In late April, I wrote a post predicting why the EU is temporarily dropping the 3% hurdle. The gist of the post was that in the euro zone and in Europe more generally, the economy was decelerating much faster than anticipated. To get ahead of the inevitable target misses, the EU was going to have to decide whether to re-double efforts or to relax targets. I felt that the EU would relax targets because of the problems for the Netherlands, Italy and Spain in particular. Now the German press is reporting this will happen for Greece as well under specific conditions.
Die Zeit writes:
Griechenland könnte schon bald ein drittes Hilfsprogramm benötigen. Wie die Wochenzeitung DIE ZEIT aus Finanz- und Regierungskreisen erfuhr, ist das Land bei der Umsetzung seines Programms im Rückstand. ...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.