EU core countries to hold crisis mini-summit

I can't see the Eurozone allowing Greece to leave Euro for some time, the ramifications could be disastrous, there are all the bank liabilities under the ECB's Target 2 system, which would turn into much lower value drachmas causing more pain for Euro banks.

There's also the contagion problem - if Greece leaves the Euro the markets will swiftly speculate that Spain and maybe even Eire, Italy & Portugal are next and this crisis could spiral into something wildly out of control. And again you have Target 2 liabilities to think about, which be on a much bigger scale with Spain.

The ECB needs to step up to the plate once again and buy time for Eurozone policy makers, IMF etc.. to figure out how to deal with the peripheral countries.

David Hill

In your answer to Justin , you also answered your previous response to this article .
The EU commission , heads of state might say to you ,
" Inovation ! What's that ! "
The EU is not an Integral unit and as such has No control over the functining of 27 vastly differing states . The EU is not a democratic entity ; despite the outward appearances of parliament and support of member governments . Out of 500ml supposed individual members , less than half may actually support the EU or their country's membership . What would be the result of an In or Out referendum in Britain be . My guess is about 65% voting Out and maybe even higher .
Greeks rightly dont give a toss about the EU , only saving their own skins .
When you have government by committee , with so many divergent policies , where are you going to get Inovation from ?
The only sector that seems to employ innovation is the banking and financial services ," Hypothecating " , Fraud , and any other financial ruse that generates money by itself , rather than promoting manufacturing industries that employ people , who in turn earn money and pay taxes . Hypothecating in the US is limited to 140% in Britain no limit .
The whole concept of the EU is outdated and economically selfcentred . Today we have a so called union of 27 states , half of whom are effectively bankrupt . So we are creating and trying to enforce an EUSSR , despite the fact that the USSR failed after little over 70 years .
Globalism is a huge mistake , which as I see it is already beginning to implode , the EU is a part of the global concept . Globalism is supposed to be the means by which the US will control the world .

The EU doesn't have a mindset , or a mind ; we are in the hands of mindless bureaucrats only concerned with getting more perks on the gravy train .
Member states are caught in a sort of blackmail trap of not letting the others down . The EU is in a blind ally from which there is no exit , other than a complete about face or disolution . You give the EU no more than 30yrs , for the benefit of all Europeans I wish it would be much less .
Europe needs to go back to manageable individual states , that operate along the lines of their culture and customs . Small closer knit units work better .
The idea of being trading partners is mistaken ; each country should be looking to sell to the world outside . Hollande and other politicians are talking about growth , when the market is largely internal bankrupt and stagnant , no growth is going to come out of it .
I wish the Greeks would vote No to austerity , default and leave the Eurozone . The hardship they suffer will be the same either way . A default might just tip the scales and start the domino collapse of the Euro .
The Euro needs to go !!! While ever the EU teeters on the edge of a precipice trying to save the Euro and EU , there will be no peace or growth in Europe .

Justin

You may be right that the EU will not allow Greece to leave the Eurozone ; but conversely the Greeks may just slack off on austerity , in the knowledge that the EU is more afraid of them defaulting than their sticking to reforms .
Contagion is the real problem , though as I see it could help the EU out of an impass . No matter what , I
believe the Euro will eventually collapse and banks and investors will not get their money back .
I believe that reallity should be faced up to now , rather than later .
Heads of State , Presidents and commission cannot accept that the EU/Euro is in a deep hole from which it cannot escape . " If at first you don't succeed , try try and try again ", but it isn't going to work .

Justin

The Euro was a political project , not an economic one . As you rightly say many prominent economists pointed out its faults and dangers . At the time Kohl and Mitterand , together with other EU leaders couldn't see any dangers . One must not forget that Germany was persuaded to join on the clear understanding that the 3% rule would be strictly maintained and that their would be no bailouts .
Germany and France were the first to break the 3% rule , so today we have the bailouts too .

I don't think fiscal union ever entered anyones heads at that stage . I believe that a single currency across the EU was intended to give confidence towards an eventual political union , the US of E . Fiscal union would arrive automatically with politcal union .

I believe it is likely that EU leaders were so hell bent on the objective of The Single Federal State , that small details such as fault in the Euro were swept under the carpet . " Nothing is achieved with negative thinking "

EU leaders knew that it would be difficult to get democratic support for political union . That was confirmed by the referendum on the EU Constitution that was voted out by France and Holland , leaving the Brits to smile , because otherwise they would have done it . From there on the EU commission has taken a tighter hold , as in NO Referendums on the Lisbon treaty . But IMO the Lisbon treaty has only served to deepen the hole and create resistence to EU control .
I believe , that "Ever Closer Union" is the rallying cry of very few heads of state or citizenry of EU sovereign states .

We have no leaders in the EU , 2nd and 3rd rate PMs and ministers ; apart from Merkel who finds herself in that position by default .

I do not believe that Fiscal union will make any difference to the present disastrous situation .
Could you have political union without EU wide referendums ? What might be the consequence of just anouncing political Union ? I do not believe a referendum on political union would produce the hoped for results .

I lived for a number of years in Italy , where I have many friends . I can tell you that Italy is an almost ungovernable country , I suspect Greece , Spain and Portugal too . Laws are made that everybody breaks , you cannot put the whole population in prison , and think of the cost .

I am very much aware of the consequences of a Greek default . If greece can do it why not Spain ,Italy ,Portugal or Ireland . Nations like Germany , France , Britain , have invested a lot of money in those countries , US banks are holding vast numbers of CDS , China has invested money . I believe that there is no way the Euro can survive in the long term ; but the longer it holds out the more devastating the financial and economic crash will be .

Banks have lent money beyond reason , because taxpayers are expected to pay them back . Banks and investors are not investing in Industry as they should when they can earn more money for themselves in devious practices , If you don't know of Hypothecating , look it up .

The whole political , economic , banking and financial world has gone rotten in recent years . This has to be stopped , before there is any way to go forward .
Incompetence and negligence are the causes of the present crisis . Like the message being passed from person to person , by the end it is something completely different .

neither Britain or any other country should have been allowed to join the EU , or EEC as we were lied to . If the original six had unified that may have worked . When John Major sign Maastrict , He believed that Britain could have a say in the direction taken forward . John major recommended the expansion to what we have today ; but he recommended a much looser confederation of Sovereign Nation States , more like a Commonwealth . The EU has taken up the expansion , but more along the lines of the failed USSR . Didn't the USSR fail because it was bankrupt ? The EU is failing for the same reason .

As I see it the EU has NO WAY FORWARD . Germany would be wise to leave the Euro , before Eurobonds are forced upon it . I believe that the only course to take now is to organise a controlled end to the Euro and help each country to return to their original currencies . Anybody who is owed money in the EU has lost it now , borrowing money to lend to bankrupt countries is stupid , it will never be paid back , the money is lost for ever , it is no use going on pretending " Good Times Are Just Around The Corner " , dream on , they are not .

First of all, we would like to express our deepest condolescences to the families who lost their people in the recent earthquakes. Here in Hellas we have suffered from similar earthquakes and we can feel the pain of the people who lost their families. Furthermore, we would like to express our deepest sadness for the destruction of the old city. If someone can feel how painful is to lose your cultural heritage cannot be anyone else apart from the citizens of the Hellenic Republic.

We believe that it is now the crucial momentum for Italy and other countries which are above the Εurafrican tectonic rift (like Hellas) to make an alliance in order to request for extra money from the Northern countries for natural disasters. It is of significant importance to ask for extra funding as Northern countries are not geographically situated above the Εurafrican tectonic rift and thus are privileged since earthquakes never occur in Northern Europe.