More Greek trouble

[despaer]

Like I said previously, this is far from over. The Greeks have now been given formal notice that they can no longer borrow money on sensible and affordable terms. The IMF/EU bailout may hold them for a while but it still doesn't address the problem of why, for example, the Germans have to retire later than the Greeks whilst helping to bail them out

Comments

[simoneck]

I think it gives a good picture of the EU idea of democracy that they are waiting until the 10th May to hold the urgent discussions that are needed to finalize the EU package/bailout. ie one day after the German regional elections.

[andygates]

Are you saying conspiracy, or just implying conspiracy while pointing out that a big organization's timing never suits all of its members?

[simoneck]

It's not a conspiracy really, just realism.
Merkel is much less likely to push money Greece's way when the German public are about to vote.
'But with 57% of Germans against helping to support Greece, and with Angela Merkel facing a regional election in the country's most populous state, North Rhine Westphalia, on 9 May, it is far from clear just when and to what extent the German government will show its willingness to endorse funds towards a multibillion rescue package.'
And this is from the Guardian

The sad thing is the EU project being pushed forward without taking the public with them. It's only storing up trouble imho.

[andygates]

That's obligations for you, nobody likes the bit where you pay out.

But overall, yes, it's a mess, and I still think that a really robust EU needs to be federated like the Americans to weather the hard stuff. Halfway-house arrangements just move the problem until the time the cheque gets cashed.

[simoneck]

And it isn't just the french and German economies that are required to chip into this bailout. The Irish, Spanish, Portugese economies have to borrow to put up their portion too, and I think their economies will find it far less easy to do so.
How will the Irish sell it to their population? - 'well I know you've all had 20% paycuts to try to address our budget deficit, but I hope you'll understand now we have to borrow another 500M to help the Greeks out'.