Greece saga- is it finished yet?

Posted: July 15, 2015 in Uncategorized

Unfortunately not.

While probably the bail-out (country take over) will be passed with the support of pro EU party, there are a few tactical issues and a few big strategic one.

Tactical issues

– The bailout has to pass also by some other EU Parliament like Germany – but pay attention to Finland

-The various committee will have to chose which assets  (including banks*) to include in the guarantee fund to be sold off in order to raise EU 50 billions (like I said in a previous post, PM Papandreou in 2011 tried the same strategy and failed raising less than E10 billion)

-the real negotiation in details will start next week

Strategic  issues

– The funds raised are not enough for Greece and most of the money are earmarked to repay debt, not growth. Greece is doomed to fail another day where will be even more impoverished as they would already have sold the crown jewels.

– Germany had to show its true colours and showing it is the hegemon power in Europe – this will rekindle fear of  Nazi German – specially do to their behaviour during negotiation as “punish and enslave” without any compassion or mercy. This will give in the future a lot of ammunitions to the anti Europe sentiment already brewing.

-The crisis showed a real crisis between the two dominant super powers Germany and France and likely to push the UK towards a Brexit.  I can already see the Battle for England (versus Nazi Germany) on the UKIP walls.

*Greek Banks. The documents looks like they will recapitalize and then sell them to foreigners (probably Germans) to repay debt. To make it clear it is like the Australian Government sell Sydney Harbor to the Chinese to recapitalize CBA and then agree (as the “bailout fund” is in the hand of the Chinese) to Bank of China.

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