Clegg’s Euro advances to destruction. Yesterday, despite all the cluck-clucking from the IMF and the ECB, markets decided that Greece is becoming a greater and greater risk. No matter how much money they throw at the problem, without growth, the economy can only sink further. And without quitting the Euro, the level of currency will make growth impossible.
Open Europe –
Meanwhile the FT reports that a 20-strong team from the EU and IMF began negotiations in Athens today over the details of an aid package for Greece. Despite the issuance of three-month securities on Tuesday at a lower interest rate than many had expected, pressure continues to grow, with yields on Greek debt topping 8 percent (their highest level since 1998) according to Bloomberg as well as growing domestic opposition to austerity plans.
At what point will the inevitable happen?