Wednesday, April 15, 2015

Greece will default tomorrow! No, next week!! No, wait ...

Repeated panicky reports about Greece's immanent default may well be a regular occurrence every week or so through the summer.

If the intitutions-formerly-known-as-the-Troika (EU, ECB, IMF) don't reach some meaningful deal that allows Greece to get enough debt relief in some form or other, the one of these weeks the panic will be justified. Outside a relatively small group of people involved in the deal-making, though, it's very hard for anyone to know enough to make a more specific prediction.

Because the EU elite taking their marching orders from German Chancellor Angela Merkel applies pressure on Greece's SYRIZA-led government by telling their friends in the press that Greek default is imminent. That's a big part of this article from AFP, Deal or default? All bets are off on Greece's debt talks Global Post 04/15/2015. But the Greek government isn't facilitating the panic:

The first key date to come up following the euro zone talks is May 6, when about one billion euros is due for repayment to the IMF.

That is a small sum compared to the 9 billion due in July and August, this time to the ECB.

Nevertheless, Prime Minister Alexis Tsipras's government is putting on a brave front.

Finance Minister Yanis Varoufakis insists that "we are ready to make all kinds of compromises, even if we have to pay a political price, but we will not compromise ourselves."

"I am very confident," Varoufakis said.

"We will find a compromise," added Employment Minister Panos Skourletis.

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