Posted on 02/19/2012 8:04:18 PM PST by bruinbirdman
Europe’s key powers are on the brink of a €130bn (£108bn) debt deal to rescue Greece and avert the first sovereign default in Western Europe in over half a century.
Germany’s finance minister Wolfgang Schäuble toned down threats to force Greece out of the euro, bowing to intense pressure from France, Italy, and the US-led bloc of global leaders.
Mr Schäuble said the country is "on the right path" and signalled that pension cuts agreed by the Greek cabinet over the weekend would be enough to secure approval for the loan package from EU ministers on Monday.
"If Greece can implement all the necessary promises by the end of February and clear up any other open questions, the second aid package can be approved," he said.
Austria’s finance minister Maria Fekter said Greece faced stringent conditions on new aid but said that the "majority" of EMU countries not want to risk a dangerous misadventure that would cost even more in the end.
"We are not going to abandon Greece. It would be even harder for Greece to repay its debts with a devalued drachma," she told ORF television. A deal will unlock the next tranche of money from the EU-IMF Troika and allow Athens to meet a €14.5bn payment to creditors on March 20.
However, it is unclear whether the complex package can command political consent for long in either Greece or Germany. Greek elections in April may see a political revolution with the hard Left in ascendancy.
"If we achieve a Left-dominated government, we will politely tell the Troika to leave the country, and we may need to discuss an orderly return to the Drachma," said Theodoros Dritsas, a leading MP from the Syriza party.
In Germany, Chancellor Angela Merkel’s coalition partners are in revolt
Exactly!!! Buying time by saying a deal is done, rinse and repeat. By stalling it give time for the big boy to let someone else hold the bag.
P.T. Barnum
Obama won't let all those Greek government workers suffer!
This is just plain stupid. If they bail out Greece this time it is only a matter of a few months and they will be back with their hat in their hand. Greece cannot pay off their debt. It is physically impossible, they don’t produce any thing except olives and olive oil.Their main source of income is tourism, their GDP is not big enough to service the remains of their debt. Cut them loose and let them go.
I bet a lot of Germans must be pissed off pouring more of their money down a rat hole just in order to keep some one in the life style they have become accustomed to.
literally until they have elections at which point the rest of the EU will either pray or take a more proactive roll and attempt to fix the elections.
They have cut incomes. Initially maybe some avoidance but they have cut now. Thats why their economy keeps shrinking. This is why they can’t service the debt. They never had much of an economy to begin with.
“Germany bows to global pressure and signals Greek rescue deal”
This should be a standing headline. Just run it once a week and be done with it.
About the same time we do.
Good point. IMHO, the can is already a boulder. Those involved just refuse to accept that.
A default has already been agreed-to; our leftist financial press calls it a “haircut”.
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