Citizens liable for EU debts: political failure across the board!

The federal election is just under a year away and the current government has little time to change course. Instead, problems are piling up: exploding energy prices, mountains of debt, company exodus, deindustrialization, increasing bankruptcies, mass immigration, security risks and dilapidated infrastructure.

The education sector is so desolate that a “school toilet summit” was necessary. A “curriculum summit” without those responsible – didacticians and methodologists – would be just as necessary. Instead of knowledge and facts, “skills” are taught that are often empty chatter. The health system is in direct competition with the education system for last place.

The social systems are collapsing under the weight of mass migration and demographic developments. According to the DAK study, there is a risk of contribution increases in all areas: health insurance (from 16.3 to 19.3%), pension insurance (from 18.6% to 22.3%) and long-term care insurance (+0.7 percentage points by 2030). This would correspond to a government share of 43% – not including taxes.

Finance Minister Lindner will hardly be able to present a budget that complies with the constitution, the holes in financial planning are getting bigger and bigger. The EEG levy will be at least twice as expensive as planned because its true costs were concealed. The levy was shifted from the electricity price to the tax budget in order to increase acceptance of the energy transition.

The 10.6 billion euros in the EEG account were already used up in the middle of the year. 2.1 billion euros will be needed in July alone for the guaranteed payments to EEG companies. A further 8.7 billion euros must be made available over the course of the year, which was not planned. The energy transition was the start of a state-run economy – with fatal consequences for citizens and the economy.

Government flying blind: Wasting taxpayers’ money, reducing civil rights, industry hoping for even more subsidies

The current government is characterized by a lack of foresight and irresponsible action. Instead of planning for the future, taxpayers’ money is being spent lavishly. The fatal consequences of this policy are already apparent: 30% more bankruptcies in the first half of 2024 compared to the same period last year.

Instead of finding real solutions, the government is trying to solve problems through bureaucracy. The reduction of civil rights is referred to as “bureaucracy reduction” in order to serve the interests of its clientele. The result: restriction of rights of appeal and the free fall of wind turbines and power lines right into citizens’ front gardens.

The President of the Federation of German Industries (BDI), Siegfried Russwurm, not only seems to ignore this negative development, but even to fuel it. Instead of criticizing the disastrous economic policy, he is calling for further disenfranchisement of citizens and horrendous subsidies for industry.

Russwurm’s demand for a 400 billion euro special fund for a transformation fund is a slap in the face of taxpayers and shows his ties to big industry. The comparison with the federal budget of 476.8 billion euros makes the dimension of this madness clear.

The call for “more social cohesion” between politics and business turns out to be pure self-enrichment. Russwurm, chairman of the supervisory board of ThyssenKrupp, is calling for billions in subsidies for the “green” conversion of the steel group.

Olaf Scholz was in any case quick to accommodate Russwurm at Industry Day, when he promised to invest more in the future: “We are doing that this year with over 100 billion euros in future spending.” What Scholz euphemistically calls future spending is, when you look at it closely, the debt repayments of our children in the future, which this government is burdening us and them with absolutely no restraint as the price of galloping deindustrialization. Scholz speaks of 100 billion euros, about ¼ of the federal budget for 2025.

But Olaf Scholz does not yet have a budget. Not at the moment, the money is being taken from the Germans with great hands and distributed all over the world with great hands, big managers like Siegfried Russwurm have minimized the entrepreneurial risk by subsidizing on the supply side and intervening on the demand side.

But even that is not enough, because the Chancellor promises almost in passing that he will work together with France to ensure that the communitization of European debt, Italy, France, for example, is fully implemented, the technical term for the plundering of German deposit insurance, in effect the protection of German savings deposits, is capital market union.

Essentially, it is about the fact that German banks, savings banks and cooperative banks are liable for the defaults of all European banks. If Cypriot or Maltese banks lose money by gambling with cryptocurrencies, the German taxpayer can be asked to pay for it if the capital market union is designed accordingly.
The savings banks have a warranty liability to cover loan defaults. If the savings bank gets into difficulties due to defaults, the individual deposits are insured up to 100,000 euros by the savings bank’s sponsor, i.e. the municipality or the district, for example. If the capital market union is designed accordingly, this protection would be open not only to the savings banks, but to all banks in the eurozone.

A “no bailout” clause may sound reassuring at first glance, but its effectiveness has proven questionable in the course of the Greek rescue. At the time, it was practically repealed and later forgotten by the Green Deal.

The implementation of the capital markets union, as called for by Scholz and France, could further drive this development. Volksbanken and private banks would have to bring their security funds and solidarity systems into a pan-European pot, which would dilute the liability limits.

German banks would then be liable for the risks of companies in countries such as Portugal, where lending guidelines are much more lax. The once strict German prospectus guidelines would be watered down and national control over financial markets would dwindle.

Originally intended as a means of risk diversification and capital market integration, the capital markets union in its current form could lead to a debt union. The savings of German citizens would then be used to finance the debts of other countries.

Supporters of this development argue that low interest rates would allow Germany to benefit from other countries’ borrowing. But critics warn of a dangerous game with fire that could result in an uncontrollable increase in debt and a loss of financial stability.

A fragile protective wall: “No bailout” clause and the risks of the capital markets union

The introduction of a “no bailout” clause may give the impression that no one is liable for the debts of others. But the experience with the Greek bailout has shown how fragile this supposed security can be. What was intended as a protective wall was practically watered down in the course of the Green Deal and is in danger of being forgotten.

The proponents of the capital markets union hope that by including the guarantee funds and solidarity systems of the cooperative and private banks in a pan-European pot, financial stability will be strengthened. But this plan entails risks.
For example, a weakening of the strict German prospectus guidelines could lead to German banks being liable for the liabilities of companies in countries with more lax lending rules.

Resistance to the original idea of the Capital Markets Union, floated by Commission President Juncker in 2016, led to its partial implementation through the Green Deal and the Next Generation Europe programme.

However, the full implementation of the Capital Markets Union, now being pushed forward by Scholz and France, could remove the last barriers to joint debt liability and make the debt union a reality.

Critics warn of the fatal consequences of such a development. Why, they ask, should Germany save and comply with the debt rules when its savings are being used to finance the debts of other European countries anyway?

The seemingly tempting idea of going into debt without a second thought is, however, like Russian roulette: with every bullet in the gun, the risk of a devastating disaster increases.

The arduous path back to sovereignty: leaving the euro

Breaking the vicious circle of the eurozone and regaining one’s own sovereignty requires a courageous and determined step: leaving the euro.

This path may seem arduous, but the alternative – increasing dependence on the eurozone and the associated loss of influence and prosperity – is far more threatening.

The numbers speak for themselves: Germany’s Target balance in February 2024 was around 1,000 billion euros, while France and Italy simultaneously accumulated immense liabilities of -170 billion euros and -466 billion euros respectively.

Leaving the euro would free Germany from this burden, but at the same time would entail considerable losses. The investments of German pension and retirement funds in southern Europe, which are conservatively estimated at a third, would be at risk.

The path out of the euro is therefore a long-term process that must be approached with caution and determination. Instead of announcing hasty goals that are unrealistic or unfeasible, a wise government should work quietly and consistently to plan and implement the exit.

However, this requires that the government takes its responsibility to the German people seriously and puts the country’s interests first. Instead of dealing with trivialities such as cooking projects in Palau or bicycle paths in Peru, it should focus on tackling the pressing challenges facing Germany.

The traffic light coalition has so far failed in this regard. It is time for it to reorder its priorities and correct course for the benefit of the German people.

Conclusion: Sovereignty, freedom and prosperity –
living independently

When the government of a country follows a course that runs counter to its own ideas and values, when it restricts civil liberties and promotes paternalism instead of personal responsibility, one is faced with a difficult decision: adaptation or resistance?

1. Adaptation:

Accepting the path set by the government and hoping for a change of course that corresponds to the interests of the people can be seen as a laborious and lengthy process. It requires patience, perseverance and belief in the possibility of positive change.

2. Resistance:

Actively resisting and standing up for your rights and freedoms is a brave step, but one that can be associated with challenges and risks. It requires commitment, determination and the willingness to stand up for your own beliefs.

Deciding to live a free life:

Regardless of the option you choose, it is important to maintain your own sovereignty and ability to act. This also includes the possibility of looking for alternative life models and opportunities.

Our support:

If you decide to make a fresh start in another country, we are happy to advise you. We will help you find a country that meets your needs and ideas and support you in preserving assets, optimizing your taxes and integrating into your new home.

Your path to a self-determined life:

The decision to adapt or resist, to stay or to start anew is up to each individual. It is important to know your own values and goals, to find out about the respective options and to make a decision that is in line with a self-determined and fulfilling life.

Additional points:

Individual advice: During the consultation, the individual’s needs and goals can be examined in more detail and suitable solutions can be developed.

Comprehensive support: Our support not only includes the search for a suitable country, but also accompaniment in all relevant steps, from applying for visas to integration into the new environment.

Network and experience: We have a broad network of partners and experts in various countries and can draw on many years of experience in the field of emigration and expatriation.

With our support, you can realize your dream of a life of freedom, sovereignty and prosperity.

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Attention disclaimer!
The contents of this website, where facts are researched to the best of our ability and opinions buzz around freely like unvaccinated bees in midsummer, are intended to give you a “general overview”. Based on data that has been snipped together by AI or stolen from dubious internet statistics, garnished with our own “experiences” and exciting guest contributions.

Just don’t stop reading the “leading media of the West”! Otherwise, you’ll miss the “gene-manipulated brainwashing” of vaccination. So let our contributions inspire you, question them critically and form your own opinion.

Of course, our “guest contributions and opinion articles” do not always reflect the opinion of the editor. Sometimes we let something conspiracy-theoretical or just plain stupid slip out. But hey, who can think clearly with all the disinformation and manipulation on the internet, right?

Therefore: Turn on your brain! Don’t believe everything you read! Form your own opinion! Otherwise, you risk mental deterioration or worse! (Any similarity to real people or views is purely coincidental!)

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