Maybe this is why bond markets aren’t buying Europe’s latest support plan for Greece.
Within the thick vines of diplomatic legalese, there lies an escape clause in Europe’s Greece ‘bailout’:
The statement issued by euro group leaders at an EU summit a week ago conveys the impression that all single currency members would participate in any rescue.
However a high-level source in Brussels, with knowledge of how the statement was written, said the language was purposely nuanced to give countries the option of not taking part without breaching the letter of the pledge.
The statement from euro group leaders said: “As part of a package involving substantial International Monetary Fund financing and a majority of European financing, euro area member states are ready to contribute to co-ordinated bilateral loans.”
So basically there’s no commitment.
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