“A good deal for the banks, and a very bad one for Europe”

Published on 22 February 2012 at 14:17

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“Greeks save European banks,” reads the provocative headline in Die Tageszeitung. The Berlin alternative daily reports that European aid will be of no benefit to Greeks, who “will have to live with lower wages, less job security, inferior health care and a massive sell-out of their state.” And in spite of all of this, the country’s debt may still be at the same level in 2020.

For journalist Eric Bonse, the bailout is a “ruthless diktat” mainly of benefit to the banking system, which will escape collapse thanks to the interest generated by loans to the Greek state -

Schäuble & Co. have saved the creditors, not the Greek people. Banks, insurers and investment funds in Germany, France and Great Britain will gain from the deal. In the event of [Greek state] bankruptcy, They would have lost everything. [...] Private creditors, who should have, according to Schäuble, accepted joint liability, have been heavily favoured. It is nice deal for the creditors, and a very bad one for Europe.

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