Greece warns on euro exit if bailout not signed

Thrugelmir

New Year, same old problems.

Greece may have to leave the eurozone if it fails to secure a second 130bn euro bailout ($169.5bn, £108.7bn) from the EU, IMF and private lenders, a government spokesperson has warned.

http://www.bbc.co.uk/news/business-16385792

JasonLVC

Meh, old news.:D

It's all kicking off in Hungary, new constitutional powers for the government are breaching a number of EU laws (ie, a new central bank, voting rights making it impossible to vote out the current government, life prison sentences without parole, etc).

Hungary needs IMF assistance but breaching so many EU laws on government, discrimination and basic rights means if Hungary don't play ball, the IMF won't be bailing them out. Hungary may want to go it alone anyway without the push from the IMF.

http://www.telegraph.co.uk/news/worldnews/europe/hungary/8989020/Hungarians-rally-over-constitution.html

As for Greece, they've set their budget despite the protests and so should get their next tranche of money without issue, but just how long can this go on before Greece finally exits the Euro?

Ilya_Ilyich

To be secured conditional on further assaults on labour, presumably.

ILW

Ilya_Ilyich wrote: »

To be secured conditional on further assaults on labour, presumably.

Would this be the labour that they do not produce enough income to pay for?

Pete111

Ilya_Ilyich wrote: »

To be secured conditional on further assaults on labour, presumably.

Sorry I think you meant "assault on forgetting to pay tax and snoozing off a big working lunch under a sun shade whilst being paid for 14 months a year and retiring at 55"

cogito

Pete111 wrote: »

Sorry I think you meant "assault on forgetting to pay tax and snoozing off a big working lunch under a sun shade whilst being paid for 14 months a year and retiring at 55"

Another gem from our resident idiot.

ILW

cogito wrote: »

Another gem from our resident idiot.

Less of an idiot than those who believe you can go on paying people money you do not have forever.

The_White_Horse

so my basic understanding is that Greece have so much debt they could not cope. However, they are now being lent hundreds of billions more - so they can meet current liabilities but are even deeper in debt. unless they are just continually given more money for ever, how does this help them?

shortchanged_2

The_White_Horse wrote: »

so my basic understanding is that Greece have so much debt they could not cope. However, they are now being lent hundreds of billions more - so they can meet current liabilities but are even deeper in debt. unless they are just continually given more money for ever, how does this help them?

It doesn't, it just exacerbates the problem. Since when has paying off debts with more debt been the answer.

Ilya_Ilyich

The_White_Horse wrote: »

so my basic understanding is that Greece have so much debt they could not cope. However, they are now being lent hundreds of billions more - so they can meet current liabilities but are even deeper in debt. unless they are just continually given more money for ever, how does this help them?

The point isn't to help Greece. The point is to give them Euros to repay their debts to the European banks, while imposing further cuts to public welfare with each new round of funding so that when they leave the Euro capital will be in the strongest possible position.

ILW

Ilya_Ilyich wrote: »

The point isn't to help Greece. The point is to give them money to repay their debts to the European banks, while imposing further cuts to public welfare with each new round of funding.

How would you suggest they pay for their public welfare?