Now I don't do the Economy, because, believe me, Weasel Plc has enough problems without me worrying about anybody else's, particularly the land of moussaka and ouzo and places called Ammonia Square that live up to their name.
But on the sly, I have been watching the financial meltdown of Greece, and the reactions of uber euros, Germany and France, who until recently said there would be no bail out for a country that has public spendinged itself into shit creek without either a paddle or a life jacket, but an extra helping of shit. Until now.
Jose Manuel Barroso, the European Commission President, said that Greece would receive support in return for and aligned to progress on sweeping austerity cuts.(Telegraph)Well. Bugger me. No way Jose! I may be dim on fiscal fol de rols but this sounds like something that can only undermine the Euro, and cause people like me, who never wanted to be in the EU in the first place, to subsidise yet another failed economy. But if it was just me, you could laugh this off, but I am not an economist, so here's one now:
Gregg Gibbs, a strategist at Royal Bank of Scotland, said that “while a support package for Greece may remove the immediate risk of rapid contagion, it transfers more risk to the core, and will have permanently damaged the credibility of the euro as a better reserve currency than the dollar. It will infect the European Central Bank's monetary policy and generate stress between EU countries.” he said.(Telegraph)