Applying STRATFOR analysis to breaking news
Members of the Germany's Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), are meeting Feb. 10 to discuss a financial assistance package for Greece. Michael Meister, deputy leader of the CDU/CSU in the Bundestag, confirmed that Berlin is working on a package for the troubled eurozone member. Greece has been getting battered by financial markets in recent months over its massive budget deficits and mounting publics debt. Investors' doubts about Greece's ability to consolidate its finances have made the cost of Greek borrowing and the cost to insure against Greek default spike -- fanning fears of a sovereign debt crisis and contagion within the eurozone. As outlined in yesterday's Geopolitical Intelligence Report, Germany was faced with a choice: let Athens sink or swim on its own, or step in before things got out of hand. It appears as though it is leaning towards the latter, especially given the reports yesterday about the nearly $8 billion-bet being made by investors against the euro. But Germany could be simply testing the waters to see how the markets and other eurozone members react. Any coordination with other EU bodies and the details of the potential German-led assistance package will likely be the main topic of discussion at the informal meeting of EU officials in Brussels on Feb. 11.