Greek election victor Alexis Tsipras wants an entirely different Europe from the one envisioned by Angela Merkel. His success is likely to stoke anger over Germany's EU dominance. Leaders in France and Italy are also hoping for an end to austerity.
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Friday, January 30, 2015
New UNHCR report warns against returning asylum-seekers to Greece
UNHCR is today releasing a report on the current situation of asylum in Greece. The report commends Greece for reforms it has undertaken during a ...
Greek gov't sacks privatization agency board
New Alternate Finance Minister Nadia Valavani has called on the members of the board of Greece's privatizati0on agency HRADF (Hellenic Republic Asset Development Fund) to submit their resignations. The new government has called a halt on several privatisation projects, ...
Morgan Stanley thinks Russia's doomed
Morgan Stanley has a short message for Russia: you're doomed. This past week hasn't been easy for the Russian economy: on Thursday, the EU foreign ministers decided to extend the sanctions on Russia by 6 months. Additionally, the Central Bank slashed interest rates to 15% down from 17% after the economy deteriorated following the rate hike in December. But Morgan Stanley is forecasting a pretty scary forecast for the future too. "We downgrade 2015 growth from -1.7%Y to -5.6%Y and revise our 2016 growth from a mild (0.8%Y) recovery to a 2.5%Y recession," writes Morgan Stanley's Alina Slyusarchuk. "The key new assumption that triggers the revision is the signifcantly weaker oil price, combined with a tighter policy response. At the same time, we see risks to our call as being titled to the downside, given the enhanced risk of further sanctions, and concerns over increased state control over the economy." Unless there's a rebound in oil prices or western-imposed sanction, Morgan Stanley highlights three risks: "We see the implementation risk that 'top-down' stabilization is undermined by special deals to help particular banks and companies" — weakening the ruble and driving inflation. Further potential sanctions on Russia "might trigger rating downgrades and index exclusion, which would drive another wave of capital outflows" — again weakening the ruble and driving inflation. The government might finally introduce capital controls. Now here's the scariest part of the latest Morgan Stanley report: Although initially analysts and Russian politicians alike were likening the current economic crisis in Russia to that of 2009, the latest Morgan Stanley note suggests this one is could be much more severe. "Looking ahead, barring a strong rebound in oil prices or the lifting of sanctions, we see the recession lasting much longer through 2016, unlike the V-Shaped rebound in 2009, particularly given the rising risk of further sanctions," Slyusarchuk writes. Welp. It's not looking good.SEE ALSO: Greece Is Quickly Turning Into Europe's Worst Nightmare Join the conversation about this story »
Once Upon a Revolution: Thanassis Cambanis’ New Book About Egypt
Journalist Thanassis Cambanis, 40, is living the dream. “I wanted to be a war reporter from the time I was a kid of nine or ten listening to stories of my Greek grandparents talking about war. And, sadly, when I grew up there were lots of wars to cover.” He recently flew into New York […] The post Once Upon a Revolution: Thanassis Cambanis’ New Book About Egypt appeared first on The National Herald.
One week in Europe: In aftermath of Greek election
The result of the Greek election and its impact on EU policy was the main focus this week in the European Union. But talks also continued on how to fight terrorism following the terror attacks in Paris. The victory of left-wing Syriza evoked not only discussions among finance ministers in the eurogroup. It also had […]
The judge was brutal on the Venezuelan financier who ran the biggest Ponzi scheme in Connecticut history
FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors. A Venezuelan financier who ran the biggest Ponzi scheme in Connecticut's history just got 13 years in prison (Reuters) A Venezuelan financier, Francisco Illarramendi, "was sentenced on Thursday to 13 years in prison for running what US prosecutors called a Ponzi scheme in Connecticut that caused $382.2 million of losses, including for Venezuela's state-owned oil company," reports Jonathan Stempel. Illarramendi's lawyer told Reuters that the sentence was "calculated incorrectly, and that most of the losses 'have been or can easily be' recouped," according to Stempel. "Our wholehearted intention is to appeal the sentence," he said. "While the government has hailed it as the biggest Ponzi scheme in Connecticut's history, it is the only alleged Ponzi scheme in the universe with a surplus." Greece is looking at 'long and painful' negotiations ahead (Charles Schwab) "If the new government goes too far and is inflexible in the negotiations, Greece would run the risk of being expelled from the currency union, something that most Greeks oppose. Yet it is equally clear that European authorities cannot simply reward voters for favoring an anti-austerity party, for fear of fuelling support for similar parties such as Podemos in Spain. Therefore, a difficult period lies ahead," writes Liz Ann Sonders, Brad Sorensen, and Jeffrey Kleintop. "We expect that in the end, European officials are willing to offer Greece an extension on the maturity of its debt, a reduction in interest rates, and more flexibility on reforms. We see only a small risk that this ends with a Greek exit from the Eurozone," they add. Seismic political changes in Asia are making small companies look incredibly attractive for investors (Advisor Perspectives) "At Templeton Emerging Markets Group, we believe Asia's combination of rapid economic growth, generally strong national finances and economic fundamentals has created an attractive landscape for equity investors," writes the Franklin Templeton Investments team. "Seismic changes have been taking place in Asia's political arena over the past couple of years, including major elections, leadership transitions and even a military coup. These political shifts have economic reform implications as well. ... In particular, smaller companies in emerging markets appears poised to potentially benefit amid more market-friendly reforms that break down barriers to entry and inspire entrepreneurship," they add. Advisors must keep up with robo-advisors or die (Financial Advisor Magazine) Noted financial advisor Ric Edelman "stung like a bee with his blunt assessments of the potentially devastating impact robo-advisors could have on the existing advisor model, and how advisors must keep up with technology or die," at the Inside ETFs conference in Hollywood, Florida, reports Jeff Schlegel. “It doesn’t matter who the players are; we can’t stop it," Edelman said. "We’re either going to acknowledge it and participate by providing our own clients with the same types of services, or we’re going to get crushed.” TD Ameritrade CEO: cybersecurity keeps me up at night (Think Advisor) TD Ametride CEO Fred Tomcyzk participated in a "fireside chat" with CNBC's Mandy Drury on Thursday morning, when he spoke about the things that keep him up at night: namely, technology, cybersecurity and fixed income, reports James J. Green. "There are technology trends that are long term and disruptive," he said, including big data and social media, which are "reshaping the ways that all businesses," including his own advisors', produce and market their products and services. He had a thing to say about oil: It's "not obvious that we've hit bottom."Join the conversation about this story »
Yannis Varoufakis and the New Economics for Greece
Yannis Varoufakis is not a household name in North America or Western Europe. But in the coming days people who pay attention to the press and other mass media will hear more about him. He was chosen as the new finance minister by the coalition government led by SYRIZA, the left coalition in Greece. To a small group of mathematically-inclined progressive economists, however, the themes on which Yannis Varoufakis, a former economics professor at University of Sydney, University of Athens and University of Texas at Austin are not unknown. For them, Yannis Varoufakis has a sharp, critical mind. His is a mind that is equally at home in the realms of abstract mathematical models of game theretical economics, or the myth of Minotaur and other ancient Greek myths that can be mobilized to describe many tragic situations. With a Ph.D. from the University of Essex, Yannis Varoufakis is equally at home with the English language and literature. In one of his recent books, he uses the tragic figure of Shakespeare's Macbeth to make his point about the tragic flaws in human character. Varoufakis has also written insightfully about the limits of rationality and the role of indeterminacy in human affairs -- particularly in economic affairs. He also has experience advising the former Greek government of George Papandreou and has an honorable record of making his principled disagreements known to his fellow citizens. This will come as a surprise to his uninformed rightwing and neoliberal critics, but he has also been a consultant to cutting-edge private enterprises. On balance, at least this economist who has also advised the private and public sectors and international organizations, thinks that in Yannis Varoufakis Greece has found an almost ideal crisis-time finance minister. He is a skilled technocrat who knows enough about human hubris and character flaws to be cautious. He is a principled man who cares more about his fellow citizens than the bankers. To be sure, he faces an infernally complex situation -- and, yes, even a tragic situation resulting from human stupidity and human greed -- that will not be easy to manage. But given his background, I expect him to combine firmness in principles and strategy with flexibility in tactics. He, together with the new prime minister and other elected leaders, will provide the kind of tough-minded leadership that can address international negotiations with courage and conviction with the full support of ordinary Greek citizens. This new government will thus negotiate its anti-austerity policies and the medium and long-term growth with equity policies for Greece from a position of genuine strength by going outside the proverbial conventional neoliberal toolbox.
Greek gov't rejects cooperation with troika, new bailout extension
"We have no intention of cooperating with a commission which according to the European parliament was flimsily structured," the Greek official added, ...
Read The Daily Blog Of Greece's 'Erratic Marxist' Finance Minister Yanis Varoufakis
Yanis Varoufakis, a self-described "erratic Marxist," is the new finance minister of Greece under the just-elected Syriza-led government of Prime ...
Greece On The Verge Of Going Nuclear In Its Rejection Of The Troika
How you view this will probably depend upon how you view the Greek economic situation. But the new Syriza government looks like they're on the verge of going nuclear in their negotiations with the troika, that combination of the IMF, ECB and EU, that controls the purse strings. That the [...]
We will not co-operate with the troika, says Greek finance minister
… , also rejected the extension of Greece’s €240bn (£180bn) bailout programme … win the confidence of the Greek people,” Mr Varoufakis said after … to European creditors won over Greece’s recession-hit public. Mr Varoufakis …
Greek bank debt plummets as investors head for the exit
Greek bank debt hits all-time lows. * Investors view sector as un-investable. By Alice Gledhill. LONDON, Jan 30 (IFR) - The price of Greek bank debt hit ...
Greek deposits fly between a rock and a hard place
Greek banks are currently on the road to needing ELA, and the ECB has granted preliminary permission for the Bank of Greece to provide such ...
Talk of axing Greek debt 'divorced from reality': Germany
ATHENS: Germany bluntly rejected suggestions that Greece should be forgiven repayment of its rescue loans, as a top eurozone finance official met ...
Greek vote stokes anti-austerity mood in Ireland
Ireland's economy is speeding ahead and unemployment is dropping, but the coming to power of a radical new government in fellow eurozone member Greece has revived debate about the pain of austerity. Support for opposition parties -- including for the radical left-wing Sinn Fein party -- has been surging for months on the back of their anti-austerity stance, and Syriza's win in Greece is an extra ...
The Guardian view on Greek tragedy: something old, something new
Especially over the past decade, Greek literature has provided a way in Britain too of addressing questions that can be difficult to tackle head-on.
Yanis Varoufakis to keep on blogging as Greek finance minister
Yanis Varoufakis, Greece's new finance minister, is the latest in a long line of economics professors to try their hand at rescuing the country's economy.
EU, Greece positions on debt, bailout poles apart
Greek finance minister Yanis Varoufakis and Eurogroup president Jeroen Dijsselbloem pledged to cooperate on issues regarding Greece's debt, but appeared poles apart in their positions in a joint press conference Friday. Varoufakis stated that Greece does not recognize the body of ...
Overnight stays increase in Greece
Greece registered 98.3 million overnight stays in tourist accommodations in 2014, of which 77.3 million were made by foreign visitors and 21 million by permanent residents, according to data released by the European Union's Statistics Office (Eurostat) on Thursday. The ...
Greece's Predicament in One Scary Chart
If the new prime minister of Greece, Alexis Tsipras, hopes to make a deal with his country's creditors, time is of the essence. Judging from data on capital flows, Greece's change of political course is rapidly eroding confidence that it will stay in the European currency union. Such capital flight can be tracked (roughly) by looking at the accounts of central banks: If 1 billion euros moves out ...
Greece wrote off Germany's debt in 1953
An article in Washington Post claims that Germany has not learned the costs of a mad adherence to fiscal orthodoxy, despite the fact that its prosperity is rooted in the decision of its World War II adversaries to allow West Germany’s ...
Wonkblog: Greece really might leave the euro
Greece's banks, not its debt, are what might force it out of the euro, as it gets ready to fight Europe over austerity.
Moscovici: Replacing the troika could be a future option for Greece
Economic and Financial Affairs Commissioner Pierre Moscovici said that the “European Commission will examine the possibility of replacing the troika in the future”, responding to Syriza MEP and European Parliament Vice – President Dimitris Papadimoulis. “European Union will be responsible for the ...
Fitch ultimatum to Greece: Make a deal with the troika by May or rating will be cut
Greece's credit rating could be cut if talks with its international creditors do not make progress by the time of Fitch's next review in May, one of the firm's senior ratings directors said on Thursday. Fitch is the last ...
UPDATE 2-Berlin says fresh Greek aid "not on agenda", denying media report
Earlier on Friday, Schaeuble said Germany was open for talks with the new Greek government about its debt woes, but he also made clear that Athens ...
Greece sacks heads of privatization agency
Greece's new leftwing government has asked the heads of the state privatization agency to resign after halting state asset sales agreed under the international bailout program, the agency's chief executive Paschalis Bouchoris said on Friday. He said both he and Emmanuel Kondylis, chairman of the Hellenic Republic Asset Development Fund (HRADF), had been told to leave by Deputy Finance Minister ...
Eldorado Gold Says 'Business as Usual' at Greek Mine
(Bloomberg) -- Eldorado Gold Corp. said it's continuing to develop a mine in Greece after a minister in the country's new government expressed ...
Nicosia in Anticipation of Greek PM Tsipras’ Visit
Nicosia is looking forward to Greece’s newly elected Prime Minister Alexis Tsipras’ visit, Cypriot government spokesperson Nikos Christodoulides said, expressing at the same time his certainty that the discussions to be held during Tsipras first official visit abroad since elected will be fruitful and once again prove the long-standing ties between the two countries. According to Christodoulides, the Cyprus problem, the economic developments, the Turkish provocations in Cyprus’ Exclusive Economic Zone (EEZ) as well as a number of other matters concerning both Athens and Nicosia will be tabled in the meeting between the Greek Prime Minister and the President of the Republic of Cyprus, Nicos Anastasiades. Christodoulides explained that Tsipras is expected to arrive on Monday morning and will hold a series of meetings. Among them will be the private meeting with Anastasiades, which will be followed by a meeting between the two countries’ delegations and a joint press conference. Furthermore, he highlighted that the Greek Premier will also meet representatives of Cyprus’ parliamentary parties. Answering journalists questions on whether the two governments will further coordinate their actions regarding the “hot” issue of the European Union sanctions imposed against Russian individuals and entities, Christodoulides clarified that the vast majority of the European Union member-states’ Foreign Ministers shared their views during Thursday’s Foreign Affairs Council meeting.
Greece warned against trying to reverse bailout deals
The head of the Eurogroup warned on Friday that Greece could not ignore its international obligations, after a first meeting with the new anti-austerity government that wants to renegotiate its multi-billion-euro bailout.
Portugal and Spain: We Won’t Follow Greece in a Possible Rupture With EU
Portugal is not a signatory to a possible Greek request for debt restructuring, clarified earlier today the country’s Prime Minister, Pedro Passos Coelho. Addressing the Portuguese Parliament, Coelho assured that he does not intent to participate in any team promoting this request, while clarifying that his country’s debt is sustainable. Portugal exited a 78-billion-euro support program in May 2014, after three years of austerity that plunged the economy and led unemployment to a significant increase. Currently, the country is on a growth track, but even though the unemployment rate fall, debt remains high, exceeding 125% of its GDP. Coelho, who has always been an advocate of reforms and spending cuts, underlined that Portugal and Ireland have done their “homework” and therefore they would not risk scaring investors by opening a debt restructuring issue. In a similar spirit, the chief economic advisor of Spanish Prime Minister, Mariano Rajoy, Alvaro Nadal, speaking in a Madrid radio station, clarified that Greece can follow any policies it wishes as long as it does not clash with the European Union. “If Greece does not provoke the European Union there will be no problem. If it does, there will be problems in various fronts,” he said.
Spiegel rediscovers Greece-related scare-mongering
“Europe’s nightmare” is bannered next to a photo of Alexis Tsipras
UN refugee agency commends Greece on asylum reforms, urges more to be done
30 January 2015 – Greece has made progress in reforming its asylum system despite challenging economic and political circumstances, the UN ...
Parliament Budget Office: ‘No Agreement’ Will See Greece Losing 50 Bln Euros
The Greek Parliament Budget Office has warned the government regarding the 2015 state budget process and more specifically the revenue shortfall, the fiscal gap’s widening and the increasing spreads, calling at the same time to take its decisions “as soon as possible.” “The new governments’ decisions must be taken quickly to reverse the negative climate caused by the election, the failure to reach an agreement with the Troika and the New Democracy – PASOK coalition government’s attempt to resort to markets in October 2014 without such an agreement” is noted in the Office’s announcement, underlining, however, that a primary surplus gives the new government a certain freedom in public finances management. The announcement’s authors also distinguish the country’s huge commitments that will have to be fulfilled within the following months, if an agreement with Greece’s partners is not reached soon. Moreover, they took a step further, saying that Greece’s position on the negotiation table is worse than that of the lenders, while they underlined that “a lack of an agreement in relation to the country’s financial settlement would amount to a credit event.” Finally, as they described, a non-agreement with the country’s partners would result in the loss of some 50 billion euros. As they argued, since the spring of 2014, the Memorandum reforms “froze,” while the perceived deprivation revenue has widened the fiscal gap and reduced the state’s cash. “This trend should stop,” the Parliament Budget Office announcement concluded.
Eurostat: Greece Tops Unemployment in EU
According to Eurostat, unemployment in Greece remains the highest in the EU (25.8% in October), with Spain (23.7% based on December) in second place. However, on an annual basis, unemployment rate decreased from 27.8% to 25.8%. Furthermore, just in October, the number of unemployed Greeks reached 1.24 million. Unemployment rate for men stands at 23.1%, for women at 29.3% and under 25 at 50.6% .
Erdogan Says Tsipras Should be More Cautious
Turkish President Recep Tayyip Erdogan said that Alexis Tsipras should be more cautious in the messages he gives, in reference to the Greek PM’s pledge to cut the country’s debt. He underlined that politics should not be affected by emotions and it is necessary to balance populism. Erdogan said it would be very difficult if some of the promises he made are not kept, while he pointed out that until now their relations with other Greek leaders had been good and he hopes their relations with Tsipras will be the same. (source: kpdailynews)
Members of illegal DHKP-C receive light jail terms in Greece
A Greek court ruled prison terms for four men – two Greek citizens and two Turkish citizens of Kurdish origin – who were arrested on July 2013 by the coastguard off Chios, for transferring a large amount of weapons and explosives to Turkey.
Tsipras to meet Hollande in Paris Feb. 4
Greek Prime Minister Alexis Tsipras will meet French President Francois Hollande in Paris next Wednesday, Feb. 4, the French presidency has said. Hollande had invited Tsipras Wednesday for a meeting ahead of the next EU summit on ...
U.S. to work closely with Greece to resolve differences: White House spokesman
WASHINGTON (Reuters) - The United States will continue working closely with the new government in Greece and other European leaders to resolve differences that could improve Greece's economy, a White House spokesman said Friday.
New Greek PM Supports Palestinian Rights
The results of the snap elections in Greece, which propelled the leftist Syriza Party to power this week, sent shockwaves to many world capitals. Alexis Tsipras, the new prime minister, has vowed to fulfill his electoral promises, including reversing the harsh austerity plans that Europe has imposed on his country. French President Francoise Hollande was among the first leaders to congratulate the new Greek leader. France and Spain are facing economic austerity plans similar to Greece's, and they will be watching carefully how Greece will deal with its major creditors, including Germany and the United Kingdom, who had engineered the very tough austerity plan that Tsipras used to vault into power. While all the focus of the coverage of the Greek elections was on the economic policy, the radical leftist leader has been very vocal on where he sees his country's position regarding Israel and Palestine. During his political life, and especially in the current election campaign, Tsipras has vowed to end Greece's military cooperation and joint exercise with Israel and to recognize the state of Palestine on the 1967 borders. "Seeing Israel killing children in Palestine is unacceptable. We should unite our voices and forces so as to live in peace, expressing our solidarity to the Palestinian people," Tsipras said during an anti-Israel demonstration in Athens last summer. "When civilians and children are killed at beaches facing the same sea that borders on the European continent, we cannot remain passive, because if this happens on the other side of the Mediterranean today, it can happen on our own side tomorrow,'' he said in reference to Israel's killing of four Palestinian youths playing on the Gaza beach in August 2014. If the Greek prime minister will recognize the state of Palestine, it will be the second European country to do so, following Sweden. It will likely encourage other reluctant countries to join as well. Although Greece has traditionally been a big supporter of Palestinian rights, its actions in the last few years deviated from this path. In 2011, Greece prevented a flotilla to ship out of its ports towards Gaza. The newly elected Greek leader who does not wear a tie even to official events made history by refusing to have a religious swearing-in ceremony. The Syriza leader paid a visit to Archbishop Leronymos to inform him that he will not be sworn in by him and will only be taking a political oath. Tsipras also told the Greek Orthodox religious leader that he would not be needed at the swearing-in ceremony of the new government because the oath of Cabinet members will be political and not religious. Many in the Middle East, especially in Palestine and Jordan, are trying to figure out what the distancing of the country's new leader from the powerful religious establishment will mean here. The Orthodox Church has been directly connected to Greece since the 15th century; the last time it was led by an Arab patriarch, Atallah, was centuries ago. He died in 1492. Since then, every patriarch and most bishops have been Greek and they have used every trick in the book to keep the church in Greek hands. Greece's flag flies over most Orthodox Church property despite the opposition of the local Arab congregations. The Arab Orthodox community also accuses the Greek church leaderships of selling (it is actually long-term leases) historic church property and lands to the Israelis. (Israel's Knesset is built on property that is on a long-term lease from the church.) A campaign against the current patriarch included public protests with signs reading "Undeserving". Both Palestinian and Jordanian officials have been silent on the struggle against the patriarch. It is not clear if the secular political powers in Athens can do anything about this current struggle between the Arab parish and the Greek religious leadership. But one thing is clear -- with secular Tsipras in power, it is unlikely that Athens will give automatic backing to the Orthodox religious establishment in Jerusalem. The Greek elections and the impressive popular support that the Syriza Party garnered have certainly grabbed world attention. Athenian democracy, which was developed in the 5th century BC, remains a unique and intriguing experiment in direct democracy. The country that brought to the world modern democracy has shown the refreshing meaning of giving people the right to say who rules them. Let us hope that our region will benefit politically from the new elections and also absorb the liberating power of democracy.
Radicals of Syriza endure a rocky start
Greece’s new government must tread carefully with its EU partners
Greece will no longer deal with ‘troika’
Adversarial mood means Athens will not accept extension of bailout
Greek minister's Kardak visit may resurrect old tensions with Turkey
It was reported that Kammenos will travel to Crete on a helicopter accompanied by Vice-admiral Evangelos Apostolakis, the Commander of Greek ...
Greece rejects return of EU/IMF inspectors to Athens-source
Euro zone officials have said Greece will almost certainly need an extension to the programme but Prime Minister Alexis Tsipras' government has ...
New Greek government steps up battle with creditors
Athens (AFP) - Greece's new government dramatically escalated its battle with the country's international creditors Friday, refusing to meet EU and IMF officials and rejecting fresh loans offered for February. Athens had been promised another 7.2 billion ...
Greece’s finance minister vows to shun officials from ‘troika’
Yanis Varoufakis says new government will refuse to engage with auditors from the EU, the European Central Bank and the International Monetary FundThe battle lines between Greece and its creditors were drawn in Athens as the Greek finance minister announced that the new government would refuse to engage with representatives of the country’s hated “troika” of lenders.Standing his ground after talks in the capital with Jeroen Dijsselbloem, head of the Eurogroup of EU finance ministers, Yanis Varoufakis said Greece would not pursue further negotiations with the body of technocrats that has regularly descended on the country to monitor its economy. Nor would it be rowing back on election-winning pledges by asking for an extension to its €240bn (£180bn) bailout programme. “This platform enabled us to win the confidence of the Greek people,” Varoufakis said, insisting that the logic of austerity had been repudiated by voters when the far-left Syriza party stormed to victory in Sunday’s election. Continue reading...
Door slammed on major Eldorado mining project in Greece: 'We are absolutely against it'
Angelos Tzortzinis/BloombergThe Skouries gold mine operated by Vancouver-based Eldorado Gold in northern Greece was the flagship project of the ...
Paris: Greece should get time to pay debts
Greece could be given more time to pay off its debt if it keeps its budget in balance and maintains promised reforms, French officials said yesterday. In a series of statements spelling out Paris’s position days before talks with the new government of ...
Syriza insists it will not work with the troika
Eurogroup president Jeroen Dijsselblloem warns against 'unilateral' action by the new Greek government.