Better put, the Eurocrats are very very worried, and they should be, their prize political ‘leviathan’ of a non-democratic union hangs in the balance. KGS
Pressure for Deal at Thursday Summit
Berlin Working on Plans for Greek Debt Cut
The leaders of the euro zone are becoming convinced that the only way to save Greece is to restructure its growing mountain of debt. The only remaining question is how. The German Finance Ministry is analyzing a number of options, including the EU rescue fund purchasing Greek debt. The appeal was a dramatic one, but the situation warranted it. “The current mood is not helping us pull ourselves out of the crisis,” Greek Prime Minister Giorgios Papandreou said in an interview with the Financial Times Deutschland published last Thursday “This insecurity frightens off investors.”
Papandreou is undoubtedly right. As his country stands dangerously close to national bankruptcy, finance ministers from the 17 euro-zone countries remain divided on how to organize a second bailout package for Greece. Still, last Monday, they at least agreed on one thing: that, so far, all rescue efforts aimed at buying Greece some time to gain some control over its debt problems had failed. Indeed, Greece’s economy is on the verge of collapse, and its skyrocketing debt level has now reached 150 percent of GDP.