Sunday 4 January 2015

GREEK DEBT : MERKEL HAS NO OPTION AND CAN ONLY PRAY !


There is speculation in the EUROZONE about what Angela Merkel can do to avoid writing off the 240 billion Euros Loan that Greece obtained and now cannot repay !

The Opposition Leader, 40 year old Alexis Tsipras has already made it clear that he expects a substantial write down of the Debt to enable Greece to recover financially !   His alternative is to withdraw from the EUROZONE, renounce the EURO LOAN and also renounce partially other National debts ! 

Voters seem to favour the latter solution to put Greece back on a profitable basis.  Merkel can only pray that Tsipras' SYRIZA party does not get a working majority.

As our article (1) last Monday stated, this will probably lead to a revision of EUROZONE principles.  This same problem could repeat itself in future simply because the 19 countries in the Zone are so varied.  

Already it is known that France, Italy and Spain are  facing difficulties.  More loans, the last solution for Greece, do not always help !

The World around us is constantly changing.  When the basic EU principles were adopted 20 or 30 years ago, hastily sometimes, they were acceptable.  Now,  these old principles all need to be "confirmed", and new missing principles added !

This is the hurdle which Angela Merkel, Juncker and other leaders must undertake, to make the EU become what it should be !

(1) Read the article entitled: "Euro Crisis as Left Force Election". 

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