Sunday, February 05, 2012

Greeks Having to Admit They Have No Leverage

(Get it? Leverage) They are negotiating with the EU, the IMF and the European Central Bank, and don't like the fact that they aren't holding much to negotiate with. Greece on "knife edge" in push to agree bailout - Yahoo! News

They need another 'bailout' to the tune of €130 billion, or $171 billion. The troika wants some concessions, and the Greeks don't want to give in to them.
Greek officials have emerged increasingly despondent after each round of talks, complaining that the European Central Bank, European Union and International Monetary Fund troika were stubbornly refusing to yield on demands to cut the minimum wage level, axe holiday bonuses and fire public sector workers.

A meeting between the two sides ended on Sunday afternoon without any immediate indication on whether they had been able to resolve outstanding issues.
You can't have your cake and eat it too. Either the Greeks want the 130 billion Euros, or they don't.

They should just withdraw from the EU, (it isn't clear they can get out of the Euro except by dumping the entire EU.)

The EU and the Eurozone bureaucrats are finally having to deal with a little democracy. You see Greece has elections scheduled for April, and the people up for re-election aren't willing to fall on their swords for Brussels and a series of reforms they don't believe in.
Talks with the socialist, conservative and far-right party leaders in his coalition were continuing on Sunday.

The conservative New Democracy and the far-right LAOS party in particular have staunchly opposed further wage and spending cuts, arguing they risk pushing Greece into an even deeper recession and imposing more pain on struggling Greeks.
The truly sad thing is that if Greece had swallowed the bitter medicine in 2010, and admitted they cheated and lied to get into the Euro, and left calmly, the worst would probably be over this summer. Not that it would be good for a long time. But by stretching out what looks more and more inevitable, the bankers and the bureaucrats haven't made things better.

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