Yesterday was an odd day, Merkel arriving in Greece amidst protests and riots and extending a comforting embrace to the austerity stricken Grecians. Her words probably wont count for much to the Greek people as to date her actions are to the contrary. She says she see light at the the end of the tunnel, I wonder are those lights coming from the freight train rapidly approaching. Her actions yesterday are contrary to everything she has been talking about and it seems that the EU is going a little soft in extending time for deficit targets to be met starting with Portugal yesterday and Greece soon to follow.
This is very un-German and its a big risk Frau Merkel is taking as the German public or parliament wont take kindly to her “sympathy ” for peripherals for too long. Germans have spent years in the relative doldrums ensuring they are a competitive nation while there Southern neighbours lived the high life. Really it was all an exercise in PR to calm fears about an imminent Grexit. A Spanish bailout is high on the list of the EU agenda at the moment and the EU does not need Greece acting up to further complicate things. I find it strange how they can flip-flop between the good cop, bad cop routine and not expect anyone to poke holes in it but that is how we do things in Europe – “Two steps forward – one and three quarters steps back.”