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Monday, November 03, 2014

EU Fiddles Whilst Athens Burns

Greece is hitting the financial headlines yet again.

Unsurprisingly, the EU has just woken up to the fact that it is "highly unlikely" that Greece will be able to end its bailout programme without some new form of assistance. In other words Greece will need another bailout in order to meet the conditions of existing bailouts!

A senior EU official is quoted by Reuters:
"A completely clean exit is highly unlikely.

We will have to explore what other options there are. Whatever options we may be adopting, it will be a contractual relationship between the euro area institutions and the Greek authorities."
In other words the EU doesn't know yet what form the new bailout will take.

They will have to hurry, the current bailout package expires 31 December this year.

Whatever the deal, if one is forthcoming, it will be in effect throwing good money after bad.

It is "ironic" that the EU busts a gut to try to keep Greece (a financial basket case) onboard, yet barely flinches at the very real prospect of Britain (a strong contributing economy) leaving!

1 comment:

  1. so, you think a new bailout is unavoidable and pointless?