Merkel and Sarkozy opened up their cards: they want a Europe without deficits and a Union without weights. They want a new treaty, with automatic penalties for naughty countries.  

Lucas Papademos and Evangelos Venizelos studied the statements of the leaders of Germany and France, read the telegrams from our embassies in Berlin and Paris and drew Athens’ course of action. In two days in Brussels, the PM and the finance minister will ask for "decisions that will effectively erect protective walls for all countries" and the full implementation of the decisions of October 26. 

"We must fully implement the decision of October and achieve 100% private sector participation in the PSI. This is the only way to reduce the debt by 100 billion, by 47% GDP. If we do not achieve this, we will have a funding gap and a vacuum at the sustainability of our public debt," Venizelos warned. 

The cause was the information that bank capital is moving strongly towards the cancellation of the agreement. 

Moreover, the Greek government says no to:

  •     a two-speed eurozone
  •     the overthrow of the institutional parity of member states
  •     the perpetuation of inequalities within the eurozone


Thus, it will insist on the issuing of eurobonds and the need to enhance liquidity by whatever this means for the role of the ECB and the possibility to cut funds. Greece is ready to assume the commitment for budget surpluses in exchange for the haircut. Regarding its legal form, instead of the constitutional provision, the process of ratifying the new treaty by the parliament seems now like a more favorable solution. In order to satisfy lenders and give a chance to the people to express themselves, one should not exclude the possibility of a referendum, so that parties and voters together might undertake the responsibility, or reject it.