Europe Blinks: Troika Willing To Change Terms Of Greek Bailout Deal

[globaleconomicollaps]

http://www.zerohedge.com/news/europe...k-bailout-deal
And so it all begins anew:

From Bloomberg: IMF, EU, ECB Open to Changes in Greek Aid Deal, Real News Says



The so-called troika of the European Union, the International Monetary Fund and the European Central Bank is willing to make six important changes to Greece’s financial aid agreement if a pro-European government is formed in the country, Real News said.



The Troika is willing to extend by one year to end 2015 the time for Greece to cut its budget deficit as well as to proceed with a restructuring of loans, the Athens-based newspaper reported in its Sunday edition preleased today, citing “well informed” sources at the European Commission.



The Troika is also willing to maintain the force of collective labor agreements, to alleviate the level of pension cuts or restore certain pensions to previous levels and to keep wage levels in the private sector and reduce the average tax burden on employees, the newspaper said.

If confirmed, and with Germany having stated repeatedly this will not happen, there is a very high possibility this is just another press-based red herring (remember all those FT headlines of an imminent Chinese bailout of Europe?) seeking to exacerbate the political power grab in Europe, where Germany is now surrounded on all sides, this will mean that the outcome of the Greek elections is no longer relevant, as Syriza will propose an adjustment to the bailout plan, Europe will promptly agree since a pro-bailout "coalition government" of ND, Pasok and Syriza will have be formed, and all shall be well, at least until the next Greek bailout in a few months. Then the country will need yet another priming DIP from Europe, and the fiasco begins anew, only this time with even less money left in Greece to be pillaged and plundered by the country's creditors. That, and of course, German capital being pledged in the form of more "contingent liabilities" which are anything but.

But for now, between a Greek "solution", and China easing again, it appears that all has been saved. If only for a few more days, which as the central planning regime is coming to an end, appears the best the planners can obtain.

At the end of the day, it is once again Mr. Panos who explained it all perfectly, and showed just who has all the leverage in Europe.

[jk]

Re: Europe Blinks: Troika Willing To Change Terms Of Greek Bailout Deal

if greece gets to renegotiate, can ireland and portugal be far behind?
and are demands for spain softened?

[vinoveri]

Re: Europe Blinks: Troika Willing To Change Terms Of Greek Bailout Deal

year after year it goes on and on - TPTP will do whatever to stay in power and keep the system going and all the players know this - who benefits most and first from money printing anway (e.g. LTRO), the political class and banksters of course -it will not end until their is nothing left to loot - nothing new to see here - move along.

[globaleconomicollaps]

Re: Europe Blinks: Troika Willing To Change Terms Of Greek Bailout Deal

if greece gets to renegotiate, can ireland and portugal be far behind?
and are demands for spain softened?

Iceland has demonstrated that contagion is a non-issue. Even Ireland ( the first to go to the well) is attempting to pay down debt rather than "restructure".

[jk]

Re: Europe Blinks: Troika Willing To Change Terms Of Greek Bailout Deal

Iceland has demonstrated that contagion is a non-issue. Even Ireland ( the first to go to the well) is attempting to pay down debt rather than "restructure".

contagion is not a problem provided that:
1. a country has its own currency
2. that country lets its banks go under.

[mmr]

Re: Europe Blinks: Troika Willing To Change Terms Of Greek Bailout Deal

The case of Iceland is a special one that may not be relevant for the peripheral eurozone countries.

Iceland allowed its banks to default on certain foreign depositors, but did not default on its sovereign debt or domestic bank depositors. The decline in the exchange rate and capital controls that were implemented also helped; those options are not available to Greece as long as it remains in the eurozone.

A true Greek sovereign default (without future support from the EU / IMF / etc.) would be quite likely to cause contagion, if for no other reason than for the losses that Greek bank depositors would incur.

The Greek equivalent of the FDIC would effectively be broke, and there would be an even greater run on the banks there than what has occurred already (in slow motion over the last two years). At that point, what rational investor would leave their money in a peripheral bank if they could avoid doing so?