Greece and Its EU Partners

This post was written by Philip Lane

The FT website carries this explanation of the ‘rescue scenario’ if Greece were unable to fund its liabilities.

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6 Responses to “Greece and Its EU Partners”

  1. LorcanRK Says:

    If there is much truth in this story http://www.ft.com/cms/s/0/65ac74fc-0aaf-11df-b35f-00144feabdc0.html then soon enough Greece might not necessarily be the EUs problem to deal with. (purely from an international finance point of view, of course…)

  2. David O'Donnell Says:

    Yes - EU is a political union - in worst case scenario - Greece would be rescued by other 11 - but essentially by Germany with French Support. As Ireland would be …………

  3. David O'Donnell Says:

    Greece is European …

    Today’s Update New York Times
    Europe Lays Plans for How to Bail Out Greece

    http://www.nytimes.com/2010/01/29/business/global/29bailout.html?8au&emc=au

    Europe’s responsibility to mind its own house ……..

  4. David O'Donnell Says:

    @LorcanRK

    What’s the problem with Chinese cash? For Greece or elsewhere?

    Personally, I would welcome Chinese investment here - China has capital - and at the mo Ireland needs CAPITAL …….. thousand welcomes and open doors.

  5. LorcanRK Says:

    @David O’Donnell, I didn’t mean to imply that there was a problem with Chinese cash. I certainly don’t have any problem with it.

    What I meant was that if China was going to start (and it seems now like they are not) spending money on Greek debt then they could end up in a situation when they would have to keep buying it in order to keep the country afloat. Good money after bad to stop the whole lot going south.

    There would be some political concerns with Greece falling into China’s sphere of influence (in the Barry Buzan sense), but from a purely economic position, where the money comes from doesn’t matter to the Greeks.

    And certainly not to me.

  6. David O'Donnell Says:

    @LorcanRK

    Fully Understood! We are on similar wavelength here.

    In the bigger picture - good for European progression that we can sort out our own internal affairs …….. and that Germany has maintained sufficient nous and capital to enable us to do so.

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