Greece bailout

[ludwig]

What on earth does the Greek PM think he's doing? To sit through all those negotiations, reach an agreement, and then spring this referendum on everyone out of the blue. Has he gone mad?

[DTCwordfan]

apparently the Greeks are stopping the production of taramasalata and hummus to avoid the risks of a double-dip recession.

More seriously, apparently there were notes recorded in Brussels about the PM's intention to go this route the week before last. It looks like another EEC admin cock-up as this was not convyed through to the Frau Merc or the Monsieur Sarcastic, so egg on faces.......

Has he has gone mad - no I don't think so, it is high risk though as he is under immense pressure re overall popularity, the confidence vote on Friday will obviously be a major point in determining the direction of all of this.

Though it does seem that an awful lot of Greeks realise the gravitas of the situation they are in and are willing to back a plan, unlike some of the news reporting focusing on the anti-action mob......

The big issue though being contagion onto Italy (and the Iberian peninsula, not withstanding our neighbours across the Celtic Sea). Intergovt bonds of 6% on 1.9 trillion Euros in Italy are not sustainable....so watch those rates closely for the clearest signals of improvement or doom in those mentioned markets, it's probably the strongest smoke signals of what is truly going on.

[DTCwordfan]

For your interest

Country
(i) Total lending exposure to Greece (millions)
(ii) Total Government debt exposure to Greece (millions)

Total of 24 countries
(i) 145,783
(ii) 54,196

European banks
(i) 136,317
(ii) 52,258

Non-European banks
(i) 9,466
(ii 1,938

France
(i) 56,740
(ii) 14,960

Germany
(i) 33,974
(ii) 22,651

Italy
(i) 4,085
(ii) 2,345

Japan
(i) 1,631
(ii) 432

Spain
(i) 974
(ii) 540

UK
(i) 14,060
(ii) 3,408

US
(i) 7,318
(ii) 1,505


Source: BIS Quarterly Review June

[emmie]

It doesn't rely solely on tourism, but according to the website i was looking at recently, 40 percent of it's work force, work in the public sector, so one can imagine they aren't too happy with these austerity measures.

[jomifl]

78.8% of Greece's economy is based on the service sector. 17% industry 3% agriculture. A 'fingers crossed' economy.

[emmie]

so why were they allowed to join the EU and adopt the Euro. And that surely goes for other nations that have no discernible means of support.

[Postdog]

Beware of Greeks refusing gifts............

[Zeuhl]

<<so why were they allowed to join the EU and adopt the Euro>>

could it be so the Germans' holiday homes would be incorporated into 'the union'?

[modeller]

He knows exactly what he is doing . Back me or sack me !
Pity our Dave didn't have the same guts.