Business

Brace Yourselves: Spain’s No-Austerity Rescue Package Will Lead to EU Countries Reneging on Their Bailout Agreements

The Blaze reported earlier this afternoon that Spain had finally caved and asked the European Union to save its ailing banking sector with a bailout of up to $125 billion (€100 billion). When news of the Spanish bailout broke, this was also reported [emphasis added]:

Economy Minister Luis de Guindos said Saturday the aid will go to the banking sector only and so would not come with new austerity conditions attached for the economy in general. A statement from the finance ministers of the 17 countries that use the euro explained that the money would be fed directly into a fund Spain set up to recapitalize its banks, but underscored that the Spanish government is ultimately responsible for the loan.

Did you catch that? Spain scored itself a massive no-strings-attached bailout deal. Clearly, this sets them apart from the other eurozone countries that were forced to agree to austerity measures in order to be eligible for financial aid.

But, for lack of a better comparison, the EU is like a family. And as anyone with siblings can tell you, when one kid gets special treatment, all the kids want special treatment. And that’s exactly what is brewing in Ireland.

Brace Yourselves: Spains No Austerity Rescue Package Will Lead to EU Countries Reneging on Their Bailout AgreementsGerman Chancellor & austerity advocate Angela Merkel

“Ireland wants to renegotiate its rescue plan to benefit from the same treatment as Spain, which looks set to win a bailout for its banks without any broader economic reforms in return,” the AFP reports.

“Ireland [wants] to ensure parity of the deal with Spain retroactively on its bailout from EFSF [European Financial Stability Facility],” an EU government source told AFP.

The rescue package Ireland agreed to back in November 2010 involved an injection of €85 billion ($112 billion) from the European Union and the International Monetary Fund. Of course, in order to get their hands on all that money, they had to agree to austerity.

So why was Spain given a sweetheart deal? That’s exactly what leaders in the Emerald Isle want to know.

“Dublin plans to raise the issue during the next meeting of eurozone finance ministers to be held June 21,” the AFP reports.

You know what this means, right? Ireland isn’t going to be the only bailed out country crying foul.

You know who else is going to be unhappy about this?

Brace Yourselves: Spains No Austerity Rescue Package Will Lead to EU Countries Reneging on Their Bailout AgreementsAusterity riots in Greece.

“[W]ith Ireland on the renegotiation train, next comes Greece. Only with Greece the wheels for a bailout overhaul are already in motion and are called a ‘vote of Syriza on June 17.’ And remember how everyone was threatening the Greeks with the 10th circle of hell if they dare to renegotiate the memorandum?” writers at Zero Hedge ask.

“Well, Spain just showed that a condition-free bailout is an option. Which means Syriza will get all the votes it needs and then some with promises of a consequence free bailout renegotiation. In other words Syriza’s Tsipras should send a bottle of the finest champagne to de Guindos — he just won him the election,” Zero Hedge adds.

Indeed, if you thought the situation in the EU was dire, consider a scenario where previously rescued countries decide to renege on the terms of their bailouts. And why not? If Spain gets an unconditional bailout, why not Greece?

“Congrats Germany: you have now opened the Pandora’s box of infinite moral hazard, bailout renegotiations and unconditional rescues. Anything less than a pari passu bailout to Spain’s, which the economy minister touted as having no political strings attached, will incite a revolution,” Zero Hedge adds.

Comments (121)

1 2 3
  • uptickusa
    Posted on June 9, 2012 at 11:54pm

    The EURO equals ZERO

    Report Post »  
    • lukerw
      Posted on June 10, 2012 at 12:00am

      And… how much of it is on the Books… of the Federal Reserve… as “Assets”? So, what is the Real US National Debt?

      Report Post » lukerw  
    • The-Monk
      Posted on June 10, 2012 at 1:31am

      An old progressive nursery rhyme.

      The pain in Spain falls mainly on the lame….

      Report Post » The-Monk  
    • historyguy48
      Posted on June 10, 2012 at 6:40am

      The joke is that it is all just monopoly money! Ours, theirs, everyones, money is actually worth nothing! It doesn’t even make good toilet paper!
      Just in case we crazy nut cases are correct you had better have food for your family for at least a year and a group of like minded friends! The people that can’t control themselves believe they will be able to control the crash. What a joke!

      Report Post » historyguy48  
    • poorrichard09
      Posted on June 10, 2012 at 8:16am

      The strain in Spain caused bankers to complain. : )

      The Euro zone looks more and more like a cluster flock. ; )

      Report Post »  
    • Wildape
      Posted on June 10, 2012 at 8:44am

      It makes me mad that the unelected Federal Reserve gets to play king with our hard earned money. They have no public accountability, there is no control over who runs them, and the system hasn’t been modified since its inception during the Woodrow Wilson era. The only difference between theives and these clowns is that the thief is more honest about who they are and doesn’t hide behind the guise of the law.

      Report Post »  
    • Wildape
      Posted on June 10, 2012 at 8:47am

      Also, I used to wonder why people cheered for Jesse James, Bonnie and Clyde, and John Dillinger. I’m beginning to understand now thanks to Bernacke and bailout crew.

      Report Post »  
    • lukerw
      Posted on June 10, 2012 at 8:35pm

      @HISTORYGUY…
      As Correct as you are… we are operating under an Honor System!

      Report Post » lukerw  
  • Ivehadenoughtofthisgovenmentcrap
    Posted on June 9, 2012 at 11:48pm

    …we might not have started the fire……but boy it sure is going to burn and we’re in the thik of it !!!

    Report Post » Ivehadenoughtofthisgovenmentcrap  
    • lukerw
      Posted on June 10, 2012 at 3:43am

      Over there… you have 27 Nations… of different Culture… of different History… who all hated each other… and only US Troops after WWII stoped the Insanity.

      Report Post » lukerw  
  • fuzzy20841
    Posted on June 9, 2012 at 11:47pm

    How can this be happening! As Europe plunges, the US economy is on the rocks, terrorism continues, we have riots in the street, and our president who lives on Air force one, campaigns non stop, and doesn’t have a clue!. We must send him packing in November! He makes Slick Willie look acceptable.

    Report Post »  
    • ChrisTex
      Posted on June 10, 2012 at 1:23am

      Slick Willie is looking more like a right-wing secret weapon more and more.
      Strange times indeed.

      Post Script:
      a secret weapon to be discarded after november.

      Report Post » ChrisTex  
    • lukerw
      Posted on June 10, 2012 at 3:58am

      Do not fall the Propaganda that Clinton was a Great President: He started the New World Order of NAFTA-like Treaties that purged our Middle Class… and he inspired the Housing for the Poor Program which created the Housing Bubble. Just because it all caused the Crash after he left Office… does not mean that he is not to Blame!

      Report Post » lukerw  
    • Arminius23
      Posted on June 10, 2012 at 4:41pm

      Clinton is the one that destroyed our meat and potato industries, the manufacturing sector. He is a traitor as well as Ross Perot for having the nerve to swiftboat HW Bush and Dole during the 92 and 96 elections. Hey UNION guys do something for your country for once and get your people into manufacturing before we are caught in the coming **** storm.

      Report Post » Arminius23  
    • michael48
      Posted on June 10, 2012 at 9:21pm

      the clintonistas are responsible for the introduction of georgie boy soros…1992..moveoon.nut etc…the rest is (history) or treason???? will grant him one thing…he‘s no friend of chairman ocommie’s…but could be a battle between two arrogant, conceited , twits…seen billery lately??? dam thats a whole bunch of ugly…somethings not right…maybe traded kool-aide for bath-salts????

      Report Post »  
    • overthecliff
      Posted on June 10, 2012 at 9:47pm

      Socialists stealing from other socialists. Each stampeding to beat the other to the trough. They deserve what they get to bad a lot of innocent people will get it as well.
      there is a fourth turning coming to Europe and USA. It won’t be pretty.

      Report Post »  
  • Maxim Crux
    Posted on June 9, 2012 at 11:37pm

    It is the plan. Anyone really think that all of this is an accident….really? Here it is…the PLAN, certain countries get booted out of the EU…taken over really, by their agreement with Germany. Germany is not going to just…LET THEM OFF THE HOOK. This all eventually leads to a 10 Nation EU super power. All of these other nations will be swallowed up after the armed forces of the NEW EU go in and squash them. Who is going to stop them anyway….Britain…the U.S. under this leadership? I don’t think so. None of these smaller countries can stand up against Germany. They have the largest standing military in Western Europe and are the largest weapons supplier of everyone over there. They also control all the resources going under the Baltic Sea coming from Russia. They can just turn it off and these smaller countries will fall like dominoes.

    Report Post »  
    • BOMUSTGO
      Posted on June 10, 2012 at 12:20am

      Revelation 13:4 And they worshipped the dragon which gave power unto the beast: and they worshipped the beast, saying, Who is like unto the beast? who is able to make war with him?

      Report Post » BOMUSTGO  
  • Liberty_Effect
    Posted on June 9, 2012 at 11:34pm

    this is why i will not be voting for Romney – who supports the bank bailouts

    When it comes to bailouts, i will not compromise….I will not comply

    Report Post » Liberty_Effect  
    • Diane TX
      Posted on June 10, 2012 at 12:25am

      So, you’re voting for Obama instead?

      Report Post »  
    • Netsurfer2
      Posted on June 10, 2012 at 12:26am

      I strongly agree! I’m not for the same ole business as usual with either Romney or Obama! Both are not worth voting for!

      My question is; Do we really have any choice because of how crooked the system really is?

      Not like anyone with any real sense will put it into perspective!

      Report Post » Netsurfer2  
    • BOMUSTGO
      Posted on June 10, 2012 at 12:30am

      Both parties are just different wings of the same bird.

      Report Post » BOMUSTGO  
    • sawbuck
      Posted on June 10, 2012 at 12:51am

      I don’t care how it came down to this anymore ..
      It is what it is.
      We only have ONLY two choices this coming election..
      And we are voting for the less of two evils.
      And that is ALL we have…!
      Any vote that is NOT for Romney…is a vote for the other guy.
      And to think otherwise means your only fooling yourself or
      you’re a damn liar .

      Report Post » sawbuck  
    • Liberty_Effect
      Posted on June 10, 2012 at 1:17am

      I will not be told what my options are. As of now, there are multiple nominees (3rd party) who are better than Romney/Obama. If the two parties somehow remove all other options, i will stay home.

      Report Post » Liberty_Effect  
    • ChrisTex
      Posted on June 10, 2012 at 1:36am

      Stop think in terms of Romney’s election as the end-all of America.
      I don’t like it one bit, but this close to the election, and too many still asleep at the wheel, this is the hand we’re dealt.
      Start thinking how we keep his liberal tendecies in check.
      1. Push HARD for a conservative VP pick, like Rand Paul(example)
      2. Whether you agree or not as POTUS(I don’t), Ron Paul needs to challenge Boehner for the postion of speaker. His most popular positions are fiscal/monetary policy. Its where he needs to be and would need our support.
      3. Make sure we take back the senate and get a true conservative as Majority Leader. (example:Demint)
      Just beacuse we got a moderate as our POTUS candidate doesn’t mean he gets to control the outcome. Look how the Congress of ‘94 was able to leverage their agenda with Slick Willie as POTUS.
      Don’t give up, there is more than one way to effect change……err restoration=)

      Report Post » ChrisTex  
    • ChrisTex
      Posted on June 10, 2012 at 1:47am

      Oh i forgot my sig…

      God Bless the Republic

      Report Post » ChrisTex  
    • constitutionparty
      Posted on June 10, 2012 at 8:37am

      @liberty effect
      I agree with you about the bailouts but voting for a third party is like a vote for Obama. The difference the way see it between them is that at least Romney if elected will be looking to the next next election and not do anything stupid whereas an Obama reelection would make him feel he has the mandate of the people and does not worry about another election. You have not seen anything yet. He stopped being president 8 months ago because everything he has left to do has to wait until after the election because he knows the people won’t like it.

      Report Post »  
    • barber2
      Posted on June 10, 2012 at 9:37am

      LIB: Tired of your threats. Remind me of the “ex-closeted” who like to rub people’s noses in their proud ” out-edness.” Do whatever dumb thing you desire. Just shut up about it !

      Report Post »  
    • Walkabout
      Posted on June 10, 2012 at 11:21am

      I am voting for Obama, because there is no way in HeII I am voting for Romney & more bailout & more spending.

      I am voting for Obama, because there is no way in HeII I am voting for Romney & more loans to sonn to be defunct solar companies run by Obama bundlers,

      Report Post »  
    • Walkabout
      Posted on June 10, 2012 at 11:24am

      Liberty_Effect must be a liberal troll

      He is been a “Member Since: June 10, 2012″ and has bravely outed himself as a no vote for Romney.

      He has a whole 3 posts as of 11:30 for crying out loud. such a clever troll.

      Report Post »  
    • Lloyd Drako
      Posted on June 10, 2012 at 1:42pm

      Lib: You may not compromise or comply, but your bank will.;–)

      Report Post » Lloyd Drako  
    • soybomb315
      Posted on June 10, 2012 at 2:08pm

      @Walkabout
      I created the name because theblaze was blocking my previous posts under a different name. I would post and it wouldnt show up until 6 hours later – sometimes not at all. I post under soybomb315, you might recognize my symbol….

      nice try though

      Report Post » soybomb315  
    • Walkabout
      Posted on June 10, 2012 at 6:54pm

      Different name, same misdirection

      Report Post »  
    • lukerw
      Posted on June 10, 2012 at 9:35pm

      Explain… to us… how you think that Capitalism Functions?

      Report Post » lukerw  
    • lukerw
      Posted on June 10, 2012 at 9:40pm

      @BOMUSTGO
      Democrats are for Fascist Control by Unions… Republicans are for Fascist Control by Business… UNLESS YOU CHANGE ONE PARTY TO BE CONSERVATIVE & CONSTITUTIONAL!

      Report Post » lukerw  
  • sillyfreshness
    Posted on June 9, 2012 at 11:33pm

    This is the end
    Beautiful friend
    This is the end
    My only friend, the end

    Of our elaborate plans, the end
    Of everything that stands, the end
    No safety or surprise, the end

    Jim Morrison summed it up in 1967

    Report Post » sillyfreshness  
    • Ivehadenoughtofthisgovenmentcrap
      Posted on June 9, 2012 at 11:45pm

      Nice…….was thinking the same thing. The Blaze should have it playing in the back ground…..

      …….here we go folks. Hold on it’s a bumpy ride from here on out…….things will go much faster now….

      Report Post » Ivehadenoughtofthisgovenmentcrap  
  • lukerw
    Posted on June 9, 2012 at 11:26pm

    Socialism is the Ideology… leading to Apocalypse!

    Report Post » lukerw  
    • BOMUSTGO
      Posted on June 10, 2012 at 12:22am

      It is the BEAST system during the end of the age.A counterfeit kingdom is set up before the King of Kings sets up the true Kingdom.

      Report Post » BOMUSTGO  
  • bobbyjoe
    Posted on June 9, 2012 at 11:21pm

    That’s great, it starts with an earthquake, birds and
    snakes, an airplane and Lenny Bruce is not afraid………
    It’s the end of the world as we know it
    and I feel fine.

    I always liked that song

    Hope you are ready. May God have mercy on us all.
    Remember, it’s just the end of what we know.

    Report Post » bobbyjoe  
  • nothinghere
    Posted on June 9, 2012 at 11:21pm

    i guess o’bama,and guitner told them how they did the bail-outs in america, and go ahead and do it in the euro-zone,don’t feel bad euro-zone these two have ruined america’s economy also trying to get re-elected,good-luck.
    did o’bama,when he was pushing you to do this for his re-election,tell you to blame it on bush when it does’nt work?
    watch uh i mean read how this money went into your banks and disappears.

    Report Post »  
  • hillplus
    Posted on June 9, 2012 at 11:20pm

    Please work on an extra supply of food. Three months worth. Now is the time.

    Report Post »  
    • DGuy
      Posted on June 10, 2012 at 4:18pm

      I stockpiled the dogfood as well. My girls got a years worth of kibble on hand for ‘just in case’… This was not expensive at all compared to stocking people food.

      Report Post »  
  • mrmarkjohnson
    Posted on June 9, 2012 at 11:07pm

    This is what happens when you give your freedom over to the government. The US needs to make bailouts of any kind unconstitutional.

    Report Post »  
    • lukerw
      Posted on June 9, 2012 at 11:22pm

      Obama promised US Support… He & Hillary and Nancy & Harry are behind this!

      Report Post » lukerw  
    • JediKnight
      Posted on June 10, 2012 at 4:06pm

      Do you see bailouts listed as an enumerated power? I didn’t think so. Bailouts already are unconstitutional. But it doesn’t matter what is unconstitutional when you have men in office that are not willing to follow what a piece of paper says.

      Our constitution will only serve a Godly people (paraphrasing George Washington).

      Report Post »  
  • donh2
    Posted on June 9, 2012 at 11:07pm

    Thank you for the outstanding use of the Waterhouse painting of Pandora. Just how much of the world shall die to save this “ too big to fail ” experiment in the New Word Disorder . The Eurozone has become the new Soviet Block with an iron curtain in Berlin trapping members from ever leaving..

    Report Post »  
  • OlefromMN
    Posted on June 9, 2012 at 10:58pm

    You open the wallet for one kid and the others come running from out of the woodwork. A snarky but serious question… How long before Germany is broke from bailing out all of these other fools?

    Report Post » OlefromMN  
    • Arminius23
      Posted on June 10, 2012 at 5:08pm

      Germany will be fine….. Their manufacturing core is strong to be sure. The question is what will Germany do when the other countries reneg and there isn’t anyone around that could stop them from breaking out and collecting. If you think shaming them about WWII will work then you really don’t know human beings very well. You can only kick a dog so long before he devours you.

      Report Post » Arminius23  
  • RightPolitically
    Posted on June 9, 2012 at 10:55pm

    The lid is going to blow off in Europe very soon. And they have no one to blame but themselves!

    Report Post » RightPolitically  
    • Lloyd Drako
      Posted on June 10, 2012 at 1:44pm

      Unless they decide to go to a common treasury and a common fiscal policy, but I’m not holding my breath.

      Report Post » Lloyd Drako  
  • Mess23
    Posted on June 9, 2012 at 10:51pm

    So they are taking more money from the people making money and give it to the people who have proven that they do not know how to manage money?

    Nothing to see here folks, keep moving along

    Report Post »  
    • BOMUSTGO
      Posted on June 10, 2012 at 12:26am

      INEPTOCRACY (in-ep-toc’-ra-cy) – a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

      Report Post » BOMUSTGO  
  • Chromo200
    Posted on June 9, 2012 at 10:50pm

    Bernanke will be sending them a lot of money. This a set up for the USA to bail Europe. Key sentence “Anything less than a pari passu bailout to Spain’s, which the economy minister touted as having no political strings attached, will incite a revolution,” .. and Obama and the libs sure don’t want innocent people killed or go through the hardship of a revolution. This EU problem is the fault of the Conservatives and the Tea Barty asking people to live within their means .. what a bunch of nasty heartless group of people.

    Report Post »  
  • TomSawyer
    Posted on June 9, 2012 at 10:49pm

    Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue. Spend less than revenue.

    Report Post »  
  • Mikev5
    Posted on June 9, 2012 at 10:47pm

    It’s time the EU dies it was an abomination to begin with its main purpose was to try and knock the USA of the top dog spot they wanted full control again like the old days before WW2.

    They wanted the Euro to be the dominant money of the world and push our money into the second tier position our money had power and they wanted that back very bad they wanted the influence that came with it… POWER

    Report Post » Mikev5  
  • possom
    Posted on June 9, 2012 at 10:46pm

    Merkle never should have talked with obama, everything he touch‘s turn’s to crap!

    Report Post » possom  
  • igetit
    Posted on June 9, 2012 at 10:44pm

    Broke

    Report Post »  
  • soybomb315
    Posted on June 9, 2012 at 10:44pm

    troubled times ahead for whichever of the two evils that win in November…

    Report Post » soybomb315  
  • lukerw
    Posted on June 9, 2012 at 10:43pm

    Just give the Alcoholic… another drink. What could go wrong?

    Report Post » lukerw  
    • Mikev5
      Posted on June 9, 2012 at 10:53pm

      Lunacy at its best when things get bad you will see these kinds of things happen its coming apart at the seams and yet they still say don’t worry everything is just fine ignore that man behind the curtain.

      Report Post » Mikev5  
  • Psychosis
    Posted on June 9, 2012 at 10:39pm

    stupid

    but what is even more amazing is that there is no austerity

    NONE

    ALL these countries are still spending MORE than they did the previous yrs , they are just not spending AS MUCH AS THEY WOULD LIKE TO BUDGET

    kinda like our own government ……………….not spending as much as they would like is considered a “cut”

    Report Post » Psychosis  
    • lukerw
      Posted on June 9, 2012 at 11:18pm

      Put that drink on my Tab; I’ll pay you Tueday… for a Hamberger, today.

      Report Post » lukerw  
    • Londimex
      Posted on June 11, 2012 at 2:48am

      Dont lump Spain in with the rest of Europe, our debt to GDP is one of the lowest, in fact as low as the USA! I seem to remember the US dumping billions of stimulus onto your ecconomy and saving your banks??. But I do believe your right…they should let these banks fail. Spain is ok its the Banks that have failed.
      http://www.usdebtclock.org/world-debt-clock.html

      Report Post »  
  • JUSTANOTHEROPINION
    Posted on June 9, 2012 at 10:37pm

    Yep, here we go folks. If you don’t think this is going to affect our country and more over you personally, just wait. Batten down the hatches, a storm is coming with the likes that we have never seen.

    Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on June 9, 2012 at 10:28pm

    I give the EU until the end of the month before she takes the death plunge.

    Report Post » Snowleopard {gallery of cat folks}  
    • Sol Invictus
      Posted on June 10, 2012 at 7:39am

      Can’t wait for your comments on 30th June. By the way – don’t ever gamble.

      Report Post » Sol Invictus  
    • Walkabout
      Posted on June 10, 2012 at 11:16am

      Sol Invictus

      George Soros gave the EU 3 months or until the end of Summer. So Cat is off by 2 months. Big deal. If you are along term stock holder you don’t have to worry as much about timing the market.

      The market is all fake anyway. There has been too much intervention by the central banks & various governments.

      I take Cat’s comment as a data point much as John B. Smith would on Bulls & Bears. You take her comments as a chance to score points. Sad really.

      Report Post »  
1 2 3

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love