A Greek Reader Responds

Here’s a take from a reader in Greece:

I am a tactical reader of your very interesting postings. Your analysis about the EU and Greek problem is almost right.

One observation(speculation) and objection : Next Greek elections will be won by the right-centre party of New Democracy(not by the left) and together with other minor pro-Euro parties will form a new government. Then the ball will be at Ms Merkel’s side in order to come with a more viable plan which looks into the future of Europe and not just an austerity plan which looks at the past and is a form of punishment(albeit a fair one) for reckless states like Greece. The problem in Europe is the Spanish banks and not the Greek state. The overall debt to GDP in Greece ( if you count the private debt) is much smaller than that of other EU countries and not only of Med countries. The problem is political and not financial , so the only solution is greater EU unification. Its very difficult to implement it, since most EU states are against it and the level of political leadership in EU is very low.

So, being a speculator I would suggest to anticipate a rally (short-lived) close and (or) after the Greek elections. Long term the problems will remain.

Posted by on May 20th, 2012 at 7:52 pm


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