Franco-German motor stirs EuroZone Solution on Greece+ but keeps main Decision power for later Stage

EU's Franco-German motor, supported by other EU Member States, succeeded to find a solution out of the Crisis provoked in EuroZone Member Greece by Past Errors of previous Socialist Governments in key Countries during the 1999-2001  "Turkish deal" backed by the US,  (alias : "Close your eyes on Turkey's Candidature for EU Accession, even if Ankara doesn't meet the Copenhagen Criteria on Human Rights, Democracy and Rule of Law, and we get you in EuroZone earlier than normal, even if you don't meet yet the Maastricht Criteria, i.e. without previously doing the necessary Economic Reforms).

Prepared initially at a Bilateral meeting between French President Sarkozy and German Chancelor Merkel, followed by EU President Van Rompoy, who presented the draft to EuroZone Heads of State/Government for final acceptance, (simplifying successive Formats, as "EuroFora" warned : See Wednesday's Publication),  the Formula aims to ensure that Greece, as any other EuroZone Member State, if needed, could borrow money at normal prices, in Majority from coordinated bilateral loans by EuroZone Countries, and the rest from IMF, as an ultimum remedium, if there is no sufficient supply in the Markets, (i.e. if Speculators ask for "extravagant" rates, as Sarkozy explained afterwards).

Once the Greek Government decided to take measures that EU Commission and ECB find credible for "Stability", EuroZone should show its "Solidarity", stressed in substance both Van Rompoy, Sarkozy and Merkel, reminding a Principle hihghlighted since the February 11 unofficial EU Summit.

But, even if the EuroZone Solution to such Crisis certainly is an achievement of the Franco-German cooperation, artfuly moving accross EU, ECB and EuroZone's institutions to broker larger agreements, (using the fact that the Treaties haven't yet fixed procedural Rules for EuroZone's Heads of State/Governments' Summits, simplifying formalities and facilitating fast moves), however, in the particular situation provoked in Greece since 1999-2001 and unveiled only in 2009, apparently, this is "Not the End of the Story" :

As "EuroFora" already warned, earlier, (See yesterday's Publication), Facts show that the "Process" continues to evolve in several "Stages", since the EuroZone Member Countries wisely kept a Discretionary margin for the Final, concrete Decision, to accept to trigger this Mechanism, or not, when and how exactly, according to a given situation at a precise moment :

- "Today No Decision has been taken to activate the ...Mechanism", since "the Greek government has not requested any financial support", notes the official "Statement by the Heads of State and Government of the Euro Area".  

- "In the World of Finance, you cant' calculate everything beforehand  : We (EuroZone) must judge all the elements existing at one moment, and take a Decision", as EU President, Herman Van Rompy replied to journalist's questions.
However, added also to ECB's "important decision" to continue to accept itself Greece's "collateral" papers at favorable rates, EuroZone's decision to not let Greece down as long as it keeps to a credible Reform plan, should calm down the Markets and even spare us from having to use this new mechanism, he ensured.

The formula was welcomed as "very satisfactory" by the new Prime Minister of Greece, George Papandreou, who hailed "the establishment of a European mechanism", "with a Minority IMF intervention", which" guarantees the protection of  Financial Stability in EuroZone".

But, even if he agreed on the ECB point, the leader of Greek opposition,  President of New Democracy party (ChristianDemocrats/EPP), fomer MEP/Foreign Minister, Antonis Samaras, warned that, "the fact that the Final Decision (on EuroZone's new Mechanism) must be taken Unanimously by all (16) Member Countries, in Practice, ..might mean New Requirements".

The new Mechanism also asks "strong Conditionality" and prepares "Sanctions" for disrespect of EuroZone's rules , while reactions  grew on the unsettled  issue of Responsibilities for the 1999-2001 shady deal (See supra), with German Chancellor Merkel reportedly speaking about "Deliberate Violations", EU President Van Rompuy denouncing "Fraud", and EU Parliament extending further on April its Hearings on the problems provoked in Greece,  (Comp. previous "EuroFora"'s Publications), etc, and even simple EU Citizens callin, at various Media websites, for sanctions against those who set up the 1999-2001 "EuroZone-accession-in-exchange-of-Turkey's-EU-candidacy" shady deal, (including, reportedly USA's Goldman Sachs, some former "Socialist" Governments and EU Officials, etc), which threatened to undermine EuroZone after delaying EU's institutional development for years.

All this might eventually evolve, ("in the forthcoming Weeks" as Van Rompoy said f.ex. for the Legal precisions of EuroZone's decision), towards a strongly-backed demand for an elementary Investigationon what really happened and who was really responsible (See infra).

Sarkozy, smiling, dismissed a speculation by a journalist in Brussels that IMF's involvement might be a covert "attempt to bring back to EU and French politics" its SG, former Socialist Straus-Kahn, (proposed to IMF by Sarkozy himself), via the Financial problems of US-born International Socialist's Chair Papandreou, after Merkel was pressured by a Media campaign led by "Bild", which has close links with UK and US Media as CNN-Times WB and controversial Turkish Media tycoon Dogan of "CNN-Turkey", as it showed recently, (See one of "EuroFora"s 2009 NewsReports from Berlin). But this could be a double-edged knife and backfire as a "boomerang", since it might trigger an Investigation on the 1999-2000 shady deal (See supra) which could reveal responsibilities of several former Socialist ao. officials.

The French President prefered to focus on "Serious issues" of both Urgent and Historic importance, which can strenghen the Core of EU's Integration, by the creation, for the 1st time, of "an EuroZone  Mechanism for support in times of Crisis", together with the preparation of measures to reinforce Budgetary surveillance at EU level, as well as a decision to advance towards a closer "Coordination of Economic Policies" by the Council, and discuss on how to prepare a European Economic Governance.

Indeed, after an Historic 1st EuroZone Heads of State/Government Summit which started to fight against the Global Crisis on October 2008 during the French EU Presidency in Paris (See "EuroFora"'s NewsReports from the event at Elysee palace), it was now the 2nd time that EuroZone's Heads of State/Government met together to take exceptional decisions defending EuroZone's Stability, this March 2010 in Brussels, as EU President Van Rompoy observed.

The main thing for Sarkozy was "to get out of the Crisis in Greece by trying to ameliorate the European mechanisms", and this was "facilitated by a close Franco-German Cooperation", "in agreement with EU President Van Rompoy and the rotating EU Chairman (Spanish Prime Minister) Zapatero", as he concluded.

German Chancellor Merkel also stressed that there are "two sides of the medal" : "EuroZone's Members don't allow it to be destablized", but "show Solidarity", while also "drawing Long-term conclusions".

EU Commission's President Barroso hailed the symbolic coincidence between the Anniversaries of  "EU's birth", back on "March 25th", and "Greece's National Day", as he said, speaking at the eve of Merkel's forthcoming visit to Turkey, which is the 2nd since she became Chancelor, but the 1st since she brillantly won the June 2009 EU Elections and got, on September 2009 National Elections, the New Majority Governemental coalition she had wished for.

 Cyprus is due to be one of the main issues for discussion during her 2 meetings with Turkish Prime Minister Erdogan, German Officials told the Press, the same day (Friday) that Reports from Brussels denounced that new Socialist EU Commissioner Füle reportedly tabled at EU Parliament, without warning neither EU Commission's President Barroso, nor EU Council's rotating Chairman-in-office Spanish  Prime Minister Zapatero, a  highly controversial draft Regulation threatening to open "Direct Trade" with the Turkish Occupied Territories of Cyprus, held by Ankara's Foreign Army, and from which the Majority of its ancestral Greek Cypriot inhabitants have been forced to flee and hindered to return since the 1974 Turkish Military Invasion, their Family Homes and Properties still being illegaly usurpated contrary to ECHR's Judgements, with the risk to stir Separatist tendencies and to provoke an indirect recognition of the illegal breakaway occupation regime that UNO's Resolutions clearly condemn. On the contrary, Turkey repeatedly asks to impose such a controversial "Direct Trade" to the Occupied Territories, since the year 2000.

Ankara  seems eager to hastily "close" the Cyprus' issue before a June 2010 EU check on its persisting failure to fullfil its 2005 commitment to stop discrimination against Cyprus-related Ships and Airplanes, but, with a few slight exceptions, it doesn't seem ready yet to make compromises on the main, substantial issues for a real reUnification of Cyprus, giving the impression that it expects from a pro-Turkish lobby to impose its views and its controversial EU bid to Europe, probably exploiting the Financial problems provoked to the Greek Economy by the shady deal which pushed Ankara's controversial "Candidacy", over EU Citizens' Heads,  back in 1999-2001.