Throwing Bones to Greece; A Victory for Europe (or a Victory for French and German Banks)?

Throwing Bones to Greece

In the wake of New Democracy eking out a victory over Syriza in the Greek elections, the nannycrats are willing to toss a few bones to Greece.

For example this headline on Bloomberg says Euro Chiefs Signal Greek Austerity Softening as Summit Looms.

Only vague references in the article pertain to concessions.

"German Foreign Minister Guido Westerwelle said negotiators could consider giving Greece more time to fix its finances, telling ZDF television that the political gridlock over the past six weeks “has done damage.”

The hope of nannycrats is that vague promises to "soften stance" will lead to a coalition between New Democracy and Pasok. Perhaps it will. Pressure on Pasok will be immense.

A victory for Europe (or French and German Banks)?

The Irish Times reports New Democracy party hails 'victory for Europe'

The leader of Greece’s pro-memorandum conservative party has claimed victory in the country’s second election in as many months, describing it as a “victory for Europe”.

“The people of Greece have shown their will to stay anchored in the euro zone and honour our commitments,” said Antonis Samaras, in a victory speech delivered in Greek and English.

“They have voted for a European course and our stay in the euro. They voted for jobs, justice and safety. No more adventures.”

How is this a victory for Europe? How is it even a victory for Greece? The only victory is for the stock market and bondholders, at taxpayer expense of course.

"No more adventures" says Samaras. "Wanna Bet?" replies Mish.

Short-term Greece stays in the eurozone. The irony is, perhaps this will force Germany to come to its senses and say "you can have it".

A German exit will not happen as long as Merkel is running the show, but the moment the decision is put to voters of Germany in an official referendum, anything can happen.

I believe the German people are likely to (and should) say to hell with it all.  After all, the euro project has been a spectacular failure.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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