Saturday, February 20, 2010
Germany Doesn’t Have Plan to Aid Greece, Finance Ministry Says
We all know that Greece is in a big trouble. The only way Greece can handle the deficit crisis is to get some help from EU countries in some form of financial aid. Lately, there has been a lot rumors/speculation going about what are the next steps in helping Greece to get out of default on its debt. For example, one of the articles appeared in a recent edition of the respectable German magazine reported that Germany is asking euro-area governments to provide $35 billion worth of loan to help Greece. Magazine also said that Germany would finance 20% of the aid, without saying how it got the information. Once the article was reported, there was an instant message from the German ministry of finances that there is no such decision in this regard, and Germany is not considering a "concrete plan". Overall, it would be very interesting to witness how European Union is going to solve this economic problem, and hopefully, too big too fail policy would apply to Greece.
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Even though Germany has the biggest economy in Europe I don't think that it should be the only country held responsible for bailing Greece out. That being said, someone if not all the countries need to come together to help Greece because if nothing is done their currency will pay for it. Greece is not requesting any help but I don't think they will survive without it.
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