Courtesy of Mish.
It will be interesting to see how long the coalition in Greece will last after Germany shoots down Bailout Easing Proposals by Greece to ….
- Cut the VAT
- Freeze layoffs
- Extend timeline to reduce its deficit by two years
- Recapitalize lenders
- Provide more help for the unemployed
- Accelerate payments to providers of government services.
Bloomberg reports Greece Seeks at Least Two-Year Extension to Bailout Goals noting that “New Democracy, Pasok and the Democratic Left agree that plans to cut 150,000 public-sector jobs should be scrapped.”
Loosening of Pledges Unacceptable
The coalition parties (New Democracy, Pasok, Democratic Left) can agree to whatever they want. They may as well agree the moon is made of green cheese while requesting slices on a platter.
Immediately following the election in Greece German chancellor Angela Merkel stated Greece must stick to commitments
German Chancellor Angela Merkel said on Monday a new Greek government had to meet commitments made to international lenders.
Speaking to reporters at a Group of 20 leaders’ meeting, Merkel said any loosening of agreed reform pledges after Sunday’s narrow election victory for Greece’s pro-bailout parties would be unacceptable.
The Troika may agree to trivial changes, hoping to keep the coalition together. Don’t expect that tactic to work for long as the Greek economy continues to implode.
Meanwhile, Alexis Tsipras, the “radical left” party leader, can comfortably sit back in opposition and say “I told you so”.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
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