Greece Might Need Additional 10 Billion Euros In Aid


In what can only be described as a bailout black hole, Greece’s Yannis Stournaras said that Greece may require additional money in order to keep to its financial obligations. Specifically he said, “If there is need for further support to Greece, it will be in the order of about 10bn euros ($13.4bn US), or much smaller than the previous programs.”  While 10 billion euros may not seem to Stournaras like a large sum of money, particularly in comparison to the two previous bailout packages, it appears to be throwing good money after bad.  Greece has already received 240 billion euros.  Will an additional 10 billion really be the fix Greece needs?  Attached to the possible need for the additional 10 billion is the staunch position that his country will not accept any further austerity measures with the money, as it has with the other 240 billion.  Mr Stournaras made that clear in the following statement, “We are not talking about a new bailout but an economic support package without new [austerity] terms until 2016, the targets, our obligations, have been set and other measures or targets cannot be required.”  But there is some concern in Europe about this latest bailout of Greece.  Germany’s Chancellor, Angela Merkel warned against writing down any further Greek debt.  In a statement Ms Merkel says, “I am expressly warning against a haircut.  It could trigger a domino effect of uncertainty with the result that the readiness of private investors to invest in the euro zone again falls to nothing.”  Madame Chancellor’s point is well taken as there must be a time that Greece either sinks or swims.  The European Union can not indefinitely bolster Greece in order to keep her economy afloat.  And the fact that Mr Stournaras is saying that Greece needs the extra 10 billion euros with no conditions is ludicrous.  He is no position to demand anything, as his country’s economy continues to flounder.  In fact, the only hope for a recovery in Greece, is through the support of the European Union.

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