The Financial Times reports about the Greek situation:
Rioters burn the German flag in street protests. A demonstrator defaces the façade of the Bank of Greece, the central bank, so that it reads “Bank of Berlin”.
Most shockingly, a rightwing Greek newspaper depicts Angela Merkel, Germany’s chancellor, in a Nazi uniform above the headline “Memorandum macht frei” – an allusion to the memorandum in which Greece’s foreign creditors demand more austerity measures and to the Auschwitz slogan.
In Greece there seem to be a feeling, that Germany is meddling with the country a litttle too much, just as it did in WW2. From her earlier status, being depicted as an SS officer, Merkel is now portrayed with a double Swastika.
Meanwhile due to implementing the earlier IMF-EU suggestions, the Greek economy contracted by 6.8pc last year and at an accelerating 7pc rate in the last quarter, far worse than expected.
Approval of EU finance ministers is needed to unlock all parts of the complex €130bn loan package, including a 70pc “haircut” for private holders of Greek bonds, allowing the country to avoid default in March.
Germany and Northern allies seem willing to force Greece out of the euro unless there is total compliance, calculating that the eurozone is now strong enough to stem any contagion.
Luc Frieden, Luxembourg’s foreign minister, spelled out the warning in crystal clear terms. “If the Greek people or the Greek political elite do not apply all of these conditions, I think they exclude themselves from the eurozone. The impact on other countries now will be less important than a year ago.”
Of course there still is no mechanism to leave the Euro, Greece would have to leave the EU, to be able to leave the common currency.
If European leaders really want to force Greece into a disorganized default, or even have any similar plans, then Greece should start thinking about that scenario, have some plan in place. Otherwise they will end up like Malév, bankrupt and without a plan for any fresh start.