Greek Bailout, are we safe yet ?Posted: May 3, 2010
We are safer… But it’s just a small pause for the eurozone to catch its breath before a lot more to come.
With the activation of the EU/IMF rescue plan, Greece secured a reasonably cheap source of cash for the coming months and years (The current plan can last for up to three years)… So the unstoppable rise of Greek Bonds’ interest rates is over for now. That’s where we are safer.
But everything is left to be done… Because this crisis could happen again and deep structural and institutional changes are going to be necessary ; ranging from a dismantling of the Euro to the emergence of a united economic government… Tough choice are coming.
In the mean time, and providing no other country becomes the target of the speculators, the euro will probably stay low around $1.3 – which might help eurozone countries to boost their export, but will make oil more expensive on the old continent.
Let’s take a deep breathe : the immediate crisis is over, the long walk to recovery is just starting…