It’s official. The EU is set to bail out Greece as key EU partners come to the aid of the stricken Greek economy and take the first step towards European economic governance.
According to The Guardian, the EU single currency group has agreed on a multibillion-euro bailout for Greece which will be put up by members of the euro zone.
Senior sources in Brussels tell the British paper that Berlin had bowed to the bailout agreement despite huge resistance in Germany and that the finance ministers of the eurozone are to finalise the rescue package on Monday.
The Guardian: “The member states have agreed on “co-ordinated bilateral contributions” in the form of loans or loan guarantees to Greece if Athens finds itself unable to refinance its soaring debt and requests help from the EU, a senior European commission official said.
Other sources said the aid could rise to €25bn (£22.6bn), although it is estimated in European capitals that Greece could need up to €55bn by the end of the year.
Germany, the EU’s traditional paymaster, but the most reluctant to come to the rescue of a fiscal delinquent in the current crisis, has played the pivotal role in organising the rescue package, the sources added.
“There have been quite intensive preparations under the eurogroup. We have the ways and means to do it,” said the senior official, asking not to be named because of the subject’s sensitivity.
I guess, other troubled European countries in the group known as the “PIIGS” (Portugal, Ireland, Italy, Greece, and Spain.) are now next in line waiting to be bailed out.
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Why is everyone in an uproar about Germany bailing Greece out? Didn’t the US taxpayer bailout Germany? And I’m no talking about $37 billion in the Marshall Plan. I’m talking about $20+ billion last year to Germany (not only private banks, but state-owned KfW which made a $300 million bet with lehman Bros an hour before it collapsed). So, the Germans don’t like bailouts? Fine. They should return the bailout cash to the US taxpayer.