Lawerly advice to Merkozy

Nicolas Sarkozy, the French president and Angela Merkel, the German Chancellor, said no funds from either Europe or the International Monetary Fund (IMF) would be made available until Greece had accepted the austerity programme.

At a press conference Mr Sarkozy said: \”Our Greek friends must decide whether they want to continue the journey with us.

\”We cannot commit European taxpayers\’ money unless the rules unanimously adopted in Brussels are respected to the letter.\”

He was flanked by Mrs Merkel, who added: \”The referendum will revolve around nothing less than the question: does Greece want to stay in the euro, yes or no?\”

Never, ever, ask a question you are not already sure of the answer to.

Because you might very well find out that the answer you don\’t know is the answer you don\’t want.

13 thoughts on “Lawerly advice to Merkozy”

  1. @Serf:
    Yes Matthew, but unfortunately after bankrupting the whole of the Eurozone in order to get here, they might vote yes.

    Perhaps, but how many times will the EU force them to vote until they get the ‘right’ answer?

    However, in all seriousness, we all know that their is only one exit out of the Greeks ‘burning cinema’ and that is the one marked ‘default’.

    Sure, there will be lots of fall out, but at least then the Germans can stop shovelling barrels of Euros at the Greeks which is doing nobody any good.

    Fortuntely, this may all very well be moot as I doubt that the Greek government will survive the vote of no-confidence on Friday. Their majority in the Greek parliament is wafer thin and MP’s on the government benches are thinking about how they will survive after the fall. One MP has already crossed the floor and others are likely to follow, possibly during the motion itself.

    High drama that can only end in default. The Greeks appear to be setting the scene so they can all blame somebody else.

    The Euro has no exit clause because that is the way the the EU ratchet works, always towards a Federal Europe and never a way back, but the Greeks may be about to show the rest of the EU states how the game should be played.

    If they default, then they must be ejected from the Euro, but this is impossible, but it must happen – and so the edifice will crumble.

    As old Abe Lincoln said back in 1858 – “A house divided against itself cannot stand.”. A pretty accurate depiction of the Eurozone at the moment and the EU as well.

  2. Looking through the news sites, Merkel isn’t the only one saying this. The chairman of the Euro Group has mentioned it, and the Greek PM apparently told his cabinet right at the start it would be a referendum on euro membership. Stormy waters ahead.

  3. Reading John Galt’s comment and remembering something I heard last night got me thinking: Why is everyone in the so scared of a Greek default?

    Yes I know there will be carnage in the financial markets for a while, but that’s happened before and we’ll get over it. No, what they are really scared of is that Greece recovers faster than anyone has predicted and certainly faster than it would if it stayed in the Euro.

    That would be a disaster on two counts: it shows that the Euro wasn’t set up correctly but even worse, it shows that all those damned loony Euro sceptics were right. And that really wouldn’t do.

  4. ‘Why is everyone in the so scared of a Greek default?’

    Because it makes it much easier for Italy, France, Ireland, Portugal, Spain et al to take the same path.

  5. ‘Why is everyone in the so scared of a Greek default?’

    Its not “everyone” that is so scared of a Greek default. It is the Euro enthusiasts. As Worzel quite rightly points out once one has trodden the path others can (and probably will) tread the same path. We will end up with a bunch of dominos as Italy, Portugal and Ireland follow Greece out of the Eurozone and back to national currencies during 2012-2014.

    What then the mighty United States of Europe? My guess is nothing but dust on the wind, which is enough to set fear into the hearts of all of those Euro Federalists working for the glory of the new empire.

    Up Yours Delors!

  6. This is frightfully entertaining. I’ll have to divert some of the popcorn supply from movies to the news.

  7. So Much For Subtlety

    dearieme – “Matthew, what you need to know is that the good-looking girl is the PM of Denmark.”

    Yeah but isn’t she the one married to a Kinnock? So even if you would, you wouldn’t or at least you shouldn’t because frankly who needs the grief from women like that?

    A minimum of taste and common sense is a requirement for any relationship, no?

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