Greece ‘in a corner’ as Europe blocks payment

As oft stated here, Greece will not leave the union and it’s all leading back to Berlin, the world’s next superpower, who runs the show on the continent. Worst case scenario: There could be a compromise entailing a two tier currency system that allows regional states to retain their economic sovereignty to some degree — or at least they would think.

Such an idea already has backing from Angela Merkel and if the crisis deepens — because it’s not going to magically go away — look for ideas like these to gain even more traction and possibly become reality. ‘Eurobonds‘ were also another scenario.

For further info on a plausible two tier currency system, please see the following posts:

The new Great Game: Europe looks within for roots of renewal

European Commission Plans for Greater Integration

France Is Heading For The Biggest Economic Train Wreck In Europe

Is Germany Already Signaling The Complete (Economic) Collapse Of The European Union?

 

Greece’s last-ditch attempt to get desperately-needed funds from its euro zone neighbors failed on Wednesday, but the country appears eternally optimistic that a list of reforms — as yet to materialize — will unlock vital aid.

Greece appealed for the European Financial Stability Facility (EFSF) to return 1.2 billion euros ($1.32 billion) it said it had overpaid when it transferred bonds intended for bank recapitalization back to the fund this month, Reuters reported Wednesday.

However, euro zone officials ruled that Greece was not legally entitled to the money, the news wire said.

“The clock continues to tick ever louder for the Greek government, as it continues to scrabble around for every last euro in an attempt to stay afloat on a day to day basis,” Michael Hewson, chief market analyst at CMC Markets, said Thursday.

“Given some of yesterday’s events it is slowly becoming apparent that the Greek government is slowly being pushed into a corner.”

Naeem Aslam, from AVA Trade, warned that Greece was “running out of options very rapidly to keep its daily operations floating.”

He said the county was “highly likely” to run out of cash when another loan repayment was due to the IMF on April 9.

And Aslam stressed that the ECB too was “closing all the back doors for Greece to make sure they do submit a reform package which does make more credible sense by next week.”

“What plans the game theory expert, the Finance Minister (Yanis Varoufakis) of the country, has up his sleeves, no one knows, but surely he is running out of option under the current circumstances,” he said in a note.

Full article: Greece ‘in a corner’ as Europe blocks payment (CNBC)

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