Essential speech by Richard Sulik about the ESM madness.


Dear ladies and gentlemen, dear Chairman and Minister Slovakia finds itself at a very difficult decision and there were very few decisions like these where so much is on the line. The introduction of the Euro was a political project that was absent of economic foresight. As we know today, countries attempting to form a single currency were, too economically different, and two countries should have never been accepted into the Eurozone, first it was Italy, which had a public debt over one hundred percent even thou, the relevant maastricht treaty talks about maximum of sixty percent (being acceptable). But, German councilor Kohl decided politically, that Italy as a founding member of the European Union, can not be excluded. The situation with Greece, was even worse, Greece got into the Eurozone through complete fraud it falsified their numbers, and all those responsible knew what was happening and what is the most tragic is that even those falsified numbers were not satisfactory for the maastricht criteria, again politics won over healthy logic and this too, is why we have such major problems today. Convergence of interest rates meant the lowering of interest rates for southern states. The lowering of interest rates meant the growth of debt, because at the same time their access to credit was made easier lowering of interest rates means in essence the lowering of risky mark-ups, and countries like Greece were taken as, having the same integrity as Germany or Finland. This lead to the influx of money in circulation influx of money in circulation then lead to, logically, in an unchanged amount of goods and services in the economy, to the growth of cost. The growth of prices means the lowering of competitiveness which in retrospect means the lowering of productivity, and when competitiveness or productivity is lowered, then your output is lowered as well, these are basic economic principles, which no politician, could yet change. Now, I want to show our first graph related to the topic this is a curve of Greek industrial productivity from year 1975, all the way to the left is the lowest value Greek productivity rose, at times more, at times less, but rose until year 2002 – 2001, until the Greek Euro was introduced. Afterwards, it lingered on a rather high standard, this was during the time when Greeks were able to cover up, their productivity deficit with more and more debt and from year 2007, meaning the next four years, the Greek productivity found itself in a total free fall and today,it is at the same point as in 1980. The Euro, pushed Greek economy thirty years backward. The critical problem of the Eurozone, isn’t that one currency is being shared by countries with differing amounts of public debt the critical problem of the Eurozone is that, a single currency is shared by countries, which have greatly differing productivity and what is important, is that the single currency increases these gaps. Differing measures of productivity, actually differing growth of productivity, is nothing new, and the only solution here would be the adaptation to the new state of their own currency this means devaluation in the case of Greece, until it would match the decrease of productivity. However this is not possible to achieve in a single currency Not in the EU or any other currency union. This is why, the ever growing gap in production was compensated for by more and more debt, and ever increasing trade balance deficit and this is also why Greece belongs to the list of countries with the highest trading balance deficit in the world. This summer they are over ten percent in as an average taken over a couple years, this makes them the world’s unique case. At this moment it is irrelevant whether we are talking about public debt like in Greece , or about private debt such as the one in Spain, in any case the mentioned trading balance deficit, which is created by the differences in productivity was compensated by debt, when the devaluation of own, national currency was not possible. This is how it worked until the year 2007, until the inter-bank trade collapsed. The banking market works on the principle that banks make loan to each other one bank that has current funds on hand,loans its money to another bank that has an immediate need for them, it would even be alright but, since the introduction of the Euro the lending was directed at countries, and banks from the northern parts of Europe and Germany, to countries, and banks of southern Europe, and one day, it came to be that, the trade collapsed, which meant that the banks from northern Europe denied any further loans to the banks of southern Europe, due to a realization that the money loaned would never be repaid. This is where the European Central Bank came in, which replaced the lending role of the northern European banks, to the southern banks. The result of these actions was only the buying of more time. Here began our crisis, in the summer of 2007, not in the year of 2009. The Euro is in a crisis since the year 2007 first, quietly without public spotlight, solutions were being searched for, and now it’s publicized. In any case, the European Central Bank, lowered the requirements for loans and started to lend to the southern banks. Again, buying time, not really solving the problem. The problem still remains, only the buying of time was successful. Now a couple of words about Greece two years after the collapse of the bank trade, a new Greek government was appointed and acknowladged under the leadership of Georgios Papandreou admitted, this was in October 2009 that the deficit will not be under 3% but under 6% it is no wonder then, that this type of statement stirs up the market stirring up the market means that people who are responsible for making private investments, begin asking questions how is it possible that suddenly the deficit has doubled? Are there other unforeseen problems? Everyone is very careful when it comes down to their own funds. Which means investing becomes more conservative and the market becomes nervous and the investors refused to risk any further. The real Greek deficit at the end of 2009 was 12% In October 2009 the Greek government assured, that their deficit would be 3% by the end of October they admitted it would be 6%, and in reality it was 12% First, other than by lying and cheating, it is not at all possible to quadruple the deficit, in a duration of four months, and how many years can a country with a 12% deficit exist? 12% doesn’t sound like a big number, but we need to realize that the Greek government didn’t have 12% higher expenses than their income the deficit is calculated from the GDP so therefore it is necessary to calculate, because of course the expenses of the state are not as high as the GDP So therefore we can now deduce that the Greek government has expenses 50% higher than their actual income and no government can sustain such a state long-term, Greece afforded this for exactly one year, that is because in the beginning of 2010, Greece was beginning to show fiscal insolvency. Despite this on February 3rd 2010, Greek Premier Georgios Papandreu exclaimed that Greece won’t need even a cent. Today, that sounds almost grotesque, and absurd. not only that Greece will not need even a cent, but the fact that this statement is not even 28 months old when the Greek Prime Minister said that Greece won’t need even a cent 21st March, 2010, six weeks later, German chancellor Angela Merkel announced that there is no risk for Greek insolvency and this is why safety packages are not the theme of the day. Six weeks later, first safety package was approved, it was a sum of 110 billion Euros however even this measure did not solve a thing, only once more it bought more time. By the way, particularly thanks to SaS (Sloboda a Solidarita) Slovakia was not part of sending the first package, by which, we saved 120 million Euro of Slovak tax payer contributions this of course is not even close to all the funds Greece received. The total aid to Greece is much higher. Greece received 141 billion Euro from the time it entered the EU 141 billion Euro just on funds. Slovakia, we heard yesterday or before-yesterday, from the Slovak commissioner, Mr Šefčovič, will receive 1.5 billion for seven years, which will be the difference between income and expenses here it is 141 billion Euro 73 billion Euro was the first loan to Greece mentioned that’s the part that was physically delivered 45 billion Euro worth of debt was purchased but the European Central Bank this done in conflict with it’s own regulations again just some expensive buying of time 173 billion Euro is the second loan to Greece This one Slovakia participated in Greece was forgiven a further 100 billion Euro of debt 80 billion Euro was given as credit in a so called LTRO I don’t wish to go into too much detail, but there is no doubt that this won’t be paid off, 109 billion was given to Greece as a part of ELA credit, from the Greek national bank, which has the opportunity to generate money this way, without bothering to print it and 104 billion Euro is guaranteed by Greece in a so-called system two. All these are outrageous sums far greater than the help of which there was parliamentary talks on. Total aid to Greece that it has received over the years calculated per citizen is 76,000 Euro, that’s ten years worth of Slovak avarage salary What’s the result after years of helping the Greeks? After pumping hundreds of billions Euro into Greek economy? The result is that the unemployment is over 25% Public debt rose by 200% and their economy is declining 5th year in a row. This is why I ask, if anyone present has the feeling that the funds pumped into Greece were of no help to Greece, and the Greek people. Three important conclusions derive from what I’ve so far mentioned First, top European politicians have no problem lying and scamming Second, Euro artificially raised the living standard by providing low interest loans but at the same time seriously damaged Greek economy Third, all the aid to Greece brought literally no results but was incredibly expensive. Third time that more time was bought when the European Central Bank started buying out Greek bonds later it started buying up Italian and Portuguese bonds, totaling 214 billion Euro Again expensive time buying did not solve the problem Fourth time, buying time was also ineffective, with the creation of the temporary Euroval, the EFSF Temporary Euroval the EFSF should of been time constrained to three years until the summer of 2013 it was supposed to save only states not the banks and it should have provided aid only to those countries whose financial situation is compatible with the carrying and paying back of their debt meaning countries that will be able to repay the loans sometime in the future which is, of course completely logical and this was also a reason, why SaS agreed to creating the temporary Euroval, in October 2010 three months after the passing of and creation of the temporary Euroval German councilor Angela Merkel announced that no permanent Euroval will be made. Unfortunately the word of the German councilor had little value in this case and already in spring 2011, the work began on setting up the permanent Euroval, the exact one which we will be voting on today in October 2011 that’s six or eight months back we again resorted to expensive time buying when the temporary Euroval funds were increased not only did it rise from the sum of 4.4 billion to 7.7 billion Euro that’s a share of which Slovakia pledged itself to, in case of insolvency by the debtors but it also increased the powers of the Euroval now it is possible to save banks not only states and what is completely ridiculous and in conflict with what the last Prime minister Iveta Radicova, that we will not contribute even a cent to Greece well in reality thanks to the help of the temporary Euroval, Greece will receive or I should say now, that it had already received, over 130 billion Euro which was mentioned in the previous graph I would like to also point out that Slovakia is the poorest country of the Eurozone, with the lowest incomes that’s that tiny red bar, which shows the avarage salary not only are we the poorest country, we will pay out, along with Estonia the most if it came to be that we had to fulfill all our pledges from the temporary Euroval every Slovak person would have to work 300 hours on the Slovak avarage salary but every German, only 120 that is a significant difference, leaving people working 300 hours or 120 for countries somewhere on the other end of Europe by the way, in this package, in the Greek one which was already sent from the temporary Euroval Slovakia has agreed, with irrevocable and unconditional warranty to the sum of one billion euro, which already today increased the debt of the Slovak republic by 50% so we are not talking about some imaginary papers with a warranty, which will never be needed as we were assured by some politicians that a call on these will never be made, and that the higher warranties the lower the risk, no we already made these warranties and in reality stepped further into Slovak public debt and now I ask, wouldn’t it be better, if we already increased the Slovak national debt to 50% which just four years ago was only 27% but if we raised it, wouldn’t it have been better to raise it so that we can finally build a highway to Kosice, we don’t have a highway connecting our two biggest cities, while Greeks have a highway infrastructure almost on the level of Germany for example they have a brand new highway Egnatia, 670 kilometers, 570 bridges, 76 tunnels so now try to imagine who financed it all it can’t be said that Greece was not helped sufficiently it is more reasonable to say that the money were spent wastefully Now another important thing, what is the actual Slovak share on the aid package of Greece well to the 1st of July 2011, you can see a completely empty graph that’s because until the 1st July 2011 this share should of been zero this we were assured of by our ex-coalition partners Slovakia will not pay Greece not even a cent will go there after the first of July this statement was made invalid, and this is because right here in the national council Ivan Miklos, announced that the share which Slovakia will contribute or for which it will warrant will be 350 million Euro after the 21st of July, it was not 350 million euro however, it was already 800, just like that during a period of twenty days, because the market got stirred up, 800 million Euro after the 26th of October after the summit, it climbed to one billion euro and 155 million euro which is what we have the honor to contribute to Greece, and surely we will do it with pride and joy because apparently they have too few highways still in December 2011, and in February 2012 there was a sixth aid package and the most expensive buying of time till now European Central bank, provided a sum of 1000 billion Euro, to the central commercial banks i assume that the numbers are now getting a bit confusing but they are all multipliers of Slovak GDP, 1000 billion Euro provided to commercial banks for a symbolic 1% interest and accepted suspicious guarantees again just bought expensive time without providing concrete solutions and so that you have a better understanding of what is 1000 billion Euro it is a sum, which all working people in Slovakia earn in 70 years first it was already shown that the buying of time is always more and more costly in this case in particular, 1000 billion Euros and we didn’t have peace even for a duration of three months, again solving nothing only thing that happened was that the debt which the banks of southern states created is no longer guaranteed by banks of the northern countries no, the debts are now guaranteed by European taxpayers and now a few words towards the saving of banks. During the expansion of the temporary Euroval, that is last year in October when the government fell apart, we warned that the expansion of the temporary Euroval means that not only states the states that are experiencing problems will be receiving aid but also private banks could be offered aid and after eight months, our fears came to realisation for the rescue of Spanish banks we will contribute a sum of 1.2 billion Euro meaning 200 Euro for each citizen, and this must be added to the amount that we are already with pride and joy contributing to Greece here I would like to mention a couple of facts first, Slovakia rescued our own banks without outside help twelve years ago, with the sum of four billion Euro what then represented 12% of our GDP nobody contributed to the rescue of our banks second, with our own tax payer’s money, we are hurrying to rescue private Spanish banks Slovak tax payers will in this way contribute to the salary of totally incompetent CEO of Bankia, whom created most of the problems of the bank with his own faulty decisions third, big Spanish system banks like Santander or BBVA which have altogether about a 30% stake in the Spanish market don’t have problems, these banks are not facing difficulties, that’s because they recognized the risks in time and took preventive measures, what will be rescued will be small regional banks shares of which each of them individually do not exceed 3% on the Spanish market these are small banks that do not affect the whole European banking system one exception is already mentioned Bankia, which has a 12% share however all the other banks that are going to be rescued should be going bankrupt fourth, it is against healthy logic even thou these small banks have money borrowed from German and French banks and when European politicians like to spend tax payers money, why not use this situation and why wouldn’t they save their banks and their loans but either way, against healthy logic the Spanish want to rescue small private regional banks, the question here is why don’t they do it alone? Spanish debt is lower than that of Germany Spanish debt is 72% while German debt is over 80% but if they feel that they need to rescue regional banks and can’t let them fail, then they should do it but why don’t they do it directly through the state in relations to this, someone might say that the state has no money, but then I ask why can’t the Spanish government then tax its citizens just like the Slovak state does their own? Here is a price per liter of gas, in Italy it is 1.77 Euro In Greece 1.72, Slovakia 1.54 Spain 1.37 Euro If Spain raised the tax on gas by 30 cents, it could raise over 10 billion Euros per year with that type of capital it can calmly rescue its own banks No, instead Spain humbly extends its hand, because it knows, that in other countries including the Slovak one, there are politicians that under the slogan of responsibility, will pay for the rescue of private banks, this I see as a tragedy of today’s times, fifth, funds that the Spanish banks receive will be provided without any conditions, without the participation in international funds, of course, now countries like Greece, Portugal and mainly Ireland are speaking up which are in particularly similar situation, also want the same benefit, why should they save if the Spanish don’t have to if all it takes is to ask for 100 billion Euro. sixth, the sum by which Slovakia will contribute to the rescue of Spanish banks around 1.2 – 2 billion Euro is being guaranteed by an amount which Robert Fico has to extort from the citizens of Slovakia the height of 1.3 billion Euro next year, and therefore factually we come to a conclusion where we make our own citizens poorer for example by applying such a huge tax on gas, so that we can help keep, a much higher and most importantly an artificially high living standard of the Spanish. I ask, is this the social politics which was promised by Robert Fico before the elections? Extort people so that we can pay the salary of an incompetent Spanish banker? A salary of 10,000 Euro per day! This is how much this frisky gentleman with the champagne in his hand earned last year not to mention another 1.2 million euro which he received for his amazing performance by bringing Bankia to bankrupcy we are going to be extorting our citizens, so that we can contribute to this gentleman included a salary of 10,000 euro per day this is a socialist government? Today we are discussing the permanent Euroval seventh expensive time buying which will not solve anything once again but it is also an incredibly dangerous way to buying more time and I wish to explain why the aim of the permanent Euroval is the movement of funds within the Eurozone to countries who live beyond their means. Rich countries, responsible countries or those that allow themselves to be throughly scammed citizens of these will be contributing to the type of countries where the citizens will not allow themselves to cut back and wish to retain the living standard that they’ve grown used to this is of course irrational but this is how it works so here comes the permanent Euroval which does nothing different than its predecessors until now we buy expensive time, so that Greeks or the Spanish could live better for just awhile longer to live on a living standard higher than their economic productivity First I will mention some technical reservations from the permanent Euroval the one which the national council will be deciding on today and this is because I assume that not everyone have gone and read the contract fully well I assume that the most did not although it is saturated with dangerous conditions before I come to this it is important to note that the contract of entrance to the permanent Euroval, is not possible to terminate Also it is not possible to leave the permanent Euroval it is not possible to invest our share on the permanent Euroval it is not possible to sell it, and finally it is not even possible to give it away so if we allow our head to slip into the noose, we won’t have the chance to take it back off. If we enter the ESM, we will not be able to leave it. Entrance to the ESM will mean like the minister of finance mentioned in his introductory speech that this year we will pay 263 million euros, from which half is going towards the public debt, because we of course do not have the money which we will be paying, and next year, and the one following it we will pay out another 395 million, basically 400 million euro that will also fully add towards our public debt also the Spanish warranties will be going to wards our public debt, the same ones i mentioned before. Meaning we ourselves are very quickly propelling ourselves toward the 60% border where we will be the ones then facing economic problems, I repeat four years ago the Slovak public debt was 27%! Other than the amount specified in the contract, for the 650 million, the contract of ESM ties us to pay off, sometimes in the future so called shares on request, in the amount of 5.1 billion euro we are now getting to quite difficult terminology and it is also a matter requiring a professional, but in short this is the type of things that we are deciding on today, and this is why I would like to ask everyone present, to pay close attention and try to follow my argument because today is the day that you will be voting on this issue meaning whenever we can be asked to pay up the so called shares on request in the amount of up to 5.1 billion euro asked forth by a so called council of governers which is made up of ministers of finance, article 9 paragraph 1 in the case that our minister of finance Peter Kazimir receives an order from government to vote against the payment of such shares and Peter Kazimir would not do so, for any reason then there is no penalty that he would sustain Peter Kazimir will actually have immunity, just as all the other ministers of finance Some people in the Euroval will be deciding on hundreds of billions of euro without any sort of personal accountability I of course don’t think that Peter Kazimir will go against his government, but with seventeen countries it is possible that one minister will, actually no one may now know and this is one of those serious things, although there are far more serious ones here next, when the permanent euroval goes into losses, for example when part of the Greek debt is forgiven then there is no call from the council of governors where the ministers of finance sit, in this case the call comes from the governing board, the governing board is made up of only clerks who get appointed by each government but, not as a complete collective just as in the first decision, if the Euroval goes into losses a simple majority will be enough to decide simple majority means that there is an agreement between representatives from France, Italy and Spain there is a loss here, please pay up. Three people of course protected by immunity, those three people will decide that Slovakia will pay up to 5.1 billion euro can you even imagine that? Three people that have immunity without any personal accountability ah, once again, an Italian, a Spaniard, who themselves need and want the money, they alone can decide that we should pay up. If three get together, then there is a threat of us paying up to 5.1 billion euro however the most dangerous from this contract is the article 9 paragraph 3 which enables the Director-General, to summarize, we have, council of governors, those are ministers of finance, we have board of managers those are just the clerks, to which simple-majority, this is where simple-majority is enough to make decisions and then we have the Director-General, who is just one single, individual and we give him ridiculous power now I am going to read you a part of the contract directly so that there is no confusion to quote, article 9, paragraph 3, if a potential shortage of funds is found in the permanent euroval if a potential shortage is found, meaning the Director-General decides one day, next week here, there could be a bit of a shortage, or two weeks from now, or a month so if a potential shortage of funds is found the Director-General will call for reimbursement, so that the permanent euroval would have enough resources for the repayment to the creditors of the full amount by the due date furthermore, the paragraph continues members of the euroval, meaning also Slovakia, commit themselves irrevocably and unconditionally, that they will pay off an amount called for by the Director-General within seven days of such a call. Can you imagine that? One person will say to himself, I see a potential shortage makes a call on it, and we are committing irrevocably and unconditionally today that whatever amount called for, we will pay within seven days. Dear members of parliament, this is what you will be voting on today. Within seven days, Slovakia will have to, in cash mind you, in cash, no warranties, will have to pay off a call from a single individual, who was not even democratically elected, but will be deciding about billions of euro and what is the most absurd, not only is he protected by immunity and therefore without any personal accountability this immunity, as the only exception, this immunity is not possible to remove all the people have immunity, but it can be revoked, except for him, his immunity can not be revoked that’s the Director-General There isn’t even a possibility to remove the Director-General and I will tell you why, to elect him one would need 80% of the votes ok that’s logical, however to remove him you would also need 80% of the votes, and therefore when one single state, France, which has 20.4 stake will say no, no, we will leave him where he is, or perhaps two states Spain or Italy will say that, perhaps because the Director-General will frequently be sending them a couple of billions, why would they call for his resignation? So if the say no, then this person will be un-removable, only by 80% of the votes also the Euroval itself, may not be legally prosecuted article 32, paragraph 3, and all its assets and writings are untouchable therefore, no responsibility, no accountability, and on the other hand irrevocable and unconditional commitment to pay within seven days, in cash. This is what you are about to pass, dear members of parliament. Now I would also like to show you how the private sector will participate in the permanent Euroval in reality, on the rescue shares which will be paid from the permanent Euroval just for your information, when a private bank makes a bad investment then it should also shoulder the consequences, the burden shouldn’t be shouldered by the tax payer maybe it should go bankrupt, but alright so that it doesn’t look so dramatic, we said that we will allow a bit of participation from the private sector in the original text of the contract it states, it is a bit hard to read so I will read it out loud when a member of EMS,in accordance of the international monetary fund, is provided aid, a private sector participation will be expected, based upon the circumstance of each individual case a corresponding and adequate type of private sector participation will be expected. This was amended, and the final text of the contract the version that we will be voting on today, now states that this option may be considered only in extraordinary circumstances corresponding and adequate form of participation from the private sector so once more, all of the risk will be shouldered by the tax payer, in our case that Slovak citizen whom we are going to be nicely scamming next year now a few details from the contract of permanent Euroval as opposed to the original promise, it will be possible to save private banks I’ve already mentioned that, in a stark contrariety with the European constitution, it will be possible to buy up bonds in primary markets European Central bank may directly purchase bonds on the primary markets, that’s a clear path to disaster usage of the funds may be decided even without the agreement of Slovakia, that’s just a little special paragraph that was inserted last year in October that was put in by those in charge, because we had the audacity to use our rights to say no, if a member fails to pay some of the capital, then it will be divided among all the others of course we can not expect that Greece will be paying anything, since they don’t have from where which means even now we can be sure that there will be additional financial responsibilities added to Slovakia warranties toward the International Monetary Fund, have precedence before the warranties made towards the permanent Euroval which means if a country will be able to pay, but only a part, first the warranties made to the International Monetary Fund will be fulfilled, and only after, the permanent Euroval will come in line and to conclude, permanent Euroval may provide funds even in case when there is a potential threat that some may face worsening of the usual access to finance, this means a tiny fluctuation in interest rates from 5% to 6% and this can be grounds for permanent Euroval with our money, wanting to finance someone like Italy as usual, I’ve already proven that Slovakia will be paying the most unfortunately, it is not true that it was possible to lower the amount which Slovakia will be paying to irresponsible countries and private banks, that’s because the lower stake is only temporary, and from year 2021 we will be paying the most again and that is, 1% of the total value what are the arguments of those who support the permanent Euroval? Well first, it is no longer a question of Greece it is a question of the Euro Second, we must stick with Germany that’s where most of our exports go Third, we must fulfill our internal role Next, today we are protecting our own currency and our own economy, not Greek and Spanish banks Fifth, if we don’t agree to Euroval, we will be excluded from access to Euro-funds Next, we entered a club so we must follow its rules We must show solidarity and we must agree to Euroval and financial aid packages, because one day we will need help as well. Well let me say, in relation to these arguments supporting the permanent Euroval first, it is no longer a question of Greece it is a question of the Euro, yes this is the truth after two years of ‘saving’ Greece, not only Greece is in trouble, but all of Euro-zone problem is that the permanent Euroval, increased and deepened the problems of the Eurozone and is even more damaging to our common currency. We must stick with Germany that’s where most of our exports go that’s what an often regurgitated argument sounds like from relentless supporters of the Euroval, yes Germany is our biggest trading partner, hundreds of German private firms, employ tens of thousands of people in Slovakia these firms, of course do not fall under Mrs Merkel’s, or Mr. Schäuble’s jurisdiction and of course they do not give any orders to those firms these firms will be in Slovakia only then, and only until, we have favorable conditions for doing business however if we in-debt ourselves because of Greek, Italian or Spanish missteps, and our credit rating is lowered meaning our interest is raised, or we will be forced to raise our taxes then we are only making our business environment worse, and raised the risk of these companies leaving. We must fulfill our domestic role, that’s a statement I read yesterday, from our Prime-Minister however this statement from Robert Fico is to cry for, our Prime-Minister perhaps didn’t realize that Slovakia is a sovereign country and faith of which is decided by the National Council and in relation with this, I must say that fulfilling our domestic role while voting on the permanent Euroval in principle reduces the members of parliament, to a state of obedient button pushers, who have to vote a certain way because Mr. Prime Minister has to fulfill his domestic role Robert Fico thus admitted, that he is only an obedient administrator of western politics Today we are saving our own currency and economy, not Greek or Spanish banks this argument is also often mentioned, unfortunately it is exactly the opposite, two years of saving the Eurozone lead our collective to exponential problems try to think back, and think abut which indicator actually improved, because during the last year, everything worsened, ratings, interest rates, debt, unemployment, everything worsened during the past two years of ‘rescue’ Now this permanent Euroval will have another portion in further damaging our collective currency and economy Euroval is only the seventh expensive buying of time, as I’ve already mentioned. Next, if we do not agree with Euroval we will be deprived from access to Euro funds, well this is a complete scare tactic because we will not loose access to any European funds European funds are based on completely different contracts than those of the permanent Euroval we even refused the first loan to Greece and nothing happened and for seven years we are to receive 1.5 billion euro thanks to these funds but only Greece and Spain will cost us, 2.3 billion meaning 50% more! That’s only now, only in the beginning of this massive rescue Sixth, we entered a club so we must act accordingly well yes, we entered a club where there are rules, and they are valid, for example article 125 of the European contract, which states that each country is responsible for its own warranties and commitments or how about the Maastricht treaty, which explains what type of deficit is permitted, and what type of total debt should be allowed the politicians in Brussels decided, without any sort of legitimacy repeatedly break these rules, and exactly by doing this, they created the problems in which we find ourselves today Simply said, bankruptcy is also a part of capitalism be it of companies or states, but bankruptcy is also a part of it and when politicians with their decisions, prevent countries from bankrupting, countries that should have bankrupted then of course it can not work, and then those very same politicians come and say that capitalism does not work by the way here I would also like to mention that bankruptcy for Greece is nothing new, in the 180 years of Greece’s existance they have gone bankrupt five times! Out of these 180 years, they found themselves in a state of insolvency for over 90 years. So now if they go bankrupt for the sixth time, it won’t be anything unusual for the Greeks We must show solidarity, I often meet this statement as well, well ok, let us show solidarity, solidarity with those countries that are worse off than us, however Greece and Spain not even talking about Italy, have substantially higher retirements and average incomes than Slovakia. Then I ask, why are we not showing solidarity with Bulgari, which has lower incomes and lower retirements than Slovakia or should we only show solidarity to those countries that got used to disproportionate standard of living and now don’t want to tighten their belts I also came across the argument, we must say yes to the Euroval and financial aid packages, because one day we will need help as well well this is a complete admittance to bankruptcy and statement of incompetence but what can be expected from Prime Minister who turns to the opposition to advise him where he should conserve funds because the only thing he knows is to extort the citizens, well if the Prime Minister does not know how to solve problems that Slovakia is facing, other than by running under the Euroval, then he should step away This is why, I will say what I see the true reasons for joining the Euroval to be. First, helplessness in solving problems facing Slovakia Secondly, cowardice to express a dissenting opinion other than the mainstream one We often heard the statement “sixteen countries can not be wrong.” Thirdly, the fear of taking responsibility for Slovakia and fourthly, eagerness to gain favor with leaders from Brussels. Since we are talking about leaders from Brussels, let’s try to look at who are these leaders from Brussels who then decided, about the faith of all of Europe Jose Manuel Barroso, the chairman of the European Commision ex-maoist, long-term socialist, and ex-Prime Minister of Portugal, who carries the collateral responsibility for the desolate state of Portuguese economy This gentleman is the chairman of the European Commission and Greece since 2004, who in this time did not meet the conditions directed to it by the Maastricht even a single time and instead of punishing, like it should be done according to the regulations he instead praised them for their honesty when in the year 2009, they admitted a deficit instead of 3%, 6% I’ve already mentioned this as well another hugely important person of the European Union is Jean-Claude Juncker Chairman of the Eurogroup The quote on the right is unfortunately hard to see from here, so I will read it for you. What Mr. Juncker expressed for the German Speigel newspapaer a few years back. “We approve something, introduce it, and wait awhile if there is no big outcry or protest, because the majority did not even comprehend what we actually introduced, then we continue forth.” This is what the chairman of the Eurogroup openly says. There is another quote from him, that I wish to mention from April 2011, a year back “When the situation is dire, we need to lie.” Great, next important person, I’ve had the pleasure to meet him in person, chairman of the European Parliament Martin Schulz but I can say, that the argument of this gentleman is on a level of a pre-schooler, and maybe it is because Mr. Schulz was not even bothered to complete his A levels. These are the type of people, leaders of the European Union. Christine Lagarde, General Director of the International Monetary Fund, also to a greater extent decides about, the faith of the Eurozone, stated two years back that “What we did for Europe, goes completely against contract, because the Lisbon treaty did not anticipate the need for a rescue package.” That’s it, we have a European constitution, but we just decided out of nowhere to completely ignore it. By the way, this lady, Christine Lagarde, is the ex-minister of finance in France, a country which more than 30 years didn’t have a balanced state budget, and is under investigation currently, because it payed out 285 million to a private entrepreneur just for information, and by the way shortly after the pay-out of such an amount, this individual started supporting the party of Nikolas Sarkozy, of which she was the minister but since we are talking about our French colleagues, we also have a new French President, well this gentleman wants to tax the higher income brackets with 75% he wants to lower the retirement age to 60 years, and his minister of employement wants to make layoffs so expensive, that it would not be worth it. Well, a different slogan than, straight to socialism would be hardly suitable but exactly because of these steps, France is becoming just another candidate for rescue from the permanent Euroval so if anyone in Slovakia thinks that we would be the ones tapping into its funds then I can guarantee you that this will not happen, because it will be tapped into and emptied by people who are much swifter and cunning when it comes to emptying public funds incredibly important person is also Angela Merkel, who in March of 2010, explicitly stated, “There is no threat of Greek insolvency.” In May 2010 she said, there should exist a systematic mechanism for state bankruptcy, with the participation of the private sector. Both statements are invalid, and in October 2010 she stated, “Permanent Euroval will not be created.” Well we can see now how things evolved, and moreover, Mrs Merkel may want to take logical steps to better the situation, however she is a lone soldier in the field surrounded by people, who basically live by the slogan the more debt the better, another influential individual is Mario Draghi, the Chief of the European Central bank, we now must look at the decision maker of the European Central Bank it is a 23 member cabinet of directors of ECB and that’s created by each country, seventeen countries have one member each, plus there are six directors these six directors are, one Belgian one Portuguese, one Spanish, one French, one Italian, Mr Draghi and one German. So now if countries like Spain, Greece, Protugal, Italy, Ireland, Malta and Cyprus basically all countries desperate for our fiscal aid in addition France may join them, then basically all other countries have no way of protecting themselves from it, the only thing they can do is pay up. Another note-worthy gentleman is Herman Van Rompuy, but he is not taken very seriously I hope that there are no doubts now, that Slovakia must relly on its own strength and healthy logic then to believe, these aforementioned European leaders and try to get on their good side as you had the opportunity to see from what I’ve so far showcased European politicians have no problem lying Euro seriously damaged the economies of some countries. Rescue of Greece was expensive and only worsened the situation There is no valid reason for the attempted bail-out of the Spanish banks All measures till today, served only as expensive buying of time I mentioned seven, believe me when I say that there were even more. “Arguments” in favor of the ESM do not hold, those are the ones that I took apart previously and in conclusion I guarantee that the permanent Euroval will commit atrocious damages to Slovakia. Well, I am nearing the end, but there is still a question that remains what sort of solutions are we offering? Often I am met with Mr. Sulik you only criticize, but offer no solutions, well this is not the truth because I am saying that if one alternative is to accept the contract then the second, and completely legitimate alternative is to refuse it. Imagine that your neighbor comes to you and says, sign over all your property to me. Well you are going to say, no I am not signing it over, why would I do that? and to that the neighbor responds, well you are refusing my solution, then tell me what is yours. The point is we don’t always have to find solutions to problems with which we have nothing to do, problems which other countries need to solve. In any case, we all know that the Eurozone is in dire crisis and measures taken until now were harmful. That is why, the only solution for Slovakia is to begin acting in the interest of Slovakia! In interest of Slovakia means, Refusal of the permanent Euroval contract Refusal to contribute to the temporary Euroval, we are going to be needing those funds desperately in the near future which otherwise will be siphoned out of the country and will find themselves in Greece or Spain or God knows where. Here I would like to say that Slovakia is facing tax evasions, when someone does not pay their taxes then in large proportion the money is still spent in Slovakia, the black money is still spent here. Something will be bought, the person will go to a restaurant, basically anything, the money will stay here and have a multiplying affect. If one billion leaves the country to Greece, there are no more benefits for Slovak economy. This is why, one billion Euro to Greece will cause more discordance to our economy much greater discordance, and much more will be missing than one billion from tax evasion, of course I am not defending tax evasion in any way I really hope that our minister of finance can successfully implement needed steps to lower tax evasion but what Slovakia needs now, is refusal of illogical payment of gigantic proportions somewhere to foreign lands Third, Slovak government should be prepared for the dissolution of the Eurozone, I will not specify this any further but, I think that responsible people in our minister of finance, being known for having the most adept employees can prepare a solution in collaboration with the national bank what we would do if the Eurozone dissolves. In any case it would be a huge mistake to put our head in the sand and say, everything is fine Brussels has it under control We just have to obediently complete their assignments and everything will be fine. Well no, it won’t. and now it is beginning to be a bit harder, we must start saving, really and significantly saving on public expenditure and not extort those citizens that are productive and create value. We must realize structural reforms with the aim to better entrepreneurial environment because I fully respect, everyone from SMER and your left-wing ideology, but I guarantee that places of employment will be created only by the private sector, and it can’t be forced or prevented from laying people off you can only force the companies to go bankrupt and then no one will be employeed so, drastically improving the entrepreneurial environment and with the minister of economy that this government has, it should be possible, he knows exactly what I am talking about. Also continuing in privatization and utilizing the finances gained from privatization to paying off of our public debt. It is also why, in this place, which is the testament to sovereignty and pride of Slovakia and in this time, couple of hours before the voting on a contract that will massively damage Slovakia well right here and right now, I call for Robert Fico Prime Minister of our country and the man that took responsibility for our country, and pledged himself that he would fulfill his responsibilities in interest of the Slovak public and not in the interest of a couple of un-elected people in Brussels from position of Prime Minister, should refuse the contract pertaining to the permanent Euroval Mr. Fico, it is your moral obligation to protect the interests of the Slovak Republic and not to harm it. Being a statesman does not mean obediently following assignments from Brussels, just to be the favorite there. Being a statesman means acting in the interest of the nation. I ask you dear Members of Parliament if it is worth it to you to damage Slovakia in this way I ask you if this is why you went into politics, especially to those who are new here I know even in the ranks of SMER, that they haven’t the slightest problem to take care of themselves with their own work, before entering the political arena well I ask you if this is why you went into politics, is it so that you could sign such a disastrous contract? Do you really wish to tell me that you’ve read the contract and that your consciousness tells you to vote in favor of it maybe not tomorrow, maybe a year later, maybe five years from now, when the Eurozone will perhaps be dissolved, and we are left with an enormous debt you will be the ones ashamed in front of your children, because of how you voted in June 2012 without any sort of exaggeration and in full seriousness, I am telling you that voting in favor of the permanent Euroval is like signing an invitation letter to comrade Brezhnev in the year 1968 or like agreeing to the Mnichovska agreement in the year 1939. Just like our colleagues are blamed today from KDH, that twenty years ago they did not vote for the sovereignty of Slovakia, you will be blamed for voting for permanent Euroval and therefore committed massive damaged, and you will not be able to deny at least those who are sitting here, to deny that you did not know what was at stake In conclusion allow me to say that it does not make me happy at all, that we were right when it came to the first phase we are not happy because we see how damaging it is for the country but perhaps it is time to at least in this matter, to listen to those whose premonitions and warnings are unfortunately realizing Thank you for your attention.

13 thoughts on “Essential speech by Richard Sulik about the ESM madness.

  1. He's telling the naked truth!!!! Our own government is lying to us and even if 75% of the germans are against the euro and the ESM Bullshit, they still do what they want!!! It's like in the 30's. FUCK THE EU!!! Greets from germany and thx for the subtitles

  2. Unbelievable, he said the truth. clearly. and what did the parliament? it voted in favour of the ESM.

    Treason, absolute treason.

    Hang them High!!

  3. Richard Sulik breuchten wir in Deutschland als Bundeskanzler und nicht so eine biegsame Merkel die macht was man ihr sagt. Sehr Guter Mann weiter so !!!!!

  4. Die EU- Finanzpolitik wirkt nicht solidarisch stabilisierend, sondern handelt schockierend irrational!
    Ernsthaft – wo soll das hinführen? Fassungslosigkeit. Immer wieder!
    Neue Ratings sind ganz vorn in der Tagesschau – Schäuble und Co sind dazu wahre Meister im Verdrehen und Leugnen der Fakten…
    Wenn dies Alles nur ein wenig mit Solidarität und Rationalität zu tun hätte – warum dann kein Volksentscheid? Bezahlen wird nämlich nur einer – WIR – der EU-Steuerzahler.

  5. I am from Slovakia and today I found out that Richard Sulik is considered the most UNTRUSTWORTHY politician in Slovakia. Shocking fact is that there was a public inquiry and people them-self select him as most UNTRUSTWORTHY politician.

    This show how stupid Slovak nation is. The only one who is telling a truth from beginning is considered untrustworthy while we have only 1 ruling party since communist era (of course socialists). This Country is going straight to hell. along with whole EU.

  6. tja .. auf deine fragen gibt es antworten .. nur .. die meisten menschen leben halt nunmal sehr sehr gerne in ihrer blase/lüge .. kurva do prdele

  7. you are retarded elector because everything what you need is empty promis … Fico should spit on you and you are so dumb that you still give him your vote … Sulik is first politician leader who want to bring Slovakia to prosperity … of course it cant be made without sacrifices but in long horizont we should profiting on that … so dont be stupid and dont listen prejudices … we both want better life

  8. Congratulations to Richard Sulik ! At least the Slovaks get to hear the truth about the Euro-scam. Belgians have not gotten the chance yet… All our politicians hail the EU as a peace project, and those who dear to differ are ostracized.

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