OVER the past week or so, European leaders have put together the beginnings of a framework for a plan to keep Greece afloat for a while longer. It appears that as part of a second Greek bail-out package, European banks might be willing to voluntarily rollover most of the proceeds of maturing Greek debt into new Greek government bonds. As a piece in this week's Economist makes clear, this would probably be a much better deal for banks than for Greece.
Reuters - European Union leaders meet next week under pressure to take bolder steps to quell the euro zone debt crisis, despite signs that volatility in European bond markets is abating toward the end of the year. The European commissioner for monetary affairs, Olli Rehn, said it was time for Europe to show proper coordination, and back its shared currency union with closer economic union.
In spite of what you hear by the nanny-zone Eurocrats, the rifts keep getting wider and the odds the Merkozy agreement gets tossed to the dogs rises every day.
Today the UK put a nail in the coffin of more money to the IMF and Sweden may do so as well. Please consider Euro zone IMF lending plan in danger as UK declines