€5.5 billion for sustainable growth in Spain – European Commission

European flag outside the Commission

European flag outside the Commission (Photo credit: Wikipedia)

This is an interesting read from the European Commission.  Check it out!

via €5.5 billion for sustainable growth in Spain – European Commission.

Whilst I am delighted to see the European Commission investing €5.5 billion in Spain,  I’m not convinced of the wisdom of targeting sustainable growth. This seems a bit like chasing the holy grail?

Surely, there are more strategic programs that would reduce dependency on imported energy or would generate additional jobs for young people?

It looks to me like environmental considerations are given priority over economic growth and strategic considerations? Also why is Spain given priority over other countries?

For example, what about a gas pipeline linking the East Mediterranean gas fields in Israel and Cyprus to the European mainland in Greece?

Thoughts?

Greece’s terrible choice: receivership or liquidation | The Australian

This an outstanding article and video interview, published in the Australian. Check it out!

via Greece’s terrible choice: receivership or liquidation | The Australian.

The headline is stark but realistic. Either Greece allows receivership, effectively foreign control or it’s liquidation.

Germany is now playing hard-ball and humiliating Greece, which they hope will be a powerful signal for other Southern European countries to stay in line. France meanwhile has been playing a strong-hand supporting Greece.

The context is that Germany’s domestic politics is weary with Greece. Angela Merke, Germany’s Chancellor, has been papering over the cracks in the Eurozone for years. She prefers incremental rather than strategic decisions. But she faces two political crises. Firstly, there’s domestic opinion in Germany. Secondly, there’s the US, France and Italy that are worried by the geo-strategic implications of a Grexit – Putin is ready to give Greece help with energy.

Perhaps, the greatest crisis is that the hard-left government in Greece has not been honest with the Greek people – it has been arrogant and mislead the Greek people about the strength of their negotiating hand.  This could well lead to an early change of government. Once the ECB turns off the emergency liquidity tap to Greek banks, rapid implosion is expected to follow.

Thoughts?

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