess, yet they have the nerve to blame the ordinary people and ask of them to pay for their mess.

Forcing people to pay out of their bank deposits, their life long savings, is a practice that fits better to a tyranny not a democracy. And the same scaremongering tactics that were applied on Greece and Ireland, are applied on Cyprus now too.

"If you vote no and reject our deal, we won't give you the money that you so much need!" Well I will remind the German and other rich investor countries' voters that the bail outs that they are giving to "poor" and "irresponsible" countries are not tax free. They come with a huge interest attached, so they are not a "gift" rather an investment that will have to be repaid with a huge profit for Germany and the other "donors."

Not to mention that Germany is gaining hugely by a weaker Euro. It is clear to me that all this is nothing but a war of interests among the European elites. And the Cypriot President Mr. Anastasiades just confirmed that, by claiming that he was "bullied" by Brussels and given no choice but to accept such terms for the bail out.

What Mr Anastasiades forgot to mention, is who "bullied" him in Brussels. Was it some EU officials or the other European leaders and diplomats, just like Mrs Merkel and Mr Schauble, Germany's finance minister? Because by saying "Brussels," our leaders are placing the blame to some invisible corrupt EU officials, when the reality is that the blame falls right into our government's lap.

A great way of shifting the blame to EU, raising the anti-EU sentiments among the European population, while the decisions are obviously taken by our governments on a inter-governmental and non transparent level. Decisions are taken behind closed doors remember, in all those EU summits.

The reality is that the European elites want to end Cyprus' status as a tax haven and kick out the Russians and other non Europeans who use the island for money laundering. Russian investors have for long now investing in the island and moving their wealth over there. Europe wants to clear its banks from the Russian influence and potential "dirty money."

In this case why don't they call a spade a spade, rather prefer to blame the ordinary citizens of the country and force everyone to bear the same consequences? Not everyone is responsible for the shortfalls of the Cypriot and European banks. Why no bank was ever held responsible for money laundering, if that is the case?

And the question is, will Europe help Cyprus deal with the aftermath of such action? Not by pouring bucket loads of money and keeping the Cypriot economy on life support as they did for Greece. But as soon as they kick the Russians out, their money and their investments, will Europeans rush in to fill the gap?

By forcing Cyprus to enter that dangerous power game, it is exposing it in complications with Russia and its rich elites that have been investing in their economy. Russia already reacted negatively on the news, with its Prime Minister Mr Medvedev stating : "“This simply looks like the confiscation of other people’s money. I do not know who the author of this idea is, but this is what it looks like. We are unfortunately acquainted with such practices from Soviet times.”

And he is right! If Europe wants the Russians out of its banks, then what compensation will they give to Cyprus in order the country to follow Europe's orders? Will Europe invest in Cyprus creating jobs and boosting its economy? And what are they going to do for other tax havens in the Union, like Luxembourg for example.

Why are they being treated differently, perhaps just because they are one of the founding members of the EU? The Germans and French are quick to bash Ireland for its lower corporate tax rates and now are keen to end Cyprus' tax haven status, but they do not have the same attitude towards Luxembourg. Is it because it is them who tax evade in their neighboring country and not Russians, just like the Cypriot case?

I find it outrageous what is happening right now in Europe, when the people are being forced to pay for our elites' games of  power. It is not clear yet if all the account holders in Cyprus will be affected, or just those with a certain amount or over, type of account or financial activities. But I suspect that will be the ordinary hard working citizens that will bear the burden, while the rich tax evaders will escape unscathed again. Just what has happened in Greece.

Europe's policies and plans are not working! They have already created a divide and hatred between the Northern sates and the Southern. How long before they tear Europe apart?

It is a banker's world!!!

As if they did not have enough nerve to demand to be bailed out with public money, now some banks in Europe are bank in business as usual.

Our whole lives were changed because of the crisis, that is a crisis of credit. Many of us had to go through very tough austerity measures and all that so that Europe's banking system could be saved.

We were blamed for the mistakes that our governments did and the risks that these banks took. One would think that the banks would face the music at some stage, but no. Even a recent proposal to cap the banker's bonuses, found opposition from Britain. 

 One must really read the following article from the Irish Independent that was published on the 3rd of October 2012, to realize the level of betrayal that the Irish and every European must tolerate from their governments.

"Bailed-out AIB Bank in Ireland, is to hit 70,000 customers with a second rise in mortgage costs in just three months. Owner-occupiers will have their standard variable mortgage cost increased from 3.5pc to 4pc.

A spokeswoman for the Department of Finance said it had been informed in advance by AIB about the rate rise. The spokesman said mortgage rates were a "commercial decision" for banks, even though they were bailed out by the State and AIB had been pressurized to cut rates when the Government came to power.

But since then a relationship framework had been signed with the domestic banks. "We now don't get involved in day-to-day banking. The Government would have no role in it," he said.

(http://www.independent.ie/business/personal-finance/property-mortgages/second-aib-interest-hike-will-add-1400-to-mortgage-bills-28816792.html) "

If you read the above article correctly, you will realize that what is actually saying is that the bailed out by the public banks, will now start charging the public for their services. And the Irish Government will have absolutely no say in what AIB does.

In other words, the people of Ireland bailed out this bank with their own money and now the same bank will start charging them as usual. While their government won't get involved and allow this bank to do "business as usual." Who rules Ireland and in extension Europe then?

Perhaps we do not need the European Parliament anymore, we should just allow the ECB to rule Europe. And on national level our governments will be just care takers, doing the work while the orders will come from Europe's banks! Not the Europe that I was dreaming of.

Just today, European Parliament's President Mr. Martin Schulz gave an interview to Reuters, stating that Europe saved its banks by losing a generation of people. And that is so true. Unemployment in some parts of the continent has reached a crisis point and it threatens the very social cohesion and stability of these nations. And of course Europe' stability in extend.

I am glad that Mr Schulz and other leading European politicians are realizing this fact. But now it is time for an urgent action and less words. In his interview Mr. Schulz pledged for investments and the need for direct links between Brussels and the local authorities, to speed up the process of direct investments from the EU.

Well really looking forward to see that Mr. Schulz and perhaps you could also do something about preventing the banks from messing European people's lives again in the future. Thank you.

(http://www.reuters.com/article/2013/03/11/us-eu-parliament-crisis-idUSBRE92A08W20130311)

Why have gender quotas in Europe?

Today is International Women's Day and there is a great focus on getting women across Europe becoming more involved in politics and other top leading positions in business and trade. It is a part of a greater effort in closing the gap between gender inequality in Europe in all aspects of our working lives.

The plan was launched by the EU Commission and championed by Mrs Viviane Reding, the European Justice Commissioner. It is inspired by similar plans in the Scandinavian countries, that proved very successful in placing more women in their company boards, though they have still failed to increase the number of female CEO's and Chair people.

Following weeks of dispute, the European Commission on Wednesday proposed a gender quota for non-executive directors of companies that are listed on the stock markets in the 27 member states. The plan has already seen strong opposition by Germany, that claims it will be bad for business.

The new regulations, if approved, would stipulate that women occupy 40 percent of the seats on the non-executive boards of Europe's roughly 5,000 publicly traded companies. In instances where candidates' professional qualifications were the same, women would also be given preference, should they be under-represented in that company. Companies that did not adhere to the rules could be sanctioned. (source: http://www.spiegel.de/international/europe/european-commission-moves-towards-approving-board-gender-quotas-a-867181.html)

I absolutely agree that we need more women involved in Europe's politics and business. They form around 50% of Europe's population, so they should have a larger voice and part in its governance and business activities. But I just do not think that placing quotas is the right way of doing it.

Women do have more to offer and certainly we need their creativity and way of thinking in creating a more balanced society. Remember in nature, it takes the unification of both female and male in creating perfection. But by placing quotas, we are only creating more complexities. With quotas many that deserve the position will be left out, simply because of their sex. That of course you will say it has been happening already in most European states, at the expense of women.

But why complicate things when trying to fix a problem? If you want to have more women involved in politics and the European boardrooms, then give them more free time and lift the weight of the house keeping and child raising off their shoulders. It is true that many women are losing job opportunities, just because companies won't employ them. They simply try to avoid paying for the maternal leave and absence during the months following the birth of their child.

And that means that we need to start giving more rights, or obligations for men in the family. Until now it was mainly women that had to leave work to raise their children. House keeping is mainly a woman’s responsibility. If you are a stay-at-home-dad is still seen as laughable for most Europeans.

Perhaps that is what we need to change. Why women who want to have high ranking jobs must leave for around 6 months to raise a child? Couldn't this time be split between the partners, so while the mother takes the first 3 moths off work and if she wishes to continue her career, her partner could take over for the rest of the time?

In that way, women won't be seen as the only ones who will have to be on paid leave for months because of pregnancy or having a child. Men who want to become fathers will have the same rights, or if seen from a business owner's perspective, the same amount of "awkwardness" for the business.

We simply need to change attitudes and mentality as a society. If we see women as equals, then we will inspire them to get more involved and if we give them the initiatives to do so, I believe they will. If we promote the right role models to our young, attitudes will change. No quota can ever achieve that as harmoniously. That is clearly a bureaucratic way of solving a problem.

Here is how I see it: if one company advertises for three top positions and 10 people apply, that only three of them are women. But it just happens that the three best candidates are men. There is a quota that one position must go to a woman. Then who loses out, the man who lost his position, the company or both?

Why not try to attract more women applying for the position and make the ratio of applicants almost 50-50. Then it is bound that more qualified women will be in this bunch and take not just one but even two of the positions offered- or perhaps all of them, if they are indeed the best candidates.

In my opinion a quota is not right way, though it is done for a right cause and I applaud the people involved in this effort for daring to raise this issue of inequality and acting on it. But for encouraging more women to go for these positions we need to change attitudes and perceptions about them and offer our societies different role models. And of course different business ethos and initiatives towards them.

Perhaps the easiest and fastest way for results is to place quotas. But then that is sad because it shows that we, as humans are not ready yet to change mentality about half of our population and we need to place laws to enforce righteous changes for the better.

Oh, for the love of Gold, Greeks.. Give us a break!

Recently another riddle baffles me, coming  from my native Greece. There is an on-going protest taking place back home about the opening of the gold mines in the northern Greek region of Halkidiki.  

People protest against it, claiming national, environmental or political and economic reasons on why the mines should not be opened. 

In my opinion the whole fuss about it is for the following reasons:  a) Because the mines are sold out very cheaply to foreign companies. b) For environmental purposes c) Because the locals just do not like the idea of living near the mines. d) There is not a satisfactory agreement with locals for land compensation, if any f) Because just some lost their kickbacks from land deals e) Because it is not what the local government was planing for the area. Planning deals and contracts, often illegal were common in Greece. g) More than one of the above reasons. 

 For the only reason that I would support these protests are the reasons a) and d). It is unacceptable for a country's natural resources to be sold to foreign multinationals for scraps, due to the country's financial difficulties. These resources must stay under the control of the nation and be used for the benefit of the people, not of the multinationals.

But for the rest of reasons or excuses they give us, please Greeks, give us a break! The Halkidiki region was burned twice as far as I can remember as a child, to be used and developed as land and arbitrary estates. Now for the locals to suddenly have their environmentalism awaken, is too little too late, never mind farsical.

The country needs all the resources that it can find to change its economy. We must start extracting and exploiting everything that we can, either it is gold, uranium, oil, etc . And we must understand that as a country and as an economy Greece must change. We can not just be an agricultural and tourist country anymore. We need to diversify the Greek economy, produce and export!

With tomatoes and olive oil as exports, how can we compete with other countries that produce cars, mobile phones, lap-tops, etc. And since at the moment we do not have any funds, or perhaps the other leading industrial European nations do not allow us to become an export country in such goods, then what exists already in the soil of our country, is excellent for a good start of exporting!

Provided of course that we do not sell our resources out for peanuts to the big multinationals. But if it is for the good of the country, then I'm sorry if some feel unsettled because they will lose their grandmother's tiny piece of land, who do not intend to cultivate. Or because some wanted to develop nearby sites for residential and arbitrary developments and they are going to lose their kickbacks.

If the above are anywhere near the real reasons that people oppose this development, then not only we should be ashamed of ourselves, but we are also a very sad nation! Why can't Greece become a leading European gold exporter? Should we think collectively or individually? If we discover an area full of deposits of minerals of any kind, why not exploit it for God's sake?

We want jobs in Greece, we want development! Well here is the development and the jobs but people protest against them. In China they sunk entire cities to proceed with the planned developments and better their economy. And look where they got! We should not reach to that point of course, but we are going to the other extreme entirely!

Today the police went to investigate in Ierissos town, possibly even capturing people who have recently rioted and destroyed public and private property in Skouries village (and doused with petrol guards leaving them by the fire that had been lit earlier). Some set fire to tires, creating massive air pollution, just five hundred meters from an elementary school, but protested vigorously when the police made ​​limited use of chemicals, but not tear gas (as it was stated by the police).

The land that the mine is located apparently does not belong to anyone other than the Greek state and is set there for more than 30 years.  Plus when the locals elected their Mayor during the last elections, the main subject of his campaign was the reopening of the gold mine. So it is not anything new. It has been going on for sometime already, but why so much unrest now that the country needs all the resources it can find?

According to one version of the events, the problem is the SYRIZA party that is using anything that can destroy the government's efforts to bring money into Greece. Don't forget that the main body of supporters of this party comes from PASOK, which collapsed when it started ending its close connections with the civil service and the syndicates ( the same groups and people that managed to overthrow the Mitsotakis government 1992 ).

So now SYRIZA has by its side the civil servants that in past were with PASOK and they use their power to manipulate the government for their own interests and benefit. By using populism, they manage to gain the support of the ordinary folk as well and proceed to acts that sometimes are not for the best interests of the country in general.

The problem is, will the ordinary Greek folk be able to wake up and smell the coffee before it is too late? Greece must change, as the World is changing. We can not remain forever in a fantasy nationalist or socialist land, we need to proceed with the necessary reforms in order to catch up with the rest of the World. 

Now, all Greece is doing is moving backwards. We have already reached the days of the '60s-'70s and if this crisis continues we will go backwards even further. No, I do not support austerity and I have many times criticized the European elites for imposing it on us. And I do not want the sell out of my country's resources, or any of the worker's hard won rights either. 

But this sworn idealistic and everlasting war between the Left and the Right, or the public sector and the government in Greece is getting sickening. We are like a dog that while is trying to bite and punish its own tail, it keeps going in rounds remaining forever in the same spot. But the rest of the World is leaping over us and ever forwards. 

So for the love of Gold, Greeks!! Give us a break!!

Italian Election results, 2013... A deja vu!!

It is the talk of the week! The Italian elections have rocked Europe and sent shocks across the continent and the Markets. The result was much feared, but expected.

Mario Monti's party failed to gain any significant support, while more populist parties like the comedian's Beppe Grillo's 5 Star Movement, thrashed to the third place with 25% of the votes.

It has brought political uncertainty back to the Euro-zone and it may have even contributed to the recent volatility in the global financial markets.

The results show that  in the Italian Chamber of Deputies, the hopeful and favorite of the European elites Mr. Mario Monti and his Centrist Coalition, just got 10.4% of the votes. The Centre-left coalition of Mr. Bersani got 32%, while Mr Berlusconi made a come-back with his Centre-right coalition and 26.6% of the votes. The Five Star Movement of Mr. Grillo came third party with 25.6%.

Similar results the parties had for the Italian Senate. These elections may have sparked a period of uncertainty and instability for Italy and ultimately Europe, but it is not the first time that European people chose to give a message to their leaders, by voting for outsiders in their national elections.

In Greece we saw a similar drama unfolding recently, with people moving away from the established political parties that the European elites preferred, only to give their votes for the far right and far left. The rise of SYRIZA gave the same shivers down the spine of many European elites and EU officials, while the rise of the Golden Dawn echoes similar events in Germany seven decades ago.

So why don't the European elites ever learn? The European people are responding to our leaders actions, with the only weapon they have: their votes. The citizens are fed up with austerity, especially when they have to endure years of it so that the banks and the financial establishment can be saved.

Judging from what I had experienced from family confessions in Greece, a large part who voted for the Golden Dawn party, did so in protest. Some people admitted doing so and gave as reasons various facts. When all other parties used money to print brochures for their electoral campaigns, in a time that many Greek schools did not have money to print books for the children, the only party who did not send brochures was the Golden Dawn party.

They gained votes among the ordinary folk, by just doing what the established parties have never thought of doing so; being considerate. You see, populism works in dire times as these we are living. The Italians voted with the same mind frame and we see the results. They reject the continuous austerity and voted in parties that promised some relief, no matter if they will be able to keep their promises. 

But the danger here for Europe or the euro is not the Italian people, or Grillo and Berslusconi. The real danger are our national politicians that are happy to play with the fortunes and future of their people plus that of Europe, in order to satisfy their need to stay in power for longer. By making sure they promote policies that please those who finance their political careers, not those who vote for them and give them the power to create those policies.

The Greeks, the French and now the Italians are making clear their dissatisfaction with the continuous austerity imposed on them and their desire for change. Some of the European elite politicians are not amused.

Mr. Peer Steinbrueck, a former finance minister and challenger of Mrs Merkel's position in the upcoming German elections, said he was "appalled that two clowns have won" and made it clear he was referring to Grillo and to Berlusconi, calling the latter "clearly a clown with a testosterone boost".

I am sure he is not the only one who has these views. But perhaps the real "clowns" are the established politicians, that have the nerve to ignore the wishes and needs of the people. They failed them once by pushing their countries into this crisis and promoting irresponsible policies. Now they are failing them for the second time by ignoring their calls on lifting the tough austerity and their need for real, long lasting solutions. 

So here come the populist politicians like Grillo or Tsipras that  just say what people want to hear, in order to gain votes. What are they going to do in reality, if they are really able to do or change anything is another matter. But I do not blame the people for voting for them, they are desperate. So why not vote for a real comedian, a "clown" as Mr. Steinbrueck called Mr Brillo, than vote for the clowns that so far were ruling them?

Personally I hoped that Mr Berlusconi never made a comeback in Italian or European politics. He is a major factor in why Italy's economy is in the state it is at the moment, how can the Italians vote him back in power? Well the Italians are not alone in this tragic mistake. 

Recent polls in Ireland too, show that the Fianna Fail party tops the popularity polls. The same party that drove the Irish economy from being one of the most successful to one of the troubled in Europe. People in desperation for change and fed up with austerity are ready to vote back parties, or bring in new ones that are clearly not the best choice. 

Is this a sign of a deeper European crisis, that is not confined just in its economy? If we are lacking of politicians with a vision, but also respect for the people and solutions to their problems. If our leaders answer to the global financiers rather their voters, then Europe is indeed in trouble.

And when people like Berlusconi are propelled into prominent positions, is a clear manifestation of Europe's political, social and financial decline. Perhaps we need parties like the 5 Star Movement in the end, who advocate the end of "career politics" and the limitation of how many terms can a politician be elected. Possibly the solution in Europe's political crisis, will come from populism in the end!