Tuesday, September 27, 2011

Junker: I was wrong to be honest about being a liar

In a rather shambolic exchange between UKIP's Nigel Farage and Jean-Claude Junker, President of the Eurozone, Junker comes up with an interesting point.

"Yes I lied, but I was wrong to have be so honest about it."

Worse he refuses to answer the important question, which is whether Greece can default and remain in the Eurozone.

Legally it can be done of course. It would take one hell of a lot of rewriting of contracts and would be a bureacratic nightmare, but it can be done.

However politically it is very interesting.

What will the EU say to Ireland for example? After all why should the Irish pay back 100% of their bailouts while the Greeks get a 50% cut.

Or what will he say to Italy who will read the lesson that it doesn't matter about too much austerity as the Eurozone will allow a default on its debts?

Neither of these key issues is addressed, and leaves the whole issue of Greek default is still a Gordian knot.

No comments: