European Finance Leaders, Greek PM Reach Agreement
by Deacon Blues
Despite ominous rumblings last night that the Germans were willing to send the Greeks packing into oblivion, it appears the Greek government and European Central Bank have agreed on a new bailout package, including a short-term financial assistance package. However, the proposed deal contains no debt haircut on outstanding debt, and requires Greece to engage in structural reforms immediately like pension changes, tax increases, and privatization of government assets as well as active IMF oversight.
It isn’t clear if the Greek parliament will agree to the terms. In fact, some observers feel the final set of demands, totally from the Germans seems intent on making Greece exit the EU and sending a message to other nations with emerging, similar problems. However, forcing Greece to either agree to a one-sided package and privatize under the EU's thumb or leave the EU may only split Europe into several camps that will soon destabilize the whole continent. That's the end result of letting Germany and its austerity-at-all-costs dogma run amok in a multinational collaboration that needed more enlightenment than the Germans could ever provide.