Monday, 15 June 2015

The Grexit is looking ever more likely - reports from Germany and the papers do not look good

Greece's ongoing inability to function as a normal country is becoming ever more apparent.
http://www.telegraph.co.uk/finance/11673989/Syriza-Left-demands-Icelandic-default-as-Greek-defiance-stiffens.html
It cannot continue to sustain capital withdrawals from its banks, its declining employment, a chaotic government and so much more. This week’s meeting of European Finance Ministers is one of the last chances for a deal to be struck. However, there is no sign of an agreement yet, and it is clear that the German government preparing for Greece leaving the Euro, setting up a drachma and starting anew. Noone wants to see the impact of a Greek exit, but at the same time we have to ask if the continued throwing of good money after bad, and the undermining of so much of what the rest of Europe is trying to do is sustainable.

This is one approach from the Spectator: http://blogs.spectator.co.uk/coffeehouse/2015/06/how-far-will-merkel-go-on-greece/
Ultimately it is clear that Mrs Merkel, and the European Finance Minister, and the IMF [who all but have given up trying to do business with the Greek government] will have to decide if they wishes to continue to underwrite the Greek economy, which shows no sign of the improvement that we are seeing in the UK and Irish economies. We in the UK are lucky - due to George Osborne's decision we do not contribute as part of the Eurozone bail out scheme.

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