Peter Boehringer
Greece, Euro
German Bundestag,
October 24, 2019, Plenarprotokoll 19/21, p. 15045.
[Peter Boehringer is an
Alternative für Deutschland Bundestag member from the southern German state of
Bavaria and is chairman of the Bundestag budget committee. He here presents an
AfD motion calling on the federal government and the European Central Bank to end
the present euro rescue regime and return Greece to the capital markets.
Bettina Hagedorn (SPD) is parliamentary state secretary for the Federal Ministry
of Finance.]
Frau President. Honored colleagues.
Greece desires the discharge of the relatively expensive IMF
credits but not the more favorable ones of the EU. From the Greek viewpoint
that is understandable; from the German viewpoint, not. One must recall here why
actually in 2010 and 2102 the euro rescue institutions of the EFSF [European
Financial Stabilization Facility] and the ESM [Euro Stabilization mechanism]
were created.
Greece was ostensibly incapable of participating in the capital
markets. That is in truth economically untenable – every country is always
capable of capital market participation; that is exclusively a question of
interest rates. Greece then however did not want to pay 8 or more percent.
Therefore the Finance Ministry simply required only a good, old 1 percent,
saving Greece and thereby yet again the euro and, before all, their own jobs.
Since then, the mini-interest credit gifts of that time have actually
become expensive credits in the context of the ECB [European Central Bank]’s voodoo
economics of negative interest rates. In the meantime, Greece, thanks
to the ECB, has again meaningful access to the capital market, even to the
truly dream condition of the present yearly interest of approximately 0.7
percent – 0.7!
There is therefore, first, the economic question of why Greece is
refinancing its repayments to the IMF at a relatively high interest rate of 3.1
percent. Second, there is before all the question of a parallel repayment of
credits entirely other than that presented by the Federal Ministry of Finance. Excuse
me, Frau Hagedorn, it is a great difference whether one is talking about
re-financing possibilities with a rate
level at the height of 3.1 percent or of 0.7 percent. That is the decisive
difference here.
Greece would be in position to accomplish two things in the
regular capital market: the repayment of the IMF tranche, as desired, and in
parallel with repayment to the ESM and the EFSF. Germany would thereby cancel a
heap of toxic credits, indeed to the sum of 10 billion euros. The AfD would
naturally participate in this procedure.
Why then does not one, God willing, simply receive the gift
consequent of the ECB’s interest rate manipulation? Greece again has capital
market access. And besides, thereby is removed the only basis upon which the
rescue institutions of 2010 and 2012 after all had been founded.
The advantages alleged by the ESM of a renunciation of parallel
repayments are not convincing. The ostensibly attenuated risk profile is
marginal and completely negligible and the reduced exchange rate risk of euro
special drawing rights is a conceit. Here one must more likely ask why euro
rescue treaties are not allowed to operate the same as the euro.
The result: Greece with debt conversion would even save money. Simply
take the gift of the capital markets. The ECB still pays the piper! With a two
year loan, Greece in the meantime achieves almost complete freedom from
interest. There are besides the developments of the last three months – the
Federal Ministry of Finance could also now take a look at it: three months ago
it was otherwise but today it is so. How many more entries into the capital market
has one yet to expect? Credit for little effort – that is the dream of every bankrupt!
Simply take it and remove Germany from the risk of a deficit. It works; the ECB
makes the miracle possible.
Remove the German taxpayer from the liability. Vote for the
resolution motion of the AfD!
Hearty thanks.
[Translated by Todd Martin]
