Greece is already asking for more help, just months after getting a
second bailout, but it faces fewer options, more hostility, and less
fear of euro-exit fallout.
Eurozone leaders may still find ways to keep Greece in the currency union, though political pressure is mounting to cut off aid.
"The euro area is quite adept at finding ways to keep Greece afloat," said Jacob Kirkegaard, a research fellow at the Peterson Institute for International Economics, who doubts a Greek exit is imminent.
On Monday, Prime Minister Antonis Samaras will meet with German Chancellor Angela Merkel and later in the week with French President Francois Hollande.
This time, Greece wants permission from rescuers to soften austerity measures, easing pressure on an economy in a fifth year of recession. That will require more money.
But patience with Greece is evaporating. Public worker layoffs, privatizations and other reforms are way behind schedule, and bailout fatigue is deepening after two rescues totaling 240 billion euros.
Meantime, members of Merkel's governing coalition have downplayed the consequences of a Greek exit or even urged it. On Friday, Austria's foreign minister said euro member states that don't fulfill commitments ought to be kicked out.
Read more: http://news.investors.com/article/622607/201208171535/greece-to-seek-more-eurozone-help-lenience.htm?src=HPLNews
Eurozone leaders may still find ways to keep Greece in the currency union, though political pressure is mounting to cut off aid.
"The euro area is quite adept at finding ways to keep Greece afloat," said Jacob Kirkegaard, a research fellow at the Peterson Institute for International Economics, who doubts a Greek exit is imminent.
On Monday, Prime Minister Antonis Samaras will meet with German Chancellor Angela Merkel and later in the week with French President Francois Hollande.
This time, Greece wants permission from rescuers to soften austerity measures, easing pressure on an economy in a fifth year of recession. That will require more money.
But patience with Greece is evaporating. Public worker layoffs, privatizations and other reforms are way behind schedule, and bailout fatigue is deepening after two rescues totaling 240 billion euros.
Meantime, members of Merkel's governing coalition have downplayed the consequences of a Greek exit or even urged it. On Friday, Austria's foreign minister said euro member states that don't fulfill commitments ought to be kicked out.
Read more: http://news.investors.com/article/622607/201208171535/greece-to-seek-more-eurozone-help-lenience.htm?src=HPLNews
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