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Sunday, September 16, 2012

Greek Finance Minister: 'We've Turned A Corner'


Business Insider

Greek Finance Minister: 'We've Turned A Corner'
Business Insider
Greece, the country long at the epicentre of Europe's economic crisis, has "turned a corner" said its finance minister Yannis Stournaras on Sunday after international lenders gave their strongest signal yet that the debt-stricken nation would be given ...
Greece to get "few weeks" more to hit targets: FekterReuters
More time but no more money for Greek bailout - Austrian Finance Minister ...RTE.ie
Greece will get 'cost-neutral' debt extension, says Austrian Finance MinisterEconomic Times
libcom.org (blog)
all 68 news articles »

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Finance minister says Greece has turned a corner in effort to cut deficit

Yannis Stournaras hails trust between Greece and partners over €31.5bn aid instalment

Greece, the country long at the epicentre of Europe's economic crisis, has "turned a corner" said its finance minister Yannis Stournaras on Sunday after international lenders gave their strongest signal yet that the debt-stricken nation would be given more time to meet repayment targets.

Following an informal summit of eurozone finance ministers in Cyprus, Stournaras insisted he was "more optimistic" about Greece's prospects, even though it remains in a race against time to meet the onerous conditions that would unlock the rescue loans to keep bankruptcy at bay.

"I am more optimistic ... we have turned the corner. There is more trust between us and our partners but we still have a long way to go," Stournaras told the Guardian. "We have to have cleared up everything in the next two weeks so that everything can be put on the table at the [next] euro group meeting on October 8. If we can't clear everything there can be no agreement," he said referring to the €31.5bn (£25.5m) aid instalment Athens has been attempting to win since July.

Asked if relations had improved between Greece and Germany – ties that have been unusually stormy since the outbreak of the crisis in late 2009 – the Oxford-trained economist was unequivocal.

"There is a better chemistry in relations between Greece and Germany. That is what I feel, but they [the Germans] have to be asked as well."

Stournaras made the comments as euro zone fiscal diehards appeared to cut the country some slack saying they would yield to Athens' demand for more time to apply a gruelling fiscal adjustment programme.

In an interview published in Sunday's edition of the Oesterreich paper, the Austrian finance minister, Maria Fekter, said Greece would be given more time to meet deficit reduction targets although she made clear the payment extension would not mean more money being injected into the €240bn EU-IMF-sponsored bailout already agreed with Athens.

"We are still awaiting the troika report," Fekter said of the assessment of Greece's fiscal progress that debt auditors are expected to deliver in October. "And Greece still has to get some things on track but we will achieve a cost-neutral extension."

However, in a separate interview with Dutch newspaper Der Standard, Fekter suggested Greece might only receive "a few more weeks time".

The Troika report – a quarterly review of the headway the country has made in meeting the terms of its international rescue package – is crucial to releasing funds to recapitalise Greek banks and the cash-starved Greek economy.

Conservative prime minister, Antonis Samaras, has repeatedly appealed for a two-year extension of the deficit-reducing programme, arguing that this would not only give Greece more time to narrow its spending gap but the leeway to enforce long overdue structural reforms deemed vital to improving the country's competitiveness.

Austria, one of the loudest critics of Greek foot-dragging, had previously said the nation risked exiting the euro zone as a result of its failure to meet commitments.

Fekter's change of heart reflects the shift in attitude in Europe at large, with the continent's policy makers now calculating that a confrontation with Athens would likely backfire as Samaras' fragile coalition attempts to muster the necessary support for a new round of budget cuts worth nearly €12bn.

After years of putting austerity policies first – measures that in Greece's case have seen the economy contract by nearly 20% over the last three years amid soaring unemployment and poverty rates – EU governments are tilting increasingly towards favouring growth over belt-tightening, a shift inaugurated with the June election of socialist president François Hollande in France.

Their latest concession comes despite Stournaras's inability to present counterparts with breakdown of the cuts – demanded in return for aid by creditors – following infighting in the three-party alliance over the measures.

But hardening his anti-bailout stance, Greece's main opposition leader, Alexis Tsipras, said the government was "dangerously deluded" if it believed the extension would offer relief to the country. The head of the radical left Syriza party vowed on Sunday to step up opposition to cuts, which he said would once again fall on society's most vulnerable. Calling for the international rescue package to be immediately annulled Tsipras said: "The slippery road towards catastrophe must be stopped now."

"Our first concern is that society puts up a fight so that measures worth €11.6bn are neither passed nor implemented," he told reporters in Thessaloniki where Greece's annual international trade fair is taking place.

Tsipras argued that the three-month coalition should step down for failing to live up to pre-election pledges to abolish the loss of further benefits, pay and pension cuts – instead insisting on an "absurd fiscal policy" that relied on foreign aid injections to keep the economy afloat.

"From being a guinea pig where the most extreme model of neo-liberalism is imposed, Greece can become a leader in progressive solutions on a pan-European level," said the leftist, without explaining what those solutions could be.


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David Blunkett attacks Germany in blueprint to engage voters

Former Labour minister says Merkel acting in overbearing manner and politicians risk alienating public

The former cabinet minister David Blunkett will on Monday deliver a stinging attack on "the dangerous overbearing imperialism of Germany", as he makes a call to find new ways to end public disengagement with politics and strengthen the power of elected politicians to combat the power of unfettered markets.

He accuses the German chancellor, Angela Merkel, of trying to "veto the voters" in sovereign countries, and claims that without German-imposed austerity measures, the crises in Spain and Greece might not have happened.

Warning about new levels of alienation from politics in the UK, Blunkett claims governments can only act as a counterweight to the debilitating global power of bond markets and technocrats if they have an engaged electorate behind them.

He says in a pamphlet titled In Defence of Politics, with a foreword by the Labour leader, Ed Miliband, that rebuilding interest in politics from the bottom up will need initiatives to help school governors, community health commissioning groups and even state funding of campaigns such as Make Poverty History. Recent constitutional reforms such as an elected House of Lords are irrelevant to re-engaging ordinary people with the potential power of democracy and collective action, he claims.

"The left has to put a shot of electricity back in the political system and find new ways of re-engaging people with government, or else it will be lost, and people will turn to the politics of grievance offered by extremists. A functioning, engaged political democracy has to be the countervailing force against the unfettered and unregulated market. You rebuild commitment to the political process from the bottom, and not from top-down reforms," he said.

Blunkett, one of the older heads that advises Miliband, also addresses:

• what he regards as the irrelevance of the Leveson inquiry. He believes it has failed to address the real risk that the entire traditional newspaper industry is on the brink of commercial collapse, leading to a decline in reliable journalism – a bulwark of democracy. He proposes a tax on search engines, such as Google, recycling journalism. "If proper journalism goes down the pan, we are all doomed", he said.

• the likelihood that vast swaths of local government services will after 2015 be delivered by volunteers, or by fractured education and health services for which there is no true accountability.

• the failure of Labour politicians to offer voters a coherent narrative for the causes of the banking crisis of 2008, so allowing the right and the bond markets to seize back control of the argument on the economy.

In an accompanying interview, Blunkett says the bureaucracy and interference of the EU has been a force for alienation in the UK, saying we need to be crystal clear about what Europe does". He singles out Germany for the way in which it has sought to impose its thinking across Europe on how to respond to the economic crisis.

He said: "Angela Merkel has behaved in a very dangerous, almost imperialist, manner. It is ironic that Europe was established to stop one individual government having overbearing power, and here we are.

"It could be described as nothing short of a coup in terms of what occurred in Greece, with the removal of the prime minister, and in Italy, with the removal of both the prime minister and the cabinet.

Blunkett said: "No sooner had the voters given their verdict than the chancellor of Germany was seeking to veto the voters with the argument that recently signed pacts cannot be easily unpicked by incoming governments. The tone and nature of the German response was, however, deeply unhelpful and the height of arrogance. Once again, the Germans were appearing to believe that they had the right (or their leadership had the right) to trump the decisions of voters in individual sovereign countries".

He claimed: "If Germany had been willing to be flexible earlier, we probably would not had the last three years".

He also warns that greater transparency about the lives of elected politicians has increased rather than decreased voter scepticism. "More is known about our professional politicians than in the whole of our history. Their lives, their income, their contacts are registered, surveyed and commented upon; a transformation from the much-revered and often grossly overblown view of the past. Taken together, the24-hour, seven-day-a-week news, instant communication through the internet and social media such as Twitter, has changed the terms on which we do our politics."


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'This Government's Policies Are Causing Too Much Pain'

MADRID -- Tens of thousands of people from all over Spain rallied in the capital Saturday against punishing austerity measures enacted by the government, which...

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Privatisations, a long-haul in debt-wracked Greece


Privatisations, a long-haul in debt-wracked Greece
AFP
By Isabel Malsang (AFP) – 3 hours ago. ATHENS — Greece has relaunched its privatisation programme to appease its bailout creditors, but efforts so far to raise money by selling off state assets have failed to attract investors due to the country's ...


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More pressure on Greece as EU finance ministers meet


Deutsche Welle

More pressure on Greece as EU finance ministers meet
Malta Independent Online
Finance ministers met in Cyprus to put more pressure on Greece to implement promised budget cuts, so that bailout payments can resume in November. The informal meeting of finance ministers took place Friday and yesterday in Nicosia was originally ...
Is Greece a security risk for NATO?Deutsche Welle
Senior German coalition lawmaker says parliament won't approve 3rd Greek ...Greenfield Daily Reporter
Senior German coalition lawmaker says parliament won't approve 3rd Greek ...Washington Post
The Associated Press -The Daily Telegraph
all 100 news articles »

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Greece: Neo-Fascist Rampage Protected By Police; Strikes Gather Momentum


Greece: Neo-Fascist Rampage Protected By Police; Strikes Gather Momentum
OpEdNews
By greydogg and snake arbusto, 99GetSmart. - Elected MPs from Greece's radical parties, SYRIZA and Golden Dawn, participated and cooperated in an organized demonstration by the Greek police to protest looming cuts in their wages and pensions.


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