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Monday, 13 February 2012

Can the EU hold Greece to its "commitment" to the bailout rules?

The proposals on the table in exchange for the Greeks getting their bailout and remaining in the currency of doom are simply ludicrous.  As Jeremy Warner says, much about the bailout negotiations and shenanigans strongly indicates that Merkel wants Greece out of the zone.

Here's just one of the conditions of Greece's bailout: (my emphasis)
To get its second bailout, the leaders of Greece’s main political parties are required to submit a written commitment to fully implement the package regardless of who wins the elections in April.
This evidently seeks to circumvent the quaint democratic notion that "no government may bind its successor.

So does the "commitment" seek to bind each political leader personally?

If so, what if, on receiving the bailouts, one or more of those signatory party leaders were deposed by their parties? Would the bailout agreement still be binding?  And if so, upon whom?  The ex-party leaders?

Or are the parties, as organisations, to be bound by the agreement.  If so, wouldn't the party leaders need the tacit agreement of their party members before signing such an agreement? 

In any case, there's nothing to stop each and every one of the party members (of all parties) resigning from their parties immediately after the bailout.

Man has not designed a system which cannot be broken.

Related:

Update: Jean-Claude Juncker's office has released the following statement:


Update: Antonis Samaras, leader of Greece's major conservative party, New Democracy, sent this letter to ECB President Mario Draghi - vowing to honour cuts (ha ha):

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