Everything is just benissima in Greece, says ex Italian PM

The credit agencies and currency markets can relax: former European Commission President Romano Prodi told the press today that

“For Greece, the problem is completely over. I don’t think there is any reason to think the euro system will collapse or will suffer greatly because of Greece. Countries like Spain and Portugal have plenty of time to get their finances in order”.

German Chancellor Angela Merkel continues to give the red light + two fingers to any and all ideas about aid for Greece; and investors don’t yet share Prodi’s optimism about Hellenic debt…the yields they want from Greek Bonds have quadrupled this year. And for Spain, they have doubled. This is the price of pessimism.

Note for students of fiscal economics: the BBC’s Christian Fraser writes that ‘a cold analysis of Mr Prodi’s two years in office shows there were few successes.
Time and again, he was forced to compromise, trimming legislation to please his various suitors, and causing deep divisions on aspects of fiscal policy and pension reform…it was always a matter of when, not if, his coalition would collapse.’

Later, Mr Prodi retreated to Brussels. As one might expect.