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
I really don’t see how this is a good thing for Greece, or Greeks, to keep pushing the inevitable out.
“. . . bows to global pressure”?? Come on. They did it on their terms.
That clinking/clunking sound you hear is the can being kicked down the road once again.
Greece, like GM, too big to fail.
So, when shall the average German citizen reach their limit with the bailouts?
“If we achieve a left dominated government.”
We will then just openly steal(refuse to pay back) all that money and tell the world to kiss off.
My German friends were pissed at the amount of money they had to pay to rebuild east Germany after the wall fell, I can’t imagine they are tickled about having to pay to support lazy f%$ks in Greece......
More seriously, what's the plan for the next service in 3 months? The Greek economy, which was built as a house of cards, has run out of deck, and they're picking out new cards from the bottom level. The only real money pumping into the economy (much like the United States) is the government borrowed debt.
Trigger all those debt default swaps and let Armageddon hit the financial markets. Let it happen on a Friday, everyone will whine over the weekend, and I betcha come the following Friday that somehow, some way, the banks managed to figure out how not to commit financial meltdown.
Which is exactly why they should get defaulting over with and exit the Euro. It will happen one way or another, sooner or later.
throw another E130B on the fire...
This will continue until all of Europe collapses.
Greece will default about a week after this check clears.
Thanks bruinbirdman.
Some Germans/Austrians are quoted saying nice things today. Maybe they don't want a meltdown before March 20.
In any event, plenty of German, Greek and EU pols are looking at default and/or drachma.
Nothing has changed but some words.
yitbos
Greece is no different from Obama - give in and the beggar will be back within a matter of months sniveling “well, I spent my allowance already and I still need to buy my stuff for school.”
Today they can kick the can down the road, what happens when the can grows into a boulder. Get a broken foot if one attempts to kick it down the road.
Greece is a cancer growth. Lazy people until they open a restaurant in the US.
Default is inevitable. It is only a matter of time. They can delay it but they can't prevent it. The insolvent are lending to the insolvent. Everybody be broke, Mon.
“It would be even harder for Greece to repay its debts with a devalued drachma..”
Apparently creditors, “buying” for time, are very desperate for a bailout fall-guy.
Fall-guy speak.
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