Author: solutionsedge

This looks like it’s going to be a long one, will there be enough hours in the day? There is so much at stake, not just for Greece but for the EUR and the EU project as a whole.

It appears that they have tuned, clarified and then backed the Greek proposals. Will that be enough?

Does the Greek public back the proposals? Or have they been written by Greece’s backers, France and Italy, with the aim of being able to persuade a sceptical Germany?

Remembering that the last set of proposals were rejected by the public, and getting the parliament’s backing was not a formality, I wonder if the public will be more pragmatic? It’s probably fortunate that they are not proposing a referendum on these proposals as well.

Today marks the deadline for the Greek proposals for a third bailout, which will then be studied at this weekend’s euro finance ministers meeting. The EU is publically all hard talk but there are distinct differences of opinion between southern region and northern region EU countries. (Contagion is the worry)

The continued government intervention, this time a move to stop big investors selling stocks and an announced a ban on and an investigation into short selling, looks to have helped the market rebound 5.7% overnight. (It’s hardly a free market) But are they out of the woods yet?

The most radical budget in years, with the latest concept of a National Living Wage the Chancellor wants a higher wage, lower benefit economy. The winners look like to be the pensioners, as they get to keep their benefits, its less of a good thing for those out work and businesses, but possible better for the countries middle income earners. The government appears to be looking after their support base.

There are welfare cuts as promised in their election manifesto, and a staged reduction in tax credits, that could deliver a whopping £4.5bn of savings. The budget has apparently been designed to give the government the opportunity to put the country on a path to a budget surplus in 4 years.

It looks like the EU Finance Ministers are expecting the Greeks to make the concessions. Meanwhile the Greeks appear to be expecting the EU to make the concessions.  Is everybody waiting for divine intervention or inspiration?

It is being reported that the Greek banks are a few days away from running out of cash, this would be a disaster for all, so it should focus everybody’s efforts. With the flamboyant Finance Minister Varoufakis falling on his sword in an apparent attempt to appease their creditors, it looks like there could be a deal in the offing. No matter it will be a volatile day on the markets.

But what next? The Greeks know what they don’t want, but do they know what they do want? The Euro or a new Drachma? They are dancing on the edge of a precipice. Now the real crisis will begin!