A very interesting article today over at Zero Hedge on the shady deals being done within the Eurozone to avoid Greek collapse :

Days into the latest round of European bailouts we finally start to get a glimpse of the scrambling within the EU’s top ranks over the past week to avoid the imminent Greek collapse this Monday. According to Handelsblatt, France and Italy had worked out a deal with Trichet first and subsequently advised Merkel that they would go ahead on their own. Merkel who had held out for a 6% interest rate on European subsidy loans was consequently forced to participate in the “syndicate” as Germany has the most to lose from a Greek situation spiralling out of control due to its banking system exposure, yet whose population is the one most vocal against a full blown bailout. The next question: what are the actual details of the subsidy debt’s role in the capital structure, as well as the actual cash disbursement mechanism remain unanswered.

Has Germany been outmanoeuvred by France and Italy on this?

Recommended reading.