Could The New Syriza Government Be Good For Greece's Economy?

The left-wing party Syriza won national elections in Greece last Sunday with a program promising to roll back the stringent austerity measures ...

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Greece on collision course with Brussels after Merkel backs hardline debt stance

Greek finance minister Yanis Varoufakis, right, had talks with his Dutch counterpart Jeroen Dijsselbloem, who chairs the Eurogroup of finance ...

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EU Commissioner Moscovici: Eurozone Needs Greece and Greece Needs Eurozone

European Union Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici, talking with BBC’s “Hardtalk,” expressed the Eurozone’s determination to “do everything” to prevent a Grexit. As he said, Greece belongs in the Eurozone and the single European currency depends on Greece staying in the Eurozone. In return, though, Moscovici said the newly elected Greek government has to respect the country’s previous commitments. “We believe that Greece’s place is in the Eurozone, the euro needs Greece and that Greece needs and wants to be in the Eurozone,” the EU Commissioner underlined, adding that “we feel that it is very important for the stability of the Eurozone and for the credibility of the euro that there is no Grexit. This is why we will do everything that is needed to avoid it.” He said that Europe has to respect the will of the Greek people in the election result and the Greek side has to honor the commitments made by the country’s previous government. “We must address these issues in a quiet, peaceful and serene way. This new government has to say exactly what it intends to do,” Moscovici concluded. It should be noted that yesterday’s meeting between Greek Finance Minister Giannis Varoufakis and Eurogroup President Jeroen Dijsselbloem in Athens was eventful. Varoufakis ruled out a further negotiation with the IMF/EU/ECB Troika, while on his behalf, Dijsselbloem insisted that Greece should stick to its reforms commitment.

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ECB VP Constancio: Greece’s Emergency Funding to be Tabled by Governing Council

European Central Bank (ECB) Vice President Vitor Constancio declared earlier today that a decision on whether Greece will receive emergency funding will be tabled to the bank’s upcoming Governing Council meeting. According to Reuters, Constancio said that ECB’s Emergency Liquidity Assistance (ELA) was an alternative to its regular funding, but its provision must be approved by the bank’s 25-member Governing Council. It should be noted that the ELA was designed as a barrier for banks facing temporary liquidity problems. “There is the possibility of so-called ELA. In any case that will be ultimately a decision of the Governing Council, which I don’t want to predict at this stage,” he said while on a Q&A session at Cambridge University. The leftist SYRIZA electoral victory has sparked worries to the Eurozone. The joint currency member-states appeared worried over Greece’s determination to end its current rescue program – signed by the previous Greek government – and was increased by recent reports of an outflow of money out of Greek banks. The worst case scenario for Greek banks would be the country’s withdrawal from its program, as they would not be able to rely on the ELA. As Reuters highlighted, ECB currently allows them to swap junk-rate Greek government bonds for standard funding only because the country is in a repair program. At the same time, other ECB officials appear to have a different approach than the one expressed by Constancio. Speaking on Finnish TV, Finland’s ECB representative Erkki Liikanen expressed a more radical opinion, saying that the bank should stop assisting Greek banks if Greece’s bailout deal – which is due to the end of February – is not extended. “We have our own legislation and we will act according to that… Now, Greece’s program extension will expire at the end of February so some kind of solution must be found, otherwise we cannot continue lending. I do not believe that one can hide from economic realities,” he characteristically said.

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Greek PM Tsipras: We Will Fulfill Loan Obligations to ECB and IMF

Greek Prime Minister Alexis Tsipras appeared ready to improve relations with the country’s creditors after a week stigmatized by selloff in bonds and stocks, caused by his pledge to end Greece’s bailout agreement. In an e-mailed statement issued earlier today, Tsipras highlighted that Greece is ready to repay its debt to the International Monetary Fund (IMF) and the European Central Bank (ECB) and reach a new deal with the Eurozone member-states. In his statement, the Greek Premier said “my obligation to respect the clear mandate of the Greek people in regards to ending the austerity policies and returning to a growth agenda, in no way entails that we will not fulfill our loan obligations to the ECB or the IMF.” It should be noted that Tsipras has clarified he will not apply the conditions imposed by the country’s 240-billion-euro rescue program and Greece is, for the first time in five years, facing the danger of operating without the financial safety net. Moreover, the Greek Prime Minister is requesting from the Eurozone partners to endorse a new program based on economic revival rather than austerity, which will allow spending and wages in order to fuel growth. “We need time to breathe and create our own medium-term recovery program, which, among other things, will incorporate the targets of primary balanced budgets and radical reforms to address the issues of tax evasion, corruption and clientelistic policies. I am absolutely confident that we will soon manage to reach a mutually beneficial agreement, both for Greece and for Europe as a whole,” Tsipras said.

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​Spaniards hold mass rally for leftist Podemos ahead of elections

Tens of thousands of Spaniards have taken to the streets of central Madrid in support of Podemos, a leftist political party campaigning on an anti-austerity platform. The party’s popularity has soared in the wake of the Syriza victory in Greece.Read Full Article at RT.com

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'Busy' Greek prime minister to meet Angela Merkel 'in due time'

Greek PM Alexis Tsipras will meet German Chancellor Angela Merkel “in due time,” a Cabinet member said, adding that Tsipras has a very busy schedule and plans to meet with the leaders of Italy and France first.Read Full Article at RT.com

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