News Flash: There Is No Greek Deal

By Graham Summers – Re-Blogged From

Any editor, analyst or commentator who claims that a “Greek bailout deal has been reached” is lying.

Greece has NOT reached a bailout deal in any way shape or form. What DID happen was Greece’s Prime Minister agreed to try and push a new austerity program through Greece’s parliament.

IF he can do this, and IF the Greek government agrees to the austerity program then NEGOTIATIONS (not a deal) can begin as to whether or not Greece should receive another bailout.

Put simply, Greece has THREE DAYS to agree to an austerity program in which it will hand over assets worth 25% of its GDP to the EU… at which time TALKS (again not a deal) COULD begin regarding a potential third Greek Bailout.

Even if Greece DOES agree to this (good luck with that, given that 61% of Greek citizens voted AGAINST a deal that was not nearly as harsh a mere two weeks ago), Germany’s PARLIAMENT will have to provide a mandate granting Chancellor Angela Merkel the right to negotiate a new deal with Greece.

So… not only is there no deal, but both Greece AND Germany’s governments have to sign off before a new round of negotiations can EVEN BEGIN.

And even if Greece DOES agree to the new austerity program AND Germany’s parliament issues a mandate that Germany can negotiate a new deal… the two countries STILL have to negotiate a deal.

And finally… even if they are able to agree on a deal (unlikely given that they were barely able to agree on anything during the most recent round of negotiations), GERMANY’S PARLIAMENT has to sign off on it.

These are the facts… but the media has been promoting the claim that a deal has been reached. It has not. In fact, a deal is not even close to occurring in any way shape or form. At the earliest, negotiations for a new bailout might BEGIN in a few weeks. At that point negotiations are likely to take ANOTHER four weeks.

So even if all of the above issues are resolved, a deal will be reached in 6-8 weeks at the EARLIEST.

Again, anyone in the media who claims a deal has been reached is lying.


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