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Sunday, October 7, 2012

Relentless austerity will only deepen Greek woes


Relentless austerity will only deepen Greek woes
Financial Times
The Greek government had forecast a fall in gross domestic product of “only” 3.8 per cent, but the troika believes the fall in GDP is more likely to be of the order of 5 per cent, according to the Greek newspaper Kathimerini. That would imply that ...

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Protests undermine show of support for Vladimir Putin's 60th birthday

Hand of Kremlin behind many stunts backing the president while some Russians suggest it's time he retired

Men climbed peaks and unfurled his portrait, while women flirted shamelessly in videos that quickly went viral: Russians celebrated Vladimir Putin's 60th birthday on Sunday with adulation fit for a king.

All across the country, cities attempted to outdo each other with platitudes. The town of Vladimir woke up to find the city's name changed to reflect Putin's name and patronymic – Vladimir Vladimirovich – on all its street signs. In the southern region of North Ossetia, 10 mountaineers scaled a 4,150-metre mountain and planted a large portrait of Russia's powerful leader – the first step, they said, towards having it renamed Peak Putin.

Not everyone in the kingdom was in celebratory mood. The irony of the fact that Putin has reached 60, the age at which Russian men are eligible for retirement, in the year of his contentious return to the Kremlin was not lost on those who have spent much of the past year taking to the streets in anger.

"Lead Grandad to Retirement" was the name of one protest held by around 150 of those demonstrators, who came equipped with pipes and slippers as retirement presents for the increasingly unpopular Putin.

"How much can we take? We thought it was time for him to go calmly and maybe with these presents, he would see that retirement isn't so bad," said opposition activist Roman Dobrokhotov. About 10 activists, including Dobrokhotov, were briefly detained.

Putin returned to the presidency in May following a four-year interlude as prime minister because of a constitutional ban on the serving of more than two consecutive terms. He has been at the country's helm since 2000 – more than one-fifth of his eventful life.

If he finishes this term and serves another, he will have been in charge for longer than Leonid Brezhnev and almost as long as Josef Stalin. The comparisons between Putin and the latter have only grown in recent months, not least because of Putin's own calls for a Stalinesque "great leap forward" in industry and the renewed spotlight on show trials, such as that of the feminist punk band Pussy Riot.

But the Kremlin has gone to some lengths to downplay the cult of Putin's personality. None of the celebrations held on Sunday were officially sponsored by the Kremlin. Putin's spokesman, Dmitry Peskov, said the president disliked such grandiose displays and would celebrate the day surrounded by close family and friends in his home town of St Petersburg.

Yet the state's hand was visible in nearly all the festivities. NTV, a state-run channel owned by the gas monopoly Gazprom, aired a fawning documentary detailing the ins and outs of Putin's daily life. There was Putin in his cavernous office, Putin swimming laps in a pool, Putin peeking into a refrigerator, Putin answering the questions of a journalist with a brow that strained to furrow.

Rumours of plastic surgery have long haunted Putin, who continues to maintain a macho image despite his advancing years.

Young Guard, the youth wing of the ruling United Russia party, attempted to boost that image with a racy video featuring young women re-enacting the stunts for which Putin has become notorious – from his love of skiing and hockey to his Black Sea dive to retrieve two Greek urns, which he later admitted was faked.

Another youth activist, who stripped for Putin in 2010 as part of a racy calendar begging the then prime minister to return to the presidency, said this year she would give him a "pussy" alongside suggestive photos of her with a cat and Putin's portrait. "I think he's an awesome man, a strong leader and the ideal leader for the country," Alisa Kharcheva said.

A recent poll by the Levada Centre, an independent pollster, found that 20% of Russian women would marry Putin, given the chance.

Presents and goodwill messages poured in from across the former Soviet Union, including one from Patriarch Kirill, the head of the Russian Orthodox church, whose close relationship with Putin prompted the cathedral protest that resulted in Pussy Riot's arrest.

"Today, Russian citizens' desire to live in peace and harmony, to determine their own destiny, and to maintain their spiritual and cultural identity, is being realised in large part thanks to your efforts and timely decision-making," Kirill said. He went on to wishing the president "God's help and success in your work for the benefit of the fatherland".

Russian officials remained mum on another anniversary celebrated on 7 October, the day in 2006 on which the investigative journalist Anna Politkovskaya was murdered. As Putin was getting ready to celebrate his birthday in St Petersburg, opposition activists in the northern city gathered in the centre of town to unfurl a banner reading: "Putin, we remember everything."


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Great literature should stay on all reading lists | Hannah Betts

A knowledge of Chaucer, Shakespeare and tales of Greece and Rome is necessary to understand our own culture

Human beings have long loved a list, from Homer's inventory of a thousand ships to the catalogues of feminine beauty modish in the Renaissance. These exercises in cultivated obsessive–compulsive disorder shape and stabilise the world about us. Still, there are lists and lists, and this apparently primal human urge has been usurped by many PR companies and television executives eager to proclaim a top 10 of everything. The phrase "nation's favourite" has become one to fear, with Four Weddings and a Funeral among best films and the Duchess of Cambridge topping best-dressed lists.

As far as literature is concerned (and one uses this term loosely), the subgenres include: things read when small, things for the small read when big, things bought at airports, things advocated by Richard and Judy, and things that have been on the goggle box. All of which enables the sort of travesty whereby, as in May, The Da Vinci Code can be declared "Scotland's favourite novel".

Which is why a list of the perilously prescriptive 1001 Books You Must Read Before You Die – published in its second edition this month – becomes all the more culturally valuable. To be sure, its novel focus makes pre-18th century works thin on the ground, while some of the more recent musts seem a tad middlebrow. But it remains a glorious cross-cultural repository, up to speed on the last two years' output. Every school, if not every home, should have one.

In my first secondary school library lesson, we were handed a catalogue of books we would be expected to be acquainted with year-by-year from Jane Eyre to Paradise Lost, taking in a wealth of novels, poems and plays in between. It was unfashionably prescriptive, unapologetically canonical. I loved this list. It introduced me to illicit adult worlds, freeing me to think in ways prohibited in the more conservative realms of history, geography and, not least, religious studies.

The canons I encountered then, and later at university, had already been expanded to include former aberrations: women, gay, working-class and non-white writers; literary theory rigorous in the checks it placed on anachronistic complacencies. However, outside academia, the supplanting of a canon with the notion that all artistic expressions are equal has proven a regressive rather than an emancipating phenomenon.

Michael Gove has lamented that, in 2010, fewer than one in 100 teenagers who sat the most popular English literature GCSE based their answers on novels published prior to 1900. A mere 1,236 out of 300,000 students read Pride and Prejudice, 285 studied Far From the Madding Crowd, while 187 completed Wuthering Heights. More than 90% of answers were based on the same three slim, 20th-century tomes – Of Mice and Men, Lord of the Flies and To Kill a Mockingbird – all of which justly appeared in the age 11-12 section of my old school reading list.

One does not have to be a Tory to fear a society that lets go of its literature. Indeed, the study of English literature itself started in working men's colleges as a poor man's classics. It was once a socialist rite of passage to "better oneself" via books, be one DH Lawrence or Jean Rhys. Such liberational narratives did not come of reading potboilers, but were the product of the best writing this nation had to offer. It was the lesson of such endeavours that a knowledge of Chaucer, Shakespeare, that great fiction the Bible, and tales of Greece and Rome were necessary to understand – and assume some sort of command over – our own culture.

The most dangerous way in which canons involve social exclusion is in dispossessing the majority of said cornucopia. Even the heroine of the grotesquely illiterate Fifty Shades of Grey has read some classic fiction: unlike too many of her real-world acolytes.


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Economics: the failure of European monetary union has been abject

The best thing would be if the euro were smashed. The alternative is to see the flames lick higher

When he was leader of the Conservative party, William Hague once likened membership of the euro to being trapped in a burning building with no fire exit. It was an apt description, as young people in Greece would testify: in a country that has already contracted by more than Germany did during the Great Depression, the jobless rate for Greeks under 25 is 55%.

Little wonder then that Antonis Samaras, the prime minister of Greece, is warning that his country has been pushed to the limit and that there is, as with Weimar Germany, the risk of democracy collapsing.

Little wonder, either, that Spain, only just behind Greece in the youth unemployment misery stakes, is wary of seeking the help offered by the European Central Bank. Unlimited buying of Spanish bonds by the bank will come at a heavy price: more austerity for a population already buckling under the strain.

A study of hundreds of recessions dating from the 19th century shows that most are short, sharp affairs. They are like heavy colds, nasty but quickly over. Every now and then, however, the cold turns into something much more serious and the longer it lasts the more serious it gets.

It becomes more like a pandemic, affecting the immune systems of economies and spreading from one country to another. That is the situation in the eurozone today.

Activity is collapsing in Italy, is weakening fast in France, and has started to falter in Germany. Unemployment in the eurozone is at record levels as the recession starts to feed on itself. Collapsing demand leads to company failures, adding to the bad debt problems of already weak banks. These, in turn, call in loans and make credit harder to find. Government finances suffer, increasing pressure on finance ministries to find additional savings. Another chunk is taken out of demand, making it more difficult to cut budget deficits and the national debt.

Europe's malaise is affecting the entire global economy. It is hampering an already tentative US economy and may result in Mitt Romney becoming US president. It is leading to slower growth in China, which in turn is leading to heightened trade tensions.

The eurozone has experienced weaker growth in the past decade than Japan did in its lost decade of the 1990s. The gap between the rich and poor countries has widened rather than narrowed. Before long, one in eight working age people will be on the dole. Flows of inward investment to what is increasingly seen as an economic backwater are starting to dry up. The failure of monetary union has been complete and abject.

In business this would not matter all that much. Enterprises fail all the time. The commercial world – with the egregious exception of the "too big to fail" banks – is run on empirical principles: companies that work tend to survive and thrive, while those that don't fall by the wayside.

The single currency does not operate by empirical principles. If it did the plug would already have been pulled on it. It is a top-down project, with a lineage stretching back to the Enlightenment, in which technocrats come up with what they see as a blueprint for happiness: clear, rational and beautiful. When the blueprint does not deliver the expected results, that is not the fault of the plan.

As made clear this year by the ECB president, Mario Draghi, the future of the euro is not open to negotiation: Europe could have a second or even a third lost decade and it would make no difference to those who think it the last word in modernity.

A second lost decade is certainly in prospect. The International Monetary Fund's World Economic Outlook tells the cautionary tale of British economic policy after the first world war, which was similar in many respects to the way the eurozone manages affairs today. When the guns fell silent in November 1918 the UK found the national debt had ballooned to more than 140% of GDP and prices were double their pre-war level. The government had two priorities: to return the pound eventually to the gold standard at its 1914 exchange rate and to cut national debt.

The upshot was that both monetary policy (interest rates and the exchange rate) and fiscal policy (taxes and spending) were kept tight. Interest rates were raised to 7% in 1920 and throughout the 1920s the Treasury ran primary budget surpluses (excluding interest payments on the national debt) of nearly 7% of national output.

Just as in the eurozone today, great store was put on the notion of an internal devaluation. Britain had become less competitive but could price itself back into global markets through cuts in wages and prices. But as the IMF study notes: "The combination of tight monetary and tight fiscal policy, aimed at significantly reducing the price level and returning to the pre-war parity, had disastrous outcomes.

"Unemployment was high, growth was low, and, most relevant, debt continued to grow. Although the price-level reduction the UK was attempting to achieve was larger than anything likely to happen today due to internal devaluation, similar dynamics are evident."

In some respects, the policy regime in the eurozone today is far less draconian than in 1920s Britain. Short-term interest rates have been cut, the ECB has flooded the financial system with cash and it will buy sovereign bonds, albeit with strings attached.

In other ways, though, it is the gold standard with knobs on. The standard was, in theory at least, a self-stabilising mechanism, since those countries that ran trade surpluses accumulated gold. This led to an expansion of credit, which in turn led to higher inflation, a drop in competitiveness and a narrowing trade surplus. Today's euro has no such mechanism to force the biggest creditor nation (Germany) to run down its colossal surpluses.

The gold standard collapsed in the 1930s amid great economic pressure and Britain was the first country to leave. For those who view the euro with almost religious reverence, the idea that monetary union could go the same way is inconceivable.

Let's hope they are wrong. The best thing for Europe would be if the euro were smashed to smithereens, allowing countries to devalue and impose capital controls. It would still be painful but at least they have the ability to boost their economies and pay down debts more slowly. The alternative is to sit and watch the flames lick higher.


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Sunday newspaper round-up: Greece, BAE Systems, Britain´s banks


AFP

Sunday newspaper round-up: Greece, BAE Systems, Britain´s banks
ShareCast
Sunday newspaper round-up: Greece, BAE Systems, Britain´s banks LONDON (SHARECAST) - Greece cannot have more time to repay its debt to the European Central Bank because it would be illegal and "illogical", board member Joerg Asmussen has said ...
Report: ECB official says bank can't help Greece with bond rollover, lower ...Washington Post
Asmussen Says ECB Can't Offer Relief to Greece -ReportNASDAQ
ECB board member shuts door on Greek pleas for leniencyTelegraph.co.uk
Kuwait News Agency
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Greece to Reduce Number of Universities


Greek Reporter

Greece to Reduce Number of Universities
Greek Reporter
Education Minister Costas Arvanitopoulos has underlined that “upgrading public universities is a top priority,” while at the same time saying that Greece has too many universities, 40 of them for a country of 11 million people, and that the country ...


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Restaurant brings taste of Greece to Kodiak


Restaurant brings taste of Greece to Kodiak
Anchorage Daily News
KODIAK, Alaska — Kodiak now has a Greek restaurant, but the new addition to the island's cuisine came about only because of a last-minute itinerary change for its founders. From a white building on Rezanof Drive, Sparrows serves up gyros, Greek pizzas ...


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Couple bring a taste of the Greek life to Kodiak restaurant scene


The Republic

Couple bring a taste of the Greek life to Kodiak restaurant scene
The Republic
KODIAK, Alaska — Kodiak now has a Greek restaurant, but the new addition to the island's cuisine came about only because of a last-minute itinerary change for its founders. From a white building on Rezanof Drive, Sparrows serves up gyros, Greek pizzas ...

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Debt crisis: ECB board member shuts door on Greek pleas for leniency


Telegraph.co.uk

Debt crisis: ECB board member shuts door on Greek pleas for leniency
Telegraph.co.uk
Mr Asmussen said that the ECB could not lengthen the time period for loans to Greece nor lower interest rates as "both concessions would be a form of debt forgiveness and therefore a direct financial support for the Greek state. "That would not be ...
Report: ECB official says no help on Greek bondsThe Seattle Times
ECB: No Restructuring of Greek DebtJournal of Turkish Weekly

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Is the Greek Crisis a Harbinger of Our Future?


Is the Greek Crisis a Harbinger of Our Future?
Truth-Out
People wait outside Medicins du Monde, a free clinic, in Athens, Greece, September 3, 2012. (Photo: Adam Ferguson / The New York Times)Bank-imposed Greek economic collapse and austerity policies have resulted in social and political as well as ...


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Angela Merkel will face protests during Greek visit


Christian Science Monitor

Angela Merkel will face protests during Greek visit
Christian Science Monitor
Many Greeks blame Merkel, who has publicly chastised them for much of the past three years, for the nation's plight. Opponents, some of whom have caricatured her as a bullying Nazi, have promised protests on Tuesday during her first visit to Greece ...
Greek Unions Call For Protest During Merkel Visit On TuesdayRTT News
Greek austerity talks to continue, progress seenReuters
Greek austerity talks to go on after eurogroupFox Business
Businessweek -The Militant
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Merkel to face protests on first crisis visit to Greece


Philadelphia Inquirer

Merkel to face protests on first crisis visit to Greece
Reuters
Merkel in Greece for first time since euro crisis began there. * Visit shows Germany's change of heart on Greek euro exit. * Will make clear Athens must push tough measures. By Dina Kyriakidou and Noah Barkin. ATHENS/BERLIN, Oct 7 (Reuters) - German ...
Greece's Coalition Government, Troika Pause on Budget TalksBusinessweek
Greece, Troika to Resume Talks Next Week -SourceWall Street Journal
EuroCrisis: Greece to Collapse in NovemberInternational Business Times
Examiner.com -Philadelphia Inquirer
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Turkey's restitution dispute with the Met challenges the 'universal museum' | Jason Farago

Turkey is flexing its cultural, as well as its economic and military muscles. But objects of art outlive the ambitions of nation states

The Metropolitan Museum of Art in New York, like most institutions of its size in the US and Europe, has seen its fair share of lawsuits and controversies surrounding its collection. It returned nearly two dozen antiquities to Italy in 2006, as well as work acquired via Nazi looting.

But now the Met is facing a very different kind of restitution battle. The Turkish government is insisting it is the rightful owner of 18 objects from the collection of Norbert Schimmel, a Met trustee and one of the last century's most astute collectors of Mediterranean antiquities.

Unlike the Italian claim, and unlike in the cases of Holocaust victims' families, the proof here is scant to nonexistent. What's more, both the US and Turkey are signatories to a Unesco convention stating that if a cultural object left the country in which it was produced before the year 1970, then it's free to circulate. That cutoff date puts almost all the Met's antiquities in the clear.

But Turkey doesn't care, it now seems: it's citing its own law, more than a century old, to insist that the artifacts belong to it.

You might be tempted to dismiss these claims as antique, gold-hilted saber-rattling. But the Turkish culture ministry can apply formidable pressure. It's nearly impossible these days for a museum like the Met to mount an ambitious exhibition without the permission, and sometimes the aid, of national governments; and Turkey is now blocking loans to museums it says have what's rightfully its.

This year's Met mega-exhibition of Byzantine art had to make do without Turkish loans (though the Met's curators coyly say they never wanted any). So did the British Museum's spring show about the Hajj: while Turkish museums agreed to lend 35 objects to the BM, the culture ministry shut the lending down. Ankara is also playing hardball with the Louvre, the V&A, the Pergamon and pretty much every other encyclopedic museum in the west.

Museum officials are calling this blackmail. They may have a point but it's one inflected with a deep irony. Rich people take poor people's stuff – such is the arc of history. But guess who's got the money now?

The Turkish economy has come down from the vertiginous heights of 2010 and 2011, when annual growth exceeded 8%, but the country remains one of the only economic winners of the past few years – Turkey is ready to play in the big time. It's already at the top table of geopolitics (the G20) and defense (Nato). Its failure to get into the EU now looks like a blessing in disguise. Its retaliation against Syria this past week marks not only its military might, but also US and EU dependence on Turkey in a region changing too fast for western diplomats to handle. And now, naturally, Turkey wants to make their mark in the cultural sphere as well.

"Artifacts have souls and historical memories," according to Ertugrul Gunay, Turkey's pugnacious culture minister. "When they are repatriated to their countries, the balance of nature will be restored."

That nationalistic statement puts Turkey in the vanguard of a troubling tendency, one seen everywhere from Israel to China: that the nation state has an infinite claim to a cultural heritage that may date back thousands of years before the state's foundation. Gunay's appeal to the "balance of nature" is telling. He conceives of the nation state as something organic, an unchanging territorial bond, rather than a relatively recent phenomenon in world history.

It's worth recalling that the Turks, or at least their historical ancestors, were involved in the hottest cultural property dispute of them all. The tussle over the Elgin Marbles, in the British Museum, is usually seen as an Anglo-Greek affair. But of course, it was the Ottoman Empire that took Elgin's money, and it's Ottoman documents that, so say the Brits, prove the legality of Elgin's "purchase" (more like bribe).

But that case only highlights that when it comes to cultural restitution, national boundaries are not very helpful guides. Cultures are not ahistorical and immutable. They change all the time. And they certainly don't line up easily with the borders on our maps, to say nothing of the governments that delimit them.

I'm hardly against restitution when the case is clear. The Met and the Turks have actually been here before, under different circumstances, though America's few remaining arts desks have failed to mention it. Back in 1993, the museum settled out of court with the Turkish government to return a collection of over 300 gold and silver objects, which the Turks convincingly demonstrated had been stolen. The artifacts, known collectively as the Lydian Hoard, are now exhibited in the western Turkish city of Usak. Their return to Turkey angered some of the die-hard defenders of the universal museum, and their case was bolstered by the revelation that fewer than a thousand people visited the treasures over five whole years.

The universal museum, a legacy of western imperialism, is always going to be disputed. In the case of the Lydian Hoard, though, the situation was plain: no appeal to Enlightenment values and educational imperatives could justify the purchase of clearly stolen objects. The Schimmel collection is a wholly different case. What's at issue is not justice and fairness, but nationalism and power.

The small crimes of theft and looting, when they can be demonstrated, should be put right. But there's no way to dismantle the whole museum, just as there's no way to turn back the clock on imperialism and war.

Turkey should know this, of course. Tellingly, while the Turkish cultural authorities are keen to get their hands on the Met's antiquities, they're much less forthcoming about the collections in their own museums – good fractions of which come from Lebanon, Greece, the former Yugoslavia and other regions once controlled by the Ottoman Empire. If they're not careful, the next collections in dispute might be their own.


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Greek Unions Call For Protest During Merkel Visit On Tuesday


The Militant

Greek Unions Call For Protest During Merkel Visit On Tuesday
RTT News
Merkel's visit comes at a time when the discussions between the troika and the Greek government looks to drag on further amid disagreement over the EUR 13.5 billion of austerity measures. Greek Prime Minister Antonis Samaras has admitted that Greece is ...
Greek austerity talks to continue, progress seenReuters
Greek austerity talks to go on after eurogroupFox Business
Greek cabinet votes for new round of deep cutsThe Militant
Telegraph.co.uk -Businessweek
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Single euro-zone budget gains momentum ahead of summit

Greek and others European national flags flutter near an euro symbol outside the EU Parliament in BrusselsBRUSSELS (Reuters) - Debate about the idea of creating a separate budget for euro zone countries is intensifying in the run up to an EU summit later this month, with less opposition to the proposal than many officials first expected, diplomats say. At a private dinner held last week among the EU ambassadors of several northern European countries, including Britain, Denmark, the Netherlands and Finland, those present were surprised to find a fair degree of consensus on the proposal. ...



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Greek Boat Blast Kills One, Injures Six, Coast Guard Says


IANS

Greek Boat Blast Kills One, Injures Six, Coast Guard Says
Bloomberg
Greek Boat Blast Kills One, Injures Six, Coast Guard Says. By Paul Tugwell - 2012-10-07T08:29:53Z. An explosion in a small replica cannon on a Greek tour boat killed the 51-year-old captain and slightly injured six others, the Hellenic Coast Guard said.
Captain killed, tourists hurt in blast on Greek boatReuters
1 dead, 6 tourists injured in Greek boat blastBoston.com
Greek ship explosionIANS
Focus News -Vancouver Sun -Bahrain News Agency
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Greek Banking Sector Braces For 'Super Deal'


Business Insider

Greek Banking Sector Braces For 'Super Deal'
Business Insider
"The exchange offer falls within the context of the ongoing consolidation of the Greek banking system," said Eurobank's CEO Nicholas Nanopoulos in another statement also released late on Friday. Press reports regarding the merger that had been ...
Greek banking sector braces for 'super deal' aimed at providing stabilityStraits Times
Greek bourse suspends trade in National Bank, Eurobank after reports of merger ...Fox News
Greek banks NBG, Eurobank in merger talks: sourcesCNBC.com
Financial Times -ABC News -Reuters UK
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Spencerport football defeats Greece Athena in OT


Spencerport football defeats Greece Athena in OT
Rochester Democrat and Chronicle
GREECE — When you are a fullback in a double-wing offense like Trent Egenlauf, there is a lot of time spent in piles of blockers and tacklers. There are rarely lanes to carry the ball through. The holes are more like scrums. Egenlauf did his job well ...

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Greek banking sector braces for 'super deal'


AFP

Greek banking sector braces for 'super deal'
AFP
By Katerina Voussoura (AFP) – 1 minute ago. ATHENS — Greece's banking sector is bracing for what local media called a super deal, following the announcement of the National Bank's offer to purchase the third-largest lender Eurobank. Late on Friday ...
Greek banking sector braces for 'super deal' aimed at providing stabilityStraits Times
Greek bourse suspends trade in National Bank, Eurobank after reports of merger ...Fox News
Greek banks NBG, Eurobank in merger talks: sourcesCNBC.com
Financial Times -ABC News -Reuters UK
all 248 news articles »

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Greek austerity talks to continue for 2 weeks


Greek austerity talks to continue for 2 weeks - finmin source
Reuters
ATHENS Oct 6 (Reuters) - Greece and the troika of international lenders will continue talks on austerity measures that are part of the country's bailout for two weeks, a senior Greek Finance Ministry official said on Saturday. Greece was aiming to get ...


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