Back to reality: Greece needs debt relief and wide-ranging financial reform – both are going to come, but will they be messy or orderly? – Editorials – Voices – The Independent

Reichstag building seen from the west, before ...

Reichstag building seen from the west, before sunset Français : Le Palais du Reichstag coté Ouest avant le coucher de soleil (Photo credit: Wikipedia)

This is a robust, down-to-earth and highly focused editorial from the Independent. It’s a must-read. Check it out!

via Back to reality: Greece needs debt relief and wide-ranging financial reform – both are going to come, but will they be messy or orderly? – Editorials – Voices – The Independent.

This position, championed by the IMF, will be obvious to most informed observers. However, German voters still live in a Walter Mitty world where they believe that they can say ‘No’ to Greece – the big downside risk is now with Germany.

I sense that the crisis will very soon be shifting to Berlin soon.

Thoughts?

Marcel Fratzscher on on the three beliefs turning Germany against the euro. – Project Syndicate

Project Syndicate

Project Syndicate (Photo credit: Wikipedia)

This is an excellent article from Marcel Fratzscher published by Project Syndicate. It’s a HIGHLY RECOMMEND READ, in my view. Check it out!

via Marcel Fratzscher on on the three beliefs turning Germany against the euro. – Project Syndicate.

Here’s Marcel Fratzscher’s bio profile:

Marcel Fratzscher, a former head of International Policy Analysis at the European Central Bank, is President of the German Institute for Economic Research (DIW Berlin) and Professor of Macroeconomics and Finance at Humboldt University of Berlin.

Whilst, I accept that Angela Merkel is a formidable politician and leader, I fear that she may struggle to find a popular way; on the one hand she has a German domestic audience, reluctant to change, and on the other there is huge problem of trust in beyond Germany’s borders. The challenge will be for Angela Merkel to lead the whole of Europe.

Trust is a rare commodity; it’s so easily lost and very hard to re-create.

In my mind, for Germany to regain trust, it must surely offer concessions to rest of Europe?

Any thoughts?

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