Greek crisis triggers fierce conflicts inside Europe

[Hannah Bell]

Rumours about the possible withdrawal of Greece from the euro, and a secret meeting of European finance ministers, have triggered fierce conflicts within the European Union.

Spiegel Online reported on Friday that Greece was considering leaving the euro zone and reintroducing the drachma as its national currency. Finance ministers from the largest euro countries met in Luxembourg with euro group chief Jean-Claude Juncker, European Central Bank (ECB) President Jean-Claude Trichet, and EU Commissioner Olli Rehn.

The news sparked turmoil on the financial markets. The euro fell considerably against the dollar. Jean-Claude Juncker at first denied there had been a meeting, even though he had issued the invitations. Greek Prime Minister Giorgos Papandreou denied there were plans to leave the euro, saying angrily, "Such scenarios border on the criminal." Other governments and the ECB also denied the existence of such exit plans. "No euro-zone member wants to abandon the euro," said ECB executive officer Erkki Liikanen.

Nevertheless, speculation about the possible consequences of a Greek withdrawal from the euro zone is mounting. Economists, politicians and journalists are avidly discussing the pros and cons of such a move.

http://www.wsws.org/articles/2011/may2011/gree-m11.shtml

[Poll_Blind]

1. This is such an interesting article I can't recommend it enough.

The "fallout" from something like this touches everything and since Greece is not the only country in the shitter (Ireland, Portugal and Spain are in there too) and if the Euro fails in some sense then either gold and silver go to astronomical highs or investment comes back to the Dollar because the Yuan is underappreciated by China's policy and the Yen is not looking that hot unless you count the potential for liquidating US securities to cover for their massive natural disaster and all the fallout from it. Currency isn't my thing, though, I dunno.

What is Germany's role in apparently stirring the pot in all this?

PB

[socialist_n_TN]

2. As I read it (I'm not great at currency matters either)

German national banks HOLD most of the Greek debt, so that's why their heavily involved.

[xchrom]

7. i think the banksters in germany and france{to a lesser degree}

are involved in the debt crises of all those countries.

i know the netherlands and britain are involved in icelands troubles.

[Starry Messenger]

3. k&r

[JackRiddler]

4. kick

[xchrom]

5. recommend

[Fire Walk With Me]

6. "The euro fell considerably against the dollar."

That's an amazing feat considering that the Dollar is nearly dead.