One, two puch to EU
Posted on | January 26, 2015 | No Comments
EU was rocked by 2 major events. Swiss government removed the cap on Swiss Franc, which shot up 40% against Euro and on Sunday Greeks voted into power a left-right anti austerity coalition.
This turn of events leaves ECB, IMF and World Bank in a catch 22. If they give in to Alexander Tzipras, new prime minister of Greece, and cut the debt by 30%, as he demands, this means that there will be an avalanche of nations demanding the same. On the other hand, if the troika does not budge, this might leave to the exodus of Greece and a stampede of other nations to follow Greece and leave EU, which will make the exodus from Egypt look like a walk in the park.
One way or another the troika is now is facing a serious conundrum. I’ m sure they will try a golden middle in negotiations with Greece. Whether this will be successful remains to be seen.
Europe’s Populists Hail Syriza Win in Greek Elections From Left and Right
| Wall Street Journal | – |
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