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Original post: Big news on the Greece front: In order for the country to get future bailout money, the country will have to give up some sovereignty.Specifically, according to a bombshell FT report, outside authorities will take over various functions related to tax collection (a big time problem in Athens) and privatizations.
None of this is certain yet. It’s just what’s on the table, and no doubt politicians in the country will flip out.
But every attempt to cut the deficit has failed so far, and the powers that be in Europe (EU, ECB, IMF) are adamantly opposed to any kind of debt restructuring that would trigger a credit event, and imperil European banks.
Meanwhile, there were already huge protests in Athens on Sunday. Things are moving fast.
Meanwhile, for a look at what does happen if Greece defaults, see John Mauldin on the subject.
Update: Reuters has more details of fresh, emergency talks happening right now. A new package could be worth 65 billion from the EU and the IMF.