Tuesday, 17 February 2015

Greek debt crisis is a mix of Greek false expectations and a possible Euro fudge

We are in the midst of a debt crisis with the EU / Greece talks stalling. Syriza and it's finance minister know Greece is broke and bankrupt in literally weeks, but they are banking - excuse the pun - on the EU bailing them out on their terms, again. I don't see it happening. And, more importantly, I don't think it should happen. The EU have said there is no alternative to a debt extension for Greece. If Greece says no then it should leave the meeting and prepare to leave euro. If we keep giving in to Greece then what do we say to the Irish, the Spanish, or our own countrymen and women who have had to cope with the difficult decisions and the hard process of balancing books in difficult times? I genuinely now believe that any euro difficulties caused by Greek departure from the euro would be less than an enforced continuation of a farce when Greece will clearly never pay. But the consequences for Greece, and the rest of the EU will be significant and destabilising.