Monday, June 01, 2015

Greece Update: "Take it or leave it" offer?

by Bill McBride on 6/01/2015 03:52:00 PM

From Reuters: Draghi, Lagarde joining Berlin meeting on Greece - officials

European Central Bank President Mario Draghi and IMF chief Christine Lagarde will join the leaders of Germany, France, and the European Commission for talks on Monday evening in Berlin on Greece, European Union officials said.

The goal of the meeting was to reach a joint position on how to negotiate with Greece, the officials said.
"How to negotiate" is the key sentence. The rumor is that the Germans want to make a "take it or leave it" final offer. That would probably mean a referendum in Greece. Most likely the "offer" would be more crushing austerity, and the Greek vote would probably be no.

It would be better to find a compromise that keeps Greece in the eurozone - and doesn't make the depression too much worse. Good luck.