Who will blink first, Schäuble or Trichet?
June 10, 2011 1 Comment
Germany and the European Central Bank (ECB) are at a stalemate over what to do about Greek government debt. Germany demands significant private sector involvement in returning Greece to debt sustainability, while the ECB has gone nuclear and said that any restructuring or reprofiling of Greek debt will force the central bank to reject Greek government debt as collateral for its lending facilities. Who will blink first?
I think Germany will end up backing down.
Megan Greene is the Chief Economist at Maverick Intelligence, with a particular focus on Europe. She is also a senior fellow at the Atlantic Council, a columnist with Bloomberg and a senior research fellow at Trinity College Dublin. The opinions expressed here are her own and do not reflect those of any employers. Ms Greene offers a strictly independent voice without a political or investment agenda.
