02-20-2015, 11:00 PM
Rampant inflation, political unrest, debt defaults and a possible "contagion" within Europe's financial sector — that's what Greece's new government might trigger if it does not get its way in its negotiations with the rest of Europe's finance ministers right now.
Grexit: if Greece leaves the euro - Business Insider
As more details roll out about the Greek position, it is increasingly looking like a massive climb-down for the radical new government. It is a request for an extension of the existing bailout, which Athens had refused to sign up to since its government was elected in late January. But even though Athens appears to be giving up a huge amount of ground, Germany will not accept the proposal, according to Reuters.
Greece just asked for a 6-month loan extension - Business Insider
The Economist disagreed. Greek voters may want debt restructuring and fiscal relaxation, it said -- but what about voters in Germany and the rest of the euro area? Their opinions count too, and there are more of them. If democracy matters, maybe majority opinion across the EU ought to decide. Jacob Funk Kirkegaard of the Peterson Institute agreed and went further. Pooling of economic sovereignty within the euro area isn't consistent with the notion of an overriding national mandate:
What Germany Owes Greece - Bloomberg View
Under its four-year-old bailout program, Greece has dragged itself from a primary deficit of 10 percent to a 3 percent surplus, at great cost in jobs lost. The terms of the bailout demand that Greece reach a surplus of 4.5 percent and hold it for the length of the program. There’s little reason to believe that’s possible.
Why Greece Won't Ever Be Able to Pay Off Its Debts With Austerity - Bloomberg Business