PLANS for Greece to default, potentially leaving the euro, have been drafted in Germany as the European Union faces up to the fact that Greek debt is spiralling out of control, with or without a second bailout.
The German finance ministry is pushing for Greece to declare itself bankrupt and to agree to a ''haircut'' on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.
Euro zone finance ministers meet today to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country's finances in order. But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that German Finance Minister Wolfgang Schauble does not believe that any government would be able to implement them.IMO, THIS HAS BEEN KNOWN FROM THE START OF THE CRISIS AND ALL WE'VE SEEN OVER THE LAST YEAR WAS THEATER INTENDED TO MISLEAD THE RUBES AS BANKS AND FINANCE MINISTERS READIED THEMSELVES FOR THE INEVITABLE TO MAKE THE TRANSITION AS PAINLESS AS POSSIBLE.
THE EUROPEAN WELFARE STATES ARE UNSUSTAINABLE.
THAT WHICH CANNOT GO ON FOREVER WON'T.
BRACE YOURSELVES ANS STAY TUNED...