Speculation regarding a renewed Greek haircut might give further support to the Euro: “Further
concessions might be interpreted by the markets as a sign that the danger of the single currency failing has fallen further”, wrote analyst Lutz Karpowitz, stating that since the IMF supports a further haircut, but
refuses to make any sacrifices of its own and therefore refuses to participate in the
measures, the ECB might find itself in a tight corner. “Without its participation the move
would make no sense if it did participate this would correspond to it financing a national
budget – which as we know the ECB is not allowed to do”, Karpwoitz explained.