Stakes higher - and sharper.

Europe accounts for 80% of Germany's exports. (FT May 28.) The current pressure on the eurozone is a spectacular risk for the economy that has created its own bailiwick (just as a 19th Century Prussia created its Customs Union.) Unlike the last European financial catastrophe there will be no Marshall Plan that will come riding to the rescue.

Meanwhile Greece is bleeding to death.

'Athens bankers estimate that more than 3 Billion Euros have been withdrawn since the May 6 election' according to Mr Papademos's paper on 'risks' given to the Greek President Karolos Papoulias to help his subsequently failed talks with the parties. Greek assets are being quietly removed from the country and, in the meantime, a great fear offensive is underway in Greek politics. Five opinion polls published during last weekend put the right wing New Democracy Party ahead of the anti-austerity Syriza.

The Papademos report claims Greece will shortly run out of money. 'The state will face considerable difficulty covering its expenses in June', his briefing to the President stated. Meanwhile large tax payments are being with held or 'delayed' and energy bill payments are proving unaffordable for hundreds of thousands of Greek people. PPC the state electricity company has received a 250 million Euro special payment to help cover its growing deficit. One leading Greek economist, quoted by the FT, says;

"If a government is formed after the June election it's going to find that the Fiscal programme agreed in March has already been derailed." (FT May 28.)

Anti austerity parties need to speak to the Greek people directly about this. The rich and the big companies are quietly, secretly, but rapidly ruining the country. Germany and other major players in Euroland, including Greece's own shadowy rulers (see last blog) are seeking to create an example here - whether inside or outside the Euro for the moment.  It is already guaranteed that whoever is elected in June will have to form an emergency government. The only question is; will that be an emergency government that will seek to defend the people - or one that will serve the rich?