Tuesday, August 30, 2011

Euro Group risking new Finnish elections over Collateral from Greece

The Finns, led by Timo Soini, (yes that is correct, for the party in Finland known as the True Finns have now re-named themselves the Finns,) look like getting a chance for power sooner than many would have guessed as the Euro Group of countries le by Jean-Claude Juncker, finally begin to realise that their latest fudge is not going to work.

The Euro Group and its common currency are demanding the Finnish Parliament effectively back-down on their demand for collateral, and throw their taxpayers money straight down the toilet, as part of the second Greek Bailout of 21st July, agreed in a hurry to allow the leaders of the EU nations to get away on their holidays. Read Bloomberg here.

The deal was never thought through and incredibly included the underfunded EFSF also taking over responsibility for the purchase of Italian and Spanish bonds in the secondary markets, from the ECB - with no extra cash available!

The Italian deal itself is now breaking down, as may be read in this report from Reuters.

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