130 billion for Athens saves Germany

After lengthy negotiations the states of the Eurozone seem ready to grant Greece a second bailout package of 130 billion euros when they meet today, Monday. But the main objective of the loan is to rescue Germany, the conservative daily The Times writes: "Given the damage Greece's exit could cause in Germany, it is in Germany's best economic interest that Greece remains in the euro. But this would require the Eurozone - that is, mainly Germany - to fund the gap between Greece's imports and its exports until it has made up its huge loss of competitiveness. Some economists say this will simply be impossible if Greece stays within the Eurozone and cannot devalue its currency. Even optimists admit that it could take a decade. And it is very hard to believe the German people would be prepared to foot the bill for that long even if the Greeks were to hand over the running of their economy to Berlin."

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