German Finance Minister Wolfgang Schäuble’s acknowledgement last week that Greece needs more aid seemed like a statement of the obvious. Encouragingly, however the size of any new bail-out will be small beer in comparison to the €240bn that has already been committed. Nonetheless, if (as seems likely) the Greek debt to GDP ratio falls more slowly than anticipated, then Greece will eventually need another debt restructuring. What’s more, Portugal may also need another bail-out before long. And even if German voters do not baulk at the idea of more transfers, there is a risk that those in the Netherlands do.
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