Orderly Greek restructuring a ‘fairytale’. Talk about Greece reneging on debt commitments “has been very damaging” and suggests “that investing in the euro area is unsafe,” (…) “a debt restructuring, or exiting the euro, would be like the death penalty – which we have abolished in the European Union”.
Greece set for severe bail-out conditions. With political opposition to new loans to Greece growing in several northern eurozone countries and the European Central Bank adamantly against any restructuring of Greek debt, European leaders see the privatisation plan as the best hope of staving off insolvency. (…) But several diplomats and officials said repeated failures by Athens to start such sell-offs have convinced them of the need to impose new conditions on the programme, including the possibility of an international agency running the divestments. “The state is not functioning,” said one senior European diplomat.
