Greece's rock-star finance minister Yanis Varoufakis defies ECB's drachma threats

Greece's finance minister has denounced eurozone threats to cut off funding for Greek banks later this month as political intimidation, warning in fiery ...

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Greece Braces For Talks With Germany

Greece's new anti-bailout government confirmed it will hold meetings with lead lender — and critic — Germany this week. The post Greece Braces For Talks With Germany appeared first on The National Herald.

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What Is the Real Greek Morality Tale?

NEW YORK -- When the euro crisis began a half-decade ago, Keynesian economists predicted that the austerity that was being imposed on Greece and the other crisis countries would fail. It would stifle growth and increase unemployment -- and even fail to decrease the debt-to-GDP ratio. Others -- in the European Commission, the European Central Bank, and a few universities -- talked of expansionary contractions. But even the International Monetary Fund argued that contractions, such as cutbacks in government spending, were just that - contractionary. We hardly needed another test. Austerity had failed repeatedly, from its early use under U.S. President Herbert Hoover, which turned the stock-market crash into the Great Depression, to the IMF "programs" imposed on East Asia and Latin America in recent decades. And yet when Greece got into trouble, it was tried again. Greece largely succeeded in following the dictate set by the "troika" (the European Commission the ECB, and the IMF): it converted a primary budget deficit into a primary surplus. But the contraction in government spending has been predictably devastating: 25 percent unemployment, a 22 percent fall in GDP since 2009, and a 35 percent increase in the debt-to-GDP ratio. And now, with the anti-austerity Syriza party's overwhelming election victory, Greek voters have declared that they have had enough. So, what is to be done? First, let us be clear: Greece could be blamed for its troubles if it were the only country where the troika's medicine failed miserably. But Spain had a surplus and a low debt ratio before the crisis, and it, too, is in depression. What is needed is not structural reform within Greece and Spain so much as structural reform of the eurozone's design and a fundamental rethinking of the policy frameworks that have resulted in the monetary union's spectacularly bad performance. Greece has also once again reminded us of how badly the world needs a debt-restructuring framework. Excessive debt caused not only the 2008 crisis, but also the East Asia crisis in the 1990s and the Latin American crisis in the 1980s. It continues to cause untold suffering in the U.S., where millions of homeowners have lost their homes, and is now threatening millions more in Poland and elsewhere who took out loans in Swiss francs. Given the amount of distress brought about by excessive debt, one might well ask why individuals and countries have repeatedly put themselves into this situation. After all, such debts are contracts -- that is, voluntary agreements -- so creditors are just as responsible for them as debtors. In fact, creditors arguably are more responsible: typically, they are sophisticated financial institutions, whereas borrowers frequently are far less attuned to market vicissitudes and the risks associated with different contractual arrangements. Indeed, we know that U.S. banks actually preyed on their borrowers, taking advantage of their lack of financial sophistication. Every (advanced) country has realized that making capitalism work requires giving individuals a fresh start. The debtors' prisons of the 19th century were a failure -- inhumane and not exactly helping to ensure repayment. What did help was to provide better incentives for good lending, by making creditors more responsible for the consequences of their decisions. At the international level, we have not yet created an orderly process for giving countries a fresh start. Since even before the 2008 crisis, the United Nations, with the support of almost all of the developing and emerging countries, has been seeking to create such a framework. But the U.S. has been adamantly opposed; perhaps it wants to reinstitute debtor prisons for over indebted countries' officials (if so, space may be opening up at Guantánamo Bay). The idea of bringing back debtors' prisons may seem far-fetched, but it resonates with current talk of moral hazard and accountability. There is a fear that if Greece is allowed to restructure its debt, it will simply get itself into trouble again, as will others. This is sheer nonsense. Does anyone in their right mind think that any country would willingly put itself through what Greece has gone through, just to get a free ride from its creditors? If there is a moral hazard, it is on the part of the lenders -- especially in the private sector -- who have been bailed out repeatedly. If Europe has allowed these debts to move from the private sector to the public sector -- a well-established pattern over the past half-century -- it is Europe, not Greece, that should bear the consequences. Indeed, Greece's current plight, including the massive run-up in the debt ratio, is largely the fault of the misguided troika programs foisted on it. So it is not debt restructuring, but its absence, that is "immoral." There is nothing particularly special about the dilemmas that Greece faces today; many countries have been in the same position. What makes Greece's problems more difficult to address is the structure of the eurozone: monetary union implies that member states cannot devalue their way out of trouble, yet the modicum of European solidarity that must accompany this loss of policy flexibility simply is not there. Seventy years ago, at the end of World II, the Allies recognized that Germany must be given a fresh start. They understood that Hitler's rise had much to do with the unemployment (not the inflation) that resulted from imposing more debt on Germany at the end of World War I. The Allies did not take into account the foolishness with which the debts had been accumulated or talk about the costs that Germany had imposed on others. Instead, they not only forgave the debts; they actually provided aid, and the Allied troops stationed in Germany provided a further fiscal stimulus. When companies go bankrupt, a debt-equity swap is a fair and efficient solution. The analogous approach for Greece is to convert its current bonds into GDP-linked bonds. If Greece does well, its creditors will receive more of their money; if it does not, they will get less. Both sides would then have a powerful incentive to pursue pro-growth policies. Seldom do democratic elections give as clear a message as that in Greece. If Europe says no to Greek voters' demand for a change of course, it is saying that democracy is of no importance, at least when it comes to economics. Why not just shut down democracy, as Newfoundland effectively did when it entered into receivership before World War II? One hopes that those who understand the economics of debt and austerity, and who believe in democracy and humane values, will prevail. Whether they will remains to be seen. © Project Syndicate

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Rift appears in coalition over citizenship bill

In the first sign of a disagreement within the new SYRIZA-led government, the leader of junior coalition partner Independent Greeks (ANEL), Panos Kammenos, indicated that

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A Greece Reading List (Or, Why The Euro Is Doomed)

Admittedly, the rate Greece actually pays is much lower, but you get the picture. Even at a 2% rate, in a zero-inflation environment, Greece is going to ...

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Why Europe should back Greece's debt swap plan

On Tuesday, Greece Finance Minister Yanis Varoufakisit said he would be willing to back away from defaulting on the debt-troubled country's bailout ...

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Think of the World as a Country

The global economy seems perplexing today: While all the traditional economic growth factors are in place (the world's population is increasing, technical progress is huge, available savings are substantial, free trade is greater than ever), growth is slowing globally, save for the United States at this stage. And around the world, even in the United States, real unemployment has risen to record levels, investments are slowing down, inequalities are greater than ever before, especially in the United States. And the recent Baltic Dry Index (BDI) plunge (a number issued daily providing an assessment of the price of moving the major raw materials by sea, and which for a long time now has been a big indicator of impending crises) with its downward trend has caused panic to spread in the small circle of traders. To deal with this problem, it seems that none of the conventional efforts are working: Interest rates are at their lowest; central banks are pumping an insane amount of money into the banking system; governments are plagued by record high deficits. Nothing is working. Nothing is starting. Everything is slowing down. Even prices. What is wrong with the way the world has been functioning? How to explain that this incredible potential is not translated into practice? Economists, sociologists, political scientists throughout the world are discussing these issues ad infinitum without any convincing answer being given. And without anybody offering a new solution that is credible. Yet there is a critical need to understand the situation and to find ways to act. Otherwise, the global economy will plunge into a global depression with devastating political consequences. We will start seeing, we already see, those extreme parties taking power and democracy being questioned by the very people who pretend to speak on its behalf. For me, the answer is obvious, although few people will admit it: The whole world economy is now a single economy. And one cannot understand it by juxtaposing the analysis of national economies and their trade exchanges. We must think of the world as a single economy; as a country. But a country without rule of law or regulatory state. And such an economy, which was previously unknown in the real world up until today, can only, according to all existing theories, lead to an underutilization of the factors of production, that is to say to a shortfall in demand. And no regulatory state is there to compensate. In other words, the world is suffering from not having a tool able to create demand globally. The ideal solution would be to create a World Central Bank, with democratic governance, with a world currency, able to pour massive resources on the world. In the form of money or in the form of investments in sustainable economy sectors. The halfway solution would be to ask the G20 governments to agree to boost public investment massively, with recourse to heavy borrowing, forced if necessary, from large owners of capital. The solution that is most in the interests of young people and employees would be a dramatic increase of all salaries throughout the world, and the acceptance of inflation. The one that is most in the interests of large owners of capital and seniors would be to make stock markets soar in order to create demand through the revaluation of wealth. None of this will take place, of course. So the most likely scenario is that everybody will keep to oneself, to the point that they will isolate themselves from one another. But those who will create demand only at home, by massively increasing salaries or public expenditure, will quickly become dependent on imports, their currency will collapse. The United States may want to opt for this solution, as may Greece, on the other end of the spectrum. This will lead to protectionism, fragmentation, war. It has become fashionable to say that we must think of the world as one, when talking about the climate change conference and its success. And yet, if ever there is a global conference that is urgent, it is rather one that would reform the IMF to make it more democratic and give it all its powers. Because if the world does not take action on the economy quickly, the problem of the emission of greenhouse gases will soon be resolved in the simplest way possible: There will be no one left to produce any.

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Greece braces for talks with Germany amid market relief

ATHENS, Greece (AP) — Greece's new anti-bailout government confirmed it will hold meetings with lead lender — and critic — Germany this week after markets and European governments reacted with relief to alternatives proposed in Athens to a hard debt write-off.

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Greece sets sights on Merkel in effort to roll back austerity measures

Germany stands between Greece and its hopes for a gentler bailout.

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Varoufakis heads to Germany to seek backing for Greek debt plans

Greece's new government also wants the ECB to agree to swap its holdings of Greek debt for “perpetual bonds”, which never mature. Benoît Cœuré, a ...

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A deal to bring modernity to Greece

The EU is supposed to be a union of democracies, not an empire. It should negotiate in good faith

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Greek debt offer looks unappetising

But approach appears far less contentious than earlier demands

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The Guardian view on the euro: Yanis Varoufakis begins to haggle

Syriza is finally moving beyond lofty rhetoric, and beginning to engage creatively with the pressing need to negotiate. The rest of Europe must listen, and reciprocateRocking up to No 11 on Monday in a black leather jacket, a bold blue shirt and no tie at all, Yanis Varoufakis looked like a visitor from another planet, beside a buttoned-up George Osborne. Indeed, Greece’s new finance minister hails from another intellectual universe from the man with the “long-term plan” for austerity. But as Europe anxiously eyes developments in Athens, it can be reassured that Mr Varoufakis was, while still buried away in university departments, doing some long-term planning of his own.He has penned books on “game theory”, the science of bargaining – useful training for the gruelling months of negotiations with Berlin, Frankfurt and Brussels which lie ahead. But during Syriza’s electric first few days – in which privatisations were halted, rhetoric ramped up and dubious coalition partners embraced – mastery of abstract models was never going to reassure a continent which fears for its currency’s future. What should reassure Mr Varoufakis’s counterparts in other capitals, as well as the markets, is that he has spent the last few years to trying to chart a practical path out of the debt trap, publishing several versions of what he calls A Modest Proposal. Continue reading...

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Greek PM Concludes Cyprus Visit With Pledge to Work for a Solution on Missing Persons

Greek Prime Minister Alexis Tsipras concluded his visit to Cyprus earlier today, the first official visit abroad since he took office on Monday, January 26, following the Greek snap elections. He already departed for Italy, the second destination of his European tour, in an attempt to gain political support for his government’s attempt to reach a new agreement with Greece’s partners regarding the country’s debt. Prior to his departure from Cyprus, Tsipras visited the Tomb of Makedonitissa, a war memorial and military cemetery, where Greek soldiers and officers who died defending Cyprus during the 1974 Turkish military invasion are buried. Addressing the relatives of missing persons, Tsipras pledged that the Greek government is ready to do its utmost in order to contribute to the solution of the long-standing problem of missing persons in Cyprus. Tsipras highlighted that Greece will take action both at an international and European level, since it is a matter of dignity and human rights. During his visit to the historic Tomb of Makedonitissa, where one Greek carrier aircraft was shot down by friendly fire on July 22, 1974, during Operation “Niki,” killing 26 Greek commandos and four airmen, the Greek Premier was accompanied by Cypriot Defense Minister Christoforos Fokaides. In addition, he laid a wreath to the memorial while a Cypriot National Guard contingent and a Military Band paid tribute. Earlier during his visit in Nicosia, in a joint press conference with the President of the Repubic of Cyprus, Nicos Anastasiades, Tsipras stressed that Athens and Nicosia will join forces toward a just and viable solution to the Cyprus problem. “My presence here symbolizes the particular significance we lay on Cyprus, on your struggle for justice. We are seeking the closest possible cooperation with Nicosia to tackle the big challenges ahead of us that have to do with a just and lasting settlement in Cyprus,” he said, adding that Greece and Cyprus “exist in a triangle of instability, which includes Ukraine, Syria and Libya. Nonetheless, we provide stability and security, and this is an advantage we have in our attempt to maintain stability, security, cooperation and claim all that we deserve within Europe.” Cyprus, which is a part of the European Union since 2004, has been violently divided since 1974, after a brutal Turkish invasion and the following occupation of its northern lands or 37% of its territory. On its part, Turkey has repeatedly denied to recognize the Republic of Cyprus, despite numerous calls by international institutions and the European Union, which Ankara aims to join. At the same time, numerous United Nations-backed negotiations to reunite the island under a federal government have failed. In October 2014, Cypriot President Anastasiades suspended his participation in the peace talks following a NAVTEX (Navigational Telex) issued by Turkey for the conduction of hydrocarbons research in Cyprus’ Exclusive Economic Zone (EEZ) by seismic vessel “Barbaros,” escorted by a number of Turkish Navy ships.

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Extraordinary Eurogroup meeting on Feb. 11 with Greece on the agenda?

According to information of Mega Channel from Brussels, there will be an extraordinary Eurogroup one day prior to EU Summit

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Greece cheers market with debt restructuring plan

Greece on Tuesday floated proposals to ease the economic pressure generated by its massive foreign debt, boosting stock markets as hopes rose for a deal with its European Union partners. Italian Prime Minister Matteo Renzi said he believed an accord on the debt terms was possible, and promised Greek counterpart Alexis Tsipras, whom he met in Rome, of Italy's support in trying to achieve it ...

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Italian PM Renzi During Tsipras’ Visit: I’m a Fan of the Greek Effort

Greek Prime Minister Alexis Tsipras’ meeting with his Italian counterpart Matteo Renzi in Rome was concluded in a positive climate a few minutes ago and the two Premiers proceeded with a joint press conference, underlining Greece ‘s need of reforms. Tsipras, currently on a tour to European capitals that started yesterday from Nicosia, is seeking the support of fellow European leaders toward a new agreement on the Greek 240-billion-euro bailout program to be reached between Athens and its partners. “Our people have suffered in recent years. The time has come for a much-needed shift in Europe,” Tsipras said during the joint press conference, adding that there are currently several divisions in Europe between the North and the South. “We want to create an alliance of reason. Europe is at critical crossroads and Greece will work to contribute to the necessary political change,” he highlighted. Referring to the situation in Greece, Tsipras stressed that due to state corruption and entanglement, the middle class and the poor are the ones mostly damaged, assuring that his newly elected government will change that. In relation to the Troika representing the country’s creditors and their role so far, the Greek Premier estimated that it did everything wrong, noting that it increased the national debt from 120% of GDP to 180%, while catapulting unemployment and poverty. “Creditors have nothing to fear from the policy change,” he concluded. On his behalf, the Italian Prime Minister declared himself a “firm fan of the Greek effort to properly address the situation that has been created,” expressing the belief that conditions to find a consultation with the Greek authorities are already in place. “This is a message to the direction of reforms,” he further said. In addition, Renzi estimated that it will be important for Greece to have a strong link with European institutions. “I trust that the debate between Greece and Europe will solve the immediate problems,” he said, adding that “we need to talk about development, not only about austerity. People called for Europe to look for growth.” Prior to the two Premiers’ meeting, Greek Finance Minister Yanis Varoufakis was accepted by his Italian counterpart Pier Carlo Padoan. “What is needed is a bridge agreement that gives us some time – for example a month or six weeks starting from late February – to find an agreement that we would then put in place starting from June 1,” Varoufakis highlighted regarding the possibility of a new agreement, declining to provide any further details of Greece’s proposal for its debt beyond saying that Greece is working on a “road plan” for a solution. “We could envision an end to the Greek crisis starting from June. If there is an agreement, capital will start flowing very quickly,” Varoufakis concluded. Tsipras is expected to arrive in Brussels tomorrow, where he will hold a meeting with European Commission President Jean-Claude Juncker.

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Greek Govt Spokesman: We have not Changed Our Stance on Greek Debt

The government’s firm position is that the Greek debt is not sustainable and that is the reason why its write-off is required, government spokesman Gavriil Sakellaridis on Tuesday told ANT1 TV. Sakellaridis stressed that the government has not changed its stance, which may have disappointed some people. He underlined that the write-off can occur in several technical methods and one of them is “the technical method presented by [Finance Minister Yanis] Varoufakis to British investors.” However, he said, the government is concerned with rendering the debt sustainable, in order to help the Greek society breathe. Referring to Prime Minister Alexis Tsipras’ contacts with Europeans, Sakellaridis said that the government has strengthened Greece’s negotiation position. As for the candidate for the President of the Hellenic Republic, he said that the government’s proposal will soon be announced. “When the Prime Minister returns and the parliament opens, there will be an announcement regarding the candidate and we will smoothly proceed with the election of the President of the Hellenic Republic,” Sakellaridis noted. Regarding the possibility of a meeting between the Greek Prime Minister and German Chancellor Angela Merkel, he said that the Greek side has not made any moves yet. “This has not been finalized, the Greek side has not made any moves in order to plan a meeting between Tsipras and Merkel. If there is such a meeting, you will be informed. It is a long time until February 12,” he concluded. (source: ana-mpa)

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Olympiakos Owner found NOT Guilty in Greek Cup Final’s Allegations

The owner of Olympiakos football club Vaggelis Marinakis as well as vice president Savvas Theodoridis were found innocent concerning allegations of influencing the referees during the Greek Cup final in 2013 against Asteras Tripolis. In what has been dubbed as the biggest soccer scandal of the 00’s, the architects of the incident have walked away free in another sample of Greece’s inability to deal with corruption. It was May 2013 and during the Cup Final’s halftime, when both the owner Vaggelis Marinakis and vice-president Savvas Theodoridis of Olympiakos paid a prohibited visit to the referee’s chamber. According to the accused, their visit consisted of good means as they intended to wish the referees good luck. Whether the above was their intention or not, their deed was illegal as it is forbidden for any person, especially members of the board of clubs to enter the office. But even though the first half went smoothly, the second one was a travesty. The calls were uneven to a point where even Olympiakos fans were shaking their heads in disbelief. And to top all cases, at the 68th minute of the game, Asteras Tripolis center back, Sankare, jumped higher than everyone and headed the ball towards the net, only to see defender Yannis Maniatis block it away with his elbow. Even though it was easily visible, as the referee had a clear view of the circumstance, he let the game play on. To make matters even worse, both linesmen also refused to flag the violation. Ever since that day, many soccer fans, have realized there is an undeniable source that decides matters in the Greek championship and cup games. Referre Sokratis Yiahos and linesman Stavros Tritsonis were part of the system that day that took away from Asteras Tripolis a cup they could have fought for on equal terms. Their presence as witnesses in yesterday’s court case was a parody as both stated that the Olympiakos members’ visit was just to wish them well. Greek football, just like Greek politics are a joke, and to be honest, I have no idea why so many of us still waste our time pottering about it…    

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Greece finance minister's soothing comments raise hopes and impress markets

Hopes for a deal over Greece's €315bn (£240bn) debt buoyed markets on Tuesday as new finance minister Yanis Varoufakis stepped up his efforts to ...

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European shares close near seven-year peak on optimism over Greece

… 18 percent. National Bank of Greece, Alpha Bank and Eurobank rose … at BCS Asset Management, said. Greek Finance Minister Yanis Varoufakis, in … , German Chancellor Angela Merkel said Greece was still working out plans …

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Potami party on the government's negotiations with EU partners

Potami party on Tuesday called for "straight talk" in Greece's negotiations with its EU partners on the loan agreement, in response to statements made by Finance Minister Yanis Varoufakis and Alternate Minister for International Economic Relations Efklidis Tsakalotos on ...

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Deal with Greece possible, says Italian PM Renzi

Italian Prime Minister Matteo Renzi said Tuesday he believes Greece will be able to strike a deal with its EU partners over its massive debts. "I believe the conditions exist to find an accord with the European ...

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Portuguese strictly against a Greek debt cut

Portugal had made many sacrifices before it could leave the troika's rescue program in 2014. That is why Portugal is staunchly opposed to special treatment for Greece, reports Jochen Faget from Porto.

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FTSE hits five month high on Greek hopes, as buy note boosts Barclays

Leading shares lifted by prospect of a deal with eurozone over Greek debtLeading shares hit a five month high on growing hopes of a resolution to current Greek drama and a surge in mining shares following Australia’s interest rate cut.Among the risers was Barclays, after City analysts said there could be 45p a share worth of hidden value in the business.In the past, non-core units at UK banks have tended to be focussed on non-performing loans. For example, commercial real estate loans and Irish exposures made up a large part of the non-core at of RBS and Lloyds. At Barclays the design of the non-core is somewhat different, with a focus on investment bank assets that are no longer strategic and/or do not generate attractive returns under the new regulatory paradigm, rather than running down non-performing loans. This results in a portfolio that has much lower non-performing exposures and risk weight density than peers’.We calculate the current share price implies a negative value of around 40p a share for non-core, assuming our other (broadly conservative), assumptions hold true. This is effectively capitalising the non-core earnings drag seen in 2015/16 in perpetuity. We argue that the unit actually has a positive net present value of around 8p post 2017 plus, as capital released during the run-off exceeds losses incurred, suggesting a mis-pricing of around 45p or around 20% of market cap.Markets have flung caution to the wind and rallied impressively during [the day’s] session. The bounce in oil, now in its third day and still looking as if it has legs, has certainly helped, but it is Greece that is the source of real optimism. For the first time it looks as if the new Greek government is reacting, rather than driving events. A switch to a more conciliatory tone on the part of the finance minister and the prime minister has raised hopes that a deal may be possible. Added to that is the fact that the Germans have yet to completely dismiss the debt-swap idea, when normally a rejection would be swift and curt. For Capita this is a significant strategic step. First it is a large acquisition for a business that has been targeting total acquisition spend of around £250m annually. Second, it is a material move outside the UK for the first time: Capita has sought in the past to win non-UK clients in particular niches, notably in insurance policy administration. This gives a wholly new platform and growth avenue for the group. There is logic given the scale in the UK and that it builds directly on core expertise and recent success with similar customer groups. Continue reading...

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UPDATE 1-Merkel, waiting to see Greek debt proposals, insists on troika role

Publicly Merkel declined to comment on the new left-wing Greek government's plans to tackle its debt including a proposed debt swap, saying she ...

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GLOBAL MARKETS-Stocks jump on Greek debt plan, US dollar falls

NEW YORK, Feb 3 (Reuters) - Stock markets rallied around the world on Tuesday while the U.S. dollar fell after the new Greek government dropped ...

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European Central Bank resists latest Greek bailout plan

Yanis Varoufakis, Greek finance minister, had proposed to European officials that Athens raise €10bn by issuing short-term Treasury bills as “bridge ...

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Freedom or Death: The Perplexing Case of the Current Greek Debt Crisis

In the past weeks an extremely paradoxical event in the Greek political system has been unfolding. This week, the staunch left-wing Siryza party won a ...

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US Treasury team to visit Athens

A team of US Treasury officials will visit Greece in the coming weeks

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EU lawmakers eye condemnation of Greek far-right ministers

Conservatives in the European Parliament want it to vote next week to condemn a right-wing party in Greece’s new leftist-led coalition government

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German Euroskeptic party calls Greek debt plan disguised forgiveness

Greece’s proposal to swap its foreign debt for growth-linked bonds is a disguised form of debt forgiveness, the leader of Germany’s Euroskeptic Alternative for Germany (AfD) party told

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What are the aims of Greece's new government?

On Jan. 26, Greece's radical left Syriza party, which made a clean sweep in the general election, formed a coalition government with the small ...

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Greece and the euro crisis

Actually Greece has a long record of debt problems with around half of its history as an independent nation spent in default. One need only look to ...

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European Stocks Rise as Greece Backs Down From Writedown Request

(Bloomberg) -- European stocks climbed as concern that Greece would defy its creditors eased after the nation retreated from a plan to ask the euro ...

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Greece has come up with a swap deal to escape its ‘debt slavery’

GREECE TODAY SOUGHT to add Italy to its supporters in a fight to secure easier terms on the country’s massive debt after unveiling new proposals to end a stand-off with international lenders. Greek Finance Minister Yanis Varoufakis told international ...

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The UK's Green Party Shares Anti-austerity Sentiment with the Greeks

BigBen_2.jpg Home Page News Page The Green Surge Syriza’s surge to power with a campaign against austerity has forced politicians across Europe to justify their economic policies. The UK chancellor was hot-off-the-mark to assure everyone that the Greek election result should not be interpreted as a rejection of austerity policies: Syriza’s surge to power with a campaign against austerity has forced politicians across Europe to justify their economic policies. The UK chancellor was hot-off-the-mark to assure everyone that the Greek election result should not be interpreted as a rejection of austerity policies. People get tired of economic failure, they [get] tired of rising unemployment… what you see is not a defeat of austerity, it is a defeat of economic plans that don’t work and in Britain we have got an economic plan that is working. See Also links url:  http://www.economywatch.com/world_economy/united-kingdom/?page=full Title:  The Economy of the UK, GB, British Isles (or Whatever You Want to Call It!) See Also type:  Reference Featured Report That You Might Like:  Waitemata District Health Board Tasmanian Public Finance Corporation read more

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Greece gets creative in bid to ease debt burden

Greece's new government is proposing creative solutions as it treads a delicate path between its obligations to international creditors and campaign promises to end austerity and reduce the country's debt. "If we need to use euphemisms and tools of financial mechanisms to get Greece out of its debt-slavery, we will do it," Finance Minister Yanis Varoufakis said Tuesday. According to an interview ...

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Greece's Debt Plan Is a Hidden Haircut

The idea is to leave Greece's debt to the International Monetary Fund and to private creditors alone, but to restructure the country's obligations to the ...

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European stocks rally on Greek hopes

London (AFP) - Europe's main stock markets rallied Tuesday, recording a second day of gains on hopes of a deal being struck on Greece's debt, with a rebound in oil prices helping energy shares.The Greek stock market soared by more than 11.3 percent after Athens elaborated on its plans that would see repayment of its huge international bailout loans delayed but avoid a politically sensitive write-off of the debt.London's FTSE 100 rose 1.32 percent to 6,871.80 points, in Paris the CAC 40 rose 1.09 percent to 4,677.90 points, and Frankfurt's DAX 30 index climbed 0.58 percent to a record high close of 10,890.95 points.Madrid spiked 2.32 percent higher and Milan 2.57 percent.The euro leapt to $1.1456 from $1.1343 late in New York late on Monday."Global equity markets extended gains in today's trading session and climbed higher following a strong rebound in crude oil prices and as concerns regarding Greece’s uncertainty eased," said analyst Myrto Sokou at Sucden Research.Greece's new anti-austerity leaders flew into Rome on Tuesday to build support for new proposals aimed at ending a stand-off with the country's eurozone partners which footed the bill for the country's bailout.In an interview with the Financial Times, Greek Finance Minister Yanis Varoufakis said the leftist-dominated government in Athens would be making proposals for "a menu of debt swaps" that would avoid the need for any of the country's mountain of foreign debt to be written off."Greece's problems are far from over but as far as the markets are concerned calm has been restored," said David Madden, market analyst at IG trading group. - Oil helps energy stocks - On the corporate front Tuesday, the energy sector won support from signs of recovery in the oil market."The bounce in oil has boosted shares in the commodity sector and this theme could continue for some time yet," noted Fawad Razaqzada, analyst at Forex.com."Oil prices have rebounded strongly over the past three trading sessions on signs that producers are cutting back output." European benchmark Brent North Sea crude for delivery in March jumped $1.20 to $55.94 per barrel in late London trading, while West Texas Intermediate (WTI) for March won $1.15 to $50.72.Shares in BP jumped by 2.78 percent to 449.85 pence, lifted also by better-than-expected earnings revealed by the British energy group. The company meanwhile joined sector peers in announcing that it plans to slash investment this year as the recent plunge in crude prices bites into group profits. Spending in 2015 was expected to total about $20 billion, down from a previous guidance of $24-26 billion, BP said in a results statement.And smaller British rival BG Group revealed it would cut investment by about $3.0 billion this year.Royal Dutch Shell gained 5.36 percent to 2,180.00 pence, and Tullow Oil climbed 4.61 pence.In Paris, shares in Total rose 2.72 percent to 48.28 euros. - Australia shines on miners - Mining stocks benefitted from Australia's central bank cut interest rates to a record low 2.25 percent, which sent the Aussie dollar lower.Shares in Glencore soared 6.42 percent to 269.35 pence and BHP Billiton gained 5.02 percent to 1,558.50 pence. Shares in Anglo American climbed 4.09 percent to 1,170.00 pence and Rio Tinto climbed 3.88 percent to 3,076.00 pence."Mining companies including BHP Billiton and Rio Tinto with large Australian operations benefited from an overnight rate cut from the Reserve Bank of Australia which sent production costs tumbling alongside the Australian dollar," said analyst Jasper Lawler at CMC Markets UK.Shares on Wall Street pushed higher on Tuesday, following European equities upward on optimism for a deal to renegotiate Greece's debt.The Dow Jones Industrial Average rose 0.80 percent to 17,499.15 points in midday trading.The broad-based S&P 500 climbed 0.65 percent to 2,034.06, while the tech-rich Nasdaq Composite Index added 0.18 percent to 4,685.16.In Asian trading, Sydney stocks surged 1.46 percent higher on Australia's central bank interest rate cut.Tokyo sank 1.27 percent owing to a pick-up in the yen against the dollar.Hong Kong added 0.29 percent and Shanghai rallied 2.45 percent on expectations of some policy easing after weak manufacturing figures from China on Sunday and Monday.Seoul ended flat.Join the conversation about this story »

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Italy's Renzi says EU-Greece deal possible after Tsipras talks

Rome (AFP) - Italian Prime Minister Matteo Renzi said Tuesday he believes Greece will be able to strike a deal with its EU partners over its massive debts."I believe the conditions exist to find an accord with the European institutions," Renzi said at a joint press conference with Greek Prime Minister Alexis Tsipras following talks in Rome.Renzi also assured Greece's leftist leader of "the greatest possible support, both in terms of bilateral cooperation and in availability for dialogue".Join the conversation about this story »

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Budget Wars: Europe Has the Germans, We Have the GOP

Washington's upcoming budget battle could become the next front in the war against austerity. That's the bank-friendly, growth-killing economic ideology whose forces now span the globe: Europe has the Germans, and we have the Republicans. But who in this country will take the role of Syriza and Podemos, Europe's new anti-austerity political movements? The Sins of the Bankers The German government has become the economic bane of greater Europe. It has used its dominance of the European community to force its harsh and counterproductive austerity economics on the "lesser" members of the Eurozone -- in effect to punish them for the sins of their bankers. (The bankers themselves appear to be above earthly chastisement.) Now Greece's newly elected Syriza government is challenging the German-led economic order's paradoxical prescription for growth -- one that might be described as "Starve them until they prosper." Greece's new leaders insist on having a say in their own economic future -- a reasonable enough position, especially in the birthplace of democracy -- and they reject the failed austerity policies of the global financial elite. It's a war of nerves, a contest to see who blinks first. For their part, Greece's leaders know that its economy hangs in the balance. But the German-led European community is walking a tightrope -- between a hardline position that could shatter the European community and concessions that might encourage other countries to elect their own Syriza-like leaders. Waiting for Lefty Syriza-like political movements in other economically battered countries, like Spain's Podemos and Ireland's Anti-Austerity Alliance, are watching this confrontation closely. But the United States has so far failed to produce its own anti-austerity electoral movement, despite the problems caused by our home-grown GOP "Germans." In fact, the Republican Party's economic agenda is harsher than anything even Germany's been willing to propose. So why hasn't there been a successful U.S. electoral countermovement along Syriza's lines? There are a number of reasons, including: Mixed messages. President Obama spent much of his presidency embracing austerity with one hand while rejecting it with the other. Upon taking office he acknowledged the need for immediate stimulus spending but also created a "Deficit Commission" and overstated the need for spending cuts. This mixed messaging emboldened the austerity crowd and undercut the pro-growth, anti-austerity message. Partial solutions. The economic measures put in place by the president and his party prevented a full-scale depression, created millions of jobs, and mitigated our recessionary crisis. But they weren't enough to rescue the middle class, boost wages, reduce inequality, or attack some corners of the unemployment problem. Instead of explaining what else was needed, the White House acceded to "sequester" cuts that hobbled the recovery. That left us with uneven gains that benefited the rich while allowing the middle class and impoverished to fall even further behind. A glass half-empty. Democrats, led by the president, largely failed to explain what had been accomplished. Instead of seeing an economic "glass half-full" -- the result of half-measures for economic growth -- many voters understandably saw one that was half-empty. Democratic boasts about job creation, while true, often seemed out of touch with what millions of people were experiencing. The two-party system. Most other democracies have a parliamentary system that allows multiple parties to participate in the governance process. Ours makes it difficult for third parties to win office. And the corrupting influence of big money has seduced many politicians into ignoring popular (and populist) ideas in favor of wealth-friendly "compromises" that leave voters cold. A sense of alienation. The end result appears to have been a widespread sense of alienation among middle- and lower-income Americans. The 2014 election turned into a Republican wave. Democratic losses were greater than anticipated, with record-low turnout (the lowest participation rate since 1942, when many Americans were serving overseas in World War II) that suggested deep disaffection with the political process. That shouldn't be surprising, given how few incumbent Democrats were offering a clear explanation for the public's economic woes -- much less a clear solution for them. They'll certainly do better in 2016 -- but how much better? That remains to be seen. Stepping Away From Austerity The new White House budget is a step in the right direction. The president is no longer emphasizing deficit reduction through spending cuts. His budget would end the "sequester." It offers some tax increases on corporations and high-earning individuals and expands middle-class tax breaks. The White House is also increasing its proposed infrastructure spending from $302 billion (over 10 years) to $478 billion. "I want to work with Congress to replace mindless austerity with smart investments that strengthen America," said Obama. That's an improvement -- but more is needed. If the public is to support future spending initiatives, it needs to understand government's contribution to the gains we've already made. They won't get that from "split-screen" rhetoric that simultaneously rejects and embraces deficit-fixated budgeting. Ambivalence doesn't excite the public, and the truth is not as ambiguous as some would have us believe. For example, the president claims that "we can now afford to make these investments" because the budget deficit has already been reduced by two thirds. That's a mixed message -- and it's not correct. Had we invested in a broader recovery over the past five years, the American people would be much better-off today (and the deficit might have fallen as much, or more, than it has today). The budget is a mixed bag on substance too. It has its virtues, but its corporate tax holiday is a major giveway. I agree with Dave Johnson, who notes that the president's infrastructure spending is only 13 percent of the expenditure that the American Society of Civil Engineers says we need. Other measures fall short of what is needed to restore the middle class and dramatically reduce poverty. The president's budget proposal: It's serious -- but it's not Syriza. Getting Serious Everybody in Washington agrees on one thing: As far as Congress is concerned, the president's budget is dead on arrival. So why didn't he offer larger spending initiatives or a bolder vision for revitalizing this stagnant economy? We don't know. But that means we'll need to look instead to the populist wing in Congress -- to leaders like Bernie Sanders, Elizabeth Warren, Sherrod Brown, Jeff Merkley, Keith Ellison, and Alan Grayson. They'll need help. Syriza and Podemos are electoral movements second and popular movements first. To elect more officials with an anti-austerity mandate, especially in our money-driven electoral process, we may need to recreate an Occupy-like movement -- one that generates excitement, ideas and momentum from outside the political system. Greece's new leaders are at the forefront of a popular, democratically based resistance to the failed policies of powerful financial and political interests -- the same interests we face here in the U.S. Our circumstances may differ, but our objectives are the same. Among our country's major political figures, the only statement I've heard in support of Syriza came from Sen. Bernie Sanders, who said via Twitter that its victory "tells us that people around the world will no longer accept austerity for working families while the rich get richer." No other American leader has affirmed Syriza's victory or told Spain's new movement, "Sí, podemos" (incidentally, a phrase that translates as "Yes, we can.") There is a political reward waiting for the party, and the movement, that captures that message -- and means it. That's why this year's budget battle is so important. It gives progressives an opportunity to explain why austerity economics is a failure and offer something better in its place. To be sure, the struggle for the soul of the Democratic Party isn't over. But the president's dismissal of "mindless austerity" draws a useful parallel between Germany's harmful policies and those of the GOP, while the Democratic populists offer a clear alternative to the greed-driven magical thinking of our financial elites. These developments suggest that, when it comes to economic populism, the party may be getting serious -- even if it's not yet Syriza.

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Greek PM Tsipras says Europe has nothing to fear from Athens

Greek Prime Minister Alexis Tsipras sought to reassure international partners on Tuesday that Athens did not want to create division in Europe with its call for a new debt accord and said he was open to listening to alternative proposals. In Rome for talks with Italian Prime Minister Matteo Renzi, Tsipras said the austerity policies imposed under Greece's bailout accord with the European Union ...

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Greece ailing, but Italy not far behind

It's no coincidence that Greek Prime Minister Alexis Tsipras included Italy in his first European tour. Both states oppose Brussels' austerity course, but it is Italy that is struggling the most when it comes to reforms.

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Tsipras' Greek balancing act begins

The much-awaited Greek parliamentary elections took place on Jan. 25, and the first moves of the new government are making headlines all over the ...

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US stocks rise on higher oil prices, hopes for deal on Greek debt; energy stocks gain the most

3, 2015, on higher oil prices and signs that the new Greek government won't press for a write-off of its bailout loans. European stocks were sharply ...

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Greece's Bill Sale Marks Return to Debt Market Amid Negotiations

(Bloomberg) -- Greece is set for its first foray into debt markets under its new government led by Syriza's Alexis Tsipras when the nation sells Treasury ...

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Greece is sounding confident once again: Gwyn

As no one needs reminding, Greece is in as bad a shape these days as is just about any other nation-state among the near 200 member-states of the ...

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US Government Bonds Flag as Oil Prices, Greece Signals Buoy Investors

Investors flocked out of ultrasafe U.S. government bonds on Tuesday as worries over Greece's future in the eurozone receded and crude oil prices ...

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Quotes from voters in this week's Associated Press Global Football 10

by  Associated Press Quotes from voters in the AP Global Football 10 Associated Press - 3 February 2015 12:09-05:00 LONDON (AP) — Quotes from voters in this week's Associated Press Global Football 10 ___ Manos Staramopoulos, Dimocratia, Greece "Nothing is by chance! Wolfsburg played amazing football and managed to put an end to the invincibility of Bayern Munich." ___ Chris Tait, The Herald, Scotland "Arsenal remain a fraction outside the top four but their emphatic win over Aston Villa was a reminder of the London side's pedigree." ___ Mike McGrath, The Sun, England "Beating Bayern Munich does not happen every week, so Wolfsburg deserve the plaudits this week. Of the individual performances, it was another eye catching week for Harry Kane. He fully deserves his new contract at Tottenham following his displays this season." ___ Marco Monteverde, News Corp. Australia "Wolfsburg not only handed Bayern Munich their first Bundesliga defeat of the season, they thrashed Pep Guardiola's team." ___ Aurelio Capaldi, RAI Sport, Italy "I keep having some doubts about Luis Enrique's ability to manage a top club and Barcelona's dressing room's problems are proof of his limits to deal with big players. But it's a fact he has got eight wins in a row. Not so easy, even if you can count on Messi and Neymar." ___ Tom Timmermann, St. Louis Post-Dispatch, United States "To pull off a win like Wolfsburg's over Bayern Munich, it takes a special performance, which is why Kevin De Bruyne was on top of my ballot. There were some hat tricks out there that normally would have fought for top honors, but Wolfsburg's win was so stunning, and overwhelming, it called for special attention." ___ Tito Puccetti, ESPN, Argentina "With a goal and a magical assist, (Mesut) Ozil regained his highest level of football to guide Arsenal to win 5-0 against Aston Villa." ___ Julian Bennetts, Hayters news agency, England "The 4-1 defeat was comprehensive and shocking for Pep Guardiola's side, who were outplayed throughout. It was also a result the Bundesliga needed; no-one likes a procession." ___ Sam Tighe, Bleacher Report, England "Wolfsburg re-opened the Bundesliga season in electric fashion, inflicting Bayern Munich's first defeat of the campaign and scoring as many goals against them in one night (four) as they'd conceded in the entire first half of the season." News Topics: Sports, Professional soccer, Men's soccer, Soccer, Men's sports People, Places and Companies: News Corp, Luis Enrique, Kevin De Bruyne, United Kingdom, Munich, Western Europe, Europe, Germany Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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