Thursday, April 14, 2011

Method to their madness

Prof. Richard Portes, London Business School

Of course, the Emerald Isle could evade responsibility altogether by simply waiting for Greece to restructure its debt first, at which point there will be general confusion and markets will shun Ireland anyway. If that is the tacit strategy, there may not be long to wait.

Wall Street Journal

German Finance Minister Wolfgang Schaeuble, in a question and answer interview with the Die Welt newspaper, held out the possibility that a June audit might show that Greece won't be able to overcome its debt load without relief. Mr. Schaeuble said "other steps" might need to be taken, without suggesting directly that Greece might need to restructure its debt.

"I am awaiting a detailed analysis of Greece's debt sustainability [in June]," Mr. Schaeuble was quoted as saying, referring to a report that also will go to the European Commission and the European Central Bank.

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