Timo Soini, True Finn leader says No more bailouts
Insolvency must be purged from Europe's system and it must be done openly and honestly, says True Finns Party Chair, Timo Soini writing in the Wall Street Journal Europe. Timo Soini is former chairman of the Bureau of the EFD Group. He has been replaced as True Finn representative in the European Parliament by new MEP Sampo Tehro.
Soini is sticking to his guns over opposition to support for the Portuguese bailout package.
“Europe is suffering from the economic gangrene of insolvency—both public and private. And unless we amputate that which cannot be saved, we risk poisoning the whole body”, he wrote in the journal
In the column, the True Finns leader criticised what he described as the official wisdom. According to this, Greece, Ireland and Portugal have been hit by a liquidity crisis, so they needed a momentary infusion of capital, after which everything would return to normal.
“This official version is a lie, one that takes the ordinary people of Europe for idiots. They deserve better from politics and their leaders, “ Soini exclaimed.
In his view, the scheme means ruin for Greece, Ireland and Portugal. He claims they will never be able to save and grow fast enough to pay back the debts “with which Brussels has saddled them in the name of saving them.”
In Soini’s opinion, setting up the European Stability Mechanism is no solution. He feels it would institutionalize the system of wealth transfers from private citizens to compromised politicians and otherwise failed bankers, creating a huge moral hazard and destroying what remains of Europe's competitive banking landscape.
"To understand the real nature and purpose of the bailouts, we first have to understand who really benefits from them.At the risk of being accused of populism, we'll begin with the obvious: It is not the little guy who benefits. He is being milked and lied to in order to keep the insolvent system running. He is paid less and taxed more to provide the money needed to keep this Ponzi scheme going. Meanwhile, a symbiosis has developed between politicians and banks: Our political leaders borrow ever more money to pay off the banks, which return the favor by lending ever more money back to our governments.
In a true market economy, bad choices get penalized. Instead of accepting losses on unsound investments—which would have led to the probable collapse of some banks—it was decided to transfer the losses to taxpayers via loans, guarantees and opaque constructs such as the European Financial Stability Fund."
Link to WSJ article Click here