Thursday, July 9, 2015

French Cavalry Arrives, Deal in Sight?

The NY Times:
The French assistance appeared to be an effort to make sure the Greek proposal,, submitted just before a midnight deadline, would be as thorough and salable as possible to Greece’s creditors and would smooth the way for a compromise on a new bailout package to keep Greece afloat financially and inside the euro.
“There is a group of people who have been sent to help the Greeks, to try to transform words into action,” said a French government official with knowledge of the effort.
France has been the most steadfast major nation in Europe supporting Greece ever since Prime Minister Alexis Tsipras was ushered in to power in January on a mandate to repudiate austerity. Paris has been particularly outspoken in recent days about the need for a compromise that would help Greece and hold the eurozone together.
Have I been selling Flanby short? He has pulled out all the stops, and, together with Wolfgang Schäuble's concession that debt reduction is possible, we have the makings of a way out of this crisis:
Wolfgang Schäuble, finally gave a little on that Thursday, admitting that “debt sustainability is not feasible without a haircut,” or writedown of debt, even if he then appeared to backtrack.

1 comment:

Mitch Guthman said...

Voilà, a proposal with less debt relief and significantly more austerity than the one rejected in the referendum. The French cavalry did indeed arrive just in the nick of time but instead of saving the besieged settlers in the wagon train, they finished them off and then helped the Apaches to scalp them. Bravo for a job well done!