by Nicholas Hastings
Wall Street Journal
June 17, 2011
Buying time for Greece will not save the euro.
It might stop the single currency from collapsing just now, but it won’t prevent a slow erosion of the support that is still holding up the euro just now.
As another hectic week of negotiations about how to stop Greece defaulting comes to an end, the International Monetary Fund has stepped up to the plate, eased its rules about future funding and is set to release another €12 billion to keep Greece going for now.
Seeing that the IMF doesn’t have a political constituency to please, the international body was the most likely to cave in.
Germany also appears to have stepped back from the brink with a summit meeting between German Chancellor Angela Merkel and French Prime Minister Nicolas Sarkozy in Berlin Friday ending with hints that Mrs. Merkel isn’t pushing quite so hard for private bondholders’ involvement in a bailout.
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