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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!
The Eurozone finance ministers have announced that there will be no more talks until after the referendum. The Greek MP’s have gone back to their constituencies to campaign for the referendum, with splits starting to show in the government coalition, let’s wait and see.
At last something else apart from Greece! By the time any extra runway is built and operating we will need another one, so why don’t they just build both of runways, one at Heathrow and one at Gatwick? Then politically there will be no bias seen for one or the other.
Is there still a deal on the table available to be revised and accepted? The Greek Government thinks there is, they need to phone the banker….or Ms Merkel (as she is now known) who is saying publically there isn’t. Whatever happens it looks like it’s going to be messy.
Solutions Edge 
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