Tuesday, August 23, 2011

Greece/Finland Collateral Deal tensions mount!

The Wall street Journal has the latest report on the collapsing second bailout for Greece, it is linked here. PressEurop conveys more of the angst in its report from here! A quote from Spain from that latter report carries the flavour of the many recriminations soon to come:

For El Mundo, the bilateral agreement obtained by Finland from Greece for additional collateral to guarantee the reimbursement of sums loaned as part of the second European bailout amounts to "a selfish attack on the unity of the eurozone." Only a week after Nicolas Sarkozy and Angela Merkel announced measures to combat the debt crisis, Finland has already “voided any progress" towards a common fiscal policy. The Madrid daily also notes that the agreement between Helsinki and Athens could be widely imitated: as it stands other states including Austria, Slovakia and Slovenia are eager to follow Finland’s example, "highlighting divisions in the euro countries and sounding the alarm for financial markets."



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