There’s more and more news that the International Monetary Fund will be the main driver of a bail-out for Greece. Laurence Boone says that the IMF solution, possibly with a couple of bilateral loans, may be the “easiest” way out of the maze.
Wolfgang Münchau is very critical of this approach. He says that the eurozone, as it works today, is not a monetary union but a souped-up fixed exchange rate system. According to him three essential elements – a bail-out system, an agenda to reduce imbalances and a common banking system, are lacking in the eurozone.
So now the question is – is it THAT serious?