Sarkozy and Merkel, without any hesitation will say "YES", the Bail - Out problem has been solved !!! A closer look at the problem leads one to a different conclusion - "Yes in the short term" of three to six months "Not really in the long term".
On the basis of erroneous accounts, which were not properly examined by the EU, Greece was allowed to adopt the EURO as its national currency. Early 2010, Greece was virtually bankrupt and sought help from the EU to repay financial loans.
Early May 2010 110 Billion Euros loan was made available. This was like a life jacket, until a year later when the money had been spent and the same problem reappeared.
Early today a new loan was agreed, this time for 130 Billion Euros, but with stringent conditions which act like a straitjacket !!! EUROZONE experts will closely monitor the usage to which this new loan will be put, to avoid any possibility of an attack on the EURO on International Financial markets !!!
There has been a lot of pain in Greece where unemployment is rife, salaries and pensions have been reduced and lenders have been obliged to write-off loans by 50 %. There have been protests, riots, strikes and insecurity in the streets. The end of the turmoil is not really in sight !!! Political agitators will bring Greece to its knees.
What a pity Greece was not allowed to leave the EURO in 2010 and then adopt the new Drachma !!!
No comments:
Post a Comment