The dust from [GREECE]'s request for aid has hardly settled over the w/e, as officials around the globe reassured, warned & wondered about the country's future. While [ITALY] accelerates the approval process for Greek aid, [GERMANY]'s Schaeuble called for more details on the 2011/12 plans before any cash will flow but will urge parl today to act quickly. Meanwhile, [FRANCE]'s Lagarde countered Canada's Flaherty's concerns that the aid will not be enough by saying the Eur30 bn from the EMU is only for one year and more can follow in 2011/12. The Greek Fin Min noted, IMF & approved EMU aid can tide the country over until all EMU members have agreed. Plans are for a pay-out in early May. Contagion fears were also dismissed as officials defended Spain and Portugal, saying they are not in the same situation. GGB/Bund yld spread still out to 566bp from 540bp on Fri, [PORTUGAL] out 5bp to 195bp, [SPAIN] in 1bp to 93bp 06:10 GMT - [SOVEREIGN CREDIT RISK] very much the ongoing theme as the new week gets underway and Greece is under pressure to agreeing to further austerity measures in return for EU/IMF funding. Germany is playing hard ball, no surprise given public hostility to the bail out and ongoing talk of constit court challenges, but mkts are worried a) that the Eur 45 bln package is insufficient to ensure it's a one-off event b) specs will turn their attention to Portugal, Spain and Ireland c) the Greek econ and govt will crumble under the weight of further fiscal reforms. The worst case scenario of the Euro blowing apart or Greece becoming the next Lehmans on the global financial stage seems far fetched at this juncture but the ongoing lack of specifics on timing and detail of the Greek bailout and apparent lack of cohesiveness among EMU politicians must surely have dealt a credibility blow to the longevity of the single currency project.
those who can, do. those who cant, talk about those who can
