- Editorial, “Greece’s tragedy is made at home“
If the Greek state stops paying salaries and pensions, that is a tragedy – but one of Athens’ own making, which others should not take it upon themselves to prevent.
- Martin Wolf, “Why breaking up is so hard to do“
US banks have an exposure of €478bn ($650bn) to Greece, Ireland, Italy, Portugal and Spain.
- Ralph Atkins, “Marked by a miracle“
“The German approach is principles first,” says Peter Bofinger of Würzburg university. “We may get Götterdämmerung but it doesn’t matter, we stuck to our principles.”
- Peter Spiegel, “Debate rages over source of euro rescue funds“
. . . where will the money for the new rescue system come from?
- Alan Beattie, “Eurozone crisis has making of horror sequel“
You hear two polarised arguments about fiscal policy in a debt crisis: one, austerity never works; two, you don’t get out of debt by taking on more debt.
- Yao Yang, “Don’t expect China to ride to the euro’s rescue“
China’s long-term goal is to make the renminbi an international currency, but this will take time. In the meantime, its interests are clearly served by a strong euro.
New York Times
- Landon Thomas, “Greece nears the precipice, raising fear“
Total Greek public debt is about 370 billion euros, or $500 billion. By comparison, Argentina’s debt was $82 billion when it defaulted in 2001; when Russia defaulted, in 1998, its debt was $79 billion.
- Horst Seehofer, “We won’t abandon Greece if it leaves the euro“
Eurobonds just means collectivizing our debts. We don’t go along with such a scheme under any circumstances.
- Ramesh Ponnuru, “Strong Countries, not Greece, should ditch euro“
The economies of France and Germany are so large that a policy designed for the euro zone as a whole would inevitably be a better fit for their needs than for those of the countries on the zone’s periphery.