How the world sees Greece
Approximately 500 health service staff and pensioners are taking part in an anti-austerity demonstration outside the Ministry of Health in Athens. Demonstrators are calling for an end to the painful austerity measures which they say have increased job ...
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Russian Railways (PZD) are still in talks with the Greek government on the possibility of submitting bids in the privatisation of related Greek state companies, Russia's railway boss Vladimir Yakunin said on Wednesday. Talking to the Public Chamber of ...
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Rochester, NY (WROC)- Two men who held three victims against their will so they could burglarize a Greece business were sentenced today. Thomas ...
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Greek Finance Minister Yanis Varoufakis said that Greece would prioritise pension and salary payments next month if it did not have the funds to pay these as well as expiring debts to its international lenders. "If we can, on June 5, ...
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Public sector doctors and nurses went on strike in Greece on Wednesday, amid the country's financial crisis. They say they are fed up with ...
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Greek Minister of State for Coordinating Government Operations Alekos Flambouraris on Wednesday briefed Syriza party officials on the ongoing negotiations between Greece and its lenders which will lead to a single agreement, during a meeting which is still ...
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Greek Finance Minister Yanis Varoufakis said that nobody respects privacy more than him, referring to the New York Times article which reported that he taped the stormy Riga Eurogroup meeting. Nobody respects the privacy and confidentiality of the talks ...
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NEW YORK: The euro slid to two-week lows on Wednesday after a Greek official said the country may miss a debt repayment, while US and European ...
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Public sector doctors and nurses went on strike in Greece on Wednesday, amid the country's financial crisis. They say they are fed up with ...
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NEW YORK, May 20 (Reuters) - The euro slid to two-week lows on Wednesday after a Greek official said the country may miss a debt repayment, ...
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ATHENS, Greece (AP) — Greece will not be able to repay a loan to the International Monetary Fund early next month unless a deal is reached with its ...
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Ltd. in Singapore; and Notos Com Holdings, S.A. in Greece. ... with a vast retail presence in Greece and other Eastern and Central European markets.
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A new article about Yanis Varoufakis, the “pugnacious economist” with the sardonic smile who has been screaming of the dangers of a humanitarian crisis in Europe, entitled “A Finance Minister Fit for a Greek Tragedy?“, was published in the New York Times on Wednesday. New York Times journalist Suzy Hansen composed an all-inclusive article about the Greek Finance Minister, after spending a considerable amount of time with him and his wife in early May. Hansen builds Varoufakis’ profile as an enigmatic yet powerful and energetic personality who is amidst the eye of the financial cyclone. Hansen was able to talk to Varoufakis soon after another one of his European trips, during which he warned his fellow European leaders that they are facing a Continental crisis. The journalist wrote that Varoufakis revealed during the interview that he has recorded the Finance Ministers meeting in Riga, Latvia, but he was not able to disclose any further details for confidentiality reasons. Varoufakis stated during the interview: “I’ll be damned if I will accept another package of economic policies that perpetuate this same crisis. This is not what I was elected for.” And he continued: “There’s no doubt that this economy now is far worse off in the last two months as a result of our hard bargaining.” In addition, when asked if he was worried about the Greek economy, although he thinks that hard bargaining involves a short-term cost, he said he was “terrified and aghast.”
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Minister of State for Coordinating Government Operations Alekos Flambouraris briefed SYRIZA officials on Wednesday regarding the ongoing negotiation between Greece and its creditors that will lead to a single agreement, during a meeting still underway after four hours. According to party sources, Flambouraris said the Greek side is aiming at a deal that will foresee a low primary surplus target, will not include wage and pension cuts or laws allowing mass layoffs, will secure labor laws and collective labor agreements, will foresee debt restructuring and a growth package to redistribute tax burden. The same sources said the party’s central committee will convene again over the weekend. (source: ana-mpa)
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The Byzantine Empire is known for its intricate art and jewelry made with silver, gold, precious stones, and rich colors. In Thessaloniki, it is celebrated at the Museum of Byzantine Culture, which aims at preserving the art, ideology, religion and politics of this highly important period in Greek history. Housed in a modern 11,500 […] The post Riches Abound at Thessaloniki Museum appeared first on The National Herald.
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Greek main opposition New Democracy said on Wednesday the government needs to brief parties on details and the overall handling of the ongoing negotiation between Greece and its creditors. “It’s not only the phenomenal sloppiness with which they negotiate on issues such as the VAT, it’s also the lies they say and for which they are not held accountable, as if we are living in a one-party state,” party spokesman Costas Karagounis said. (source: ana-mpa)
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June is probably off the table. The Federal Reserve just released the Minutes from its April 28-29 Federal Open Market Committee meeting, which indicated that the Fed is unlikely to raise interest rates in June. Here's the key passage from the Minutes: A few anticipated that the information that would accrue by the time of the June meeting would likely indicate sufficient improvement in the economic outlook to lead the Committee to judge that its conditions for beginning policy firming had been met. Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, although they generally did not rule out this possibility. Consistent with the Fed's policy statement released on April 29, the Fed also said the factors holding back the economy during the first quarter are transitory, meaning that they will pass in time. Following the Minutes, stocks remained mixed but little changed, with the Dow and S&P 500 just slightly in the red and the Nasdaq up four points. The Fed has kept interest rates pegged near 0% since December 2008 and hasn't actually raised interest rates since July 2006. A number of times over the last several months, however, Fed officials have indicated that it would likely be appropriate to raise interest rates in 2015. In laying out how it will determine it is time to raise rates, the Fed has said that it will be "data dependent," and considerable debate has followed regarding just what this means. The weaker-than-expected economic data we've seen so far this year has cast doubt on whether the Fed will remain compelled to act. Currently, most economists on Wall Street expect the Fed to raise rates in September or December, with some saying the Fed won't raise rates until March 2016; others have argued that the Fed has a window to act right now. Here's the full release from the Fed: Developments in Financial Markets and the Federal Reserve's Balance SheetIn a joint session of the Federal Open Market Committee (FOMC) and the Board of Governors of the Federal Reserve System, the manager of the System Open Market Account (SOMA) reported on developments in domestic and foreign financial markets. The deputy manager followed with a review of System open market operations conducted during the period since the Committee met on March 17-18, 2015. The deputy manager also discussed the outcomes of continued testing of the Federal Reserve's term and overnight reverse repurchase agreement operations (term RRP operations and ON RRP operations, respectively). The Open Market Desk conducted two term RRP operations over the March quarter-end. The combination of term and ON RRP operations continued to provide a soft floor for money market rates over the intermeeting period, including around quarter-end. Based on experience around recent quarter-ends, the deputy manager discussed possible plans for June test RRP operations. The manager summarized ongoing staff work related to improved data collection for, and possible adjustments to, the calculation of the effective federal funds rate that were intended to provide a more robust measure of trading conditions in the federal funds market over time. The Committee voted to renew the reciprocal currency arrangements with the Bank of Canada and the Bank of Mexico; these arrangements are associated with the Federal Reserve's participation in the North American Framework Agreement of 1994. In addition, the Committee voted to renew the dollar and foreign currency liquidity swap arrangements with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank. The votes to renew the Federal Reserve's participation in these standing arrangements are taken annually at the April meeting. Mr. Lacker dissented on both votes because of his opposition, as indicated at the January meeting, to foreign exchange market intervention by the Federal Reserve, which such swap arrangements might facilitate, and because, in his view, such arrangements were best left to fiscal authorities. By unanimous vote, the Committee ratified the Desk's domestic transactions over the intermeeting period. There were no intervention operations in foreign currencies for the System's account over the intermeeting period. Normalization ProceduresThe staff provided a briefing on issues related to the implementation of monetary policy during the period immediately following the first increase in the target range for the federal funds rate, when it becomes appropriate. In their subsequent discussion, participants agreed that the Committee's testing of normalization tools, in conjunction with its other planning, had created conditions under which policy normalization would likely proceed smoothly once it commences. Nonetheless, as part of prudent contingency planning, participants agreed to have the staff provide more frequent updates on financial market developments for a period after firming begins. Such updates would ensure that, if adjustments to policy normalization tools prove necessary to maintain appropriate control over money market rates, policymakers could make such changes in a timely manner. Participants also considered whether it might be appropriate, when the Committee first raises the target range for the federal funds rate, to increase the spread between the primary credit rate and the top of the federal funds rate target range. One participant argued for such a step in order to bring the spread up to a level closer to that prevailing prior to the financial crisis, but several participants favored maintaining the current spread at least until the process of policy normalization was well under way and policymakers had considered carefully the potential benefits and costs of such a change. In part, that view reflected concerns that an increase in the spread that coincided with the initial step in policy normalization could complicate communications regarding the Committee's policy intentions. The Board meeting concluded at the end of the discussion of normalization procedures. Staff Review of the Economic SituationThe information reviewed for the April 28-29 meeting indicated that real gross domestic product (GDP) only edged up in the first quarter, with growth likely held down, in part, by transitory factors. The pace of improvement in labor market conditions moderated somewhat, and the unemployment rate was unchanged over the intermeeting period. Consumer price inflation continued to run below the FOMC's longer-run objective of 2 percent, partly restrained by earlier declines in energy prices along with further decreases in non-energy import prices. Market-based measures of inflation compensation were still low, while survey measures of longer-run inflation expectations remained stable. Payroll employment expanded at a solid pace in the first quarter, on average, but the gain in March was smaller than in earlier months. The unemployment rate remained at 5.5 percent in March, the labor force participation rate edged down, and the employment-to- population ratio was little changed. The share of workers employed part time for economic reasons was also little changed. In the private sector, the rate of job openings edged up in February and was well above its pre-recession level, while the rates of hiring and of quits were about flat and remained slightly above their levels of a year ago. Industrial production fell in the first quarter, with another drop in the drilling of new oil and gas wells as well as a decrease in manufacturing output that appeared to reflect, in part, the effects of the labor dispute at West Coast ports. Automakers' assembly schedules suggested that light motor vehicle production would increase at a solid pace in the second quarter, but broader indicators of manufacturing activity, such as the readings on new orders from national and regional manufacturing surveys, pointed to only modest gains in factory output over the next several months. Real personal consumption expenditures (PCE) increased in the first quarter, albeit at a much slower pace than in the fourth quarter of 2014. Light motor vehicle sales, as well as the components of nominal retail sales used by the Bureau of Economic Analysis (BEA) to construct its estimate of PCE, rebounded in March after declining in February, suggesting that unusually severe winter weather in February likely held down spending. Among the factors that influence household spending, real disposable income rose strongly, on net, in the first quarter, buoyed in part by earlier declines in energy prices. In addition, further gains in house values and equity prices likely raised households' net worth, and the index of consumer sentiment in the University of Michigan Surveys of Consumers remained near its highest level since prior to the most recent recession. Residential investment increased at a slow pace in the first quarter, and other indicators of housing-sector activity remained weak. Starts and building permits for single-family homes decreased during the first quarter despite small gains in March; starts of multifamily units also declined during the first quarter. Sales of new homes were little changed, on average, over February and March, while existing home sales edged up on net. Real private expenditures on business equipment and intellectual property products rose modestly in the first quarter, and forward-looking indicators--including data on orders and shipments of nondefense capital goods and the national and regional surveys of business conditions--were generally consistent with only small further gains in the near term. Real spending for nonresidential structures fell considerably in the first quarter, as outlays for drilling and mining structures dropped sharply and outlays for other structures declined. Real government purchases moved down in the first quarter. Federal spending was flat. But construction expenditures by state and local governments contracted, while these governments' payrolls were unchanged. The U.S. international trade deficit narrowed sharply in February, as imports fell more than exports. Imports of all major categories of goods moved lower as imports from several major trading partners--including Canada, China, Japan, and Korea--registered declines. Disruptions related to the West Coast port labor disputes likely contributed to the decline in imports in February. The reduction in exports was largest for durable goods and industrial supplies, with exports to Canada and China accounting for most of the drop. Despite the narrowing of the nominal trade deficit in February, the BEA estimated that real net exports were a substantial drag on the growth of real GDP in the first quarter. Total U.S. consumer prices in the first quarter, as measured by the PCE price index, were only 1/4 percent higher than a year earlier, importantly reflecting the decrease in consumer energy prices. The core PCE price index, which excludes food and energy prices, increased 1-1/4 percent over the same four-quarter period, partly restrained by the declines in prices of non-energy imported goods. The PCE price index in February and the consumer price index (CPI) in March rose at a faster pace than in previous months, as energy prices reversed a small part of their earlier declines. Survey-based measures of expected long-run inflation were stable, with the measure from the Desk's Survey of Primary Dealers unchanged and the Michigan survey measure down a little but still in the range seen over recent years. Market-based measures of inflation compensation at longer horizons increased somewhat but were still low. Over the 12 months ending in March, nominal average hourly earnings for all employees increased 2 percent, somewhat faster than the increase in core consumer prices over the same period. Economic growth in both advanced foreign and emerging market economies appeared to slow, on balance, in the first quarter of 2015. Global trade and industrial production weakened. Among advanced economies, output growth declined in the United Kingdom and economic indicators for Canada and Japan also pointed to slower growth in the first quarter. In contrast, real GDP growth seemed to have increased in the euro area. In emerging market economies, real GDP growth slowed sharply in China and indicators of activity weakened in Mexico and Brazil, but real GDP growth picked up in some emerging Asian economies. Inflation remained low in most economies, partly as a result of earlier declines in oil prices. Staff Review of the Financial SituationFinancial conditions eased, on balance, over the intermeeting period. Federal Reserve communications that were reportedly viewed as more accommodative than anticipated put downward pressure on interest rates. A number of weaker-than-expected U.S. economic data releases, including the March employment report, also pushed interest rates lower. On net, measures of inflation compensation rose, equity prices increased somewhat, and the foreign exchange value of the dollar declined. The expected path of the federal funds rate moved down following the March FOMC statement and the Chair's postmeeting press conference. Investors reportedly took note of changes in the Summary of Economic Projections, including downward revisions to FOMC participants' projections of the appropriate level of the federal funds rate at the end of 2015, 2016, and 2017. During the remainder of the intermeeting period, the expected policy rate path implied by financial market quotes shifted down further, in part because U.S. economic data were weaker, on net, than anticipated. Results from the Survey of Primary Dealers and Survey of Market Participants for April indicated that respondents saw the September 2015 meeting as the most likely time for the first increase in the target range for the federal funds rate; the probabilities attached to scenarios in which policy firming did not begin until after the July 2015 meeting were higher than the corresponding probabilities in the surveys conducted before the March meeting. Over the intermeeting period, 5- and 10-year nominal Treasury yields decreased, but yields on Treasury Inflation-Protected Securities declined by a greater amount. Measures of inflation compensation over the next 5 years rose significantly, consistent with increases in oil prices and somewhat higher-than-expected February and March consumer price inflation data. Inflation compensation 5 to 10 years ahead also increased but remained at the lower end of its range over the past few years. On balance, U.S. equity price indexes rose somewhat and option-implied volatility for the S&P 500 index over the next month declined. Energy firms' stock prices retraced a small portion of their substantial drop since mid-2014. Spreads of yields on 10-year speculative-grade corporate bonds over those on comparable-maturity Treasury securities narrowed, in part because of a further decrease in spreads on speculative-grade bonds issued by energy firms. About 40 percent of firms in the S&P 500 index had reported earnings for the first quarter, with those reports generally viewed as better than anticipated. Nonetheless, first-quarter earnings per share were expected to be lower than in the previous quarter. Financing conditions for nonfinancial firms remained accommodative. Corporate bond issuance was strong in the first quarter, and seasoned equity offerings rose. Commercial and industrial loans on banks' books again expanded briskly. In the leveraged loan market, issuance of new money loans to institutional investors slowed in the first quarter but stayed robust, supported by continued strong issuance of collateralized loan obligations. Financing for commercial real estate (CRE) remained broadly available. CRE loans on banks' books increased appreciably in the first quarter, consistent with stronger loan demand reported in the April Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS). Issuance of commercial mortgage-backed securities continued to be robust. Measures of residential mortgage lending conditions were generally little changed over the intermeeting period, and lending volumes remained light. In the April SLOOS, some large banks reported having eased lending standards for a number of categories of residential mortgage loans in the first quarter. House prices continued to rise moderately in February. Nonetheless, estimates of the share of mortgages in a negative equity position were little changed in recent quarters, and they remained elevated when judged against levels prevailing prior to the crisis. Financing conditions in consumer credit markets stayed generally accommodative. Auto and student loan balances expanded robustly through February. Growth in credit card loans slowed a bit on a year-over-year basis, likely reflecting weaker retail activity. The U.S. dollar depreciated during the intermeeting period, as U.S. macroeconomic data generally came in weaker than expected, and as market participants appeared to mark down somewhat their expectations for the path of the federal funds rate. Nonetheless, the cumulative appreciation of the dollar since mid-2014 remained substantial. Government bond yields in most advanced foreign economies declined modestly, pushing some yields, particularly in Europe, further into negative territory. By contrast, Greek sovereign yields stayed elevated as the difficult negotiations between Greece and its official creditors continued. Spillovers from Greek markets into other peripheral financial markets remained limited. Equity prices in most advanced foreign economies moved higher, buoyed in part by ongoing monetary policy accommodation. Equity prices also rose in most emerging market economies, with the stock market in China outperforming. The staff provided its latest report on potential risks to financial stability. A number of factors appeared to limit the vulnerability of the U.S. financial system to adverse shocks. Leverage in the banking system remained relatively low, and increases in household debt stayed modest and continued to be associated primarily with borrowers with strong credit scores. However, some indicators suggested that valuations remained stretched for some asset classes. An estimate of the expected real return on equities moved down, reflecting an increase in stock prices and downward revisions to forecasts of corporate earnings, and corporate bond spreads declined somewhat. The staff also noted changes in the structure of some fixed-income markets that could increase volatility. In addition, the staff discussed the risks to financial stability associated with the possibility of substantial unanticipated changes in longer-term U.S. interest rates, including the scope for a sharp increase in such rates to affect financial conditions in emerging market economies. A number of other risks were noted, including geopolitical tensions and the potential for an increase in financial strains related to the negotiations between Greece and its official creditors. Staff Economic OutlookIn the U.S. economic forecast prepared by the staff for the April FOMC meeting, real GDP growth in the first half of the year was lower than in the projection prepared for the March meeting, as the data on economic activity received during the intermeeting period were generally weaker than the staff had expected. However, much of this weakness was attributed to transitory factors or statistical noise, with little implication for the pace of expansion beyond the near term. Indeed, the medium-term projection for real GDP growth was revised up modestly, as monetary policy was assumed to be a little more accommodative in this projection and the projected path for the foreign exchange value of the dollar was a little lower. The staff continued to project that real GDP would expand at a faster pace than potential output in 2015 and 2016, supported by increases in consumer and business confidence and a small pickup in foreign economic growth, even as the normalization of monetary policy was assumed to begin. In 2017, real GDP growth was projected to slow toward, but to remain above, the rate of growth of potential output. The expansion in economic activity over the medium term was expected to lead to a gradual reduction in resource slack; the unemployment rate was projected to decline slowly and to move a little below the staff's estimate of its longer-run natural rate for a time. The staff's forecast for inflation in the near term was revised up a little, reflecting the slightly higher-than-expected recent monthly data on core consumer prices and a path for crude oil prices that was a bit higher than in the previous projection. The medium-term forecast for inflation was little changed, with inflation in 2016 and 2017 projected to move closer to, but remain below, the Committee's longer-run objective of 2 percent, as energy prices were expected to rise, import prices to turn up, and resource utilization to tighten further. Thereafter, inflation was anticipated to move back to 2 percent, with inflation expectations in the longer run assumed to be consistent with the Committee's objective and slack in labor and product markets projected to have waned. The staff viewed the uncertainty around its April projections for real GDP growth, the unemployment rate, and inflation as similar to the average of the past 20 years. The risks to the forecast for real GDP and inflation were seen as tilted to the downside, reflecting the staff's assessment that neither monetary nor fiscal policy appeared well positioned to help the economy withstand substantial adverse shocks. At the same time, the staff viewed the risks around its outlook for the unemployment rate as roughly balanced. Participants' Views on Current Conditions and the Economic OutlookIn their discussion of the economic situation and the outlook, meeting participants regarded the information received over the intermeeting period as suggesting that economic growth had slowed during the winter months, in part reflecting transitory factors. The pace of job gains had moderated, and the unemployment rate had remained steady, with a range of labor market indicators suggesting that underutilization of labor resources was little changed. Most participants expected that, following the slowdown in the first quarter, real economic activity would resume expansion at a moderate pace, and that labor market conditions would improve further. Inflation continued to run below the Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remained low, while survey-based measures of longer-term inflation expectations had remained stable. Participants generally anticipated that inflation would rise gradually toward the Committee's 2 percent objective as the labor market improved further and the transitory effects of declines in energy prices and non-energy import prices dissipated. Participants judged that recent domestic economic developments had increased uncertainty regarding the economic outlook. While participants continued to see potential downside risks resulting from foreign economic and financial developments, most still viewed the risks to the outlook for economic growth and the labor market as nearly balanced. Participants generally agreed that data on private spending for the first quarter had been disappointing, with unexpectedly weak household expenditures and investment spending. Retail sales had continued to be tepid, although consumer sentiment stayed high and auto sales rebounded in March. The recovery in the housing sector remained slow. Business fixed investment softened, in part reflecting sizable reductions in capital expenditures in the energy sector. Exports contracted, likely reflecting the damping influence of the dollar's appreciation. In combination with a decline in government spending, the weakness of private spending had led to a substantial slowing in economic growth in the first quarter. Participants discussed whether the weakness of spending in the first quarter primarily reflected temporary factors or instead suggested a longer-lasting loss of momentum for the economy. A number of reasons were advanced for believing that the weakness in spending observed during the first quarter was partly or even largely transitory. Most notably, the severe winter weather in some regions had reportedly weighed on economic activity, and the labor dispute at West Coast ports temporarily disrupted some supply chains. Furthermore, a pattern observed in previous years of the current expansion was that the first quarter of the year tended to have weaker seasonally adjusted readings on economic growth than did the subsequent quarters. This tendency supported the expectation that economic growth would return to a moderate pace over the rest of this year. Participants also pointed to other reasons for anticipating that the weakness seen in the first quarter would not endure. A number of the fundamental factors that drive consumer spending remained favorable, among them low interest rates, high consumer confidence, and rising household real income. In addition, business contacts in several parts of the country continued to be optimistic and expected sales, investment, and hiring to expand over the rest of the year. In the agricultural sector, drought effects had worsened in some parts of the country, but effects on production were limited and planting intentions remained strong. Finally, if the decline in oil prices and the rise in the foreign exchange value of the dollar did not continue, then their influence on the growth rate of investment and the change in net exports would likely recede. Various reasons were also advanced for believing that some of the recent weakness in the pace of economic activity might persist. A number of participants suggested that the damping effects of the earlier appreciation of the dollar on net exports or of the earlier decline in oil prices on firms' investment spending might be larger and longer-lasting than previously anticipated. In addition, the expected boost to household spending from lower energy prices had apparently so far not materialized, highlighting the possibility of less underlying momentum in consumer expenditures than participants had previously judged. Some participants expressed particular concern about this prospect, as their expectations of a moderate expansion of economic activity in the medium term, combined with further improvements in labor market conditions, rested largely on a scenario in which consumer spending grows robustly despite softness in other components of aggregate demand. Participants discussed downside risks to economic growth, and a few indicated that, in their assessment, such risks had risen since the March meeting. However, most participants continued to see the risks to the outlook for economic growth and the labor market as nearly balanced. In their discussion of the foreign economic outlook, several participants noted that the foreign exchange value of the U.S. dollar had fallen back somewhat over the intermeeting period. Nonetheless, the value of the dollar had increased significantly since the middle of last year, and it was seen as likely to continue to be a factor restraining U.S. net exports and economic growth for a time. It was suggested that one element underpinning the strength of the U.S. dollar was the increasing prevalence of negative interest rates on sovereign debt in some key European economies. Participants also pointed to a number of risks to the international economic outlook, including the slowdown in growth in China and fiscal and financial problems in Greece. Many participants judged that the pace of improvement in labor market conditions had slowed. The March increase in payrolls had been smaller than expected, and the unemployment rate had remained steady. However, it was noted that the intermeeting period had also witnessed some more-positive news on labor market conditions, including a further increase in the rate of job openings. Various business contacts in energy-related sectors reported layoffs in response to low oil prices, but some information received from business contacts suggested a tightening in labor markets, with shortages of skilled labor reported in some areas and sectors; there had also been an increase in transitions of workers to better-paying jobs. Larger wage gains were also reported in some regions, although in other parts of the country wage pressures reportedly remained muted. One participant suggested that a significant rise in aggregate nominal wage growth should be a criterion in assessing the Committee's degree of confidence regarding the return of inflation to the Committee's 2 percent longer-run objective. However, a couple of other participants argued that the behavior of nominal wage growth should not play a significant role in that assessment, on the grounds that there was only a loose relationship between nominal wage growth and inflation in the United States. Many participants noted that measures of inflation averaged over several months or more continued to run below the Committee's longer-run objective. However, this shortfall partly reflected the earlier declines in energy prices and decreasing prices of non-energy imports, and some participants pointed out that, by some measures, the most recent monthly inflation readings had firmed a bit. Although participants expected that inflation would continue, in the near term, to be below the Committee's 2 percent longer-run objective, energy prices were no longer declining and most participants continued to expect that inflation would move up toward the Committee's 2 percent objective over the medium term as the effects of the transitory factors waned and conditions in the labor market and the overall economy improved further. Survey-based measures of inflation expectations had remained broadly stable. Market-based measures of inflation compensation had risen slightly but remained low. One participant suggested that, in the past, market-based measures of inflation compensation had been of little value in predicting inflation one to two years ahead, and that measures of inflation expectations from surveys of professional forecasters were more useful for forecasting inflation. Another participant argued that low values for market-based measures of inflation compensation should concern policymakers, on the grounds that these low values reflected investors placing at least some likelihood on adverse outcomes in which low inflation was accompanied by weak economic activity. In their discussion of financial market developments and financial stability issues, policymakers highlighted possible risks related to the low level of term premiums. Some participants noted the possibility that, at the time when the Committee decides to begin policy firming, term premiums could rise sharply--in a manner similar to the increase observed in the spring and summer of 2013--which might drive longer-term interest rates higher. In this connection, it was suggested that the tendency for bond prices to exhibit volatility may be greater than it had been in the past, in view of the increased role of high-frequency traders, decreased inventories of bonds held by broker-dealers, and elevated assets of bond funds. A couple of participants underscored the need for a better understanding of the structure of the bond market in the current environment, including the effect on bond market behavior of regulatory changes. Some participants noted that careful Committee communications regarding its policy intentions could help damp any resulting increase in market volatility around the time of the commencement of normalization. It was also noted that financial stability and the Committee's macroeconomic goals were likely to be complementary objectives, but different views were expressed about the potential implications for financial stability of monetary policy tightening in current economic conditions. In their discussion of communications regarding the path of the federal funds rate over the medium term, participants expressed a range of views about when economic conditions were likely to warrant an increase in the target range for the federal funds rate. Participants continued to judge that it would be appropriate to raise the target range for the federal funds rate when they had seen further improvement in the labor market and were reasonably confident that inflation would move back to its 2 percent objective over the medium term. Although participants expressed different views about the likely timing and pace of policy firming, they agreed that the Committee's decision to begin firming would appropriately depend on the incoming data and their implications for the economic outlook. A few anticipated that the information that would accrue by the time of the June meeting would likely indicate sufficient improvement in the economic outlook to lead the Committee to judge that its conditions for beginning policy firming had been met. Many participants, however, thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, al-though they generally did not rule out this possibility. Participants discussed the merits of providing an explicit indication, in postmeeting statements released prior to the commencement of policy firming, that the target range for the federal funds rate would likely be raised in the near term. However, most participants felt that the timing of the first increase in the target range for the federal funds rate would appropriately be determined on a meeting-by-meeting basis and would depend on the evolution of economic conditions and the outlook. In keeping with this data-dependent approach, some participants further suggested that the postmeeting statement's description of the economic situation and outlook, and of progress toward the Committee's goals, provided the appropriate means by which the Committee could help the public assess the likely timing of the initial increase in the target range for the federal funds rate. During their discussion of economic conditions and monetary policy, participants also commented on different concepts of the equilibrium real federal funds rate--that is, a reference value of the inflation-adjusted federal funds rate consistent with the economy achieving, over a specified time horizon, maximum employment and price stability. Estimates of such equilibrium real interest rates were highly uncertain, but some participants reported that their estimates were currently unusually low by historical standards, reflecting, for example, factors weighing persistently on aggregate demand. In light of their low estimates, a few of these participants questioned whether the Committee was providing sufficient accommodation at the present time and cautioned against initiating policy firming in the near future. However, other participants cited factors, including the current low level of term premiums, that might cast doubt on the notion that the equilibrium real federal funds rate was particularly low. Some participants observed that more discussion of this topic was likely to be helpful in assessing these issues. One participant suggested that, in part because of the evidence that the equilibrium real interest rate was low by historical standards, the Committee should discuss the possibility of increasing its longer-run inflation objective. This participant and a few others thought such a discussion could be useful but emphasized that any decision to change the Committee's longer-run goals and policy strategy should not be made lightly. One of these participants noted, in particular, that a decision to raise the Committee's longer-run inflation objective might work against the achievement of maximum employment and price stability because such a change could undermine the Committee's credibility and, in addition, lead to adverse changes in inflation dynamics that could pose significant challenges for policymakers. Committee Policy ActionIn their discussion of monetary policy for the period ahead, members judged that information received since the FOMC met in March suggested that economic growth slowed during the winter months, in part reflecting transitory factors. The pace of job gains moderated, and the unemployment rate remained steady. A range of labor market indicators suggested that underutilization of labor resources was little changed. Although growth in household spending declined, households' real incomes rose strongly, partly reflecting earlier declines in energy prices, and consumer sentiment remained high. Business fixed investment softened, the recovery in the housing sector remained slow, and exports declined. Inflation continued to run below the Committee's longer-run objective, but this partly reflected earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remained low, while survey-based measures of longer-term inflation expectations had remained stable. Despite the slower growth in output and employment observed of late, members continued to expect that, with appropriate policy accommodation, economic activity would expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judged consistent with its dual mandate. Members generally continued to see the risks to the outlook for economic activity and the labor market as nearly balanced. Inflation was anticipated to remain near its recent low level in the near term, but members expected inflation to rise gradually toward 2 percent over the medium term as further improvement in the labor market occurred and the transitory effects of declines in energy and import prices dissipated. In light of the uncertainties associated with the outlook for inflation, the Committee agreed that it would continue to monitor inflation developments closely. In their discussion of language for the postmeeting statement, members agreed that the wording should reflect their assessment that economic conditions had progressed to a stage at which the Committee's decision to begin normalizing policy would appropriately be determined on a meeting-by-meeting basis. The Committee agreed that the statement should indicate that the data received over the intermeeting period suggested that economic growth had slowed and to note that this partly reflected transitory factors. The Committee also agreed to change the statement's characterization of the labor market data to note that the pace of job growth slowed over the intermeeting period and that a number of labor market indicators suggested that there was little change in underutilization of labor resources, and to update the statement's description of investment and export behavior in light of the recent weaker readings. In addition, members agreed to modify the discussion of inflation developments to indicate that inflation, although no longer declining, was still below the Committee's longer-term objective and was likely to remain so in the near term, partly because of transitory factors such as earlier declines in energy prices and decreasing prices of non-energy imports. The Committee altered its characterization of the economic outlook to indicate that, while economic growth slowed in the first quarter, the Committee continued to expect that, with appropriate policy accommodation, economic activity would expand at a moderate pace, and that it anticipated that labor market indicators would resume their movement toward levels that the Committee judged consistent with its dual mandate. With respect to the outlook for inflation, members expected inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate. The Committee agreed to maintain the target range for the federal funds rate at 0 to 1/4 percent and to reaffirm in the statement that the Committee's decision about how long to maintain the current target range for the federal funds rate would depend on its assessment of actual and expected progress toward its objectives of maximum employment and 2 percent inflation. Members continued to judge that this assessment of progress would take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. Members agreed to retain the indication that the Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. The Committee also decided to maintain its policy of reinvesting principal payments from agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions. The Committee agreed to reiterate its expectation that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run. At the conclusion of the discussion, the Committee voted to authorize and direct the Federal Reserve Bank of New York, until it was instructed otherwise, to execute transactions in the SOMA in accordance with the following domestic policy directive: "Consistent with its statutory mandate, the Federal Open Market Committee seeks monetary and financial conditions that will foster maximum employment and price stability. In particular, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to 1/4 percent. The Committee directs the Desk to undertake open market operations as necessary to maintain such conditions. The Committee directs the Desk to maintain its policy of rolling over maturing Treasury securities into new issues and its policy of reinvesting principal payments on all agency debt and agency mortgage-backed securities in agency mortgage-backed securities. The Committee also directs the Desk to engage in dollar roll and coupon swap transactions as necessary to facilitate settlement of the Federal Reserve's agency mortgage-backed securities transactions. The System Open Market Account manager and the secretary will keep the Committee informed of ongoing developments regarding the System's balance sheet that could affect the attainment over time of the Committee's objectives of maximum employment and price stability." The vote encompassed approval of the statement below to be released at 2:00 p.m.: "Information received since the Federal Open Market Committee met in March suggests that economic growth slowed during the winter months, in part reflecting transitory factors. The pace of job gains moderated, and the unemployment rate remained steady. A range of labor market indicators suggests that underutilization of labor resources was little changed. Growth in household spending declined; households' real incomes rose strongly, partly reflecting earlier declines in energy prices, and consumer sentiment remains high. Business fixed investment softened, the recovery in the housing sector remained slow, and exports declined. Inflation continued to run below the Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations have remained stable. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Although growth in output and employment slowed during the first quarter, the Committee continues to expect that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced. Inflation is anticipated to remain near its recent low level in the near term, but the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate. The Committee continues to monitor inflation developments closely. To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run." Voting for this action: Janet L. Yellen, William C. Dudley, Lael Brainard, Charles L. Evans, Stanley Fischer, Jeffrey M. Lacker, Dennis P. Lockhart, Jerome H. Powell, Daniel K. Tarullo, and John C. Williams. Voting against this action: None. It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, June 16-17, 2015. The meeting adjourned at 11:00 a.m. on April 29, 2015. Notation VoteBy notation vote completed on April 7, 2015, the Committee unanimously approved the minutes of the Committee meeting held on March 17-18, 2015. SEE ALSO: No one is sure what's going on in the US economy, and the picture is about to get fuzzier Join the conversation about this story » NOW WATCH: Foolproof signs that you should give up on your business idea
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The Greek Government debt crisis is a chapter of the ongoing European debt crisis started by the turmoil of the Great Recession. A bad combination of ...
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| READ THE ORIGINAL POST AT www.fxstreet.com |
The cash position of the Greek government is extremely murky, making it hard to assess when exactly Athens might be forced to renege on its ...
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| READ THE ORIGINAL POST AT www.ft.com |
"He associates past Greek governments with the Greek people; as if the former reflect the character of the latter," Mr Varoufakis told Germany's Die Zeit ...
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| READ THE ORIGINAL POST AT www.telegraph.co.uk |
NEW YORK (The Street) -- Chobani largely created the recent craze for Greek yogurt but now finds itself having to defend its turf from deep-pocketed ...
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| READ THE ORIGINAL POST AT www.thestreet.com |
Of course I was wrong. Back in March, I said that the market was getting the Fed wrong and that a June rate hike was very much on the table. The basic argument was that while the Fed said the labor market still had a ways to go for the economy to reach "full employment," recent data (to that point), had suggested we could still reasonably expect the job market to beat expectations. And then we got the March jobs report, which was a dud. Then April's report was fine, but not a blowout report that totally changed the Fed's outlook: after that report it was more or less clear June was off the table. In its April policy statement, the Fed said it anticipates, "it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term." Basically, the Fed said it will be "data dependent." And the data, so far, are not giving the Fed reasons to change course. Right now, consensus among Wall Street's economics community is that the September or December Fed meetings are when the Fed will want to raise rates for the first time in over 9 years (the last Fed rate hike was in July 2006). The US economy's performance this year, however, doesn't look all that encouraging. Wall Street has taken its expectations for the next estimate of first quarter GDP to show that the economy contracted by somewhere around 1%. And with the Atlanta Fed's GDPNow tracker indicating that the economy is on pace to grow 0.7% in the second quarter, the economy overall may well have gotten smaller in the first half of the year. And while the Fed's April statement indicated the the Fed, on balance, sees the economy's negative performance as "transitory," or passing with time, there was considerable attention at the meeting paid to the idea that maybe this weakness won't pass. Here's the Fed: Various reasons were also advanced for believing that some of the recent weakness in the pace of economic activity might persist. A number of participants suggested that the damping effects of the earlier appreciation of the dollar on net exports or of the earlier decline in oil prices on firms' investment spending might be larger and longer-lasting than previously anticipated. In addition, the expected boost to household spending from lower energy prices had apparently so far not materialized, highlighting the possibility of less underlying momentum in consumer expenditures than participants had previously judged. Some participants expressed particular concern about this prospect, as their expectations of a moderate expansion of economic activity in the medium term, combined with further improvements in labor market conditions, rested largely on a scenario in which consumer spending grows robustly despite softness in other components of aggregate demand. And what's more, Wednesday's minutes indicate that the Fed isn't just looking at the US when evaluating the economic landscape, but clearly keeping an eye on developments abroad. Here's the Fed's global outlook: In their discussion of the foreign economic outlook, several participants noted that the foreign exchange value of the U.S. dollar had fallen back somewhat over the intermeeting period. Nonetheless, the value of the dollar had increased significantly since the middle of last year, and it was seen as likely to continue to be a factor restraining U.S. net exports and economic growth for a time. It was suggested that one element underpinning the strength of the U.S. dollar was the increasing prevalence of negative interest rates on sovereign debt in some key European economies. Participants also pointed to a number of risks to the international economic outlook, including the slowdown in growth in China and fiscal and financial problems in Greece. And so while the Fed's mandate is full employment and price stability — which right now means an unemployment rate of around 5% and inflation at around 2% — the Fed also seems reticent to unsettle financial markets by moving too soon. "Financial stability" is a term that has come up a lot from Fed members of late, and in the Minutes, the Fed addresses this concept at some length, writing: However, some indicators suggested that valuations remained stretched for some asset classes. An estimate of the expected real return on equities moved down, reflecting an increase in stock prices and downward revisions to forecasts of corporate earnings, and corporate bond spreads declined somewhat. The staff also noted changes in the structure of some fixed-income markets that could increase volatility. In addition, the staff discussed the risks to financial stability associated with the possibility of substantial unanticipated changes in longer-term U.S. interest rates, including the scope for a sharp increase in such rates to affect financial conditions in emerging market economies. A number of other risks were noted, including geopolitical tensions and the potential for an increase in financial strains related to the negotiations between Greece and its official creditors. What all this amounts to, of course, is, again, that I was wrong. Join the conversation about this story » NOW WATCH: Watch these giant container ships collide near the Suez Canal
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These days, Europe desperately needs success stories. After years of economic and financial turmoil and with the eurocrisis still unresolved combined with unprecedented security challenges at its eastern and southern doorsteps and rising populism across the continent, Europe needs a new positive narrative to confront the plethora of serious internal and external challenges it faces. Otherwise, the entire European project as such may be at risk. This would be a historic mistake. As I have previously argued on The Huffington Post, countries in the Nordic-Baltic region and Poland provide one source of inspiration for other parts of Europe. Here, several governments have adopted pro-growth, pro-reform agendas combined with an innovative business-friendly environment. These policies have successfully born fruit in terms of higher-than-average economic growth and an impressive list of tech start-ups. But looking further south, the story is quite different. Many Eastern and Southern European countries still struggle with anemic growth and record-high unemployment levels. What's even worse: many of these countries (such as Greece) seem unable to carry out the kind of reforms required to turn their economies around. Consequently, there is a risk of a growing north-south economic and political divide in Europe. This prospect constitutes an existential challenge to European integration. One area that will be critical for Europe's future is Southeastern Europe. This is a region with many challenges indeed. Growth remains sluggish and unemployment historically high in many countries. There are also well-known problems with governance, corruption, and political uncertainty - as we have recently seen in Macedonia. However, Southeastern Europe also holds significant untapped potential to become a driver of positive change in Eastern and Southern Europe. Of course, this is only if the region's leaders are truly serious about reforms. Underpinning this potential is the fact that, geopolitically, Southeastern Europe is located in one of the most dynamic parts of the continent. Bordering the rising global middle power and energy hothouse, Turkey, the region is well positioned to play a major transport hub for European energy. Construction of new pipelines in the region are already underway along with an LNG terminal in Croatia. Southeastern Europe will also be the gateway between Europe and China's New Silk Road, positioning the region to also become a major transportation hub. Another driver of change in the region is the prospect for further EU enlargement. This process has already prompted serious reforms in several regional states with EU aspirations. In Croatia - the EU's most recent member - this is clear. The government has taken steps to towards liberalizing the business sector (for example, by restructuring and reducing the number of large state-owned enterprises) and implementing domestic reforms such as in the labor markets. But while public sector reform is important, private sector transformation is equally crucial. Many large companies in the region are still in dire need of restructuring, reorienting themselves around knowledge-creation and innovation, and doing capital raising for market expansion beyond Southeastern Europe. Fortunately, there is a group of regional business leaders that appreciate the importance of such reforms. Take Zvonimir Mršić, CEO of the Croatian food and pharma group, Podravka, for example. Under his leadership, this company is in the process of growing into something of a regional giant. Having conducted a successful internal restructuring program, it is currently actively raising capital for further market expansion in the region - it recently acquired the largest food company in Slovenia, Zito, and is in the process of making inroads into the lucrative Central European market. Podravka's recent growth - last year, its profit rose by 39 percent - is not accidental. It would not have been possible without serious reform efforts and leadership. Other regional companies can learn from this and other examples. If so, the region has the potential to become an engine of growth in Europe. It already has a highly educated and competitive labor force. Further taking advantage of the region's emergence as an energy and transportation hub can help better position regional companies for Europe-wide market expansion, serving as a regional as well as a European growth engine. For Europe to be a leader in the 21st century - and not become a mere destination for Asian tourists - it must rise to the occasion. Here, Southeastern Europe - if it is truly serious about governance and market reforms - can set a new example of a successful regional turn-around at a critical time. If so, this would be a valuable success story in and by itself and also hopefully something that other, less reform-oriented Southern and Eastern European economies can learn from. -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.
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ATHENS—The European Central Bank on Tuesday increased the amount of money Greek banks can borrow under an emergency lending program, according to a Greek bank official, extending a lifeline for the country’s banks, as tense negotiations between the ...
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| READ THE ORIGINAL POST AT www.wsj.com |
The Brussels Group is meeting on Wednesday in Brussels to bridge the gap on open issues discussed in the ongoing negotiations between Greece and its lenders. Greek sources in Brussels with knowledge on the subject said talks between Greek ...
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| READ THE ORIGINAL POST AT en.enikos.gr |
A senior spokesman for the Greek government has said Athens will have no choice but to default if the country's bailout lenders do not provide fresh funding by early June, when a repayment to the IMF comes due. Athens is supposed to make a 1.5-billion-euro ...
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| READ THE ORIGINAL POST AT www.dw.de |
Aphrodite, the goddess of love, beauty and pleasure, so generously bestowed these gifts on her birthplace that Greece remains the ultimate romantic ...
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| READ THE ORIGINAL POST AT www.telegraph.co.uk |
Panathinaikos, PAOK and Aris have advanced to the semifinals of the Greek league after their home wins on Tuesday that saw them all win their series with a 2-1 score. Panathinaikos strolled to a 100-70 home win over Kolossos Rhodes behind closed doors, wi... ...
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If you don't know how to correctly pronounce the word “gyro,” this Memorial Day weekend is the time to find out. The New Orleans Greek Festival, ...
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Greek negotiators are meeting Wednesday with the so-called Brussels Group as efforts continue to reach a deal by month-end, according to two ...
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Greek and E.U. flags flutter in front of the prime minister's office in Athens during his meeting with top ministers on May 13, 2015. (Louisa ...
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Greek Finance Minister Yanis Varoufakis made a brief appearance at the Emergency Economic Summit for Greece, organized by the Atlas Network ...
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| READ THE ORIGINAL POST AT news.vice.com |
German Finance Minister Wolfgang Schaeuble could not tame himself and poured the usual poison against Greece. And not only! He rebuffed the European Commission for its efforts to a way out of the impasse in the bailout talks. In an interview to The Wall Street Journal and French daily Les […]
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German Chancellor Angela Merkel plans to deliver a keynote address concerning Greece’s 240-billion-euro financial program despite the anticipated negative reaction of some lawmakers from her Christian Democrat-led bloc. German government officials told Bloomberg that Merkel has decided to speak in front of the German parliament after a deal between Greece and its international creditors is reached. This initiative may carry heavy political risk for the German Chancellor, taking into consideration the German public outrage caused by Greek Prime Minister Alexis Tripras‘ brinkmanship negotiation tactics during the last four months. While some policy makers in Germany insist on being contrary to a new financial support to Greece, there are others more positive in order to avert a future financial collapse. German Deputy Finance Minister Thomas Steffen said during an interview: “Should we seriously go and prescribe in detail what the Greeks are allowed to spend and what revenue they can have? I say no. It’s the rough framework that has to be clear.” According to unnamed sources, Merkel has already been inviting some of the dissenters to the chancellery to discuss the approval of further financial aid to Greece in an effort to prevent a potential future default, even if Greece refuses to implement the reforms demanded by its European creditors.
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Greek state hospital staff has decided to go on a 24-hour strike, starting Wednesday, May 20. They also participated in a rally that took place outside the Greek Health Ministry in Athens at 12:30 pm. All public hospitals, ambulances, health centers and welfare units will be operating with emergency personnel on Wednesday due to the 24-hour strike, which was announced by the state hospital workers’ union. The doctors and health workers are protesting for hospital understaffing and underfunding, while they are also demanding back pay, despite the fact that the country is facing a financial crisis. According to the official announcement, “Greece’s national health service is out of control due to underfunding and understaffing.” Meanwhile, “the course of the country’s negotiation with its creditors is not creating the requirements to solve accumulated problems and the situation is heading to a non-manageable level.” The hospital doctors’ union is demanding from the Greek government to implement immediate measures to provide public hospitals and health centers with permanent staff and strong funding from the state budget.
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| READ THE ORIGINAL POST AT greece.greekreporter.com |
As Greece is struggling to emerge from its liquidity trap and panic is spreading across the globe over a potential default, Greek islands saw a considerable drop in tourism. The arrival figures at some of the country’s top tourist destinations, such as Kos, Kefalonia, Crete and Mykonos have declined significantly, according to the Association of Greek Tourism Enterprises (SETE). The data released by SETE presented a 26.9% drop in arrivals at the Kos airport, 22.1% in Kefalonia, 7.4% in Heraklion, Crete, and 31.1% in Mykonos. However, Athens saw a 21% rise in scheduled flight arrivals during the same period. SETE chief Andreas Andreadis expressed his fears at President of the Hellenic Republic Prokopis Pavlopoulos on Tuesday, saying: “A plan to increase value added tax by 120% would take Greek tourism out of competition and inflict irreparable damage.” And he continued: “Hotels will be unable to absorb the increase and over 200,000 jobs will be lost from 2016.”
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| READ THE ORIGINAL POST AT greece.greekreporter.com |
A German philhellene couple with strong ties to the Greek town of ancient Olympia have followed the example of their compatriots in Nafplion and Heraklion, Crete, offering their share of Germany’s war reparations to Greece that their state refuses to pay. According to Greek media, they informed the President of the Hellenic Republic, Prokopis Pavlopoulos, about their intention almost a month ago. In their letter to the Greek President, they explained the reasons that lead them to the decision of paying 300 euros to the Greek state. German author Wolfgang Decker has published several of his works on Ancient Greece and the Olympic spirit, while his wife Monica is an artist, whose works have been exhibited at Orpheus Gallery in ancient Olympia. They both love Greece and its culture and visit the country –and especially ancient Olympia- as much as possible. According to a local newspaper, the couple have spent long periods of time in the Greek town where they have formed friendly relations with the locals, including the gallery owner, Apostolis Kosmopoulos, who was the first person to find out about their letter to the Greek President. In their letter to Kosmopoulos the couple noted: “The letter we wrote to the Greek President makes us feel free before our next trip to your country.” Furthermore, they also noted that they consider their gesture as a humble one, which cannot erase the innumerable damages that the Germans caused during the Nazi Occupation.
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Moody's has suggested there is a "high likelihood" of capital controls being imposed on Greek banks, after outflows of more than €30bn since ...
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Here & Now's Jeremy Hobson speaks with 20-year-old Greek student Alkistis Anagnostopoulou-Merkouri about her life in Athens and why she wants ...
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| READ THE ORIGINAL POST AT hereandnow.wbur.org |
The government is rethinking its proposals for revising Greece's VAT charges to something closer to the existing system, after the idea of introducing a "two-speed" system, with a 'discount rate' for electronic rather than cash transactions, met with ...
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| READ THE ORIGINAL POST AT en.enikos.gr |
In the lengthy profile by the New York Times magazine on Yanis Varoufakis, the Greek finance minister says to the paper's journalist Suzy Hansen that he is terrified and aghast about the Greek economy. When the journalist asked him ...
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| READ THE ORIGINAL POST AT en.enikos.gr |
German Finance Minister Wolfgang Schauble left open the possibility that Greece may default in an interview to the Wall Street Journal and French daily Les Echos. Asked whether he would repeat an assurance he gave in late 2012 that Greece ...
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| READ THE ORIGINAL POST AT en.enikos.gr |
Portugal’s new Socialist party manifesto released today has sent shockwaves straight to Germany where the most powerful nation in the union was relying on Portugal to buckle down and play the game of decades of interest payments and central supervision. With the Greek problem much in Bonn’s sites, any anti-austerity behaviour from junior EU members, especially those with socialist pledges in an anti-austerity election manifesto, causes deep concern that Portugal may follow Greece out of the Euro or, if not, Portugal's lack of financial controls under the Socialists will make a mockery of the whole scheme.
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| READ THE ORIGINAL POST AT algarvedailynews.com |
Investors remain cautious ahead of Federal Reserve and latest Greek meetingsWith a spate of takeover talk and despite some disappointing company updates and the usual worries about Greece, leading shares managed to end the day higher.The FTSE 100 finished up 12.16 points or 0.17% at 7007.26, the first time it has closed above 7000 for a week and a half. But investors were cautious ahead of the US Federal Reserve minutes due later, which be scoured for clues as to when the central bank might begin to raise interest rates.There has been a fair amount of speculation by analysts about Vodafone joining up with Liberty in one form or another. Vodafone has acknowledged that, at a certain price, a merger makes sense. However, agreement on price looks unlikely at this stage and we would treat it as a potential upside, given that shareholders anyway will have to approve it. While for Vodafone this would be “nice to have” on top of its existing converged assets, Liberty may be more driven by a lack of sufficient mobile assets and the unsatisfactory nature of renting capacity to create a virtual operator – also Sky’s strategy.As part of a multi-bank foreign exchange settlement with the US Department of Justice/Federal Reserve, RBS pays $669m. This is (more than) covered by an existing £704m forex-related provision, (including £334m charged in the first quarter of 2015). RBS had already settled with the UK’s FCA and the US’ CFTC for £0.4bn in November 2014.We believe that investors had (rightly) seen foreign exchange and Federal Housing Finance Agency [mortages] as the two key “outstandings” on RBS’ conduct agenda. As such, we see today’s news as an important stepping-stone towards a £10bn share buyback in 2016. Buy. Patisserie Holdings delivered a strong set of first half results which demonstrated the operational leverage in the business. As well as the expansion programme we are encouraged by the progress made in areas such as menu development, digital marketing and third party relationships. The high rating is justified for a business growing 20% year on year, with added spice presented by the potential for acquisitions. Buy. Continue reading...
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| READ THE ORIGINAL POST AT www.theguardian.com |
Europe's inland and coastal waters have become cleaner and nations such as heavily-indebted Greece and Cyprus boast some of the most pristine bathing spots, according to this year's EU report on water quality, published on Wednesday.
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Moody's Investors Service has said its outlook on Greece's banking system is “negative,” owing to acute deterioration in funding and liquidity.
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| READ THE ORIGINAL POST AT www.ekathimerini.com |
An acceleration of talks between Greece and its creditors means a bailout agreement is possible, but the country needs to make more concrete ...
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| READ THE ORIGINAL POST AT www.theaustralian.com.au |
ATHENS May 20 (Reuters) - Greek banks will continue to face liquidity and funding pressures over the next 12-18 months that could force imposition ...
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| READ THE ORIGINAL POST AT www.reuters.com |