The First Greece Debt Bailout
Eurozone members and the International Monetary Fund had first delivered a €110 billion rescue package to cover Greece debt a year ago, May 2010. I.M.F. share of this bailout was €30 billion. The bailout package was based on the country’s commitment to undertake a severe austerity program. Greece debt had reached 115 percent of GDP and was expected to reach 149 percent by 2013. Greece had to reduce an expanding public employment sector, expand the private sector, raise its taxes and improve its tax collection. The country’s residents responded with riots and strikes.

Marshall Plan for Europe
The confirmation of the second European rescue fund for Greece is hoped to forestall similar crises in Italy, Spain, Portugal and Ireland and to save the EU from further devaluation of the euro. This rescue package would represent a similar commitment to a Marshall Plan for Europe. Interest rates on the euro bailout bonds would fall to 3.5 percent and maturities lengthened from 7.5 years to 15 years. The I.M.F. wanted to see more urgency from the EU and Greece move from the “knife’s edge” by making more deep cuts. The Greek citizenry continues to deplore the austerity measures and respond with strikes and near riots, while financiers hope to control secondary bond markets.

In May, he was arrested for allegedly raping a maid in a New York City hotel which he was staying. He is currently under house arrest after paying a $1 million dollar bail. Dominique Strauss-Kahn states the sexual encounter was consensual and many in France believe that the situation was a set up by political opponents. Others state that his previous sexual encounters, including an aide at the World Bank, provide a record that makes his innocence unlikely.

Strauss-Kahn at the IMF
Strauss-Kahn became director of the International Monetary Fund in 2007 after a consensus election with the European countries involved in the IMF, along with the plurality of Africa and China. Strauss-Kahn’s most noted actions in the International Monetary Fund was heading the controversal EU bailouts and recommended austerity measures to prevent the debt problem from worsening. After his arrest in New York City, Strauss-Kahn resigned from his director position.

The Future of Dominique Strauss-Kahn
Strauss-Kahn has yet to officially make a plea of innocence to the court, he insists that the crime that occurred in New York City was not a crime, but a consensual sexual encounter. The majority of French believe his innocence and state that the United States is making him out to be a criminal when he has yet to be tried. This leaves his chances of becoming the President of France as possible, however this would only occur if the American court does not find him guilty.

Köhler’s quit leaves a vacuum that will add even more to Angela Merkel’s growing political worries, in between of criticism over a lack of decisive leadership, and a four-year low rating for her government in opinion polls.

Surprise Visit to Afghanistan Leads to Surprise Resignation

Horst Köhler ‘s surprise resignation follows heated criticism of his recent statements about the war in Afghanistan. During a May 22 visit to German soldiers in Afghanistan, Köhler told a reporter, “A country of our size, with its focus on exports and thus reliance on foreign trade, must be aware that … military deployments are necessary in an emergency to protect our interests — for example when it comes to trade routes, for example when it comes to preventing regional instabilities that could negatively influence our trade, jobs and incomes.”

Many interpreted the German President’s remark as a justification of war to protect economic interests, reigniting the controversy over Germany’s involvement in the war in Afghanistan.

Declining Political Power of the German President.

Though the Presidency is a high office, the duties are mostly ceremonial. Köhler received high marks in his first term for his strong speeches pushing for economic reform. However, his reputation as a public speaker suffered a sharp decline after the resignation of his press spokesman.

Karl-Rudolf Korte, one of the leading political scientists in Germany, suggested that it was not Köhler’s controversial comment alone that led to the surprise resignation. Korte explained that Köhler’s decision to resign might have been based largely on his declining influence.

Christian Wullf might take Horst Köhler´s Place

In yesterday´s news, the German government announced that they want suggest Christian Wulff, the current state premier of Lower Saxony, to be the follower of Horst Köhler. He accepted his nomination and thinks of the office of president “a great duty, with great responsibility“.

The European currency union decided to form a rescue package for Greece in order to prevent it to go bankrupt. These days, Greece will receive about 14.5 billion Euros bail-out loan which is part of a 110 billion rescue package to stabilize the country and the European currency as well. But more and more Germans start to question, if a state like Germany would be at all able to give away loans facing a tremendous national debt deficit.

Not only Greece is in a very unstable constitution, but also Spain and Portugal are struggling: are there more billion-loans to pay by countries like Germany? The public debt of today will not only mean tax increase in future; there will also follow inflation, i. e. an expropriation people´s assets in other words. Therefore, people are starting to find ways how to prevent their money from getting worthless.

Because of the high German national debt and the billion-high rescue packages carried out by ministers from the European Union, the inflation will be even higher during the next years. That is how European citizens will be punished with a tax increase by a European currency union which was never democratically legitimized by German citizens. And they would even have to pay extra-costs caused by inflation.

Politicians do not seem to be able to save taxes in 2010, so the German Bundestag is discussing about tax increase again. This apparently has become the favourite remedy for a lot of problems now; a lowering of public spending has never really come to their mind.

The violent criminal with multiple convictions – known by the inital M. – was sentenced to five years in prison back in 1986 before being taken into preventive detention. He has committed severe crimes, including several attempted murders. Preventive detention was limited to 10 years until German law was changed in 1998: unlimited custody of criminals became possible.

M., who now faces unlimited detention rather than the original 10-year period, complained that this practice constitutes unlawful retroactive implementation – an opinion which is also shared by the European Court of Human Rights. Hence, the allegedly dangerous criminal may be released from prison, though experts are convinced that he is a menace to society.

The courts in Marburg, Frankfurt and Karlsruhe found that keeping M. in the prison of Schwalmstadt would be lawful, but the ECHR in Strasbourg disagreed. The continuation of the preventive detention is in breach of the prohibition against double punishment, i.e. against human rights. That interpretation seems to be right.

Dozens of other prisoners like M. were also affected by the changed law in 1998: they also have to stay longer in prison, maybe for the rest of their lifetime. German courts regarded the continuation of preventive detention not as punishment, but the European Court did so. Should the decision in Strasbourg become res judicata,  about 500 convicted criminals may be released from prison – most of them are rapists and murderers.