Germany about to kick out Greece?
The Greek saga is reaching ridiculous proportions. Troika on/off, IMF on/off, Deal(s) on/off. The situation is definitely the tale of the Emperor’s new clothes. Any intelligent person realizes Greece must leave the EZ sooner or later. Of course, there is no politician willing to deliver the harsh message, but we are reaching the point of the Big stop loss regarding Greece. Accorfding to the Telegraph Germany is planning for the Grexit;
The German finance ministry is actively pushing for Greece to declare itself bankrupt and to agree a “haircut” on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.
Eurozone finance ministers meet on Monday to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country’s finances in order.
But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that Wolfgang Schäuble, the German finance minister, does not believe that any government would be able to implement them.
His pessimism has been tipped into despair with a secret European Commission, Central and IMF report that even if Greece made good on its promises, it would not be enough to reach the target of bringing total debt to 120 per cent of GDP by 2020.
“He just thinks the Greeks cannot do what needs to be done. And even if by some miracle they did what has been promised, he – and a growing group – are convinced it will not pull Greece out the hole,” said a eurozone official. (Full article here).