Erstellt am: 22. 7. 2011 - 14:34 Uhr

What €109bn can do & Hadzic goes to Den Haag

What has emerged from the EU Summit in Brussels and an alleged war criminal gets his day in court.

Just say I spent too much money on my credit card last month and I got a loan from my bank to pay back my original debt and I failed to meet the terms of that loan, I would be declared bankrupt. Representatives from the bank would arrive on Monday morning and begin removing my sofa and fridge unless I was able to produce a big fat cheque given to me by a rich uncle living in a distant capital.

These sets of rules also applied to businesses and countries until yesterday. Then the rulebook was torn up as far as Greece is concerned. During the financial crisis we heard about some US banks that were too big to fail. I guess the message coming out of Brussels yesterday is that the Euro is too big to fail & Greece will be thrown a big lifeline to safeguard their money worries.

And so another crisis is overcome in the Eurozone. The latest summit has produced a lot of smiling faces in Brussels. The message that goes out from the dignitaries is that they’ve come up with a fair deal and we can all go home happy that Greece has been saved, the banks are pleased, the euro is safe and that’s the end of the story for now.

But Greece would never have been able to pay off its debts under the current system. In finally recognizing that reality, European leaders have rushed over to Brussels to change the sums and make it easier for Greece to pay things back – at lower rates and over a longer time span. Therefore, Greece has effectively defaulted on its original debt payback scheme.
But you won’t find anyone saying that nuclear word “default” in the corridors of powers because of the dangers of that word throwing the financial markets into turmoil.

The markets have responded positively, that’s good news for everyone – well everyone apart from the European banks that loaned Greece money in the first place. They will have to take a hit and alter their balance sheets. And no-one, apart from maybe Finland was serious about Greece’s sofa (the Acropolis) being sold off. But are the wealthy cousins in Berlin & Paris really convinced that this is the final cheque they will be sending to Athens….?

EU Summit in Brussels

Leaders of the Eurozone countries have agreed a new bailout package for Greece worth 109bn euros. That's alot of cash, right? Who pays what and how will it be used? Nadja Hahn, FM4's expert on all things Eurozone, reveals all.

Goran Hadzic Goes to Den Haag

A convoy of jeeps and police cars left the detention unit of the Serbian war crimes court this morning, reportedly taking the last Balkan war-crimes suspect to visit his sick mother before he is extradited to the U.N. tribunal.

What is in store for Goran Hadzic after he sees his Mum? FM4's man in Belgrade Mark Lowen reports.

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