11 February 2015

Greece prepares for emergency debt meeting with EU

At talks kicking off with an emergency meeting of eurozone finance ministers on Wednesday 11 Feb, Greece will plead its case for stop-gap financing, with a view to clinching an austerity-free reform deal to run from September 1.

Source: Aljazeera

Tomorrow, not just in Greece, but all across Europe (e.g. Portugal, UK) there will be protests in favor of the Greek government and a Europe for and of the People, not a Europe for banks and eurocrats. Greek, Portuguese or Irish people never got a dime from the "bail-outs" it all went to pay the banks! It is time for a fresh start, where the interests of the people (German, Greek or whatever) come before the interests of big business. Source: ffurtado2001

If Europe was prepared for a Grexit, as media try to convince during the  last few months, Greece would be out of the Eurozone long ago. In a globalized liberal economy such accidents create dominos. Even a first year economy student Knows that. Germany will not take the risk of an unknown future for euro and economy. They just try to get as much as they can from the new Greek government. Source: Dimitris Tsoukalas

It all boils down to the cost of Greece leaving the Eurozone and defaulting on all foreign debts compared with the cost of keeping Greece in the Eurozone and only paying 25% of what it owes. This is a fine calculation. My guess is that the latter will happen: Greece leaving the Eurozone would create a dangerous precedent which could lead to more expulsions and a collapse of the Euro. Germany does not want this.
There will be a lot of harsh words spoken and long negotiations but, in the end, it will happen. Source: Hermann22