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Sunday afternoon Greece: "Most important week of Europe?s monetary union"

By Anonymous

The previous post was the weekly summary and a look ahead ...

On Greece, from the Financial Times: Greek aid depends on budget cut plans

Greece has been told to produce detailed plans this week to meet its budget deficit reduction targets in 2011 and 2012, as well as this year, before it can qualify for a ... rescue package ...
excerpt with permission

And from Wolfgang Münchau at the Financial Times: Greece is Europe?s very own subprime crisis

This is going to be the most important week in the 11-year history of Europe?s monetary union. By the end of it we will know whether the Greek fiscal crisis can be contained or whether it will metastasise to other parts of the eurozone.

Münchau suggests three things to watch: 1) to see if Greece presents a credible plan (Münchau says what he has heard is "deeply discouraging"), 2) that the loan package has to be substantially more than ?45bn (Münchau says ?80bn) and 3) the situation in Germany (Angela Merkel is still struggling for support).

Meanwhile from Bloomberg: Papaconstantinou Tells Investors Don?t Attack Greece

[Greek Finance Minister George Papaconstantinou] expressed confidence the talks will be ?concluded rather soon? and said his country wouldn?t restructure its debt.

A key date is May 19th when ?8.5bn of Greece's bonds mature.

Full post as published by Calculated Risk on April 25, 2010 (boomark / email).