Sunday, July 12, 2015

Turmoil as Germany Prepares 5-Year Greek ‘Time-Out’ From Euro

Mehreen Khan at The Telegraph reports:
The German government has begun preparations for Greece to be ejected from the eurozone, as the European Union faces 24 hours to rescue the single currency project from the brink of collapse.

Finance ministers failed to break the deadlock with Greece over a new bail-out package, after nine hours of acrimonious talks as creditors accused Athens of destroying their trust...

Should no deal be forthcoming, the German government has made preparations to negotiate a temporary five-year euro exit, providing Greece with humanitarian aid while it makes the transition....

Germany’s Wolfgang Schaeuble is the architect of a “velvet separation” for Greece...

Finland’s parliament stands on the brink of withdrawing its negotiating mandate from the government, in a move which would force creditors to adopt an emergency voting procedure to pass a new rescue deal.

Alexander Stubb, Finland’s finance minister said: “I don’t believe we’re about to grant any type of additional loans to Greece, at least in the eurogroup, such stance was not in sight”.

The country’s eurosceptic True Finns party is poised to bring down the two-month old government if it gives its assent to a new Greek rescue...

Peter Kazimir, the Slovakian finance minister and one of the harshest critics of European largesse to Greece, accused Mr Tsipras of “time travel”.

He said that Greece’s proposed reforms would have been enough for the second programme, but added: “I’m afraid this is not enough for a third package.”

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