France and Germany, while publicly urging Greece to make harsh public spending cuts, bullied its government to confirm billions of euros in arms deals, a leading Euro-MP alleged Friday.Franco-German lawmaker Daniel Cohn-Bendit said that Paris and Berlin are seeking to force Prime Minister George Papandreou to spend Greece’s scarce cash on submarines, a fleet of warships, helicopters and war planes.
“I met Mr Papandreou last week. I was in Athens. I’ve known him for a long time,” Cohn-Bendit told reporters, accusing Germany’s Chancellor Angela Merkel and France’s President Nicolas Sarkozy of blackmailing his friend.
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Last week the markets were hammered due to the spreading of the Greek contagion with Euro falling , sovereign debt CDS of the PIIGS increasing daily and markets dropping at a frightening pace. Give this backdrop you would expect some sort of a Weekend Measure from the EU which has come in this form of a Stabilization Fund.Both the French and German leaders are going to defend the Euro against the “speculators”.More details later but I think most measures would provide only a temporary stabilization at best. The EU problems will not stop unless they address the core problems.Rather than trying to solve the fundamental issues behind this crisis the European leaders are at their favorite pastime of blaming the “speculators” and the Markets.Read more at http://www.greenworldinvestor.com
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