Greece: the specter of the plan B – Brindisi Seventh

Europe is wondering what to do in the event of a Greek default – is a topic that scares

RIGA – Europe tired dell’indisciplinatezza Greek also breaks the ultimate taboo and start talking about “plan B”, or what to do in the event of a Greek default. It is a topic that scares was thus far a margin to avoid giving substance and then remove the risk that it will be. But with the situation increasingly critical ministers are no longer held and the president of the Eurogroup Jeroen Dijsselbloem confirms: “It was evoked the idea of ​​a plan B, but never the ‘Grexit’.” Words that come after the first day of harsh against Finance Minister greek Varoufakis: defined “wasters and amateur” for dispensing yet another lesson instead of data and concrete proposals.

The output from Athens ‘euro’ is a hypothesis very far, “reassures the Italian economy minister Pier Carlo Padoan, while his German counterpart Wolfgang Schäuble stressed that now” the responsibility is in the hands of Athens “, only Tsipras can avoid bankruptcy.

The first to admit that he had asked colleagues to an alternative plan if Greece were to go bankrupt, was the Slovenian Minister of Finance, Dusan Mramor: “A plan B can be anything, what I said (to others Eurogroup ministers, ed) is what we will do if a new plan will not be launched in time and Greece will not be able to refinance or improve liquidity, “he told reporters. Dijsselbloem confirmed: “Some countries, because of their concerns about the lack of progress and the attitude of the Greek side, they said that if this continues, we will be in real trouble, and in that context it was mentioned a plan B”.

But not everyone in the Eurogroup might wish to talk about alternatives to put pressure on Greece: “There is a plan B, we are working to reach an agreement and it is the only plan we have,” he said Commissioner for Economic Affairs Pierre Moscovici. So much so that some, irritated by the closure of the French continued to discuss it on the sidelines of the meeting, without him. The problem is that time is running out, as also noted today Bundesbank President Jens Weidmann, and Greece has not yet submitted either a list of reforms nor a clear picture of the budget, as noted Padoan.

Therefore, several ministers are concerned about what will happen if the Eurogroup of 11 May were to end with another stalemate. Without aid and 0.7 billion to be repaid to the IMF on the day after, Greece would automatically be in default. In that case, explain sources, it would be the political action because theoretically the ECB could still continue to fund Greek banks for some time, unless the banking system from collapsing.

On the other hand Spain not by chance among the strongest critics of the government Tsipras, is bucking. Minister De Guindos announces the intention to repay in advance a new tranche of the 41 billion euro of EU funds received in 2012 to save the banks. The low spread, banks in rehabilitation, GDP growth (but unemployment still high) draw a country completely changed and now with full access to the markets where financing at rates below zero on the securities up to 6 months.

News Source: cdt

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