Germany holds all the cards when it comes to the Greek debt crisis and the expansion of the euro to the Balkan country, Greece. And they are not saying what Merkel will do when she goes to the summit meeting of EU leaders on June 24 in Brussels. Tensions and suspense build. Before the summit there was supposed to be an agreement on new aid for Greece. Leaders like Merkel were just supposed to ratify it.
Wolfgang Schauble, the German Finance Minister under Merkel, is still shaking his fist at the two Jean-Claudes, Jean-Claude Juncker and Jean-Claude Trichet along with Mario Draghi, the next in line to become head of the European Central Bank. Schauble wants the bond holders to openly share some of the losses along with German taxpayers. The Jean-Claudes want a “gentlemen’s agreement”. They don’t want anything on paper but behind the scenes they expect the bond holders to share the losses, keep their mouths shut, and continue to buy the new Greek bonds.
The last chance to come to an agreement before the summit on June 24 is on Monday, June 20 when the Euro-Zone finance ministers are scheduled to meet.
Wolfgang Schauble