Greece: to Pay or not to Pay
John Sfakianakis, Banque Saudi Fransi | June 9, 2011
Germany’s decision “to ask Greece to offer its debt holders a seven-year term extension” draws more attention to the deep economic, social and political deadlock of the heavily indebted state. ++ Against the background of ingrained wide-spread corruption, loss of export competitiveness, enormous price rise, which entailed Greece’s accession to the EU, and the country’s public sector ‘monster,’ the state is unable to pay all its debts. ++ In order to restore Europe’s trust, Greece has to proceed with further privatisation and discipline itself.
Thu, Jun 30th 2011, 04:50
marcel kin cheuk, nil, (8)
members states want to issue European bond whose tenures and structure have to go through consideration with the ECB. With ECB undergo due dilligent and political & economic consideration. That mean closer integration within the union.
Meanwhile, member states still can issue bonds by themselves. That will feed through market mechanism and increase market activities as arbitrage. So that will increase the pool of fund in the bonds market of the system and also with the Euro .