Hollande Supports the German Line

Hollande: Greece Must Stay in Euro Zone – WSJ.com.

Hollande is supporting the German position on more Greek aid. Greece cannot be allowed to fail, but German voters will be disgruntled if they have to spend more money on Greece. What to do?

The plan is to stall. Much is made of waiting for the troika report to be ready, but this waiting game is just a dilatory tactic. The report could be published right now. In fact, anyone who is someone in the troika already knows the conclusions of the report.

Haven’t you ever worked in a bureaucracy/corporation? The key to survival in such an environment is hiding behind the artificial constraints imposed by policies and deadlines.

The reason that the players are stalling for time is that they need to build political support, or political tolerance, for additional Greek aid. Greece will continue to receive financial support via the backdoor from the ECB to keep it afloat. In the meantime, Merkland, the IMF and the ECB will laud Greek efforts at austerity and note that the deep Greek recession is making it difficult for them to make further cuts. Then, the troika will make changes to the second bailout in order to keep Greece sputtering along.


Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s