Diplomats from both the U.S. and Germany call for Greece to leave either the Euro or the Eurozone
Since Donald Trump took over the Presidency of the United States in late January, there has been little that his administration and the German government have been able to agree upon. Â However one thing appears to have brought the two sides together, and that is what to do with the coming Greek financial crisis.
On Feb.8, President Trump’s Ambassador pick for the EU stated that he sees Greece cutting ties with Germany in this go-round of debt and austerity talks, and are more likely than ever to default on their sovereign debt and go back to the Drachma currency.
Amid a more prolonged economic doldrums than The Great Depression, Greece is heading towards its 4th bailout/deal with creditors. Adding to Grexit fears (voiced by many in and out of Greece), Ted Malloch, President Trump’s proposed US ambassador to the EU, casts doubt on survival of eurozone and says Athens should return to drachma. – Zerohedge
These statements were then followed one day later whenÂ the head of Germanyâs pro-business Free Democrats (FDP) where he told a German radio station that while they would like to see Greece remain in the Eurozone, their enormous debt appears to make this impossible and they should plan for a Grexit so they can default on that debt and begin again.
Greece should leave the eurozone and then be given debt relief, the head of Germanyâs pro-business Free Democrats (FDP) told a German radio station on Thursday. Greece should, however, remain in the EU, FDP leader Christian Lindner told Deutschlandfunk, so it can get subsidies to put into infrastructure or help small- and medium-sized businesses. âItâs clear that Greece needs to have its debts written off,â Lindner said. âGreeceâs debts can only be written off outside of the eurozone, so weâre talking about Grexit.â – Russia Today
A whole lot has changed in Europe since the last Greek financial crisis in 2013, with thoughts about defaults and the abandoning of the Eurozone now becoming viable options since Britain paved the way back in June of last year. Â And the reality of the situation is also that Germany has too much to lose this time in playing a role in trying to restructure Greece’s sovereign debt, and doesn’t appear that they want to play along, especially with the Merkel government potentially soon being voted out of office.
Kenneth Schortgen JrÂ isÂ a writer for The Daily Economist, Secretsofthefed.com,Â Roguemoney.net, and Viral Liberty, and hostsÂ the popular youtube podcast on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.