Greece’s eurozone future uncertain as Germany steps up pressure –

This is currently the FT’s most popular article. It’s a good summary of the delicate state of negotiations. Check it out!

via Greece’s eurozone future uncertain as Germany steps up pressure –

The pressure is now mounting on Greece. It’s a bit like unconditional surrender, in my view. But the alternative of  a Grexit or a temporary exit have still not been properly risked assessed. If Greece does not get a financial lifeline, expect a massive humanitarian initiative

It’s easy to say that Greece precipitated the current impasse but this point in negotiations was probably inevitable. Ultimately, the Euro is the fundamental weakness & expect speculators to apply pressure this week.


Opinion – Greece’s proposals to lenders: Full text | News | – John Gelmini

English: Alexis Tsipras in a press conference ...

English: Alexis Tsipras in a press conference in Komotini. Ελληνικά: Συνέντευξη Τύπου του Αλέξη Τσίπρα στο ξενοδοχείο Ξενία στα πλαίσια της επίσκεψης του στην Κομοτηνή 13.11.2008 (Photo credit: Wikipedia)

Like Dr Alf, I have read the full text of the Greek proposals and agree that they look serious.

Raising corporation tax is a counterproductive measure however, which will do nothing to encourage new business setup in Greece or foreign inward investment.

Being a practical man, I think that the actions of Greek politicians and the people are far more important than any proposals.

Over the years, I have seen countless marketing plans, sales optimization plans, business plans and transformational blueprints but what distinguished the leaders of the pack was the intent and motivation of those who had to make it happen. Leopards do not change their spots and Damascene conversions are rare.

Like my wise late father-in-law, who came from St Louis, Missouri, I want to see the “whites of Tsipras’s eyes” and a bit of messianic fervor from the Greek people, before I am ready to believe a word they say.

Saturday’s meeting of Eurogroup finance ministers echoes these sentiments. Even if the proposals from Greece are accepted by the technocrats, there are concerns about credibility and risk of delivery from Greece. The Prime Minister of Greece is a former student Communist leader and it is hard to see conservatives in Finland and Germany being comfortable that he will deliver on the latest offer on the table. If it were a private or a corporate situation, creditors would be looking for collateral and hard guarantees.

Let’s see whether Europe political elite can fudge a deal today (Sunday).

John Gelmini