Abduction by Europe
the Authorities of the European countries have undertaken the next steps on struggle against the financial market as which they consider as the main originator of the debt crisis: the European Union has decided to buy up the European bonds itself. An observer " the Authorities " Sergey Minaev considers that such struggle will affect usual citizens, including Russian.
the struggle history is that. To start the power of the European countries have decided that in the conditions of debt crisis it is necessary to struggle with the share market. Really, many citizens have on action hands, watch their course and falling of exchange indexes conceive very painfullly as the bright example of that crisis goes deep. In May, 2010 Austria declared that prolongs entered in 2008 by an example of the USA an interdiction for operation under the name " speculation for the fall without actions on hands " (naked short trading). It is a question of that usually at speculation for the fall of share prices (short trading) the player takes a share holding at somebody on loan, sells them in the market, after falling of the prices for these actions again buys their same quantity, returns to from whom it has occupied them, and puts a difference in a pocket. At speculation for the fall without actions on hands the player simply declares that sells a share holding, takes money at bought, but asks it to wait a little with purchase reception, after falling of the prices for actions buys that quantity which promised, passes their buyer and puts a difference in a pocket. The American authorities in 2008 have declared that at such scheme theoretically any trader can sell an unlimited number of actions of any company, time to have them in stock unessentially that the collapse of the American stock market grows out of gamble of this kind and what exactly ill-intentioned speculators stand up for crash of the American investment banks like Lehman Brothers.
Prolonging an interdiction in 2010, the Austrian authorities have noticed that it concerns not all actions, but only banks Erste Group largest in the country and Raiffeisen International, and also insurance companies UNIQA largest in the country and Vienna Insurance Group.
Then, in May, 2010, the interdiction for operations naked short trading was entered for the first time by Germany. The interdiction concerned games with actions of the largest Deutsche Banks Aareal Bank AG, Commerzbank AG, Deutsche Bank AG, Deutsche Postbank AG, insurance companies Allianz SE, Hannover Re AG, Munich Re AG, Generali Deutschland Holding AG, MLP AG, and also the operator of Frankfurt stock exchange Deutsche Boerse AG.
the Interdiction to sell short the most European currency has not followed, therefore the currency speculators shaken by the antispeculative German decision have there and then brought down an euro exchange rate it has fallen from $1,25 almost to $1,21. Germany had to have a talk with other European countries, first of all with France which has reproached German neighbours that they have made so cardinal decision independently, without having consulted at all to other countries of an eurozone. However the Eurocommission has there and then declared support of the German decision and has urged all other European countries to follow the lead of Germany. From its part, German chancellor Angela Merkel has expressed hope that struggle against exchange speculators will be developed all over the world and G20 the co-ordinated decision on struggle against exchange speculators will make, having fulfilled thereby the promise given on taken place still autumn of 2008 the summit, " to supervise each financial product, each operation, each market ".
Then the turn of commercial banks has come. The European authorities have decided that anywhere so debt crisis as in bank problems, and anything so does not disturb citizens who are afraid to lose the contributions (and there and then money from bills rushes to draw out, thereby financial problems of banks only aggravating) is not shown.
" the Power " wrote about revolutionary offers ETSB and Eurocommission to reverse existing system at which the European commercial banks are rather free in accepted financial decisions and submit only to national bank supervision. Banks were offered to be united in the uniform European bank union under uniform European bank supervision (see article " the Country Bankirija " in N24 from June, 18th).
And these offers have been immediately realised. On June, 29th at EU summit it has been decided to create the bank union in a following kind. Any European bank having problems (and they are tested by everything, not casually recently was the credit rating even banks of Germany is lowered, which itself like debt problems would not test and helps other countries), will receive money directly from created all-European fund of the financial help in volume ˆ500 mlrd, passing the national governments. Such decision spoke that it is not necessary to aggravate debt problems of these governments. Banks should submit to requirements of the new all-European supervising body which role has there and then expressed readiness to play ETSB.
At last, time of bonds of the European countries has come. And it looks logical Eventually, the European debt crisis also consists in that that the separate countries have typed so much debts that cannot serve them, and they do not have means even for current budgetary needs (therefore Greece and Ireland have been urged to request money from already existing European fund of the financial help). To place new releases of state bonds in the world financial market the countries suffering debt affliction can only under very high percent and it only aggravates their debt problems.
and here at EU summit the decision simply to buy from new fund of the financial help in volume ˆ500 mlrd new releases of bonds of the separate countries, for example Italy or Spain on June, 29th was accepted. This decision has been issued in the following edition: " funds of the financial help will be used in a flexible and effective manner to stabilise the financial markets ". ETSB this decision has supported He was engaged time and again in purchase of bonds of the separate countries. In 2010 and 2011 he has bought these bonds on ˆ200 billion Since February of this year this program ETSB is suspended, but not cancelled.
participants of the summit noticed that purchase of bonds of the separate countries on means from new fund will allow to lower percent on these bonds. Differently, on these bonds additional demand will be created, and private investors, having faced a competition from fund, also will be urged to agree for more low interest. Bonds will be formal to look more attractive after all now investors buy bonds of Germany just because on them pay low interest, means, they are reliable. However it is direct after the decision of the summit representatives of the investment companies have declared that all the same do not plan to put means in the Italian or Spanish bonds.
the situation, of course, looks in an original way. In effect, the European countries have decided to buy bonds from themselves after all all of them to some extent place money in new fund of the help. The concrete countries, which bonds will be got, in the summit decision are not named, means, theoretically to their number can get and Germany. Because at all appeal of its bonds even it not always manages to sell in the world financial market so much, how much she wants. We will tell, on November, 23rd last year at auction on placing of German bonds with ten years` term of repayment it was offered to investors of such bonds on ˆ6 mlrd, and it is bought only on ˆ3,6 billion
Private investors have appeared in a difficult situation. If earlier quantity of the bought bonds, say, Italy or Spain and percent on them was defined by investors according to their representations of about a budgetary situation in these countries and prospects of repayment by them of the debts now all will be defined by that, the fund of the financial help will interfere with a course of the auctions or not.
Business becomes complicated also that the question on release instead of bonds of the separate countries of uniform European bonds is not removed yet from the agenda. Right after the summit, on June, 29th, the Italian prime minister - minister Mario Monti, greeting the decision on purchase of bonds of the separate countries from fund means, has declared: " This decision obviously lays a way to creation of uniform European bonds ". In case of their release investors and at all will appear in confusion it will be absolutely not clear, from the budget of what country they will be repaid how to estimate prospects of their repayment and what percent to ask for their purchase. As, eventually, the fund of the European help also can start to buy up them.
in general, the European authorities move ahead by the way of replacement of decisions of the financial market with administrative decisions more and more. And in this market they consider players as the main enemies, unique originators of the European debt crisis, and express readiness to compete to them, using own political possibilities.
but the more administrative pressure upon players in this market, the more they are inclined to compensate the losses at the expense of usual citizens. The European banks deprived in the conditions of uncertainty of possibility freely to play in the market of the European bonds, moreover having faced increased requirements of a new all-European financial regulator, simply will pay less under contributions and to demand bolshy percent on credits. And as the world financial market is uniform, both the Russian investment companies and banks are its active participants, the Russian citizens the European administrative innovations too will inevitably concern.