The mainstream media narrative - that Germany is ready and prepared for Grexit and that it is no longer a threat to financial stability - is all hype, according to German opposition finance minister Joachim Poss. As Bloomberg reports, all that is mostly posturing for an electorate tired of the aid and angst Greece has demanded since 2010.
Brussels (AFP) - European Commission head Jean-Claude Juncker believes an agreement on a third bailout for Greece is likely this month, hopefully by August 20 when Athens must make a key debt repayment.
Greece's ATX surged over 4 per cent in intraday trade on Tuesday after European Central Bank increased its funding lifeline to Greece's banks again, allowing the country's banks to stay open as Athens inches towards a deal with creditors. Meanwhile, other European markets were trading flat. France's CAC40 was up 1 per cent, Germany's DAX was up 1 per cent and FTSE100 was up 0.3 per cent. On Monday, the CAC 40 in Paris jumped 3.81 percent to close at 4,998.61 points while Frankfurt's DAX 30 also gained 3.81 percent to stand to 11,460.50 points.
BERLIN — In the Greek resort town of Nafplio, German tourists Ludwig Zaccaro and Nina Lange shocked the local mayor last week by walking into City Hall with a reparations check. The couple had seen a figure in the news claiming Germany owned Greece more than $74 billion for Nazi crimes during World War II — a figure they boiled down to $936 per German citizen.
Germany and Greece are heading into an emergency meeting with official creditors today with conflicting positions, setting the stage for a clash.
German Finance Minister Wolfgang Schaeuble rejected Greece’s call for a new debt accord, while Greece’s new Prime Minister Alexis Tsipras remained defiant, saying there is “no way back” for his government, and that he can’t condemn his people to more pain.
Don’t pack away the currency presses just yet, Greece’s euro exit may be back on the table next year.
There’s still a danger that Greece will be forced out of the euro region by the end of 2016, according to 71 per cent of respondents in a Bloomberg survey of 34 economists. Seventy per cent said they reckon Greece should be safe for the rest of 2015, though almost half said they thought the 86 billion-euro (US$93 billion) bailout package Prime Minister Alexis Tsipras is targeting will prove to be too small.
According to IIF director Charles Dallara in a Bloomberg interview, "ECB will be insolvent if Greece were to exit the euro. Europe would have to first and foremost recapitalize its central bank."
Excuse me for asking but how would they attempt to do that? Print Euros?
Please consider Dallara Says Greek Euro Exit May Exceed 1 Trillion Euros
With just three weeks until the Greek snap elections on January 25 in which Tsipras' Syriza is virtually assured of victory (unless somehow G-Pap's "new and improved" political party manages to steal enough votes to prevent this, although one wonders what his political campaign will be: "vote for us because this time we know how to avoid a sovereign bankruptcy"), Germany takes yet another opportunity to remin