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EU deal on Greece - IMF involved; Ireland may pay.


He3

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Points: The IMF is coming inside the eurozone tent. Ireland gets to make a 'voluntary' contribution. They hope it won't be called on.

BBC said:
All 16 eurozone countries have backed a financing plan to help debt-laden Greece, which will include IMF money.

The safety net would total about 22bn euros (£20bn). It would apply only if market lending to Greece dried up.

Eurozone countries would grant co-ordinated bilateral loans, and there would be "substantial" IMF loans. The "majority" funding would be European.
BBC News - Deal reached over Greece debts at Brussels summit


Jonny Dymond's view -

It was, as is so often the case, German approval that swung it, and it is a deal done on German terms.

Early on in this crisis the idea that the IMF would be involved in bailing out Greece was regarded as a humiliation for Europe; but Germany insisted that the IMF would play a role, and so it will, alongside loans from individual members of the eurozone.

There's more in the deal that Germany wanted - a call for strengthened surveillance of economic and budgetary risks and a task force to look at what further measures are needed.
France, naturally, is claiming its fingerprints are on the deal:

EUobserver.com said:
Under the deal, approved by eurozone leaders after late evening talks, a funding package will be created, made up of voluntary contributions from euro area countries and cash from the International Monetary Fund.

With the document dominated by German thinking, France is claiming a reduced IMF role as its negotiating victory.
EUobserver / Eurozone leaders agree on Franco-German bail-out mechanism
 
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ang

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BRUSSELS (Reuters) - The leaders of Germany and France clinched agreement on a joint European-IMF financial safety net for debt-stricken Greece just before an EU summit on Thursday, the French president's office said.

The accord, which set the stage for a wider deal among euro zone leaders, is intended to reassure nervous financial markets and arrest a crippling rise in Greece' borrowing costs after a debt crisis that has shaken confidence in the euro.

The European Central Bank also took a key step to support Greece by extending softer rules on collateral so that Athens does not risk a guillotine on its debt at the end of this year.
Angela was determined to have it her way and Sarkozy fell in line.

More Here:-

Euro zone to back Greek safety net with IMF role | Reuters
 

Twin Towers

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Whats the point of Ireland making a contribution. It will be dead money. Now that Germany has shown it will put its own interests ahead of the other members the EU's days are numbered.
 

He3

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RTÉ is carrying a report quoting a French government source saying this would be two-thirds funded by euro zone contributions and one third by the IMF.
 

He3

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H.R. Haldeman

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I still find it hard to believe there is a eurozone country more fubar'd than us.

I also find it hard to believe that even if Greece is indeed more screwed than us that they are so much more screwed they need a bail-out and we don't. The gap between our respective levels of screwdness would have to be pretty damn enormous for that to be the case. Were their gombeens really a magnitude worse than ours? If so, considering we have world-class gombeens, theirs must be truly, erm, Olympian.
 

patslatt

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Greek interest rates to drop?

Points: The IMF is coming inside the eurozone tent. Ireland gets to make a 'voluntary' contribution. They hope it won't be called on.



BBC News - Deal reached over Greece debts at Brussels summit


Jonny Dymond's view -



France, naturally, is claiming its fingerprints are on the deal:



EUobserver / Eurozone leaders agree on Franco-German bail-out mechanism
The EU rescue package provides assurance that Greece can continue borrowing in international bond markets for a few months at least. That gives the government the opportunity to exploit the drama of this international rescue by implementing further austerity reforms for coming years under the technical guidance of the IMF. The latter's intervention is needed to reassure markets that reforms are not a pretence and that government accounting practices are not deceptive as in the past. If reforms proceed despite opposition from the Greek street and public sector unions,interest rates on Greek government bonds should decline by a percentage point or more.
 

Ecoguy

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It will be interesting to see market reaction to all this and how it affects the plunging Euro over the coming week - I wonder will the IMF have a role in mucking out the other PIGS over the coming months:confused:
 

Sync

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I still find it hard to believe there is a eurozone country more fubar'd than us.

I also find it hard to believe that even if Greece is indeed more screwed than us that they are so much more screwed they need a bail-out and we don't. The gap between our respective levels of screwdness would have to be pretty damn enormous for that to be the case. Were their gombeens really a magnitude worse than ours? If so, considering we have world-class gombeens, theirs must be truly, erm, Olympian.
I think the last stats showed about 20% of them weren't paying their taxes. They only got in the euro in the first place by fudging the numbers. So yes to your question.
 
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How will this go down with the German nation? Dont they have some elections coming up?
 

danger here

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How will this go down with the German nation? Dont they have some elections coming up?
Not really elections in a GE sense,one state election.
 

Al.

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Doesn't matter; Germany's still calling the shots on this one. (Not exactly "pooled" sovereignty, is it?)
 

danger here

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Couldn't agree more Al. but it is what it is,going forward.
 

Abrax

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[ame="http://www.youtube.com/watch?v=WoLVWvqEwzs"]YouTube- Rocky Balboa 6 Training scene[/ame]
 

Clanrickard

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bye bye corporate tax
Why? We are not asking for money and even if we were there is no suggestion our tax rates would have to be changed.
 

bormotello

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paulp

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Trichet and the ECB not happy with "deal" - the Euro is not out of stormy waters yet!!

EU Backs IMF Aid for Greece Amid Trichet?s Opposition (Update1) - Bloomberg.com
Does bringing in IMF help sell austerity measures to Greek public - some of the bad feeling, bad press of cuts in wages and rises in taxes will deflect onto IMF instead of EU?

Also, German demands for tightening of Eurozone rules are all good and well, but let's see if France and others have back bone to push for measures to equalize trade surpluses/deficits within Eurozone, to get Germans to start spending a bit.
 
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