In Germany, considering a eurozone minus Greece
Michael Steininger, CS Monitor, 12.09.2011
Athens’s inability to get a grip on the debt problem is rattling markets and giving rise to talk of a notion that until recently has been considered taboo: a eurozone without Greece.
Greece's introduction last weekend of a new real estate tax and reduction in elected officials' pay are being called too little, too late to address its deep debt. And in Germany, which holds the purse strings when it comes to euro bailouts, rising unease about coming to the aid of ailing European economies is changing longstanding assumptions about Greece's future. [...]
“You have a division between those believing that giving up on Greece will worsen the crisis for other eurozone members and those who think we can’t afford to pay for Greece any longer,” says Janis Emmanouilidis, senior policy analyst at the Brussels-based European Police Centre think tank. “Particularly many Free Democrats object to bailouts in general. And later this month the German parliament will vote on the planned expansion of the European rescue fund, the EFSF. What you see now is the formation of resistance against this expansion.” [...]
For the entire article see here.
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