Daily digest: Finland’s collateral is messing up the second bailout of Greece

Posted on | August 23, 2011 | No Comments

Germany announced yesterday that the deal between Finland and Greece for Athens to provide collateral in return for loan guarantees requires accept from all 17 eurozone members.”Such a bilateral accord may not be agreed to the detriment of the others,” a German Finance Minister spokesperson said.

This new demand for collateral in the second bailout of Greece has made the American based rating agency Moody’s to warn investors, since Moody’s predict the other eurozone countries to reject the deal between Finland and Greece. Finnish Prime Minister has already said that if their collateral deal is thrown out they will not sign up to the second Greek bailout.

For once the European stocks opened higher this morning. The rise followed the positive sessions in Asia and the U.S. London’s FTSE 100 opened 1% higher like Germany’s DAX, while Paris’ CAC-40 rose 1,3%. Commentators are warning if data show a slow growth it  could cap any of these gains.

The leader of the opposition party in Sweden – the country is a member of EU but not the eurozone – has rejected any possibility that the country will join the eurozone in his lifetime. ”[Swedish euro membership] is not on the agenda for the foreseeable future – during my lifetime, as long as I make the decisions,” he is quoted. Without support from the opposition it will not be possible for Sweden to join the euro.

Merkel and Sarkozy have been meeting one-on-one seven times in the last 18 months, but their relationship isn’t close enough, and this can be huge problem. “Poor relations between Merkel and Sarkozy are one of the big problems of dealing with the debt crisis because it’s up to European Union leaders to handle this,” Fredrik Erixon, head of the European Centre for International Political Economy in Brussels, said in an interview.

Category: Daily Digest
Tags: > > > > > > > >

Comments

Leave a Reply





CAPTCHA Image
*

  • Comments from EUgonzo

  • Tweets on Europe

  • From Facebook



    See our page on Facebook


  • Advertising

    • WP SlimStat