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Jail for life

Published Tuesday, March 24th, 2015

It may be hugs and kisses on the surface but underneath the table there is a lot of kicking going on. Alex Tsipras and Angela Merkel appear to have had a civilised meeting yesterday but nothing more. There was no breakthrough and not even signs of a light at the end of the tunnel. We need to understand each other declared Tsipras to which we can be sure Merkel replied that we do and by the way “I am the Chancellor of Germany and thus represent only one of the nineteen countries in the eurogroup.”

Alex Tsipras is a very angry man. Greece he claims is being “blackmailed” and “asphyxiated” by the ECB, because they will not allow him to issue anymore Treasury bills to be purchased by Greek banks who are funded by the ECB. The problem for Alex is that bankers are not keen to lend to self-declared bankrupts.

We saw yesterday that Germany is far from alone in demanding that Greece plays by the rules. The Spanish Economy Minister, Luis de Guindos, revealed in an interview with the FT how hardline his government’s stance is towards Greece. He says that “there are two red lines. The first is that no-one can leave. The second is that no-one can violate the rules”. Joining the eurozone it would seem is jail for life with no parole. There is no option of voluntary exit even if a new government is given such a mandate.

to read the rest of the report, please click here

Posted by David Hufton