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Contagion & confrontation

Published Friday, February 20th, 2015

Ceasefire clearly does not mean the same in Russian as it does in German, French and English. An agreement in Greek similarly does not appear to mean the same as in the other languages. We were told that the Greek stand-off with the northern hard core eurozone members was merely a matter of semantics. It was always much more profound than that, as we discovered last night with the Greeks making what they described as ‘take it or leave it’ concessions which the Germans dismissed as a Trojan Horse.

Agreement or no agreement with Greece risks contagion that will destabilise the whole pack of cards. A Greek exit risks the contagion we have long been warned about into the remainder of the peripheral eurozone, although we are now assured by Standard & Poor’s that the impact would only be “moderate”. Concessions to Greece risks similar demands being made by other countries and the rise of Syriza equivalents elsewhere.

to read the rest of the report, please click here

Posted by David Hufton