Wednesday, June 17, 2015

Greece Countdown

Statement from Central Bank in Athens --

Equally important will be the reaffirmation and articulation in more specific terms of our partners’ willingness to provide debt relief, as initially stated at the Eurogroup meeting of 27 November 2012.

It's worth reading that statement in full, since it has been frequently misinterpreted. In particular, certain econo-pundits have focused on the 4.5% primary budget surplus target as proof of austerity madness, when the same statement clearly indicated there would be massive debt relief in the medium-term. It's the failure to achieve consensus on that latter part of the plan which has aggravated the situation.

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