nelson
02-11-2010, 10:03 PM
EU summit on Greece: A half-hearted effort
Vague European promises of “solidarity” with Greece may not be enough
http://www.economist.com/world/europe/displaystory.cfm?story_id=15520726&fsrc=rssThere was a strong whiff of politics in the air. German voters have been paying more than their fair share for European construction for years. Germany’s big fear when it abandoned the deutschmark, just over a decade ago, was that it would end up rescuing more profligate countries in the euro zone. Now those fears are coming true.
Yet money will almost certainly be found for Greece, if it is needed. German and French banks hold tens of billions of euros in Greek debt, and a default could spread contagion among other vulnerable economies in the euro zone, including much larger countries such as Spain. For the moment, EU leaders appear to be gambling that a political statement of support will be enough to make markets back off.
Here's another, more direct headline posted on Drudge today:
Angela Merkel dashes Greek hopes of rescue bid
German chancellor refuses to rescue Greece's ailing economy amid Berlin's domestic austerity
[url]http://www.guardian.co.uk/theguardian/2010/feb/11/germany-greece-merkel-bailout-euro (]Read more[/url)Germany is stepping totally on the brakes on financial assistance," said a senior EU diplomat. "On legal grounds, on constitutional grounds and on principle." Another senior diplomat said of the Germans: "They're not waving their chequebooks."
Sounds like Germany is cautious, playing it slowly, unwilling to pay for things indefinitely, and as a result the EU reacts immediately, afraid their financial support is waning. I am sure we have not heard the last from EU. But I can sympathize with Germany's situation: why continue to bankroll? And I find the EU's predicament all too familiar: entitlement-driven populations and corrupt governments don't bother to balance their checkbooks, they simply ask the more productive people to rescue them. Personally, I hope Germany stands firm. If they do, will the EU turn elsewhere?
Great quote from the Economist article: "an alcoholic is not helped by being given another bottle of schnapps."
Greece is a mess, and unfortunately, a glimpse at the future of the USA, should it continue its present course. My fiancee wanted to honeymoon in Greece but I vetoed that one; no way am I spending money there after everything I have read over the last year!
Vague European promises of “solidarity” with Greece may not be enough
http://www.economist.com/world/europe/displaystory.cfm?story_id=15520726&fsrc=rssThere was a strong whiff of politics in the air. German voters have been paying more than their fair share for European construction for years. Germany’s big fear when it abandoned the deutschmark, just over a decade ago, was that it would end up rescuing more profligate countries in the euro zone. Now those fears are coming true.
Yet money will almost certainly be found for Greece, if it is needed. German and French banks hold tens of billions of euros in Greek debt, and a default could spread contagion among other vulnerable economies in the euro zone, including much larger countries such as Spain. For the moment, EU leaders appear to be gambling that a political statement of support will be enough to make markets back off.
Here's another, more direct headline posted on Drudge today:
Angela Merkel dashes Greek hopes of rescue bid
German chancellor refuses to rescue Greece's ailing economy amid Berlin's domestic austerity
[url]http://www.guardian.co.uk/theguardian/2010/feb/11/germany-greece-merkel-bailout-euro (]Read more[/url)Germany is stepping totally on the brakes on financial assistance," said a senior EU diplomat. "On legal grounds, on constitutional grounds and on principle." Another senior diplomat said of the Germans: "They're not waving their chequebooks."
Sounds like Germany is cautious, playing it slowly, unwilling to pay for things indefinitely, and as a result the EU reacts immediately, afraid their financial support is waning. I am sure we have not heard the last from EU. But I can sympathize with Germany's situation: why continue to bankroll? And I find the EU's predicament all too familiar: entitlement-driven populations and corrupt governments don't bother to balance their checkbooks, they simply ask the more productive people to rescue them. Personally, I hope Germany stands firm. If they do, will the EU turn elsewhere?
Great quote from the Economist article: "an alcoholic is not helped by being given another bottle of schnapps."
Greece is a mess, and unfortunately, a glimpse at the future of the USA, should it continue its present course. My fiancee wanted to honeymoon in Greece but I vetoed that one; no way am I spending money there after everything I have read over the last year!