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The Greek finance minister is making the first step towards Greek default. You can call it restructuring or extension of payments, but it doesn’t change the bottom line – Greece cannot pay its debt, and this isn’t too good for the Euro.

Just before an EU / IMF delegation arrives in Greece to see that everything is alright, Mr.  George Papaconstantinou shows that nothing is alright.  This trial balloon was floated in an interview to a French newspaper:

“It would be better that we further lengthen the repayment schedule of the 110 billion euros that our partners have lent us and that we further lower interest rates. That way, we could meet our other repayments.”

After so many denials, the Greek officials are finally admitting that they cannot pay their debt.

During the weekend, it became clear that the EU is already working on a restructuring plan for Greece. A senior adviser to Merkel said that the work is not done openly.

It’s just a matter of time. The visit of the delegation in Greece could speed things up. The implications for Portugal and especially Ireland could be very bad for the Euro.