Even if Greece sticks to its reform path, the country will need fresh money
this summer, according to Die Zeit's information. If a state insolvency is to be
avoided, then the Europeans will need to jump in again. The Bundestag (lower
house of parliament) may possibly have to discuss a third Greek package again. A
double-digit billion euro amount is being discussed. Greece has already
had two bailouts: €110bn in May 2010 and €130bn this year. Worryingly for
Greece, the article suggests that the new rescue would come with further
economic targets to meet. Greek have been withdrawing €800m a day from the
nation's banks, reports CNBC, and stocking up on pasta and canned goods ahead of
the weekend's elections. CNBC also claims that a host of biased and widely
contradictory polls are being leaked - polls are not allowed this close to the
election under Greek law. One apparently puts Syriza way ahead. But a "reputable
pollster" told CNBC that this was "nonsense". The polls show that the
picture has not changed much since the last polls were published. Parties may be
leaking these numbers on purpose to boost their standing....
The EU method of economic reform is like sending in the panzers to stiffen up
their army. The ultimate aim is undoubtedly what both sides want, but heaping
economic penalties on the poorer members of Greek society will create misery and
ultimately lead to political extremism. Either way it appears that the EU has no
solution, and no ability to come to one. Current EU behavior isn't going to
achieve what either side wants.
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