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Tuesday, June 28, 2011

The Greek Tragedy - Sarkozy's False Dawn

French president Nicolas Sarkozy believes that he has found the solution to the Greek crisis, by striking a deal with France's banks in which they have agreed to restructure their Greek debts.

However, before he pops his champagne cork he would do well to remember that the deal involves using Brussels funds to reduce potential losses of private bondholders. This is not something that the Germans want, indeed it should also be noted the the Greeks have not yet accepted the deal.

The Greek parliament votes on the austerity measures tomorrow. In the event that the measures are approved, no one seriously believes that the measures will be faithfully and fully implemented in the coming years.

Am I too cynical?

Consider this, the country is already in political turmoil, any further cuts will push it over the edge to anarchy. It should also be remembered that is it guilty of committing fraud on a national level in order to join the Euro in the first place.

This is a false dawn, Greece will default and be pushed out of the Euro.

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