CYPRUS, THE EU & GEOPOLITICS: Germany out to damage Cyprus-Greece-Israel energy triad….

….IMF out to strengthen US influence


Result: stalemate….and a tectonic shift in alliances?

Those who doubt that geopolitics have been at the centre of the Greek debt saga since Day One should read the piece below carefully. The demands being made on Cyprus by Berlin are a thinly veiled attempt to challenge the Greek EZ – and by the IMF, to enhance the American-backed energy/exploitation triad in the region. The Slog outlines the real reasons why Germany and the IMF are at odds.

There can be no doubt that the Cypriot debt (and the dubious nature of the island’s financial dealings) leave much room for justifiable doubt among EU officials. By mid-2012, larger banks like Bank of Cyprus or Cyprus Popular Bank were each reporting loans to Greek borrowers that exceeded the entire gdp of the island. Cyprus is in turn infamous for being a haven in the Turkish half for Islamist refugees – and overall for money laundering, reckless government spending, a disturbingly close relationship with Moscow, and levels of tax evasion that make Greece look like Holland by comparison.

But as I’ve written before on several occasions, Cyprus is the Mediterranean’s Cuba: at the geopolitical level, it is vital for the EU to keep a stranglehold on it….and equally vital for the Americans to be able to use it. Further, the Russians have many business and property interests on the island, and Recep Erdogan over in Turkey would dearly love to grab it for himself, should the region ever be distracted by bigger crises.

The European nation most committed to grabbing the plum prizes down in South Eastern Europe is Germany. Hence the suspicion among Greeks and Cypriots when, DEH (Greek Electricity) having signed a deal last month with Quantum to export cheap electricity via Israel and Cyprus to the rest of Europe, German Chancellor Angela Merkel yesterday conveniently insisted that EAC (Electricity Cyprus, a hot property and central to the DEH deal) must be sold off to pay Cypriot debts. No prizes for guessing who she’ll want to buy it perhaps – but removing a key income stream from Greece and Cyprus also keeps them dependent on Big Mother.

Meanwhile, specialist in surreal mathematics and closet American Cristine Lagarde now says that, as the head of the IMF, she won’t participate in the Cypriot bailout because she doesn’t think the debt repayments would be sustainable. This would be a credible position were it not for the IMF’s involvement in previous Greek bailouts where the repayment terms were equally idiotic.

What’s changed since then is that American foreign policy has gone considerably more hardball in its approach. Since February last year, Washington has been keen at one time or another to decouple Greece from EU influence. Given events in the Middle East, that desire has grown stronger – albeit strictly offstage.  So it is that Lagarde insists the ESM must bail out the Cypriot Banks directly. The Francoyank is insisting on this because she knows Berlin will never agree to it. As Spiegel Online reported yesterday, ‘German Finance Minister Wolfgang Schäuble says that a direct bank recapitalization by the ESM would only be possible from March 2014 at the earliest, once a European banking regulatory agency has been established’. That must be why the ECB is currently using a ponzi scheme to directly refill banks all over Spain and Greece, then.

This is all posturing to justify a much larger agenda. The reality is that we have here a continuing tug-of-war over hegemony in the Eastern Mediterranean, where the Cyprus-Greece-Israel axis is known to be rich in energy and rare earths…..and moving ahead swiftly to exploit them in this ‘economic zone’ – or EZ. Indeed, the maintenance of a specifically sovereign-owned Greek EZ is now one of the hottest debates in Athens. Greece has been in talks with the European Commission since last summer to establish several such economic zones offering tax breaks to attract investors and help reinvigorate its economy. But although Greek leader Antonis Samaras emphasised to French and Greek leaders last August that Athens needs a formal EZ, he has since admitted to colleagues in private that Berlin in particular is less than keen on the idea. I can’t imagine why.

Syriza leader Alexis Tsipras at least grasps the importance of American help in getting free from Brussels servitude: he has been moving quietly closer to the US in recent months. This in turn explains why Berlin-am-Brussels would rather eat glass than see a political situation in which Tsipras became Prime Minister of Greece. In the last hour, a Washington source had this to say:

“You can rest assured that State [the State Department] will be pissed about the German move, and that Berlin will be equally pissed that Lagarde is still our gal. It is the easily discernible foreign policy of the United States to create a powerful base plus access to energy and so forth around the Cyprus-Greece-Israel zone, and anyone who believes otherwise is simply asleep.”

Just as Syria is a pawn in the game of controlling Iran and oil access, so too an independent Greek, Greek Cypriot and Israel are vital castles in the chess game of Afro-Mediterranean geopolitics. But this is a chess game being played for inordinately high stakes: Russia will not relish having its nose pushed out of joint, but if the Americans succeed in this regard Putin will have to accept defeat. This will increase his desire for a rapprochement with Germany; and if Merkel starts to see the EU as little more than a money-pit in which access to ClubMed energy has been cut off, she in turn will warm to Russian approaches – and the ready supply of oil and gas from that quarter.

We should never lose sight of the fact that Geli was a keen Youth leader in the DDR who speaks fluent Russian, while Vlad was an agent in that same country who speaks German without any trace of an accent. As with everything in the twilight of fossil-fuel economics, behind every gesture is another move to ensure energy continuity.

Related: Getting it wrong in the geopolitically blinkered MSM

39 thoughts on “CYPRUS, THE EU & GEOPOLITICS: Germany out to damage Cyprus-Greece-Israel energy triad….

  1. And both are lovers of the technology department at St Petersburg and its not just IT,but biotech,although others in Southern California deny otherwise,and plasma physics,real hands on stuff not theoretical.


  2. I am not disturbed that all these machinations go on, it has been the way of mankind since before recorded history even began after all.

    What disturbs me is that while the rest of the world bullies, bribes or outright steals wherever and whenever they deem necessary, Britain, once the most accomplished proponent of the geopolitical art, has spent the last 100 years so wrapped up in angst, indecision and sheer incompetence, so horrified at the mere idea something we are doing might actually benefit us, we recoil and put as much distance between it and us as we can.


  3. What all this does demonstrate is that The EU, as a perquisite for a global regional government Orwellian strategy, is as unlikely as ever. It also begs the question as to why Obummer wants The UK shackled to a fading European economic and political influence.


  4. To keep us caged, perhaps? Or to ensure we are dragged down with the rest of them? Take your pick.
    I have said for as long as I have been coming to this blog that I believe the US secretly wishes the EU to fail, and would be doing more to encourage that failure if wasn’t watching the job being accomplished without it’s help. Would not an all powerful bloc with fiscal union and one treasury, one government challenge the Petrodollar?


  5. I would image that Geli and Woolfie see the Greek/Cypriot oil field as a Eurozone Oilfield, where all these loans to Athens and any loans that she is forced to give Cyprus can be explained to the German Electorate as ‘Loans’ because she will try to get any profits from these oilfields well and truly tied into repayments over the next 30 years. (and therefore sink any possible chance of Greece (or Cyprus) prospering in the future)

    Hence her plan must be that the Greeks can’t leave the EZ, the Cypriots will probably be thrown enough of a bone to get them through until after her September elections, and Israel will probably be too busy declaring war on someone or another to go around worrying about exploiting oil.

    The only bit that I might add to JW’s excellent anaylisis is that let us not forget that Hong Kong based Hutchison Port Holdings have put US$600 million into upgrading the Container Facilities at the Port of Thessaloniki and Cosco Pacific run all operations at Greece’s Port of Piraeus. Methinks that those two ports would be rather important to support ANYONE trying to develop an Aegean Sea oilfield in the next 10 years… Damn clever them Chinese, aint they ?


  6. The intent is a choreographed failure of the EU and the USA ideally bringing down Australia at the same time. If UK is separate from the EU black hole there is a chance a core of the old system may survive. Pure Fabian progressivism


  7. @GrahamD: gas/oil involved or not, the sea route you describe is commercially valuable to China. China ports – Mallacca Straits (probably named after Greek politicos…) – Indian Ocean – Red Sea – Suez Canal, and…
    what are the closest EU after exiting Suez? Natural harbors, container facilities, rail network from the port dock to the rest of EU? Athens and Thessaloniki of course :-)


  8. Indeed kfc1404,

    The rot began to set in with the late nineteenth century rise of Social Liberalism, which still taints our foreign policy today.


  9. So, Britain is actually behaving like a decent guy. Shame on you then.
    Let’s all try to bully, bribe and steal everybody else and see where this will lead us.
    To be honest though i think Britain is doing all those things, albeit unsuccessfully so.


  10. Maria, your name should be Dos Santos, because, Das Santos makes no grammatical sense…


  11. If geopolitics have been at the centre of the Greek debt saga from the outset, it would figure that the same persons not very unknown had good reason to steer Greece into this malleable position by turning a blind eye to the 3% gdp/debt tariff in 2001.


  12. Pingback: John Ward – Cyprus, The EU & Geopolitics : Germany Out To Damage Cyprus-Greece-Israel Energy Triad – IMF Out To Strengthen US Influence – 22 January 2013 | Lucas 2012 Infos

  13. @Hb, the Greek PM 1996-2004 was of “German breed”. Just 10 days after he became Prime Minister (January 1996), the Americans decided to warn us (using the Turkish sheriff) that Greece is not allowed to be 100% under German sphere of influence (Imia 1996 Crisis:
    And so it was. 1996-2004, the Greek “pie” was shared between US, EU (mainly Germany, France). A small piece was given to Russia. Armaments, Olympics 2004 expenditure and a lot more.
    Between 2004 and 2008, the successive government (PM Kostas Karamanlis) tried to break this status quo, and establish closer ties with Russia. America didn’t like it…and…2010…a new PM – American puppet – Greek financial crisis – IMF…the rest is not history, it’s the present dire straits we are into :-(


  14. Very good points there Nick.

    Interesting that “the mall” bombing was targeted towards latsis (its his mall after all). Why? His business interests are intertwind with the new Russian energy deal.

    The shooting towards ND offices was due to what and to what means? Stop the German/Russian/China influence maybe? I think yes, especially with what the Military is now gearing up towards.

    Quite frankly its the Anglo/Americans that have been causing the current trend of terror in Greece, using what agencies to carry them out, I’ll leave for others to ponder…

    At the end of the day the Grexit as structured by the City of London failed and who knows what is coming next.

    @JW, the Greece/Cyprus/Israel deal only benefited Israel through american interests and that is why it has been pulled.


  15. @Nick: Thanks for that, the incident and its significance had passed me by. I also see that both Simitis and his brother have strong German connections.. As time goes on, I think that George Lucas was truly visionary – Star Wars wasn’t just an entertainment, it was a prophecy! :(
    P.S. I hope things are ok in Crete?


  16. @reg: I was thinking along the lines of The Empire representing one world government; it was a little tongue in cheek..


  17. .. but then so much of what used to be regarded as ‘science fiction’ has actually become science fact, perhaps because fiction is usually aspirational to some extent. It worries me deeply and I have to reflect on Max Ehrmann’s homily, often wrongly attributed, on life (Desiderata).


  18. Science fiction almost always (with very few exceptions it seems) becomes fact… There will be a world government, either willingly or by force… Didn’t someone say that?


  19. Read recently that at least one large natural gas field that Israel is claiming is in fact 60% in Gaza waters, as if International law is any impediment to Israel and their latest gimmick ‘facts on the ground’, this is creeping to morph where the’big lie’ fallacy has been since around 1980.

    It is as if anyone who steals/ appropriate/ or other euphamism should retain ownership if it is later enhanced in value or is fancied as desirable by the current owner however obtained.

    Israel has already purloined much of the Palestinian land and ignored UN requirements (by stating that as they were only chapter 6 rather than chapter 7 requirements if the US had voted along with every other nation, Israel and maybe a handfull of tiny Pacific islands).

    Since 1967 Israel has taken over the vast majority of Palestinian water rights in the Jordan river this action, IMO, is a major impediment why the Palestinians appear to be reluctant to agree with any Israeli suggestion of a two state solution.

    IMO ‘facts on the ground’ should be outed asap as another refuge for the rogue/tyrant.


  20. The house cows that have grazed my pasture were a bit short on the milk of human kindness – perhaps they didn’t like the grass;)


  21. @Hieronimusb: I was born in Crete (Cretan parents), and have lived there permanently for 15 years (83-98). Then decided to move back to Athens – not many opportunities for a Telecom engineer in 90’s Crete…
    I still have property in my mother’s village and about a hundred olive trees (at least we produce our own olive oil to eat).
    Athens, Crete, everywhere in Greece is the same. Companies and shops closing, people unemployed, no money for central heating…Middle class is going down to the lower parts of the ladder. That’s how it is for the majority (myself included).
    Millions of people in Europe (and elsewhere), are not living any more – they (we) are barely surviving.
    I am sorry for expressing depressing thoughts. Mood goes up and down unpredictably, with all this situation. So keep on those smart and humorous comments coming. I guess i need them much, and so may others :-)


  22. @Nick: Do my best, but can’t always keep up with the others here! We share your sadness, knowing that such loss could so easily be ours and almost certainly will be. We must speak our truth and hope that some day we can drive out the lies and corruption that have embedded themselves so deeply in our vital organs. We must hope that what doesn’t kill us makes us stronger and that the tide will eventually turn – if only for a while. This systemic corruption is become like the Lernaean Hydra; we need a Heracles to destroy it!


  23. Pingback: THE UK & EUROPE: Does Cameron really understand the politics? | The Slog. 3-D bollocks deconstruction

  24. Pingback: GREEK CRISIS: Russian geopolitics in play | The Slog. 3-D bollocks deconstruction

  25. Pingback: ANALYSIS: How the Cyprus-Greece-Israel energy triad is being quickly dismantled | The Slog. 3-D bollocks deconstruction

  26. Pingback: John Ward – Analysis : How The Cyprus-Greece-Israel Energy Triad Is Being Quickly Dismantled – 4 April 2013 | Lucas 2012 Infos

  27. Pingback: John Ward – Analysis : How The Cyprus-Greece-Israel Energy Triad Is Being Quickly Dismantled | My Light Warrior "OPPT-IN"

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