10/05/2012 - Myclipp

emaining euro zone countries to make up the
shortfall.All sides have so much to lose that more
negotiations are likely to follow no matter what political
parties form the next Greek government. For all the
tough talk in Berlin, the Germans have not even
approved the permanent rescue fund, the European
Stability Mechanism, which they would probably want
in place before Greece left the euro zone. Many
analysts say Ms. Merkel could accept some relief on
Greece’s repayment terms for its European loans in
exchange for ratification of the fiscal pact to rein in
deficits in the long run. Over the past week, German
policy makers have also signaled a willingness to
accept somewhat higher inflation and higher wages at
home and to promote more growth across the region.
“The Greek crisis did not arise from too much saving,”
Ms. Merkel said at a news conference on Monday. Yet
the chancellor, the proponent of austerity, then struck
an almost Keynesian note, saying, “But it is also clear
that the more I grow, the better I can pay back debts,
and therefore there has to be sustainable growth.”
Over the weekend, the president of the Eurogroup of
euro zone finance ministers, Jean-Claude Juncker,
appealed for patience and more time for Greece to
make the painful spending cuts agreed to under the
bailout deals. Dimitris Kyriakou, an economic adviser
to the Greek government, said: “There is much room
for negotiation. Room also grows as the fear of
collapse emerges, since countries insisting on
austerity have gained more from the euro and have
The New York Times/ - Politics, Ter, 15 de Maio de 2012
CLIPPING INTERNACIONAL (Supreme Court)
more to lose from its collapse.” While Greece
implodes, Germany is enjoying the lowest levels of
unemployment since reunification after the fall of the
Berlin Wall, and borrowing costs that have dropped
below the rate of inflation as investors seek safe haven
from the turmoil. German politicians may be indignant
over what they see as unfair Greek demands, but they
have little incentive to hasten a collapse. Although the
political uncertainty remains high, government advisers
said that Greece would not fall into disarray even if it
undertook new elections in a month. In the interim,
negotiations between Greece and its “troika” of foreign
lenders — the European Commission, the European
Central Bank and the International Monetary Fund —
would be conducted by a caretaker administration,
most likely with a Supreme Court justice at its helm.
Mr. Stournaras, the Greek economist, said that even if
the Coalition of the Radical Left, or Syriza, came to
power, it would not act immediately on the threat to
reject the loan agreement, but first try to find a
sustainable middle ground. Janis A. Emmanouilidis, a
senior policy analyst at the European Policy Center in
Brussels, said: “It’s something like a poker game. The
question for everyone is whether they go all in. Once
you decide to go all in and expose your cards, you
can’t take your money out again.”
Nicholas Kulish reported from Berlin, and Rachel
Donadio from Athens. Jack Ewing contributed
reporting from Frankfurt.
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