Plan C: Purge.
It almost goes without saying anymore, but here it is: Things in Greece? Not good. Talks between the plucky cradle of democracy and the countries it owes in excess of €300 million to are going nowhere, unlike what little money remains in Greece, which is going all over the place and fast. Even with the Hellenic FDR taking a short time out, nothing. On the bright side, with the free time they’ve had not negotiating, Berlin and its satellite regimes finally got around to cobbling together the Plan B they rather emphatically did not have last week, in between chats with the press.
"(Is) the eurozone prepared for eventualities, the answer to that is: 'yes'," Dijsselbloem said….
"I wish that less time would be given to interviews, and more on extraordinarily conscientiously working on keeping Greece from the threatening abyss," he said.
So, hooray for contingency plans and extraordinarily conscientious working. But don’t be lulled into a false sense of security, warneth Moody’s.
In a report published Thursday, the rating company warned that “the impact of a Greek exit should not be underestimated.”
“The direct impact might be limited because of Greece’s limited trade links and lower financial market exposure to Greece in other euro area countries. But its exit could nevertheless cause a confidence shock and disrupt government debt markets,” Alastair Wilson, a managing director at Moody’s and one of the authors of the report said….
“That would inevitably influence the course of future reform and fiscal consolidation programmes. It would raise, even if only a little, the likelihood that they too could end in default and exit.”
Eurogroup’s Dijsselbloem says Europe prepared for any Greek outcome [Reuters]
Grexit Risk? Don’t Underestimate It! [WSJ MoneyBeat blog]