The Banking and Strategy Initiative

Chillin' out till it needs to be funded

European Sovereign Debt Crisis: 2012 Hellenic Summit Games

The Finance Minsters meeting has rejected the maximum offer from the private investors allowing the Greek government to again engage the investors in deal negotiations which no one expects to fail nor succeed before the March instalment comes calling on the debt

Jean Claude Juncker of Luxembourg leads the group this year and he piped up on the side of IMF demanding a deal below a coupon of 3.5%. Even Berlin seemed to speak for Lagarde as it agreed for a higher $1 tln ESM “firewall” in exchange for tigher powers for the fiscal compact controlling budget deficits of member states by unilateral European court judgement. it seems the current version’s allowance of revertin gto deficits in Economic hardship may be taken as free licence by local governments according to ECB. If such language is indeed targeted based on the Maastricht experience, before any meaningful agreement on full Economic integration, the results may need close to the line monitoring by the minute  from the regulators/ECB

Lagarde on her part continues to press for a full sized ESM to allow Italy and Spain to escape the Financing crisis and discouraged half hearted, low ball German commitments

 

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