“ATHENS/BERLIN (Reuters) – Germany’s EU commissioner said on Monday it was time to prepare for a “state of emergency” after talks collapsed at the weekend to rescue Greece from default and ejection from the euro.
Prime Minister Alexis Tsipras ignored a litany of pleas from European leaders to act fast and instead blamed creditors for the collapse in aid-for-austerity talks, the biggest setback yet in long-running talks to secure more aid for Greece.
Athens now has just two weeks to find a way out of the impasse before it faces a 1.6 billion euro bill due to the International Monetary Fund, potentially leaving it out of cash, unable to borrow and cast out of the single currency.”
“Greek stocks fell 6 percent, while banking stocks tumbled as much as 12 percent. Greek two-year government bond yields surged more than 3 percentage points to 29.02 percent.
“We should work out an emergency plan because Greece would fall into a state of emergency,” Germany’s EU commissioner Guenther Oettinger said. “Energy supplies, pay for police officials, medical supplies, and pharmaceutical products and much more” needed to be ensured.”
I don’t see why they should panic now. The Germans have already said that Greece leaving the EU was pretty much a foregone conclusion.
I think that they are going to smack Greece down to not embolden any more radical leftists.