As Martinghoul wisely points out: You can't have it all. You must choose one or the other, both come with consequences. And Germany cannot do a thing if Greece decides to default. By the way, are you blind? Germany is more than happy to let Greece off the hook, to let Greece default and to let Greece leave the union. Of course Merkel would never openly say so, but this is the overall policy stance towards Greece at this point in time. It was very different 2-3 years ago but Germany is fed up. So, if Germany was the only creditor there would have not been a single additional extension granted last week. Germany would have forced Greece to make up its mind, and it very much would have the right as creditor to demand a decision. But Europe is not just Germany. There are plenty others in the Eurogroup who have a vested interest in being perceived as supportive of Greece. But this seeming support is as self serving as Greece's government, as self serving as Germany. Get real, and look at the facts and stop believing the nonsense you read in some gossip blogs.
No, a few years ago Greece negociated financial help and agreed on all the conditions for this help. They were not obliged to accept this help, it was their free choice.but germany is imposing things against the will of greece...greece is not being told to take it or leave it, more like if you don't take it, you will be booted out
No, the reality is that Germany is terrified at the prospect of ANYONE leaving the eurozone. Why? They know anyone leaving means others will follow. If that happens the whole euro project collapses.
In public, they have to show they don't care. In fact, presenting a hardline is the way to go. But internally they know they can't afford to let anyone go.
No, the reality is that Germany is terrified at the prospect of ANYONE leaving the eurozone. Why? They know anyone leaving means others will follow. If that happens the whole euro project collapses.
In public, they have to show they don't care. In fact, presenting a hardline is the way to go. But internally they know they can't afford to let anyone go.
Oh eventually, they will have to let go and the euro will self destruct, you can count on that. However in politics, they like to do this thing called saving face...they can't bear to be wrong (they would make lousy traders). The markets will enforce reality on them in the end.
have we not laid out in detail over the past couple pages why that is not gonna happen? If Greece left the Eurozone there is no reason why Spain and Co would follow anytime soon. Please provide a credible line of reasoning if you disagree.
Just empirical data. Whenever a country has left a currency union or a peg, another leaves within a year 80%+ of the time. Combine that with the fact that Spain and Italy have serious economic problems , the odds are even higher that they will leave as well.
I reckon this will happen. Greece leaves the eurozone. It has a horrible recession for 6 months, maybe longer. But then it recovers. Other countries (Spain and Italy) still trapped in the eurozone nightmare see this. Their public vote out their corrupt govts. New govts in the spirit of Syriza are elected. They immediately, no need to consult Germany, exit the eurozone.
Here is the dream though....Germany fucks up economically once all these countries leave the eurozone...it cant cope with the strength of the new D-mark. Neighbours like Poland , Czech, Hungary decide that it is time for payback for the atrocities of ww2. They gang up and invade Germany. The german finance minister is thrown off the bundestag roof. The countries carve up germany and rule for the next thousand years. Sort of like the Reich, but not the one the nazis intended! haha!