According to information of the “Hellenic Defence & Technology” magazine, the U.S. authorities approved to grant 400 M1A1 Abrams tanks to the Greek Army, which will include options between simple refurbishment – worth tens of millions dollars for all the tanks- and upgrading to a higher level of operational capability, with a higher corresponding cost. The relative Letter of Offer and Acceptance (LOA) is expected soon. 

You have to remember Greece should never have been in the Euro. To paraphrase Otmar Issing, “Greece and Italy will be in the Euro over my dead body”. The Euro was, and ever is, a political project with economic benefits (hopefully). The Greeks and the Italians fudged their numbers (as did others) and locked themselves in at unattractive currency rates which have worsened over time.

So although it’s obvious that they should leave the Euro, the political fallout, for now, is too much to handle. So the game of musical chairs will continue until there are no more seats left. Either there is full fiscal integration or they leave. Everything else is a fudge, which, going by past experience, makes that the likely policy response 🙂