How the world sees Greece
Greek Finance Minister Yiannis Stournaras warned on Saturday his country needed more time to meet commitments made to EU-IMF lenders so to avoid making the current recession worse.
"The extension of the budgetary adjustment is necessary because of the recession," Stournaras told lawmakers during a three-day parliamentary session that ends Sunday with a confidence vote for the coalition led by conservative Prime Minister Antonis Samaras.
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Greece Bows to Pressure on Bailout Terms CNBC.com Greece's new government has dropped a plan to seek softer terms for its second bailout following warnings that it would be rejected by international lenders, the Financial Times reports. |
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 CBC.ca | Europe gets lengthy homework assignment from G-20 MarketWatch WASHINGTON (MarketWatch) — The Group of 20 leaders presented a lengthy homework assignment to their European colleagues and said it was critical that some of the work be completed at the European Union summit meeting later this month. Barack Obama 'confident' in eurozone crisis resolution World Leaders Weigh Stimulus Vs. Austerity at G-20 European Shares to Open Lower; Euro Zone Crisis Still Weighs |
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IMF team to head to Greece as soon as government is formed FOX 4 News myFOXdfw.com is the official Web site for Dallas news, breaking news, weather forecasts and sports in the Dallas-Fort Worth Metroplex area. More from ... |
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EC president says European leaders have not come to Mexico to receive lessons on how to handle the economy
The opening day of the G20 summit was threatening to deteriorate into a fractious row between eurozone countries and other non-European members of the G20, notably the US, as EU commission president José Manuel Barroso insisted the origins of the eurozone crisis lay in the unorthodox policies of American capitalism.
As Europe's leaders came under intense pressure to act decisively to cure the euro's ills, and a campaign gathered pace to relax some of the austerity programmes laying waste to countries burdened with unsustainable debt levels, Barroso insisted that Europe had not come to the G20 summit in Mexico to receive lessons on how to handle the economy.
When asked by a Canadian journalist "why should North Americans risk their assets to help Europe?" he replied: "Frankly, we are not here to receive lessons in terms of democracy or in terms of how to handle the economy.
"By the way this crisis was not originated in Europe … seeing as you mention North America, this crisis originated in North America and much of our financial sector was contaminated by, how can I put it, unorthodox practices, from some sectors of the financial market."
After the Greek election at the weekend, which may have shifted the terms of the debate over how to shore up the euro, world leaders meeting in Mexico focused on the European crisis amid strong signs of big trouble brewing in Spain.
Madrid's 10-year cost of borrowing went through the 7% barrier on the bond markets for the first time in the single currency era, the level at which borrowing becomes unaffordable. The Spanish government demanded intervention from the European Central Bank.
Spain's prime minister, Mariano Rajoy, is expected to ask for up to €100bn in eurozone bailout funds for Spain's stricken banks at a meeting of eurozone finance ministers in Luxembourg on Thursday, senior Eurogroup sources said. Voicing exasperation with the European response to the debt crisis, Robert Zoellick, the outgoing American head of the World Bank, warned the G20 summit in Mexico of a growing rift between the Europeans in charge of the bailouts and the IMF.
"The world's waiting for the Europeans to say what they want to do," said Zoellick. He predicted a showdown between the IMF and Europe by the end of the summer in the absence of any decisive action.
Barack Obama was expected to press Germany's chancellor, Angela Merkel, in Mexico on Monday night on the issue of eurobonds – the pooling of liability for single currency countries' debt. But there is no chance of Merkel agreeing to underwrite the debt of other European countries for the foreseeable future.
Fresh from his victory in the Greek election, the centre-right leader, Antonis Samaras, promptly tabled demands for a softening of the draconian austerity programme that Greece has to implement for the eurozone bailout.
Samaras, the prime minister-designate pledged to stick broadly to the Greek bailout terms but added: "We will simultaneously have to make some necessary amendments to the bailout agreement, in order to relieve the people of crippling unemployment and huge hardships."
Politicians and officials in Brussels and Germany appeared to suggest that the new Greek leader's demands could be at least partly satisfied by extending the repayment schedule on the bailout loans or lengthening the target deadlines for cutting the budget deficit.
There were also reports that the terms underpinning Ireland's bailout could also be relaxed, giving Dublin a much longer repayment schedule on the loans. The talk of rescheduling the Greek bailout terms surfaced quickly on Sunday night, with the German foreign minister, Guido Westerwelle, suggesting the Europeans could alter the timings. That triggered a row in Germany among the political class over the pros and cons of going easier on Greece.
In Brussels, the respected Bruegel thinktank said: "It is now increasingly clear that the [Greek] programme is severely off track. The [Samaras] victory doesn't change this fact and it has become unavoidable to open a discussion about the shape and form of a new Greek programme. This is a fact now broadly acknowledged by policymakers and in particular by German officials who have openly discussed the possibility of stretching fiscal targets."
Martin Schulz, the German social democrat who presides over the European parliament, added: "The new Greek government will be able to count on our constructive cooperation in possible fine-tuning of its reform strategy and economic targets. If Greece sticks to its commitments, the EU can examine what could be done further to solve the crisis."
From Mexico, however, Merkel appeared to dismiss any easing of the Greek conditions. "The new Greek government has to implement the commitments entered into by the country. The programme framework has to be kept."
The eurogroup source said that Samaras was expected to show up in Luxembourg on Thursday for the meeting of eurozone finance ministers which will grapple with Spain and how to respond to the Greek election results.
 Globe and Mail | G20's relief at Greek pro-bailout vote is short-lived San Jose Mercury News LOS CABOS, Mexico -- World leaders relief at Greek voters rejection of an anti-bailout government that could have forced the country s exit from the European ... Greek election result spares leaders real-time fiscal firefighting Obama calls Greek elections 'positive' Sigh of relief at G20 summit over Greek election |
World leaders' relief at Greek voters rejection of an anti-bailout government that could have forced the country's exit from the European currency union had evaporated by early Monday on the continued severity of Europe's economic problems.
 CTV.ca | G20 to press Europe for lasting fix for debt crisis Reuters By Stella Dawson | LOS CABOS, Mexico (Reuters) - World leaders, relieved that pro-bailout parties won a narrow election victory in Greece, will pile pressure on Europe at the G20 summit on Monday to outline a lasting strategy to save the euro currency ... Leaders of the Group of 20 nations gather in Mexico Ottawa says Greek's avoided 'catastrophic event' with vote G20 to meet on upbeat note after Greek vote |
 Kansas City Star | IMF ready to lend economic support to Greece Xinhua WASHINGTON, June 17 (Xinhua) -- The Washington-based International Monetary Fund (IMF) said on Sunday that it was ready to continue lending support to Greece's economic growth and job creation efforts. "We take note of the election results in Greece ... G20 reform: Time to take action – or risk irrelevance G-20 Plans Push for Growth, Again G20 summit to put heat on Europe |
 BBC News | IMF leader: G20 must address 'mission critical' to restore investor confidence ... Washington Post LOS CABOS, Mexico — Finger-length and emerald-green, the lawns of time-share condos and all-inclusive resorts seem to gleam in the bright sun as the surf rolls gently against the white-sand beaches of Los Cabos. Sometimes the only noise is the ruffling ... EU/IMF bailout forms basis for Greek growth and jobs-EU IMF leader: G20 must restore investor confidence Gillard touches down in Mexico ahead of G20 summit |
 CNBC.com | UK's Osborne says Greece may have to quit euro Reuters LONDON, June 13 (Reuters) - Europe may need to sacrifice Greece's membership of its single currency bloc in order to convince Germany to put in more money to save the euro, Britain's finance minister George Osborne suggested in remarks certain to ... We Will Keep Greece in the Euro Zone: Leftists Greek Syriza Leader Says Europe Cannot Afford To Let Greece Fail Greece 'will exit' eurozone after election |
