No stomach for that in Berlin or Paris
The public prints and airwaves are full of reports of the . But there is no bail out - just a promise to take 'determined and coordinated action' if needed. No money is yet on offer. No promise of guarantees for Greece's ballooning debt.
'
Merkel dashes Greek hopes of rescue bid' and it is right. The German Chancellor knows how unpopular any use of German taxpayers' money to bail out the profligate Greeks would be. It may still come to that but it hasn't yet - which is why the markets are still bearish on the euro.
And with the Greeks claiming they don't need any help we're in a sort of Mexican standoff which suggets this crisis has a long way to run yet.
The EU might not be picking up the tab yet but it is already poring over the Greek accounts. It is quite clear that Athens is about to lose it's fiscal autonomy and is being fitted out for a Brussels' hairshirt. No wonder they're now burning the EU flag on the streets of the Greek capital.
But to whom does Greece owe money following it's borrowing binge? Interestingly it owes most to and ($80 billion each) followed by ($42 billion). For once we're not on the line for much: Britain's exposure is only $12 billion.
The French and German exposure gives Paris and Berlin an incentive to avoid a Greek default. But they're terrified that if Greece is bailed out , , and even could soon be rattling their begging bowls too.
That could require EU debt guarantees of up to $400 billion. There is no stomach for that in Berlin or Paris.
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