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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (110262)	1/28/2015 6:06:18 AM
From: Haim R. Branisteanu	Read Replies (3) \| Respond to of 218391

A top German body has called for a clear mechanism to force Greece out of the euro if the left-wing Syriza government repudiates the terms of the country’s €245bn rescue. “Financial support must be cut off if Greece does not comply with its reform commitments,” said the Institute of German Economic Research (IW). "If Greece is going to take a tough line, then Europe will take a tough line as well." IW is the second German institute in two days to issue a blunt warning to the new Greek premier, Alexis Tsipras, who has vowed to halt debt payments and reverse austerity measures imposed by the EU-IMF Troika. The ZEW research group said on Tuesday that the EU authorities should order an immediate stress test of banks linked to Greece, and drive home the threat that they are willing to let a Greek default run its course rather than cave to pressure. “Europe should clearly signal that it is not susceptible to blackmail,” it said. Germany’s finance minister, Wolfgang Schäuble, said in Brussels that debt forgiveness for Greece is out of the question. “Anybody discussing a haircut just shows they don’t know what they are talking about.” “Syriza succeeded in selling an illusion that Greece can end the reforms and stop paying the debt, and still stay in the euro. This is impossible. If they do that the European Central Bank cannot accept collateral guaranteed by the Greek government,” he said. “This will force the Greeks to return to the drachma and that will cause massive disruption. There will a government default, corporate defaults and bank defaults. The financial system will simply break down,” he said. Mr Matthes said a deal may be possible that extends the maturity yet further on Greek debt but argued that the effective interest rate being paid is already 2pc, far lower than the headline average of 4.2pc. telegraph.co.uk My remark - I do think the Greeks did not understood for who they are voting. It is not only about austerity - they brought on themselves a very left wing oriented party ruling the country and a great disturbance in EU politics aside from the actual financial hardship. Their solution is to generate more paper shuffler position in the government not to have actual economic growth oriented policies