Sunday, June 19, 2011

Germany proposes doubling the EFSF funds for Greece

The German State Broadcaster has issued a report this Sunday lunchtime proposing a doubling of the funds available to Greece under the EFSF increasing German liability from 123 billion euros to 246 Billion, read here.

What effect this will have in Finland, where the True Finns are holding a party conference without an EU flag in sight, or in the soon to be similarly strapped struggling periphary countries such as Ireland, Portugal, Italy and Belgium, all of whom will have to participate in such a scheme, is unimaginable to this blogging commentator.

Surely these supposed solely contingent liabilities will soon become demands for hard cash, further worsening the plight of Greece's poorer EU cousins?

The Euro Group Finance Ministers, joined by the former Greek Defence Minister, now in charge of that nation's debts, so presumably their new Debt Minister, are discussing the latest situation, no doubt over some fine Belgian cuisine, accompanied by some Burgundy or Claret, and will presumably reach some kind of conclusion before Dinnertime this evening!

Update 1600 GMT/  AFP say that an anonymous German source states this offer has now been withdrawn, although the Deutsche Welle link is still quoting it on my original link above!



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