La France, Germany and other euro countries are preparing to establish a cordon sanitaire around Greece. To avoid the contagion of the fiscal crisis in southern Europe. The decision Wednesday by mature finance ministers must be confirmed Thursday by a special economic summit convened in Brussels.
Past Time denials on a "bailout plan", the sixteen Ministers of Finance have written Wednesday afternoon, the scenario during a videoconference decided in haste with the ECB president, Jean-Claude Trichet, and the new Commissioner of Economic Affairs Olli Rehn. Thursday it was the turn of the Heads of State and Government. Paris seemed to confirm an impending decision by saying that Nicolas Sarkozy and Angela Merkel will speak together at the end of the summit."This is a response to market concerns," said President of the Eurogroup Jean-Claude Juncker.
Risk of contagion
The capitals of the euro area are found immersed in financial emergencies. It is no longer helping private banks threatened with bankruptcy, but sovereign states, victims of speculative attacks that threaten the stability of the euro.
Greece, whose fiscal situation is dramatic, can not find a buyer for the debt markets, less than 6% for a state loan to ten years, a price two times higher than Germany.The scenario of failure refinancing of Greece, with an explosion of interest rates, leading to bankruptcy of the country, hanging over all Euro zone.
The risk of infection, reported by the European Commission itself has closed the debate on whether to isolate and treat the first victim vigorously payday advance . "Greece is affected, and everybody crosses their fingers on a much more cumbersome: Spain", notes one diplomat. Treatment thought Wednesday could well be applied to others. "We envision all possible scenarios," said one senior European official.The draft promises to be bitter for the country ill: an infusion of bridging loans and short-term government guarantees, with counterpart, a say close to Europe and / or creditors in the reorganization undertaken by the governments.
These are the states at the forefront Paris and Berlin, who took the initiative. The French and German banks hold nearly 40% of the Greek foreign debt, which is active in mueraient balls if the crisis drags on trust.
Even with a label "European", the injection of state funds – for example French and German – to help a national treasure would be a first in the euro area. The creditors will not invest lightly in countries that already spend for pierced baskets. "Yes, help arrives.No, there is no question of releasing the pressure on Athens, Wednesday secured a European negotiator.
In practice, they are also the states should ensure, with an assiduity worthy of the IMF, that Greece meets the rigor period prescribed by Prime Minister Papandreou.
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