Greece puts its islands (land) up for sale
Desperate attempt to repay debts also driven by inability to find funds to develop infrastructure on islands.
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Greece has embarked on the desperate measures after being pushed into a €110bn (£90bn) bailout by the EU and the IMF last month, following a decade of overspending and after jittery investors raised borrowing costs to unbearable levels. guardian.co.uk
EURO 'COLLAPSE' COULD DRAG EUROPE INTO CONFLICT
THE euro is on the verge of a collapse that could drag Europe into conflict, billionaire financier George Soros warned yesterday.
The veteran investor said massive budget cuts proposed by Germany could destabilise the European Union by dragging down its neighbours’ economies.
He said: “German policy is a danger for Europe. Unfortunately, a collapse of the euro and the European project cannot be ruled out. express.co.uk
Soros tells Germany to step up
"Unless Germany changes policy, its withdrawal from the currency union would be helpful for the rest of Europe. At the moment Germany is pushing its neighbours into deflation: this threatens a long phase of stagnation, leading to nationalism, social unrest, and zenophobia. It endangers democracy," he said.
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Professor Krugman said there was a risk of a "domino effect" reaching Spain and Italy if Bundesbank chief Axel Weber takes over as head of the ECB and fails to offer enough monetary stimulus to keep these countries afloat.
One analyst said that Mr Weber faces an impossible task. "Either they do more QE (quantitative easing), in which case it will set off inflation in Germany and cause Germany to leave EMU: or they don’t do more QE, in which case it will lead to deflation in Southern Europe and force them out of EMU," he said. telegraph.co.uk
Desperate attempt to repay debts also driven by inability to find funds to develop infrastructure on islands.
...
Greece has embarked on the desperate measures after being pushed into a €110bn (£90bn) bailout by the EU and the IMF last month, following a decade of overspending and after jittery investors raised borrowing costs to unbearable levels. guardian.co.uk
EURO 'COLLAPSE' COULD DRAG EUROPE INTO CONFLICT
THE euro is on the verge of a collapse that could drag Europe into conflict, billionaire financier George Soros warned yesterday.
The veteran investor said massive budget cuts proposed by Germany could destabilise the European Union by dragging down its neighbours’ economies.
He said: “German policy is a danger for Europe. Unfortunately, a collapse of the euro and the European project cannot be ruled out. express.co.uk
Soros tells Germany to step up
"Unless Germany changes policy, its withdrawal from the currency union would be helpful for the rest of Europe. At the moment Germany is pushing its neighbours into deflation: this threatens a long phase of stagnation, leading to nationalism, social unrest, and zenophobia. It endangers democracy," he said.
...
Professor Krugman said there was a risk of a "domino effect" reaching Spain and Italy if Bundesbank chief Axel Weber takes over as head of the ECB and fails to offer enough monetary stimulus to keep these countries afloat.
One analyst said that Mr Weber faces an impossible task. "Either they do more QE (quantitative easing), in which case it will set off inflation in Germany and cause Germany to leave EMU: or they don’t do more QE, in which case it will lead to deflation in Southern Europe and force them out of EMU," he said. telegraph.co.uk