No, not Hamlet, but the decision the German chancellor faces when confronted with Greece’s financial quagmire. To be – a European Union with Greece remaining as member, will also mean pumping further “good money” into (a losing) (bad money) situation and having eventually write “off” the entire loan package(s).
Not to be – a European Union without Greece as member, might be the beginning of other EU countries, (Ireland, Portugal, Italy, Spain) and (reason for Europe’s debt crisis), to leave the union. It may lead to the grounding of the euro altogether?
Seemingly, there is no middle way. Beset by daily strikes, Greeks are fed up with austerity measures and want them removed, yet, the EU is hesitant on providing further loans to the country, unless Greece shows further financial constraints.
Germany, is Europe’s main engine, the world’s fourth largest economy, and watching at the sideline is the German public, wanting an end to giving money to Greece. “Why should we (have to) pay for the Greek’s entering pension years at age 62 or less, when we have to wait until age 67? Such cultural division will only escalate, should Germany’s leadership remain headstrong, and push further Greece loans through the Bundestag. Inside division within the CDU/CSU (FDP) coalition, and recent political losses in German states only complicate the situation. The old superlative – a short cut (end) produces less pain – still stands.
At the end of this month, Greece needs to come up with interest payment on a 1st tranche (2010) Euro loan. At the same time, the country requested a 2nd tranche (2011) loan, with (installment) payments held up by EU member countries, such as Finland, who insists of receiving collateral for any additional loans to Greece.