Watch for possible important developments in Greece this week

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Three comments:

• that this is Ms. Merkel’s first trip to Athens since the crisis started is hard to believe;
• all good things have to end sometime, and ‘sometime’ seems to be rapidly approaching in the case of Greece; and,
• can ‘sometime’ be far off for Spain, as Spain still as of Friday is not at the negotiating table?

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Also see Greek austerity talks to continue, progress seen. Note that any compromise made now on the original terms of the Greek bailout (made many months ago) may:

• have a direct ‘precedent setting’ impact on subsequent negotiations with Spain; and,
• perhaps re-open completed negotiations with Ireland.

Could it be that Greek negotiations are the (or an important) reason Spain continues to postpone bailout requests? You might also want to read Mrs. Merkel goes to Athens. Why? This Greek newspaper article published yesterday strikes me as being a particularly well balanced one that discusses some of the underlying political issues and perceived risks related to Ms. Merkel’s visit today. Topical References: Greek crisis is ‘like the Weimar Republic’, from The Telegraph, Louise Armitstead, October 5, 2012 – reading time 3 minutes. Also:

• Greek austerity talks to continue, progress seen, from Reuters, Renee Maltezou, October 6, 2012 – reading time 3 minutes.
• Mrs. Merkel goes to Athens. Why?, from Ekathimerini, Nick Malkoutzis, October 8, 2012 – reading time 4 minutes.

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