Prime Minister Georges Papandreou has offered his resignation on Wednesday. This may bring a new face, but do nothing to resolve the Greek Euro disaster.
VIDEO: More than 40,000 protesters spread violence in Athens as the government wants to save €30 billion in the next 3 years, employing radical austerity measures dictated by creditors and the IMF.Only one thing changed in deadlocked negotiations in the past 2 weeks. Estimates for the needed package shot up 50% to €120 billion, after a €100 billion package arranged in 2010. When guesstimates arrive at such wide ranges I doubt that we are yet at the end of that deficit road.
Add Ireland with €120 billion and Portugal with €80 billion, and the Euro Stability Mechanism (EMS) 'permanent'crisis fund of originally €750 billion will be drained down to €330 billion before problems will become unsurmountable in the larger Eurozone economies like Spain, which will spread then to France and Germany too. The ESM won't be able to handle a giga credit event, i.e. default, of one of the bigger Euro economies.
This ain't going to end happily and Greece is maybe the first, but certainly not the last Euro member where a disillusioned population takes to the streets as they cannot tend to a job with youth unemployment figures anywhere north of 25%.
Even designated ECB President Mario Draghi, a Goldmanite with Italian passport, could not keep his cool in a press conference today, stumbling over the word default.
This promises to become a hot summer in Europe.