Greece faces "the spectre of bankruptcy" (again)

Pecker

Just a slightly different option.

How about they pay off / write off most of Greece's debt.  Leave them with an amount they can comfortably afford to pay without sacking half the public sector.

Then kick them out of the euro.

Say they can come back when they've showed financial stability for maybe a decade.

It'd cost a lot of money.  But then again, pratting around paying bits off here and there every few months isn't cheap, and if they just defaulted the cost could be even higher.

Steve W

Wild Weasel

I'm not sure how Ireland, Portugal, Spain and Italy, who are also suffering under austerity programs would feel about that.

Portugal is sliding away at the moment. Their 10 year bond yields have shot up to 17%.

Thanks, well it was either that or Operation Common Market Garden - A bridge too far.

BISHI

Thats better...!

Rasczak

Greek fire burning again?

Four senior politicians from Greece's coalition Government have resigned over the latest planned spending cuts:

BBC News - Greece eurozone bailout: Coalition hit by defections

Will Greece pass the new austerity proposals?

Wild Weasel

Elections are due in a few months, so no politician wants their name on this plan. A 22% cut in the minimum wage to prop up a bunch of foreign banks? It'd be electoral suicide.

Rasczak

What is the alternative?  They crash and burn out of the Euro?  I would have thought that would be even worse.  This said, I expect the Germans will front up more cash rather than let that happen.

Wild Weasel

Well that's the weakness of democracies isn't it: the inability to make tough or unpopular decisions. So much easier to do nothing and bury their heads in the sand.

Rasczak

The latest Greek bailout still seems to be in the balance.  Despite "superhuman" efforts (according to one Greek Minister) to comply with austerity demands made by the Eurozone, key EU leaders are not convinced:

BBC News - Greece has made 'superhuman' sacrifices, says minister

Eurogroup president Jean-Claude Juncker said Greece had not showed that it was committed to the austerity plan and has demanded the country finds an extra 325million Euros of savings.  

Surely its time for Germany to stop whinging and stump up the cash?

Wild Weasel

Maybe Germany doesn't want them to meet the terms. Everyone knows Greece is a lost cause.

Kebabhead

Begs the question why the were allowed to join the Euro in the first place