Friday, August 19, 2011

Finland sinks Greek Bailout 2.0

EU Observer, reports on the collateral deal offered by Greece to the Finns, earlier reports on which seemed confused, read here.

The Open Europe blog has even more information and describes other smaller Euro Group nations such as Austria rushing to obtain similar terms. That blog posting generously concludes as follows:

Fundamentally, this shows how complex - and unsustainable - the politics of cross-border bailouts are. And how, at the end of the day, eurozone leaders are politicians who are elected by voters (taxpayers) and who answer to national parliaments. They're acting within a democratically defined mandate. While you can stretch that mandate when it comes to complex EU treaties, regulations or the role of obscure EU judges, for example - taxpayers' cash is too close to home for this to work.

In fact, given the growing strains on the sovereign credit ratings of France and even also Germany, as reflected in the credit default swap markets since the 21st July meeting, it looks to this blogger, as if that deal is now definitely dead.



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