The Greek Endgame

• Posted by Robert Sinn
• on January 30th, 2012

It has been a long time in coming but now it appears the endgame is fast approaching for Greece and its membership in the eurozone. There is no political will left in Europe for any further bailouts of Greece and German politicians have recently adopted a more hardline stance toward Greece. Some recent quotes from German politicians:

“If the Greeks do not implement the reform programs, there can be no further aid.” Christian Social Union Chairman Seehofer

“Only if the Greeks also offer proof that they are serious, can and might we, as the European Community, come to their aid.” FDP party leader Rainer Bruderle

Friday’s revelation that Germany was strongly suggesting that the eurozone impose a budget overseer onto Athens was met swiftly with blowback from Greece as Greek Finance Minister Venizelos called it a matter of “national dignity”. Watching its economy fall to ruins year after year has dealt plenty of anguish throughout Greece, however, losing control of its sovereignty to foreign overseers surely would be the last straw needed to push the Greek people over the edge.

Germany and Greece are on a collision course with the inevitable outcome being that Greece will exit the eurozone, the only things left to be decided are the timing and manner of this exit. Check out this graphic from Der Spiegel and click over to read the article “European Politicians in Denial as Greece Unravels”:

 

 

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