Is Germany Trying To Force A Greek Default? February 19, 2012 Germany is proposing harsh measures for Greece, such as suspending the democratic process to assure things are done the way the EU wants. You can make an argument the harsh demands from Germany are meant to force Greece to say “enough”. In a Financial Times column, Wolfgang Munchau touches on that subject (excerpts below):
The most extreme proposal is to suspend the elections and keep the technical government of Lucas Papademos in place for much longer. A senior German official has told me that his preference is to force Greece into an immediate default. I can therefore only make sense of Mr Schäuble’s proposal to postpone elections as a targeted provocation intended to illicit an extreme reaction from Athens. If that was the goal, it seems to be working. The situation highlights the political vulnerability of the current eurozone rescue strategy.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.