Eurozone tells Greece not to expect debt relief any time soon

[brooklynite]

Source: The Guardian

The Greek government has been told by its eurozone partners not to expect debt relief any time soon, amid fading hopes of decisive action to stop the country tumbling out of the currency union.

Eurozone finance ministers arriving for emergency talks in Brussels made it clear they were waiting on Athens to sign up to further reforms and were in no hurry to discuss debt relief.

Finance ministers are preparing the way for a summit of eurozone leaders that gets underway on Tuesday evening. The summit, called after Greeks rejected the eurozone-drafted bailout plan in a referemdum on Sunday, is seen as one of the last real chances to secure a deal to stop Greece crashing out of the euro.

Greek banks are on the brink of running out of cash, but senior European figures are already dampening hopes of any breakthrough. “What we are going to do today is to talk to each other and restore order,” said the president of the European commission, Jean-Claude Juncker, adding that there would be no overnight solution.

Read more: http://www.theguardian.com/business/2015/jul/07/eurozone-calls-on-athens-to-get-serious-over-greece-debt-crisis

[ananda]

1. Is the Eurozone doing this to Greece ...

... in order to send a message to other countries -- this is what will happen to you if you don't abide by our wishes?

[geek tragedy]

3. Simpler answer: Greece is asking for countries to lend it more money, while also saying

it has too much debt and needs them to write it off.

it's like someone asking the bank for a principal writedown on their mortgage because they can't pay it, while also asking the very same bank for a second mortgage.

It is true that they fear the precedent that a country can borrow from other European countries, then threaten to leave the Eurozone unless those countries write off the debt.

[geek tragedy]

2. The Greek government promised voters that a no vote meant an end to austerity

while remaining in the Eurozone.

never make promises you don't have the power to keep (see also Barack Obama promising to change politics and end partisan rancor)

Tsipras won a popularity contest inside Greece against the creditors imposing austerity. A fairly modest achievement.

Now comes the tough part where he has to eat a shit sandwich by agreeing to an austerity for debt writedown deal, or lead his country out of the Eurozone forever.

[Renew Deal]

4. The Europeans like to think they're so civilized and orderly

“What we are going to do today is to talk to each other and restore order,”

What they actually are is fools.

[snooper2]

6. maybe Maduro can show those evil bastards the error of their ways and loan/give Greece some bolivars

[rdking647]

5. greece needs to tell the euro to get bent

announce that they are quiting the euro. reintroduce the drachma
announce that they are defaulting on any outstanding loans from the EU
announce that they will offer to repay them at 50cents on the dollar with no payments for 5-10 years
if their creditors say no then reduce the payment by 5% every month they delay in accepting the terms


honestly how could it get much worse for greece. what do they really have to lose

their economy is already in shambles. germany is actually the country that has the most to lose from greece telling them to fuck off. if greece does it then there isnt much to stop spain,italy or other weaker euro countries doign teh same thing. that would result in the euro getting MUCH stronger sinc ethe weak hands will be out. that will crater german exports which is a min driver of its economy.

[geek tragedy]

7. a managed, planned Grexit is probably the best of the bad options available.

There's just no room for compromise here. What Greece needs, the Eurozone can't provide.

[Surya Gayatri]

8. Hello? You might want to check with the Greeks about that anti-euro sentiment?

http://www.democraticunderground.com/10141137547#post34

Poll: 66.5% of Greeks Prefer the Euro Over Drachma

[geek tragedy]

9. people can prefer something but decide it's not worth the cost.

I would prefer to own a vacation villa in Italy, but I won't buy one.

The no vote was a vote to leave the Euro, Greeks aren't stupid, they knew what was on the table

[brooklynite]

10. I'm not sure they did...

The no vote was a vote to leave the Euro, Greeks aren't stupid, they knew what was on the table

I think a lot of them voted on the basis of national pride, without a full understanding of the financial implications.

[geek tragedy]

12. nobody fully understands the financial implications of the Grexit for the people

of Greece.

[Surya Gayatri]

11. Looks like their desire is about to become reality.

Tsipras ain't got nothin'. All of that empty campaign rhetoric and those pie-in-the-sky promises aren't worth hot air.

See here:

http://www.democraticunderground.com/10141138863

[Sparhawk60]

13. All the Options Are Bad

But I agree, bit the bullet, tell the bankers to piss off and start the long road to rebuilding Greek prosperity. It will be hard, but better than slaving away to make rich bankers richer. (with no end in sight) The people who bought the Greek loans/bonds knew it was a gamble. For years the bankers won the gamble and made millions, this time they lost. O well, them the breaks.