Wednesday, April 27, 2016

Greece: Episode 9 -- I've not lost my bet yet!

The head of the European Union has rejected Greece’s request for an emergency meeting aimed at ending an impasse over the country’s bailout.
Greece agreed to a third rescue package worth €86bn (£60bn; $94bn) last year and faces a looming debt payment. However, it has been unable to unlock the next loan instalment after clashing with its creditors over more reforms.
The International Monetary Fund and other European partners are demanding that Greece implement further austerity measures. They are looking to generate nearly €4bn in additional savings or contingency money in case Greece misses future budget targets.
But the left-wing government led by Alexis Tsipras has said it will not agree to any “additional actions” to what it had already signed up to last summer.
A special ministerial meeting was supposed to be held on Thursday, but Dutch Finance Minister Jeroen Dijsselbloem, who is in charge of the Greece negotiations, called it off.
Source: BBC

For all those who though that the Greece thing was over and done with, let me disabuse you.  What the ECB/EU/Germany have done is "shovel the shit forward".  Despite the fact that Greece as agreed to massive cuts in government expenditure the reality is that revenues are also way bellow expectation:  Would you build a plant in Greece.

Little has really changed in Greece, it remains difficult to start a business, unions are all powerful and red tap is still rather extensive.

However, the one thing that has not happened is debt forgiveness; granted countries are not companies and so bankruptcy is not really an option.  Still, the one thing that could possibly give Greece a chance is not being considered.  And now, with almost Euro 4 billion due in July, we are back at the game table, where Europe refuses to meet with the Greeks until some further cuts are put in place.

i can still win my bet -- that Greece will be out of the Euro...


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