It's Official - EU Agrees On Greece Bailout

Tyler Durden's picture

German opposition crumbles, as a Greek bailout plan is now official. We expect Portugal, Spain, Italy, Latvia, Ukraine, Bulgaria, Austria, and, finally, the UK, to line up next at the trough. And for all of you cynical bastards who thought that G-Pap was full of methane when we claimed he was not looking for aid... You were right. So now, under the wise tutelage of Goldman, make sure to plough all your money into the Euro. After all there are at least a few months before the next bailout has to be effected.

From The Guardian:

The eurozone has agreed a multibillion-euro bailout for Greece as part of a package to shore up the single currency after weeks of crisis, the Guardian has learnt.

Senior sources in Brussels said that Berlin had bowed to the bailout agreement despite huge resistance in Germany
and that the finance ministers of the "eurozone" – the 16 member states
including Greece who use the euro – are to finalise the rescue package
on Monday. The single currency's rulebook will also be rewritten to
enforce greater fiscal discipline among members.

After all bailing out worked miracles for the US financial system and Dubai, so why not again... and again... and again. Good thing the UK, which as UniCredit pointed out yesterday could be next in the bailout wagon, is not paying. Now that would be truuly ironic.

The member states have agreed on "co-ordinated bilateral
contributions" in the form of loans or loan guarantees to Greece if
Athens finds itself unable to refinance its soaring debt and requests
help from the EU, a senior European commission official said.

Other
sources said the aid could rise to €25bn (£22.6bn), although it is
estimated in European capitals that Greece could need up to €55bn by
the end of the year.

Germany, the EU's traditional paymaster, but
the most reluctant to come to the rescue of a fiscal delinquent in the
current crisis, has played the pivotal role in organising the rescue
package, the sources added.

"There have been quite intensive
preparations under the eurogroup. We have the ways and means to do it,"
said the senior official, asking not to be named because of the
subject's sensitivity.

We expect Greek rioting to break out in Berlin relatively soon.