Sep 12, 2011

Germany prepares for bankruptcy Greece

Money for salaries and pensions in Greece last only until October - need immediate help next tranche. Meanwhile in Germany, which is the largest creditor of Athens, Greece, bankruptcy is no longer a "taboo subject".

"We try to ensure the viability of the state. Enough money by October, "- said on Monday in an interview with local media, Deputy Minister of Economy, Greece Filippos Sahinides. To avoid bankruptcy, Athens needed the next tranche of financial assistance from the EU and the International Monetary Fund. For immediate transfer allocated eight billion euro fund to rescue Greece, total reserves which currently represent 110 billion euros. It is expected that they will be significantly increased.

However, the September tranche of assistance to Greece frozen, because Athens is unable to fulfill the requirements of international donors. Regular difficulties the Greek government to the conditions of creditors reinforce the pessimistic mood among partners in the euro area. Particularly in Germany, which is the largest creditor of Greece, the country's bankruptcy and its subsequent withdrawal from the eurozone is not excluded even in the ruling coalition. The need to prepare for a "negative scenario" said the leader of the Free Democratic Party, Economy Minister Philippe Resler. The politician sees fit to "orderly failure" of Greece.

New rules

Commenting on this statement, associate Reslera by FDP Christian Lindner said that further stay in the euro area have to decide themselves Greeks - regardless of possible bankruptcy. Another ruling party - the Christian Social Union - on its congress on Monday discussing the issue further stay "crisis" countries in the euro area. Conservatives believe that the lesson of the current crisis should be the development of new "rules" that allow for automatic exclusion from the euro zone violators of certain criteria of financial discipline.

Instead, Greek Prime Minister Papandreou Hiorhos calls all scripts out of his country of the eurozone "frivolous." According to the Greek prime minister, such a move would have caused in the euro area "domino effect" and inevitably led to the collapse of the entire monetary union. "Euro is important not only for economic reasons but for political unity of Europe" - quoted Papandreou Greek media.

Euro falls

Given the abrupt personnel changes in the management of the European Central Bank and the sharpened debate about the future of Greece in the euro area, a single European currency is losing ground again. On Monday, the euro fell three cents against the U.S. dollar and following morning trading Stop at the mark in 1.35.

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