Courtesy of Mish.
Now that Germany has agreed to an extension, allegedly with no more money on the table, Spain confirms what we all knew would happen, Third Greek Bailout Under Discussion.
Euro zone countries are discussing a third bailout for Greece worth 30 billion to 50 billion euros, Spain's economy minister said on Monday, as Athens sought to quell fears it might run out of money before the end of March.
Speaking at an event in Pamplona, in northern Spain, Economy Minister Luis de Guindos said the new rescue plan would set more flexible conditions for Greece, which had no alternative other than European support.
Prime Minister Alexis Tsipras used a televised address on Friday to deny his country would need another international program.
"Some have bet on a third bailout, on the possibility of a third bailout in June. I'm very sorry but once again we will disappoint them," Tsipras said.
Greece has acute and immediate funding problems to overcome, despite the four-month extension to its existing bailout it negotiated with the euro zone last month. To win that, Tsipras had to give up on key pledges made during his election campaign.
The extension averted an imminent banking meltdown. But Greece still faces a steep decline in revenues and is expected to run out of cash by the end of March, possibly sooner.
Options Limited
- Greece wants €1.9 billion in profits the ECB made on Greek debt. The ECB wants reforms first.
- Greece wants to issue more short-term bonds, having reached a €15 billion cap. The ECB says no.
- €7.2 billion remains of the €240 billion bailout programs. Dutch Finance Minister Jeroen Dijsselbloem wants reforms first.
- German Finance Minister Wolfgang Schaeuble says no further aid would be paid out until Athens fulfills all the conditions.
Conspiracy Against Greece?
Tsipras accused Madrid and Lisbon of leading a conservative conspiracy to topple his anti-austerity government because they feared the rise of the left in their own countries. "By European standards, this was very unusual foul play. We don't do that in the Eurogroup, that's not appropriate," a spokesman for Schaeuble told a news conference in Berlin.
War of Words
Acrimony took a huge leap forward as Madrid hit back against Tsipras' conspiracy charges. The Guardian reports Alexis Tsipras Comes Under Fire from Spanish Prime Minister.
Greece’s anti-austerity government has denied that it sees Europe through the prism of “hostile and friendly countries” as the Spanish prime minister Mariano Rajoy hit back at accusations that Spain and Portugal had deliberately tried to topple the new leftist-led administration.
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