2/14/2012

Europe giving up on Greece keeping its promises

From the Financial Times:

Olli Rehn, the European Commission’s top economics official, warned there would be “devastating consequences” if Greece defaulted, and pleaded for eurozone governments to approve the bail-out quickly. Officials said Mr Rehn has support from the European Central Bank and the French government.
But a group of eurozone governments, particularly those that retain triple-A credit ratings, has lost faith Greece will ever deliver its end of the bargain. Hardline officials in Germany, the Netherlands and Finland are increasingly urging a Greek default.
“We are getting closer to default,” said a senior eurozone official. “Germany, Finland and the Netherlands are losing patience.”
Finance ministers will hold a conference call on Wednesday and reconvene at a scheduled meeting on Monday.
One key reason for the increasing boldness in northern Europe is a growing belief the EU can contain the blowback from a disorderly default, having built up the eurozone’s financial “firewalls” against contagion. Some officials also believe financial markets have priced in a default, meaning any adverse reaction will be limited. . . .

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1 Comments:

Blogger Chas said...

Instead of vainly trying to save Greece from itself, we might try carpet bombing their cities. Surely they wouldn't object to our assistance with their own longstanding and ever so valiant efforts at destroying their own country? We really should help them. Really, we should.

2/16/2012 4:21 PM  

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