For someone could be the prelude of the end of the single currency, which might not be ‘seen a certainty only because’ there behind ‘Germany. Greece’s public finances are back under fire and, despite the agreements for aid in case of need, and the toy is’ stuck.
Yesterday, the rating agency Standard and Poor’s has decided to downgrade the debt greek to junk, junk, cutting even the long-term rating of Portugal to A-from A + with negative outlook (not yet at the levels of Athens). The decision Agency and ‘The problem was explained by the Portuguese government budget dovra’affrontare.
The point ‘that already’ days from the framework of public economics in Greece showed dangerous signs of disarray, with Athens and decided to start the requests for help agreed with the IMF Monetary Union. Things did not go as expected, the main protagonist of the single currency, Germany, and ‘put a shot through, he started asking more and more guarantees and plans more and more’ stringent cuts. Li ‘a tremendous surge in bond yields Greeks, who have largely surpassed the 10% to splash even more’ up and making it impossible for the greek government the possibility ‘of funding since’ interests should return unbearable for anyone.
And in Germany as the newspapers say that the Germans do not want it to help Greece, Merkel’s government – speaking through his foreign minister – says it will decide ‘aid only after the end of the ongoing negotiations between the IMF and the government of Athens. Lay it on thick with “Germany does not emit ‘blank checks to Greece,” adding that Athens has to do his homework.
Tone quite different attitudes proper to the International Monetary Fund, the only one for now that seems able to intervene to help a country euro area. The Director General of the IMF, Strauss-Kahn, said the situation in Athens could become unsustainable unless there is ‘a joint IMF and EU aid, speaking of a tragic situation that whatever happens will be’ difficult to resolve.
So much so that to help the accounts of Athens and the IMF ‘ready to use the assistance of many countries, even those considered poor. The risk ‘that an epidemic could overwhelm other members of the single currency, Portugal and’ already ‘in the crosshairs of the Standard and Poor’s, which cut its rating, but the background there are also Spanish and because’ no also ‘Italy. All countries, let alone against speculation, would not be able alone to cope with the impact, although it was hoped that the euro could be a guarantee in front of these scenarios.
The bad and feel ‘that is the same currency, as we know, to be at risk. For all the commentary issued by the agency AGI Giacomo Vaciago, a well-known economist. Vaciago, ironically, points out that decisions of the Standard and Poor’s coming slowly, when rates of return on bonds Greeks have long gone beyond 10%, a level that nobody ‘can support. That – says bitterly Vaciago – Greece and in fact ‘already’ technically bankrupt and what is happening also marks the end of the single currency.