The Corner

‘Acropolis Adieu, You’ve Got to Go!”

Via Deutsche Welle:

The German news magazine Spiegel reports that the IMF has told the EU it will provide no additional funds for Greece. The report has sparked fresh fears that Greece could fall into bankruptcy by the autumn. A report by a German news magazine on Sunday sparked fresh concerns about the possibility of Greece being forced into insolvency.

In an article published on its website, Spiegel cites unnamed senior European Union sources in Brussels who told the news magazine that the International Monetary Fund (IMF) had signaled it would not contribute to any further aid for Greece. According to the report, this makes the possibility of Greece going bankrupt more likely, and it could do just that as soon as September.

If the IMF, the quality brand when it comes to rescues, really do back out, matters may unravel very quickly. How easy will it then be to sell further bailouts to voters in Finland, the Netherlands and elsewhere, not to speak of Germany?

One question that may soon come into focus. If Greece (officially) defaults, will it have to leave the euro-zone? Not necessarily, I reckon, unless the European Central Bank pulls the plug…

Whether Greece should quit is another question altogether.

Meanwhile the bailoutskeptic German tabloid Bild weighs in (translation via Spiegel) . . .

“At last someone is speaking the truth: The International Monetary Fund is threatening to pull the plug. No new loans, no new guarantees. Without fresh money Greece will be bankrupt and will have to try to make a fresh start without the euro. At last! This signal was overdue. Greece is neither able nor willing to solve its problems. The political class isn’t daring to tell the rich to pay up. The administration isn’t in a position to privatize unprofitable state enterprises, the tax administration is inefficient and corrupt. In such a situation, every additional euro wouldn’t be a help but an additional premium for inability and a lack of will.

“The IMF is slamming on the emergency brake. That makes it easier for donor nations like Germany and the whole EU to also say: Acropolis adieu, you’ve got to go!”

Tick tock.

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