If you haven’t been paying attention you might be interested to know that Greece has been saved again. We’ll have to wait and see what the actual EU summit produces, but early reports are saying that the plan focuses on Greece (via MarketWatch).
“SYDNEY (MarketWatch) — France and Germany have reached a joint agreement over a Greek bailout package, according to a report in the Financial Times newspaper. Euro-zone leaders will meet later Thursday to try to hammer out a decisive response to the region’s sovereign-debt woes. The euro advanced to $1.4266 in early Asian trading hours on Thursday, from $1.4230 in late North American trading on Wednesday.”
Now, this isn’t the first time Greece has been “saved” and it likely won’t be the last as an increased EFSF (or whatever they come up with for Greece) will not resolve their budget crisis, economic contraction and certainly won’t fix the rest of the region’s problems. Most importantly, another can kicking policy will not fix the inherently broken EMU. Let’s see what they come up with tomorrow. For now, the focus on Greece needs to change to a much broader focus so as to avoid contagion….