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: Calculated Risk

Greece is the Word

By Anonymous

From the Financial Times: Berlin and Paris urge backing for Greece

President Nicolas Sarkozy and Chancellor Angela Merkel are expected to give a show of political support to Athens at a summit of EU leaders in Brussels [on Thursday] ... The details of a bail-out plan were ?still the subject of discussion and we are not even in a position to deliver it [on Thursday]?, an official said.
excerpted with permission

And from Stephen Castle and Nicholas Kulish at the NY Times: Europe Closing In on Plan to Avert Greek Debt Crisis

It is ?no longer considered an option not to act,? one official in Paris said.

But officials also worried that any solution for the situation in Greece risked encouraging the markets to attack other euro zone countries that are regarded as weak links in the chain, starting with Portugal.

So there will probably be some sort of statement of support for Greece tomorrow, but no firm details. Any direct bailout of Greece would be very unpopular, and it appears that some sort of loan guarantees - contingent on budget discipline in Greece - is the most likely outcome.

Full post as published by Calculated Risk on February 10, 2010 (boomark / email).