Euro crisis
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Europe's next bankruptcy candidates?
Europeans want to have their cake and eat it too. It is not possible to take the benefits but refuse to take the responsibilities. Either Greece and other PIIGS [An acronym referring toPortugal, Italy, Ireland, Greece and Spain - Ed.] withdraw from the euro or Germany withdraws from the euro. -- Peter Feldman, US
Europe reels from downgrade of Greek debt to 'junk status'
One effect of the debt problems in southern Europe has been to reduce the value of the euro which helps German exports abroad and makes it less expensive for tourists for the big summer season. Unless Greece and Portugal start paying down their debt, lending more money will just increase their problems, and in the long term, delay their default. In that case they will end up paying through higher future interest rates like other defaulting countries due to risk premiums. The cheapest option is to pay debt on time and not to over-borrow like Germany. Not paying is expensive later if they ever need to borrow money again. The weakness of the euro is shown by some countries in effect "printing more money" by increasing debt and others not doing so. That is like an indirect bailout through the value of the euro. It is like the high debt countries are taking a bigger piece of the total euro pie for themselves at the expense of others in the eurozone. -- Philip, Canada
IMF and European Central Bank turn the screws on Germany to help Greece
Within the last couple of days we here in the USA have been quite an earful from that Senate investigation inquiring into the demise of Lehman Bros. and the antics at other financial "firms." And it is quite clear that the good folks in the "ratings" establishment were very much a part of the problem -- having been implicitly believed when they "rated" fiscal junk as AAA. Yet today we hear that the same supposedly wise and sagacious lords of fiscal probity would now presume to "rate" Greece and other whole nations in the EU as mere financial "trash" -- and it appears that our European brethren are just as inclined to dance to their tune. I suggest that Europeans should not be so quick to put faith in these birds. Their record is really quite badly tarnished. -- Frank Hummel, US
Merkel remains cautious about handout for Greece
Merkel is either a fool or an opportunist. The Greek crisis grows deeper and more expensive by the day. The euro and a rapidly expanded EU are Germany's babies, plain and simple. Now there is no choice but to step up to the plate as the Amis (German term for Americans - Ed) say and pay the bill. Otherwise the cost grows by the day, the euro declines by the hour, and doubts about Portugal, Iceland, Ireland, Spain and Italy grow by the minute. Merkel either does not understand or does not have the political courage to tell German voters the truth ... a chronic malady of Ami politicians. I had thought better of German politicos, even after Kohl. One can only hope that the eventual left-wing government elected to clean up the mess will be more honest with the people. -- Franz Klein, US
Press review: Germany divided over Greek bailout
The issue of the Greek debt will look like a minor one as soon as the crisis extends to Portugal and Spain. We Europeans must realize that US bankers are trying to undermine the eurozone in order to re-establish the dollar by using the so-called ratings agencies to downgrade the EU countries concerned. And it is these ratings companies who failed to warn about the impending global financial crisis two years ago. So why do we listen to them, why do we allow them to create panic? As far as the Greek debt is concerned, why does France insist that Greece purchases six frigates worth 4.2 billion euros ($5.6 billion) and Germany is exercising pressure on Athens to buy Eurofighters? Is this not an inconsistent policy on behalf of some eurozone members? -- Leonidas Chrysanthopoulos, Greece
While Germany will contribute the largest portion of the Greek bailout it is based on the GDP of the member nations. That would include; Portugal, Spain etc. which had an obligation to keep their houses in order. While that's a noble idea, imagine the effects of even a few billion euros on those countries which are struggling as we speak. It seems to me that they will require bailouts as well. Sadly, I have no solution. -- John Ostendorff, US
Compiled by Stuart Tiffen
Editor: Rob Turner
