Publication

The ongoing crisis affecting Greece has reached a delicate point. Greece can obtain further funding from financial markets, but it finds that the interest rate it has to pay (6.5% for ten-year bonds) is unbearable. Germany seems to have taken the position that no support is needed (and none will be granted) as long as Greece can refinance itself on the market and that the country just has to accept the conditions that the market is offering. This stand-off has prompted a lot of speculation that Greece might turn to the IMF for support. The German government now seems favourably disposed to this approach.