With each passing day, it seems the stakes climb higher in Greece's game of chicken with Europe. What is Washington's attitude toward all this?
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How the world sees Greece
Monday, June 8, 2015
TREASURIES-US bond yields dip as Greece worries stoke safety bid
Greece worries rekindle safety bid for U.S. bonds * U.S. to sell $58 bln in 3- , 10- and 30-year debt * Heavy corporate supply seen capping Treasuries ...
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EU Frustration Mounts as Greece Lashes Out at Creditor Demands
European Commission President Jean-Claude Juncker said Greece is not doing enough to ensure it can stay in the euro. Creditors are growing ...
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Pensions in Greece Feel the Pinch of Debt Negotiations
To stay at the bank carried the risk of being laid off, and with Greece's unemployment rate above 25 percent, she doubted she would ever find another ...
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Greek MEP Papadimoulis: Cost of no Agreement on Greece Is 1.0 Trillion Euros
If Greece and its partners fail to reach an agreement on how to handle the country’s debt, the cost to its creditors will be in the region of “at least one trillion euros,” Greek MEP and European Parliament Vice-President Dimitris Papadimoulis said in an interview to the Athens-Macedonian News Agency on Monday. “An agreement is a one-way street, not just for Greece but also for its creditors, because the cost of no agreement – for the creditors also – will be at least one trillion euros and a huge uncertainty that will lead not just the Eurozone but the global economy into uncharted waters,” he claimed. By comparison, the financial “distance” separating the two sides regarding the policies that should be adopted over the next years are in the range of 1-2 billion euros, he said. “If one compares this distance with one trillion euros, one can see why in the end we will be led to an agreement,” Papadimoulis added. The main issue at this time is to support the effort made by the Greek government and Prime Minister Alexis Tsipras to ensure a sustainable growth prospect for Greece’s economy and society, and to finally give Grexit scenarios a decent burial by providing a sustainable solution to the clearly unsustainable Greek public debt, the MEP said. Commenting on proposals put forward by creditors, Papadimoulis said ideas such as increasing VAT on electricity by 10 percentage points or abolishing the EKAS benefit for low pensions are “extreme” and “unreasonable.” He clarified, however, that the institutions have not sent the Greek government any “take it or leave it” ultimatum and therefore it is possible for the two sides to achieve the convergence needed in order to arrive at a mutually acceptable agreement. Should this be achieved and an agreement presented that is backed by the Greek government, Papadimoulis predicted that this will be supported by SYRIZA and the ruling majority in Parliament. “The mandate given to the government from the Greek people is to achieve the best possible solution within the Eurozone and not a blind rift and return to the national currency,” he said. (source: ana-mpa)
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WSJ Foresees Elections and Third Memorandum for Greece
If Greece wants to avoid bankruptcy, an agreement must be reached in the next few days, writers in the Wall Street Journal (WSJ) estimated, noting that the Greek government and institutions may have to wait until winter to “seal” a third bailout package. According to the American newspaper, the decision of Greece to bundle all four June installments to the IMF into one last week means that the first major payment has been postponed until June 30. For this reason, an agreement between Athens and creditors regarding budget cuts is anticipated until the June 18 Eurogroup. The Eurozone Finance Ministers meeting will be of great importance because there they will approve a new financial deal, a new payment schedule and new Greek objectives, expanding this way the current program beyond June, at least until September and possibly until December. WSJ writers made their own guess for the future, saying that there is a possibility that Greek Prime Minister Alexis Tsipras will lose the support of his partners in the ruling coalition after presenting the new measures in the Greek Parliament, something that it could lead him to rely on the votes of the members of his main opposition party. This would oblige Greece’s PM to either form a new coalition government or call for snap elections, possibly in July 5. The writers of the article estimated that Tsipras will win these elections, forming a coalition with less radical partners who will be willing to support efforts to keep Greece in the Eurozone. In such a case, Greece and its international creditors would be able to take the next step: the agreement regarding a third bailout package.
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Greek Debt Crisis Negotiations Are Really About the Next Debt Crisis
NEW YORK (TheStreet) -- Greece borrowed a bit of breathing room late last week when it delayed a debt payment that was due to the International ...
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President Obama Discusses Greece at G7
BAVARIA, GERMANY – President Barack Obama spoke strongly both to Greece and it creditors/partners during a press conference at the G7 summit in Germany, but emphasized the importance of Athens implementing reforms. “The Greeks are going to have to follow through and make some tough political choices that will be good for them long-term,” he […] The post President Obama Discusses Greece at G7 appeared first on The National Herald.
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World Press View: Greece Pushes Itself Right To The Brink
Greece is courting danger by pushing international lenders instead of trying to compromise with reforms-for-cash, world press reports say. The post World Press View: Greece Pushes Itself Right To The Brink appeared first on The National Herald.
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STOCKS FALL: Here's what you need to know (SPY, DJI, IXIC, USD, UST, AAPL, TSLA, DB, XU100)
Stocks failed to rally into the green on a relatively calm day for markets that saw no major economic data released. Monday afternoon, however, saw reports that Greece's creditors may have extended a new lifeline. First, the scoreboard: Dow: 17,816.49, -32.97, (-0.18%) S&P 500: 2,085.18, -7.65, (-0.37%) Nasdaq: 5,033.16, -35.30, (-0.70%) And now, the top stories on Monday: Stocks climbed off their lows of the day following news that Greece's creditors have suggested extending the bailout plan until March 2016, according to the Wall Street Journal. Three people familiar with the negotiations told the Journal that as part of the extension, Greece would get access to €10.9 billion that had been set aside to recapitalize weak banks. Apple unveiled a bunch of upgrades and new services at its big annual Worldwide Developers Conference (WWDC) in San Francisco. Shares fell about 1% ahead of the conference but rallied from the lows during the event. Here's some of the highlights: Apple Music will let you stream any song on iTunes on demand for $9.99 a month from June 30. OS X El Capitan is the newest operating system for Macs, and iOS 9 will replace iOS 8 on iPhones and iPads. Apple Watch software also got an upgrade. We have all the details here. Deutsche Bank shares surged more than 6% after co-CEOs Anshu Jain and Jürgen Fitschen stepped down over the weekend, replaced by John Cryan. They resigned amid several regulatory and legal problems, including probes into rigging of benchmark interest rates, tax evasion, and money laundering. Fitschen had been in court over perjury charges. It's a big mess that's now in Cryan's hands for cleanup. McDonald's reported that US same-store sales fell more than expected in May. Sales at stores open for at least a year fell 2.2% compared to the prior year – more than the 1.7% decline that was expected. Global comparable store sales fell 0.3% May, however, less than the 0.9% decline that was expected. In Europe, comparable-store-sales rose 2.3% against expectations for a 0.6% increase. The company will only disclose these numbers for one more month. Tesla shares gained up to 3% after Baird analysts raised their price target to $335 from $275 with an "Outperform" rating. They wrote that the Model X SUV launch, Tesla Energy, and the upcoming shareholder meeting on Tuesday are likely positive catalysts. "We like the setup of news flow which should help drive the stock higher and improve sentiment, which is still not overly positive," they wrote. Tesla has surged 15% year-to-date. Investors are nervous about stocks and until they feel differently, we're probably not at the top. In a client note on Monday, Wells Fargo's Gina Martin Adams wrote: "At the market peak in 2000, 66% of individual investors were bullish. Likewise, at the peak in 2007, 55% were bullish. Today, just 25% of individual investors are bullish stocks. Until investors become significantly less nervous about the future for stocks, the longer-term bull market likely remains intact." Her 12-month fair value estimate for the S&P 500 is 2,222. Markets in Turkey tanked after president Tayyip Erdoğan lost big to the opposition party in elections. The Turkish lira fell to a record low, and was down against virtually every other currency. And, the Turkish stock market closed more than 5% lower in Istanbul. DON'T MISS: The hottest research team in economics has some great news about wage growth »Join the conversation about this story » NOW WATCH: Mark Cuban: Why perfection in business is a bad thing
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And now it looks like the Greece drama could drag on... until 2016 (GREK)
The Greece situation probably isn't going anywhere anytime soon. A report from The Wall Street Journal on Monday afternoon said Greece's international creditors have suggested extending its bailout program until March 2016. Citing three people familiar with the negotiations, The Journal's Gabrielle Steinhauser reports that as part of an extension, Greece would get access to €10.9 billion that had been set aside to recapitalize weak banks. One source told Steinhauser, "What we offered would mean that Greece is fully financed until March 2016." Most recently, Greece and the IMF agreed to bundle the country's payments to the IMF into one lump sum due at the end of June. And earlier on Monday, Business Insider's Mike Bird recapped some of the most recent Wall Street research on the issue, with the Street mostly agreeing that it doesn't seem like the Greece drama is trending towards a resolution anytime soon. Following the headlines, US stocks remained lower, but moved quickly off their worst levels of the day. Join the conversation about this story » NOW WATCH: Here's what 'Game of Thrones' stars look like in real life
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Greek Minister: Banks tell savers to bring their money abroad
There was this story I heard by a friend. It must have been beginning of February or so. He told me, he was advised by an employee of the bank were he had his savings to withdraw them – take it at home, dig a hole in the garden. I […]
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TREASURIES-US yields fall as Greece worries resurface
Greece and its creditors have not reached a deal so the cash-strapped nation could obtain more funds. Greece delayed a 300 million euro payment to ...
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Obama urges Greeks to make 'tough political choices' to resolve debt crisis
US president sends clear warning to Athens to compromise with creditors over debt deal, while also calling for flexibility from the international communityGreeks need to make some “some tough political choices” over the coming weeks, Barack Obama said on Monday in a clear warning to Athens that its team of negotiators must compromise further to secure a debt deal with the creditors.The US president said there was a “sense of urgency” to resolve the situation despite officials on both sides saying the two sides remain far apart on pension reforms and the projected size of the Greek budget deficit. Related: Juncker vents fury over Greek bailout talks at G7 summit Continue reading...
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Trial of nursing student accused of stabbing peers adjourned to 2016
he 22-year-old, who is facing charges of grievous bodily harm, alleged in her initial deposition that she had been a victim of bullying at the nursing school, which is operated by Greece’s Manpower Organization (OAED).
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ECB's Noyer: Greek exit? No problem for eurozone
If Greece had to leave the eurozone, it would not cause a problem for the currency bloc but rather for Greece itself, European Central Bank governing council member Christian Noyer said on Monday.
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ATHEX: Greek stocks keep sliding
Despite early suggestions of a stock rebound, the Greek bourse eventually ended with significant losses on Monday, on extremely low trading volume, as an agreement between Greece and its creditors remained elusive.
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Influx of migrants to islands up sixfold
The influx of undocumented immigrants into Greece from neighboring Turkey has increased dramatically, growing sixfold in the first five months of the year compared to the same period in 2014, according to new figures released by the coast guard on Monday.
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Greece takes a step closer to Palestinian recognition
In what appeared to be a step toward the recognition of an independent Palestinian state, Prime Minister Alexis Tsipras met with the foreign affairs minister of the Palestinian Authority, Riyad al-Maliki, in Athens on Monday.
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Greece's creditors floated extending bailout through March 2016: WSJ
(Reuters) - Greece's international creditors last week proposed extending the country's bailout until the end of March 2016 in return for pension cuts, tax increases and other policy steps by Athens, the Wall Street Journal said on Monday, citing unnamed sources. Greece earlier on Monday declared new willingness to compromise. But it has yet to reach a deal, which is needed by the end of this month, when the bailout program expires and the country faces default on its debts. (Reporting by Emily Stephenson; Editing by Eric Beech)
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Cyprus' rival leaders attend theatrical play to foster trust
NICOSIA, Cyprus (AP) — The rival leaders of Cyprus attended a theatrical play on Monday that implores the divided island's Greek- and Turkish-speaking communities to confront the wrongs of a tortured history to drive home their shared commitment for a reunification deal.
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EconomyGreek crisis: a timeline of key dates to July 20
Greek coffers have been almost completely drained and Athens is in desperate need of €7.2bn in bailout aid or it runs the risk of defaulting on its ...
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IU Greek houses struggle with kitchen violations
BLOOMINGTON, Ind. — Health inspection reports show that fraternity and sorority houses at Indiana University are struggling to keep their kitchens ...
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Juncker says waiting for Greece to 'build its part of bridge'
European Commission President Jean-Claude Juncker told German television network ARD on Monday that he was waiting for Greece to make its contributions to help the European Union resolve the eurozone crisis. "I've always tried to be respectful with Greece," Juncker said in an interview on the fringes of the G7 summit when asked if he had lost patience with Greece after a report he declined to take a call from Greece's Prime Minister Alexis Tsipras. The EU or the Eurogroup can't build an never-ending bridge." Juncker declined on Saturday to take a phone call from Tsipras because Athens has not yet sent in reform proposals that it promised for Thursday, an EU official said on Saturday.
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Grexit's Cost for Europe
It has been more than five months since the new Greek government took office. In Europe, Syriza's election led to a sense of uncertainty, given its mandate from the Greek people to end austerity and discontinue business as usual with Greece's creditors. For the majority of Greeks, there was an unprecedented feeling of optimism and positive anticipation as a result of Syriza's victory. Today, many Europeans are more uncertain than ever about the unchartered waters they are about to enter into with the Greek government, and depending on what happens next, Greeks themselves may either reaffirm that electing Syriza was exactly the right thing to do, or that the economic pain Greece has felt since 2008 has merely been an appetizer compared to what may lay ahead. Syriza came to power with a promise to change the entire approach to debt negotiations to steer away from unpopular austerity and better balance the burden among Greece's long-suffering middle class (the bulk of the Greek society) and the elite. Syriza promised a rise in pensions and state salaries, albeit gradual, and that no new direct taxation would be introduced. Instead, what has happened thus far is a drainage of cash from Greek banks, resurgent unemployment, a return to budget deficit, a failure to tackle tax evasion, and recurring problems with state pension and healthcare funds. Surprisingly, despite this, Syriza and the coalition government continue to enjoy an unprecedented level of support. Just last week two major polls indicated support in excess of 70% for Greece's continued participation in the Eurozone. At the same time, less than half of those polled said the government should accept the European plan to be put forward. This is consistent with such strong support for the government, since some 60% of Greeks appear to be satisfied with Syriza's leadership and the manner in which it is handling the debt negotiations. In spite of the debt conflict with Europe, Syriza leads New Democracy in the polls by 10 to 20%. It is clear that a "Grexit" is not on Greeks' minds at the present time, nor is it desired in any way, and direct reference to a Grexit has not been made by the government, but rather by individuals from within Syriza's "Left Platform" -- the far left faction of the party. It seems the West and the Western press are far more fixated on a Grexit than the Greeks themselves. It is therefore safe to assume that the Greek people would like to avoid any more 'tragedies' that would result from exiting the Eurozone. Continuing to be part of the Eurozone is the best and least painful way to put the economy back on track in the long-term - even if doing so has not exactly worked as planned to date. A Grexit would not only signal the beginning of a new, darker era for the Greek economy, but would also admit the failure of all the painful austerity. A Grexit would furthermore likely result in unknown geopolitical and economic risks - not only for Europe, but the global economy. Recall that it was the 'ripple effects' of the collapse of Lehman Brothers which had such a profound impact on the global economy in 2008. A Grexit would likely result in tremendous loss of share value throughout the continent, the value of the Euro would be called in to question, the ability of other distressed European economies to avoid default would once again become a front burner issue, and the entire Euro experiment would be seen as a giant question mark. A worse outcome than a Grexit would be a continuation of temporary 'fixes' and a pursuit of policies that have no realistic chance of succeeding. Rather than focusing on austerity measures, the parties would be well advised to focus on a credible path to growth for Greece. The issue is whether the two are compatible objectives. Anticipating that the two may not be compatible, the Greek government has started to explore other forms of international support and diplomatic affiliations, such as with Russia - although, given the state of economic affairs in Russia, that should prove untenable. Extra-European or extra-Atlantic affiliations have never helped Greece since its independence and have in the past created more problems than they have solved. The cold reality of the situation is that Greece does not have the luxury of a neutral geopolitical position, now or for the foreseeable future. A Grexit would naturally prompt many Europeans to become even more disillusioned by the EU 'experiment', which could be reflected in the next round of general elections across the continent. This could in turn fuel an even greater rise of extremist political parties and secessionist movements. Surely, what is happening in the UK and Spain is ample evidence of this. While it is obvious that the current painful negotiations between Greece and its creditors must come to a swift conclusion, a Grexit will ultimately cost Europe as much, or more, than a possible 'haircut' of Greek debt. This will surely be on the minds of negotiators as the next deadline looms. *Alexis Giannoulis is an independent political analyst based in Athens. Daniel Wagner is CEO of Country Risk Solutions and author of the book "Managing Country Risk". -- 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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Parliament: toilet snafu was standard security procedure
Greek Parliament security officials said Monday that a Saturday incident in which it was allegedly forbidden to riot policemen guarding the building to use the toilets inside was in reality a demand to show ID. "Someone wearing a uniform and carrying ...
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Greece, Creditors Consider Extending Eurozone Bailout Until March
BRUSSELS—Greece's international creditors have suggested extending the country's bailout program until the end of March 2016, but disagreements ...
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Greek police say they're banned from parliament bathrooms
ATHENS, Greece (AP) — Forget bailouts or austerity riots. The hot topic now in Greece is toilets.
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New study claims to find genetic link between creativity and mental illness
Results imply creative people are 25% more likely to carry genes that raise risk of bipolar disorder and schizophrenia. But others argue the evidence is flimsyThe ancient Greeks were first to make the point. Shakespeare raised the prospect too. But Lord Byron was, perhaps, the most direct of them all: “We of the craft are all crazy,” he told the Countess of Blessington, casting a wary eye over his fellow poets.The notion of the tortured artist is a stubborn meme. Creativity, it states, is fuelled by the demons that artists wrestle in their darkest hours. The idea is fanciful to many scientists. But a new study claims the link may be well-founded after all, and written into the twisted molecules of our DNA. Continue reading...
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Greek debt worries G7 leaders
With talks between the Greek Government and creditors due to resume in Brussels today, Prime Minister Alexis Tsipras faced a united front from Group ...
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As Obama Wades Into the Euro Crisis, Greek Official Says '…
By David FrancisDavid Francis is a staff writer for Foreign Policy, where he runs the widely-read Situation Report morning email and oversees FP's ...
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A Greek Default Slashes US Exports and Jobs
As world leaders wrapped up the G7 summit in Germany they became increasingly strident in their warnings to the Greek government, with German ...
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Obama leads calls for Greece to secure deal swiftly
ATHENS, Greece (AP) — Greece faced acute international pressure, notably from President Barack Obama, to secure a deal with creditors fast following days of acrimony that stoked fears of a Greek debt default and exit from the euro.
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Greek finance minister calls for quick deal
Greece and its lenders need to seal an agreement on a cash-for-reforms deal urgently, Greek Finance Minister Yanis Varoufakis, said on Monday, adding that European leaders had an "historic duty" to act. "What we need is an agreement quickly, we need to avert an accident that would be a mistake," Varoufakis said during a speech on "Greece's future in the EU" in Berlin. "History would take it down as a failure of the political class of the EU ... Dr Schaeuble, Mrs Merkel, Mr Tsipras, Mr Juncker, the whole political class - we have an historic duty not to allow this to happen," he said.
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Greece's financial crisis won't end anytime soon
ATHENS • Frustrated by Greece's cat-and-mouse game with its creditors? Get used to it. Even if Prime Minister Alexis Tsipras clinches as much as 7.2 ...
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Merkel-Schaeuble Differences Over Greece Approach Said to Widen
A split between German Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble is widening over Greece as the funding standoff goes ...
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Shire slides on $19bn deal talk but Diageo jumps on takeover report
Markets remain nervous as Greek deadline approaches with little progressInvestors continued to be nervous about Greece’s precarious financial situation, with an agreement between the cash-strapped country and its creditors seemingly as far away as ever, despite the deadline for a deal rapidly approaching.But a spate of takeover speculation proved a welcome distraction from the never-ending eurozone crisis.In theory, the deal would add a further growth engine within Shire’s core rare diseases focus area, along with a late-stage pipeline in infectious disease and multiple sclerosis. Shire could also leverage Zavesca (oral Gaucher treatment; marketed) and pipeline drug lucerastat (oral Fabry treatment) through its existing sales force selling Vpriv/Replagal. While direct synergies with Actelion’s PAH sales and marketing capability are unlikely to be material, we would expect Shire to be able to extract meaningful corporate overhead savings, as well as absorbing R&D spend within its budget.Given the size of the transaction suggested in the [Sunday Times] story, we would expect any deal to require a mix of cash and equity. As a reminder, Shire had net debt of $2.6bn at the end of the first quarter of 2015 and has shareholder approval to increase this to $12bn if required. Assuming a 50:50 cash/equity deal, a 4.5% cost of debt, and achievement of savings/synergies equivalent to 30% of Actelion’s R&D and [expenses], we believe the deal could be accretive to..earnings per share in the high single digits within 3 years and ultimately reach double digits. However, with significant upside to our Actelion forecasts/valuation if Uptravi sales exceed expectations, we believe a 30% plus premium may be required to secure a deal. This would moderately erode earnings accretion potential and require issuance of a greater proportion of equity.European markets have continued where they left off at the end of last week, as rising bond yields and the continued impasse over a new Greece deal keep investors cautious.Since the October lows [Germany’s] Dax is still up over 20% so some type of pullback was eventually likely to take place, and it looks like we are seeing that correction from the highs in April continue to play out, as the German benchmark moves more than 10% away from its recent highs and into correction territory.Over the last month Tui hosted a Capital Markets Day which promised several avenues for future growth: it is now time for the newly combined Tui group to start to deliver on these promises. If the company successfully delivers against these targets, we think it will provide investors with strong earnings per share growth and optionality over the next four years. Continue reading...
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Greece under pressure over bailout
Greece is facing acute international pressure, notably from US president Barack Obama, to secure a deal with creditors amid fears of a Greek debt default and exit from the euro. With Greece facing an end-of-month deadline to secure a deal, Mr Obama and ...
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Bank of France's Noyer Says Greece Talks at 'Extremely Urgent' Stage
Talks between Greece and its international creditors are at an “extremely urgent” stage, Bank of France Governor Christian Noyer said Monday, adding concerns are mounting over the Greek government’s willingness to introduce the needed structural reforms.
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David Cameron Stumbles At G7 Meeting Over Britain's EU Ties
By Andrew Osborn KRUEN, Germany, June 8 (Reuters) - British Prime Minister David Cameron tripped up over Europe at a summit of the Group of Seven Industrial nations (G7), appearing to issue an ultimatum to his own ministers over the EU only to swiftly withdraw it, saying he had been misunderstood. The debacle was Cameron's first serious setback since he was re-elected a month ago and was all the more awkward because it concerned his flagship policy of renegotiating Britain's EU ties before holding an in-out EU membership referendum. His uncertain handling of such an important issue is likely to be interpreted as a sign of how nervous he is to keep his fractious Conservative Party united to avoid a re-run of past splits which helped topple his two immediate predecessors. Britain's EU relationship was not on the G7 agenda which was devoted to issues such as Greece, Ukraine and climate change. Yet Cameron's closing news conference was dominated by the subject with all seven questioners touching on it, forcing a visibly irritated Cameron to repeat himself. Speaking on Sunday, Cameron had moved to head off the first signs of a Eurosceptic rebellion in his party by suggesting ministers would have to back his EU strategy, which envisions Britain remaining in a reformed EU, or leave his government. "If you want to be part of the government, you have to take the view that we are engaged in an exercise of renegotiation to have a referendum, and that will lead to a successful outcome," he told reporters. "Everyone in government has signed up to the program set out in the Conservative manifesto," he said. But on Monday, after senior Eurosceptic lawmakers lined up to criticize his stance, Cameron said he had been misunderstood, saying his warning to ministers had only applied to the EU renegotiation period not the referendum campaign itself. "It's clear to me that what I said was misinterpreted. I was clearly referring to the process of renegotiation," said Cameron. "I've always said what I want is an outcome for Britain that keeps us in a reformed EU, but I've also said we don't know the outcome of these negotiations, which is why I've always said I rule nothing out. Therefore it would be wrong to answer hypothetical questions." He declined to say whether ministers would be allowed a "free vote" in the referendum campaign. His apparent change of heart drew derision from his country's press corps who accused him of flip-flopping on a vital issue and of confused policy-making. Liberia's President Ellen Johnson Sirleaf, Germany's Chancellor Angela Merkel, US President Barack Obama, Italy's Prime Minister Matteo Renzi sit on a bench outside the Elmau Castle during the so-called 'outreach meeting' at a G7 summit near Garmisch-Partenkirchen, southern Germany, on June 8, 2015.(MICHAEL KAPPELER/AFP/Getty Images) "UNWISE STANCE" Cameron originally spoke out after a group of over 50 of his own lawmakers said they were prepared to join a campaign backing a British EU exit, or "Brexit," unless he achieved radical changes in the bloc. Cameron, who has promised to hold the referendum by the end of 2017, says he is confident he can get a deal that will allow him to recommend Britons vote to stay in the EU, which they joined in 1973. He has said he needs the EU to alter its founding treaties so that any changes he secures are safe from legal challenge. But he is vulnerable on the home front, commanding a mere 12-seat majority in the 650-seat House of Commons and a rebellion over Europe could derail his wider agenda. Speaking before Cameron's office tried to clarify his comments, senior Conservative lawmaker David Davis said Cameron's stance was "unwise." "There is a risk what we may end up doing is turning a decent debate into a bitter argument," Davis told BBC Radio. "This doesn't show a great deal of confidence in the outcome of those negotiations, that he has to say now: my way or the high way, stay and obey the line or leave." Eurosceptic Conservatives already feel Cameron has framed the referendum question in way a that favors a vote to stay and are angry he has decided not to impose restrictions on government campaign activity in the run-up to the vote. The Times reported campaign spending limits would be increased by 40 percent for the referendum, raising fears among those backing an exit that they will be outspent. Some Eurosceptics have suggested they feel so strongly that they might try to amend a law going through parliament to enable the referendum to take place. The law is expected to be debated in parliament on Tuesday. Britain's Prime Minister David Cameron speaks at a press conference at the end of the summit of G7 nations at Schloss Elmau on June 8, 2015 near Garmisch-Partenkirchen, Germany. (Photo by Carl Court/Getty Images) (Additional reporting by William James and Kylie MacLellan in London; Editing by Guy Faulconbridge) -- 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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Will a Grexit Be the Lehman-Like Trigger of the Next Global Financial Crisis?
NEW YORK -- European Union leaders continue to play a game of brinkmanship with the Greek government. Greece has met its creditors' demands far more than halfway. Yet Germany and Greece's other creditors continue to demand that the country sign on to a program that has proven to be a failure, and that few economists ever thought could, would or should be implemented. The swing in Greece's fiscal position from a large primary deficit to a surplus was almost unprecedented, but the demand that the country achieve a primary surplus of 4.5 percent of GDP was unconscionable. Unfortunately, at the time that the "troika" -- the European Commission, the European Central Bank and the International Monetary Fund -- first included this irresponsible demand in the international financial program for Greece, the country's authorities had no choice but to accede to it. The folly of continuing to pursue this program is particularly acute now, given the 25 percent decline in GDP that Greece has endured since the beginning of the crisis. The troika badly misjudged the macroeconomic effects of the program that they imposed. According to their published forecasts, they believed that, by cutting wages and accepting other austerity measures, Greek exports would increase and the economy would quickly return to growth. They also believed that the first debt restructuring would lead to debt sustainability. The troika's forecasts have been wrong, and repeatedly so. And not by a little, but by an enormous amount. Greece's voters were right to demand a change in course, and their government is right to refuse to sign on to a deeply flawed program. Having said that, there is room for a deal: Greece has made clear its willingness to engage in continued reforms, and has welcomed Europe's help in implementing some of them. A dose of reality on the part of Greece's creditors -- about what is achievable, and about the macroeconomic consequences of different fiscal and structural reforms -- could provide the basis of an agreement that would be good not only for Greece, but for all of Europe. Some in Europe, especially in Germany, seem nonchalant about a Greek exit from the eurozone. The market has, they claim, already "priced in" such a rupture. Some even suggest that it would be good for the monetary union. I believe that such views significantly underestimate both the current and future risks involved. A similar degree of complacency was evident in the United States before the collapse of Lehman Brothers in September 2008. The fragility of America's banks had been known for a long time -- at least since the bankruptcy of Bear Stearns the previous March. Yet, given the lack of transparency (owing in part to weak regulation), both markets and policymakers did not fully appreciate the linkages among financial institutions. Indeed, the world's financial system is still feeling the aftershocks of the Lehman collapse. And banks remain non-transparent, and thus at risk. We still don't know the full extent of linkages among financial institutions, including those arising from non-transparent derivatives and credit default swaps. In Europe, we can already see some of the consequences of inadequate regulation and the flawed design of the eurozone itself. We know that the structure of the eurozone encourages divergence, not convergence: as capital and talented people leave crisis-hit economies, these countries become less able to repay their debts. As markets grasp that a vicious downward spiral is structurally embedded in the euro, the consequences for the next crisis become profound. And another crisis is inevitable: it is in the very nature of capitalism. ECB President Mario Draghi's confidence trick, in the form of his declaration in 2012 that the monetary authorities would do "whatever it takes" to preserve the euro, has worked so far. But the knowledge that the euro is not a binding commitment among its members will make it far less likely to work the next time. Bond yields could spike, and no amount of reassurance by the ECB and Europe's leaders would suffice to bring them down from stratospheric levels, because the world now knows that they will not do "whatever it takes." As the example of Greece has shown, they will do only what short-sighted electoral politics demands. The most important consequence, I fear, is the weakening of European solidarity. The euro was supposed to strengthen it. Instead, it has had the opposite effect. It is not in the interest of Europe -- or the world -- to have a country on Europe's periphery alienated from its neighbors, especially now, when geopolitical instability is already so evident. The neighboring Middle East is in turmoil; the West is attempting to contain a newly aggressive Russia; and China, already the world's largest source of savings, the largest trading country, and the largest overall economy (in terms of purchasing power parity), is confronting the West with new economic and strategic realities. This is no time for European disunion. Europe's leaders viewed themselves as visionaries when they created the euro. They thought they were looking beyond the short-term demands that usually preoccupy political leaders. Unfortunately, their understanding of economics fell short of their ambition; and the politics of the moment did not permit the creation of the institutional framework that might have enabled the euro to work as intended. Although the single currency was supposed to bring unprecedented prosperity, it is difficult to detect a significant positive effect for the eurozone as a whole in the period before the crisis. In the period since, the adverse effects have been enormous. The future of Europe and the euro now depends on whether the eurozone's political leaders can combine a modicum of economic understanding with a visionary sense of, and concern for, European solidarity. We are likely to begin finding out the answer to that existential question in the next few weeks. © Project Syndicate -- 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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Can Angela Merkel Offer Hope for Greece?
ATHENS -- On September 6, 1946 U.S. Secretary of State James F. Byrnes traveled to Stuttgart to deliver his historic "Speech of Hope." Byrnes' address marked America's post-war change of heart vis-à-vis Germany and gave a fallen nation a chance to imagine recovery, growth and a return to normalcy. Seven decades later, it is my country, Greece, that needs such a chance. Until Byrnes' "Speech of Hope," the Allies were committed to converting "...Germany into a country primarily agricultural and pastoral in character." That was the express intention of the Morgenthau Plan, devised by U.S. Treasury Secretary Henry Morgenthau Jr. and co-signed by the United States and Britain two years earlier, in September 1944. Indeed, when the U.S., the Soviet Union and the United Kingdom signed the Potsdam Agreement in August 1945, they agreed on the "reduction or destruction of all civilian heavy-industry with war potential" and on "restructuring the German economy toward agriculture and light industry." By 1946, the Allies had reduced Germany's steel output to 75 percent of its pre-war level. Car production plummeted to around 10 percent of pre-war output. By the end of the decade, 706 industrial plants were destroyed. Byrnes' speech signaled to the German people a reversal of that punitive de-industrialization drive. Of course, Germany owes its post-war recovery and wealth to its people and their hard work, innovation and devotion to a united, democratic Europe. But Germans could not have staged their magnificent post-war renaissance without the support signified by the "Speech of Hope." Prior to Byrnes' speech, and for a while afterwards, America's allies were not keen to restore hope to the defeated Germans. But once President Harry Truman's administration decided to rehabilitate Germany, there was no turning back. Its rebirth was underway, facilitated by the Marshall Plan, the U.S.-sponsored 1953 debt write-down, and by the infusion of migrant labor from Italy, Yugoslavia and Greece. Europe could not have united in peace and democracy without that sea change. Someone had to put aside moralistic objections and look dispassionately at a country locked in a set of circumstances that would only reproduce discord and fragmentation across the continent. The U.S., having emerged from the war as the only creditor country, did precisely that. Today, it is my country that is locked in such circumstances and in need of hope. Moralistic objections to helping Greece abound, denying its people a shot at achieving their own renaissance. Greater austerity is being demanded from an economy that is on its knees, owing to the heftiest dose of austerity any country has ever had to endure in peacetime. No offer of debt relief. No plan for boosting investment. And certainly, as of yet, no "Speech of Hope" for this fallen people. It is the mark of ancient societies, like those of Germany and of Greece, that contemporary tribulations revive old fears and foment new discord. So we must be careful. Teenagers should never be told that, due to some "prodigal sin," they deserve to be educated in cash-strapped schools and weighed down by mass unemployment, whether the scene is Germany in the late 1940s or Greece today. As I write these lines, the Greek government is presenting the European Union with a set of proposals for deep reforms, debt management and an investment plan to kick start the economy. Greece is indeed ready and willing to enter into a compact with Europe that will eliminate the deformities that caused it to be the first domino to fall in 2010. But, if Greece is to implement these reforms successfully, its citizens need a missing ingredient: Hope. A "Speech of Hope" for Greece would make all the difference now -- not only for us, but also for our creditors, as our renaissance would terminate the default risk. What should such a declaration include? Just as Byrnes' address was short on detail but long on symbolism, a "Speech of Hope" for Greece does not have to be technical. It should simply mark a sea change, a break with the past five years of adding new loans on top of already unsustainable debt, conditional on further doses of punitive austerity. Who should deliver it? In my mind, the speaker should be German Chancellor Angela Merkel, addressing an audience in Athens or Thessaloniki or any Greek city of her choice. She could use the opportunity to hint at a new approach to European integration, one that starts in the country that has suffered the most, a victim both of the eurozone's faulty monetary design and of its society's own failings. Hope was a force for good in post-war Europe, and it can be a force for positive transformation now. A speech by Germany's leader in a Greek city could go a long way toward delivering it. © Project Syndicate -- 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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Stock Market Today
Greece. What would financial journalists do without you? You are akin to the President for late night talk show hosts -- you give them plenty of material ...
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Bulgaria wants fewer migrants under EU relocation plan
Bulgaria is seeking to limit the number of migrants it accepts under an EU plan to relocate about 40,000 people who have arrived in Italy and Greece to other member states, the government said on Monday. Under the proposals by the executive European Commission, the bloc would also accept 20,000 refugees from outside the 28-nation grouping and share them around EU states. Germany and France are expected to take about 40 percent of the migrants, while Bulgaria, the bloc's poorest member, should take about 572 migrants already in Italy and Greece and more than 200 additional refugees.
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Viral Infographic on Ancient Greek Gods’ Family Tree
An infographic created by TheArtistFormerlyKnownAsTheBabyAteMyDingo and uploaded on imgur.com, depicting the ancient Greek gods’ family tree, has gone viral. From Gaia to Kronos, Zeus and Athens, the infographic covers a large part of the genealogical tree. However, as the creator stressed, not all gods could be included. Ancient Greek theology was polytheistic, based on the assumption that there were many gods and goddesses. There was a hierarchy of deities, with Zeus, the king of gods, having a level of control over the others, although he was not omnipotent, while some deities had dominion over certain aspects of nature. Ancient Greeks attempted to explain various natural phenomena through the deities, for example thunder was Zeus’ expression of anger, while earthquakes where caused by Poseidon. The gods acted like humans, and had human vices. They would interact with humans, sometimes even spawning children with them.
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Italy's Renzi says more needed from EU on migrant crisis
Italian Prime Minister Matteo Renzi warned the EU on Monday it had to do more to deal with the tens of thousands of irregular migrants crossing into Europe but he dismissed a row among local governments over sharing the costs of accommodating them. The European Commission last week proposed an emergency plan to take 40,000 Syrian and Eritrean asylum-seekers from Italy and Greece, two Mediterranean states where most migrants first arrive, and relocate them in other European Union countries. The plan, agreed after the EU was shocked into action by the death of 800 migrants in an overcrowded fishing boat which capsized and sank in April, has already raised concerns in countries like France and Germany, which would have to take the lion's share of the arrivals.
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Golden Dawn Trial Suspended Once Again for June 22
The Golden Dawn trial was adjourned yet again and is set to resume on Monday, June 22, at a specially designed courtroom at Attica’s high-security Korydallos Prison due to defendants’ objections. The presiding judge accepted the objections of the defense lawyers who called for the elimination of political action regarding the accusation of the neofascist party as being a criminal organization. Pavlos Fyssas’ family members may attend the trial against Giorgos Roupakias and other people accused of their attribution as simple accomplices but not against Nikos Michaloliakos or current and former MPs of Greece’s far-right party who are accused of directing a criminal organization. This is because, as the judge noted, only the direct victims of a criminal organization have the legal right to complain about moral damage and mental anguish. This means that only the Greek public can declare offenses because Golden Dawn’s actions are against society and civil claimants.
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Global stocks fall on Greece, rate concerns; U.S. dollar dips
NEW YORK (Reuters) - U.S. and European stocks declined as investors fretted about Greece and timing of a U.S. rate hike, while the dollar fell after a wire service report, denied by President Barack Obama, that claimed to cite remarks by him on the greenback's strength.
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Varoufakis: 'Time to stop pointing fingers'
Greece's finance minister has struck a more conciliatory tone than usual after confidential talks with his German counterpart. Varoufakis urged his fellow politicians to stop trading accusations and resolve the crisis.
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Not much time left for Greek debt deal: Angela Merkel
Merkel said the Greek crisis had played a role in a discussion of risks to the world economy at a summit of Group of Seven ( G7) industrialised ...
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