Greece waived the white flag and surrendered to the Troika upon advice from Mr. Papoulias, Greek President, who spoke during a dinner and urged his military leaders to support him.
Mr. Papoulias comes from a long line of important public and/or military figures and is listened to when he speaks about his country and the future.
Greek Parliament has agreed to the terms and conditions as proposed by Germany to give up their financial and budget decision, at least for now, and to allow Germany to manage a special account designed to ensure Greek revenue will be used first to pay back their debt to the ECB/IMF/EU, known as the Troika.
Mr. Papoulias’ speech coincided with the Dutch decision to postpone a vote on the Greek bailout package.
The next tranche of 130 billion euros was scheduled to be remitted on March 20th, but postponements of individual members put the release of funds at peril and in question hence the public intervention of the Greek President.
It is widely believed that the current Greek Parliament wants to ensure the next tranche of the bailout package and wants the IIF to agree to a 65% “haircut” prior to holding elections. That will save Greece about 100 billion euros in debt in addition to the bailout funds.
Once elections are held, Greece will walk away from the euro and solve its own economic problems with the assistance of Russia, according to sources in the Greek government.
While it has been known for some time that Greece does not suffer from a simple liquidity problem but has always had a serious solvency problem, exiting the Eurozone may be the least painful solution after all.
Greece will be able to focus on its internal production and manufacturing capacity to ensure stable GDP growth with stronger exports to Europe and Russia.
After all, growing a suffering economy while implementing severe austerity packages that are mandated is a Herculean task and one that is not easily achieved.
The Eurozone can then also focus on protecting potential problems in Italy and Spain which will strengthen the euro and bring back stability and credibility to avoid a recession.
One can conclude that Greece decided or is on the verge of deciding to pull back their Trojan horse and Mr. Papoulias was instrumental in the quiet retreat.
Written by Nick Doms © 2012, all rights reserved.
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