By Tom Bemis
For those keeping track of the Greece saga at home, European Council President Herman Van Rompuy’s statement on his meeting with Greek Prime Minister George Papandreou is here.
The statement does little more than solidify what’s expected to happen in the event Papandreou can:
a. survive the confidence vote in the legislature
b. win passage of the austerity plan.
The package of measures agreed upon by the Government and the Troika on fiscal consolidation, privatisation and structural reforms needs to be supported by the Greek Parliament. This will pave the way for the next disbursement by mid-July.
But it offers no alternative plan in the event the Greek government collapses, or the measures fail.
To be sure, the entire crisis at the moment is over whether to have Greece default now or later, and formally or informally.
