Greek Tragedy

Apparently now Greece will not after all hold a referendum on the bailout plan.

It is interesting that President Sarkozy has suggested that Greece might have to leave the Eurozone if they don't accept the bailout plan. I suspect this will be seen as bullying in some quarters, and it is also a tacit admission that leaving the Euro is possible.

However, he did have a point - operating a common currency without some attempt to harmonize economic policies is simply not possible.


Jim said…
Perhaps the inevitable can be delayed by this, Im not so sure.

One thing I am sure of though is that the inevitable will happen. The Euro will indeed fall. Perhaps not so badly as I first thought. A can see a "central Eurozone" actually working. Basically it means France, The Netherlands and Germany. The Med states leave.

As things stand, Greece will take the bail out, then Italy will need one soon, Greece will leave, leaving Italy not much choice, then portugal will follow shortly after this so will spain.

Ireland is a hard one to call, they need to leave really, but they will end with a lot of egg on their faces if/when they do.

I cant say i take any pride in saying "told you so" nor do i really want it to happen now, but its just a cold hard fact.

The inevitable can be delayed, but it can not be prevented. Ask Gordon!!

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