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German Source: Greece’s Last Chance “Clear 100-day plan for New Greek Governement”

Under conditions of anonymity German officials increase pressure on Greek voters just 48 hours before the June 17 elections. They warn that the new Greek government would need a clear 100-day plan and that if this problem won’t be implemented full, Germany would open the Euro exit door to Greece.

In a thorough Insight – Germany and Greece: A Tale of Estrangement  story Reuters quotes quite a number of German officials on Greek future in the euro zone and the discrepancies between the German and Greek mentality. Don’t miss the full story.

“After the experiences of the past year, some euro zone watchers believe Germany will be the first to open the exit door and give Greece a nudge. But that analysis may be too simplistic. The German EU official said regardless of who wins the Greek vote, a new government would be given a final chance.

“There will be a very clear 100-day plan for a new government. If it’s not implemented in full, then the game is over,” the official said. “This is a very bitter election for the Greek people. They are being asked to support the old guard that got them into this mess.”

Others believe the hurdles to an exit are higher. A top European central banker said there was no way to force Greece out of the euro zone if it wanted to stay.

“Europeans can decide to turn off the money taps, in which case Greece defaults by September but it would still stay in the euro,” he said.

“There is absolutely no trust in Greek politicians and an awareness that whoever wins, the Greek program will need to be renegotiated after the election. The question is how much Germany is willing to pay to keep Greece in the euro zone. Only Merkel and the politicians can decide that.”

At the same time, horror-randy German diplomats warn of “turmoil in the markets” if Tsipras winds and “trouble in the streets” if he doesn’t.

“A confidential wire by the German embassy in Athens warns of “turmoil in the markets” if Tsipras wins and “trouble in the streets” if he doesn’t, a senior German official said.”

 ‘Turmoil in the markets’ is rather clear,  but ‘trouble in the streets’ if Tsipras won’t win???

PS German diplomats in Athens should stop their BILD-subscription.

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13 comments

  1. The sheer arrogance of these guys is just mind boggling

    “This is a very bitter election for the Greek people. They are being asked to support the old guard that got them into this mess.”

    they admit to the problem, in as clear a language as you can get, but still expect Greece to vote the same muppets back in????

    • keeptalkinggreece

      it’s a Euro-circus anyway. as I ‘ve said before “the amsks of the lunatic are falling”.

    • Αrrogance and illegality, where the rule of law and basic principles of liberal democracy are trumped by German power. We are rapidly heading towards the collapse of Europe and possible war: Greece is just a pawn in this game, but a crucial pawn.

      • Did “German power” put Syriza into the position as a leading party in this election? Ha!

        • Actually, I was talking about all of Europe. Greece is a bit-player, as the Germans know. That is why they have treated Greece so disgustingly.

        • No, the failure of Merkel promoted and German enforced policy did.

  2. Hope dies last, and I guess European governments, who have spend a lot of time, money, and political capital in trying to rescue Greece still hope for a miracle, a government which will show initiative, put the country on a modernisation course, and inspire confidence in a turnaround. But under the depressing impact of so many shattered expectations and broken promises, this really has to be the very last chance. It’s like dealing with an alcoholic: After showing understanding and delivering help for a long time, only to see the guy continuing on his course towards self destruction, there has to come a point where you stop all further support. Ignoring reality doesn’t help anybody.

    • Agreed, Dealing with Germany’s politicians is like dealing with alcholics. It is impossible to get them to see their own self-interest, even though all they do care about is themselves.

      The best treatment is a short sharp shock, like a kick up the backside.

    • Gray, Greece may be the worst financially, but they are not the only country that “needs” bailing out. There is a very long list now. To me, it looks more like “how is Germany ( plus maybe Holland, Finland ) going to deal with the rest ?”, rather than “how is everyone going to deal with Greece ?”

      • Ok, that’s the big question (well, at least one of them). I have already stated my opinion on this in comments here: Imho Germany and the other creditors should end the rescue plan payments for the country which is single handedly responsible for more than half of all negative headlines about the Eurozone. That’s Greece, of course. The future of the currency zone depends very much on the global perception of its stability. And that stability is put into question virtually every single day by the Greek shenanigans. Everybody else would be better off if they would leave the group.

        • Ah, I see. So because of anti-Greek propaganda by Germans, which damages perception of the euro, then the facts should be ignored?

          By the way, the markets are not fooled by German nonsense. They are all quite aware that the problem is systemic and can be solved only by major systemic change of the euro’s operation. They are also aware that Germany blocks that, in its own short term self-interest.

          Do continue spouting your crap here, it is amusing to read.

          • You’re a one trick pony, Dino. According to you, everything is the fault of the Germans. Do stop spouting your crap here, it’s not amusing at all.

  3. The German realist

    As a German I would advise to face reality: Greece is no Western European country at all. The history is just so much different and a lot of corruption and non-payment of taxes is just caused by that single fact.

    And I would advise everyone to take on modernizing Greece. If we let Greece fail, how will it end??? Should Greece ultimately fall victim to Turkey if we look into the future? Or should we let Greece become a dictatorship ultimately? Greece has to write off ALL debt. Greece has to lower pensions relative to wages. Wages must rise. Civil servants numbers must be decreased. And all of the advantages of such a modernizing program must get to the greek people.

    And aside from Greece we must adress the reality:
    1. Spain is bankrupt due to a housing bubble and must leave the Euro without help
    2. Italy has a public debt problem but aside from that is perhaps the most stable country in the EU with the least amount of hidden debt, Italy is wrongfully attacked in the financial markets.
    3. France may be country in the highest danger of collapse as there seems to be a problem within the banking system. France banks are probably at the core of a huge US$/Euro swap carry trade and may need hundred of billions to be saved.

    The single most important issue is that we all should give up the Euro as a prestigeous currency white Elephant. If the Euro exchange rate behaved rationally (again: manipulated upwards by the central bank swap agreements) we would be between 70 and 80 US cents per Euro, wages for German workers could be increased, Germans could consume on a normal level and the rest of Europe could function in a normal way.

    If Merkel does not change her course it will end in disaster. How can one expect to run an economic prison camp where young workers earn Euro 1000-2500 after tax (above 2000 with a university diploma) and nothing bad will happen? Peoples are either out of work or earn not enough to make ends meet. Everywhere in Europe.