Second Greek bailout delayed

Even if they think a second (or third or fourth) bailout will help, how could they possibly believe that delaying it is a good idea? Maybe it’s time they conclude that it won’t work and that Greece needs to pull out of the euro and restructure the economy. The Guardian:

Eurozone governments have postponed a final decision on whether to throw debt-mired Greece a summer lifeline, saying Athens must force through harsh austerity measures before they will release €12bn (£10.6bn) of funds to keep the country’s economy afloat and avert an international crisis.

The 17 eurozone finance ministers met until the early hours of Monday in Luxembourg to hammer out the structure of a new three-year bailout for Greece in a way that would persuade European banks, pension funds and other private creditors to roll over the country’s ballooning debt.

A statement, issued after seven hours of deliberations, committed the ministers to putting together a second bailout plan for Greece, beyond the initial €110bn euro rescue launched in May last year. In addition to more official loans, the new bailout would include a voluntary rollover by private investors of their Greek debt holdings. The statement did not say how large the new plan would be or give details of the rollover.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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