As predicted, the Greek debt crisis continues to send aftershocks throughout the global financial system. I have detailed for you all of the ways in which the EU and IMF bailout could fail and regardless of success, could bring about the end of the EU.
Yesterday in Slovakia its Prime Minister, Robert Fico, loudly protested the Greek bailout. The right wing politician Fico is facing a re-election campaign and does not want his opponent to bring up his support of the bailout. Consequently, Fico is circumventing that potential by protesting aid to Greece himself. This is significant because the EU generally operates on consensus. This is a weakness I have highlighted many times before. If the Slovakians don’t pony up their expected contribution of 816 million euros then why should the Slovenians? And if the Slovenians do not contribute then why should the…? You get my point. Importantly, Robert Fico is not the only politician in the EU facing re-election. Nor is Slovakia the only country not wanting to bailout Greece. The next several weeks will be critical for assessing the viability of not only the Greek bailout, but also of the entire EU.
Jason
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