The Eurozone response... adequate?
So, finally, after much of rumblings, there seems some sort of response to the Greek debt problem, enhanced functionalities for the EFSF so that it may provide support to other debt ladden eurozone countries to hopefully preventing their debt to also spiral out of control, which is what happened with the Greek case. But is the step that has been made, a baby step in the right direction or the final say on the matter? Personally i think its somewhere in the middle though more of a baby step than the final word. I think this because first of all all that has been planned has to happen without a hitch, including the participation of the private sector in the restructuring of the greek debt. moreover it is not clear that the eurozone members have made a response for the eurozone-wide debt, rather than just the greek debt, but Greece is only part of the porblem, and a small part at that. On the contrary they have sought to frame Greece as a unique and etraordinary case for which extraordinary measures are required. I guesse they think that the enhanced EFSF will prevent other countries, like Ireland and Portugal from every requiring such a large-scale rescue, howver the funds that EFSF has in its disposal have not been extended, and extending them may be a prolonged case...
In the mean-time the US has its own default-related issues...
any thoughts? |