It seems that Europe once again shot its last bullet a few days too early (to use a more polite phrasing than the alternative) with the announcement from last week that the Greek bailout was a done deal. As we speculated, various complications will soon emerge for anyone who cares to read the fine print in the bond indentures which preclude the imposition of Collective Action Clauses, thereby making an enforcement of a "voluntary" maturity extension problematic if anything. Below we present an article that appeared in Handelsblatt in the last hour, which indicates that opposition to the rescue has emerged not only from Slovakia, but from the UK as well. The English is about as garbled as possible thanks to Google translate, but oddly enough far more understandable than the periodic soundbites of outright lies from the pathological troica of Rehn-Junker-Trichet.
From Handeslblatt (which still has to apologize for fooling millions into buying Greek bonds a year ago).
The Government of the Euro zone is likely to decide later than planned on the second aid package for Greece.There were so many unresolved problems that the finance ministers of the new loan package is expected but not yet on 20 could decide to June, said a senior EU official to the Handelsblatt.
Sun push the planned financing of the new loan package from the euro rescue fund EFSF unexpectedly big difficulties in the Euro-state, Slovakia. The country is not in the ongoing bilateral loans to the euro zone for Greece in the amount of 110 billion euros involved.
If the new loan program will be transferred to EFSF, Slovakia would continue it. Therefore refuse to run the government in Bratislava, loans for Greece over the EFSF leave. Germany is in turn seek to build on the EFSF for it. For then would the federal government the delicate vote in parliament over the next aid package to save Greece.
Resistance is also available from the UK. The new loan package is intended to be financed solely from the euro rescue fund EFSF. The remaining amount of eleven billion Euro in EFSM-fund of the EU Commission are to be mobilized. EFSM for the fund, all 27 EU countries now, including countries outside the euro zone as Great Britain.
The government in London wants the EFSM-pot but do not empty for Greece. The end of June pending credit tranche for Greece will be paid even if the new aid package for Hellas then not get up, it said in Brussels.
The IMF is now willing to pay its share in the amount of 3.3 billion € in any case. Only prerequisite is that the government and Parliament in Athens, the promised additional austerity measures and privatizations decide as agreed.
In the German Bundestag, the opposition is growing: SPD parliamentary leader Frank-Walter Steinmeier, Chancellor Angela Merkel (CDU) has been invited to make this Friday a government declaration on the further support of Greece and the euro in the Bundestag.
He hoped that the coalition knows that they need this package for a majority, Steinmeier said on Monday in front of a SPD party meeting in Berlin. The looming considerable resistance in the Union tends to suggest that many are apparently no longer prepared to support the need of European solidarity.