Just kick ’em out already


Is Greece the Nero of Europe?

A BAILOUT loan from the eurozone and the International Monetary Fund to Greece will be withheld until after a referendum in December where voters will be called to either approve or reject the country’s continued presence in the currency area, a senior G-20 official said this morning.

Leaders and finance officials from the Group of 20 largest economies gathered in Cannes, France ahead of a two-day meeting that seems likely to be dominated by reaction to the Greek government’s surprise decision to hold a referendum, which has thrown into question the eurozone’s efforts to contain its debt crisis.

Cheeses sliced, what is with that country???*

*in regards to their politics

UPDATE

Was I too quick to react? Will a referendum be the only way Greeks can face up to the facts and the PM can save his skin?

Time will tell, but therein perhaps lies the biggest problem; Greece, the EU, and the rest of us may not have time to wait for the moral high ground to be taken.

What a massive headache. Damned if you do, damned if you don’t.

The way this layman sees it, the Greek public, via referendum, likely won’t accept their goodies being taken off the table. On the other hand, they likely won’t accept a forced austerity package, either.

What a mess. Time for a Greek default, painful as it may be, and an eventual disbanding of the failed experiment that is the EU.

Anyone else got a better solution? (hint: PM Gillard sending our billions over there ain’t it)

UPDATE II

The possibility has loomed large for more than a year, but now Greece’s exit or expulsion from the eurozone is a real likelihood.

The warning from France and Germany that Greece will not receive another cent in European aid until the referendum is decided has dramatically raised the stakes in Europe’s debt crisis.

If Greek taxpayers reject the second bailout plan approved by eurozone leaders last week, the much feared scenario of a disorderly default by Greece appears certain.

But a Greek default would not be an isolated financial event for a struggling but small economy.

It has the real potential to trigger what eurozone leaders have feared all along – cascading defaults by Portugal and Ireland, which also are struggling to contain taxpayer anger about deepening austerity measures.

More importantly, the new uncertainty has cast the spotlight on Italy and Spain, which unlike the other PIIGS – Portugal, Italy, Ireland, Greece and Spain – nations, are regarded as “too big to fail, but too big to bail”.

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