Rescue plan for Greece?

This morning the financial press are abuzz that a deal has been made by the EU to help its ailing member, Greece.  However, no details have been released as of yet.  Hmmm.  Not only that but comments from Angela Merkel, Germany’s Chancellor, have been non-commital.  Comments off the record from German officials were also explicit that Greece will not be receiving funds anytime soon and that the nation’s finances are “not that bad.”  Double hmmm.

The financial markets are likely to rise on this news.  However, there really is not much news here to get excited about.  At this point all that seems to have transpired is an agreement by the major nations in the EU that they won’t let Greece take down the European Union.  Assuming that promise is, in fact, a promise, then this is important.  But no details means that none of the EU members has either stepped to the plate (see yesterday’s post about the EU), or been able to figure out on what grounds in the EU’s charter all of the nations can come forth to save another member.  It’s not entirely certain how the EU can save a fellow member as the rules don’t explicitly support that kind of action.

For now, what is important is that the EU seems to have promised that they won’t let Greece fail.  But the devil will be in the details.

Jason