From The Baseline Scenario:
The EU, led by France and Germany, appears to have some sort of financing package in the works for Greece (probably still without a major role for the IMF). But the main goal seems to be to buy time – hoping for better global outcomes – rather than dealing with the issues at any more fundamental level.
Greece needs 30-35bn euros to cover its funding needs for the rest of this year. But under their current fiscal plan, we are looking at something like 60bn euros in refinancing per year over the next several years – taking their debt level to 150 percent of GDP; hardly a sustainable medium-term fiscal framework.
Read the rest at The Baseline Scenario –>
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See Also:
- Why The Lessons Of New York City’s Debt Crisis Won’t Help Greece
- Economist Who Predicted The U.S. Financial Crisis Sees European Sovereign Crisis As Inevitable
- PIMCO’s El-Erian: Even With Euroland In Disarray, We’d Still Rather Own German Debt Than US Debt