For more than a year Sarkozy and Merkel have been chewing over the Greek problem, i.e. should Greece leave the Eurozone or not !!! In fact the real reason for lending money to Greece is not really to help Greece but to avoid a possible run on the EU euro !!! Whatever the real truth is, Greece now has an additional 100 Billion Euros of debt none of which it can realistically repay.
In spite of the countless times Sarkozy and Merkel have met (and telephoned !!!) few details of their discussions have been leaked to the Press. It would seem that Sarkozy wants to make the big announcement at the G20 meeting starting in Cannes early November 2011. That is where all the Eurozone leaders can debate the problem of the EURO.
Is it not the idea to propose the creation of a garantee of a Trillion Euros which would be subscribed by Eurozone countries ? This would create the stability which the EURO needs, that is sure.
This does not justify preventing Greece from declaring itself bankrupt. If Greece at last can withdraw from the Eurozone its people can heave a sigh of relief and look forward to a more normal life. The country could then purge itself of past problems by declaring a devaluation and then become competitive again internationally.
After the meeting in Cannes the next step will be to update the EU Treaty. This will also take time.
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