The euro is being supported today by the German climbdown on bondholders shouldering a substantial share of the burden of bailing out Greece. The ECB has once again carried the day.
This is a Pyrrhic victory though, to be sure. It merely avoids an immediate default while building pressure for (by adding even more debt on to the Greek balance sheet) for a more catastrophic default going forward.
To recycle a phrase, they’ve just kicked the can don the road…
The risk of near-term default is not entirely past: PM Papandreou still needs to survive a confidence motion on Sunday.
