The bottom line remains this: Greece leaving the Eurozone will have catastrophic economic consequences for Greece and the rest of the EU. That is as true now as it was a year ago. Everyone from Syriza to Juncker understands this.

Here then are a few bits and pieces I have read over the last few days that – read together – make good sense.

1) Jean Claude Juncker at ekathimerini.com
Read the head of the Eurozone’s statement in full. Juncker does not exclude the idea of discussing the Greek programme, but equally says there is no-one to negotiate with just now, as Greece does not have a government. Keep calm a little longer is his clear message.

2) Why would the Greeks leave the euro? No one can make them by Kitty Ussher for The New Statesman
A point of view seldom expressed – that there is actually no way to force Greece out of the Eurozone. The Euro has no exit mechanism. This might help to explain why more than 70% of Greeks say they wish to remain inside the EU and the Euro, while opinion polls point to more support for Syriza at the new elections scheduled for June.

3) Statements from George Osborne and Alastair Darling covered by The Guardian
While the UK’s position of keeping out on the sidelines means the country wields little influence in solving the Eurozone crisis, both Osborne and Darling are saying some of the right things. Osborne is backing Eurobonds and calling for a looser monetary policy from the ECB, while Darling is right with his critique of the Eurozone’s banks and their problems.

4) Only the IMF can break euro logjam by Goodhart / Kapoor (€/£)
If the EU is not getting its act together internally, then perhaps it needs a little help? And once that’s done the FT also has a routemap for the near future, including bank guarantees first, and then recapitalisation (replying to the Darling point above)

Leave a Comment

Your email address will not be published.