As a possible Greek default looms, Tsipras courts Moscow

Amid the drama, many are asking why Greek Prime Minister Alexis Tsipras chose to fly to Russia late last week, where he blamed the European Union ...

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Tsipras to meet Juncker Monday morning ahead of summit

Greek Prime Minister Alexis Tsipras will meet European Commission chief Jean-Claude Juncker on Monday morning, ahead of an emergency eurozone summit on Greece's debt crisis, a European diplomat told AFP. The two leaders have had several telephone conversations over the ...

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Here's your complete preview of this week's big economic events

As expected, the Federal Reserve didn't do anything when it concluded its Federal Open Market Committee (FOMC) meeting on Wednesday. But through its "dot plot," the Fed did signal that interest rate hikes were coming this year. Most economists see the first hike happening in September, while Goldman Sachs and Morgan Stanley notably see it happening in December. For now, the spotlight shifts to the international stage where one country's banking system is on the brink of failing. Here's your Monday Scouting Report: Top Stories Greece. As Greeks withdraw more and more of their money, Greece's banking system has been pushed to the brink of collapse. Meanwhile, Europe's leaders have yet to decide if they will extend bailout financing as Greece's leaders resist demands for austerity measures like spending cuts and tax hikes. EU leaders will hold an emergency meeting on Monday in Brussels to talk things out.Here's Allianz's Mohamed El-Erian on the matter: "The Greek government faces a virtually impossible choice in these negotiations. Either it relents and agrees to the demands of its increasingly restless creditors, thereby breaking its electoral promises and undermining what it has fought and stood for; or it holds out and risks seeing a series of disruptions that include the total implosion of the banking system, the rapid accumulation of payments arrears to creditors and suppliers, the imposition of capital controls to counter the accelerated flight of money out of Greece, and the issuance of government IOUs to meet pensions and other government obligations – all of which would deal another blow to an economy that is already ravaged by recession, alarming unemployment and climbing poverty; and it would render very difficult Greece’s continued membership of the Eurozone." What Greece means for financial markets and the global economy. While Greece is a relatively small economy in the world, uncertainty nevertheless surrounds what could happen should Greece's banking system fail or if the country should exit the euro.El-Erian discussed the secondary effects: "Markets have been relatively calm in the face of a growing probability of a Graccident and the Grexit that this could entail. Some market participants believe that, as has repeatedly been the case in the past, a last minute agreement will be reached to avert a Greek economic, financial, social and political disaster. Others realize that such an agreement could well elude Europe this time around but are comforted by the steps that have been taken to contain the negative spillovers."Minimizing contagion risk does not equate to eliminating it. Given the truly unprecedented nature of all this, there are lots of unanswered questions, including vexing legal and operational ones ... The implications for the global economy depend in large part on whether European leaders succeed in finding a durable solution for Greece or, alternatively if they fail to do so, are able to contain the crisis from pushing the rest of the continent into recession and financial instability." Economic Calendar Existing Home Sales (Mon): Economists estimate the pace of sales jumped 4.8% in May to an annualized rate of 5.28 million units. From Bank of America Merrill Lynch: "Pending home sales have improved impressively with mortgage purchase applications on an improving trend. We think stronger job growth and greater consumer confidence is playing a role in boosting home sales." Durable Goods Orders (Tues): Economists estimate orders fell by 0.7% in May. Nondefense capital goods orders excluding aircraft are estimated to have climbed by 0.5%. From BNP Paribas: "While total orders are expected to have been weak, the bulk was driven by a sharp pullback in aircraft orders, as suggested by Boeing orders. Meanwhile ex-transportation orders are expected to have been relatively firm, in line with the improvement in manufacturing ISM data." Markit US Manufacturing PMI (Tues): Economists estimate this manufacturing index improved to 54.1 in June from 54.0 in May. From UBS's Sam Coffin: "Since the start of the year, the Markit PMI has been consistently stronger than the manufacturing ISM index and has consistently overstated the trend in manufacturing output growth. For early June, we project no change from the May level." New Home Sales (Tues): Economists estimate the pace of sales climbed 1.6% in May to an annualized rate of 525,000 units. From Bank of America Merrill Lynch: "New home sales are likely to increase to 535,000 in May, consistent with the improvement in mortgage purchase applications and existing home sales. Moreover, the NAHB homebuilder index has improved, referencing a gain in current sales. Housing starts have also trended higher recently as builders respond to the increase in demand." Richmond Fed Index (Tues): Economists estimate this regional manufacturing index climbed to 4 in June from 1 in May. GDP (Wed): Economists estimate Q1 GDP growth will be revised up to -0.2% from an earlier estimate of -0.7%. From Credit Suisse: "Upward revisions to core retail sales and solid services spending data point to higher consumption growth. Monthly construction data were also revised up. Looking ahead, our latest forecast for Q2 GDP growth is 2.8%... This will not be the final word on Q1. Benchmark revisions are due for release on July 30, seasonal factors are expected to be recalculated, which could smooth out the recurring weakness in the first quarters of recent years. Also Gross Domestic Income (GDI) has been running hotter than the more widely watched expenditure-side GDP data. There is some tendency for GDP to be revised towards GDI." Initial Jobless Claims (Thurs): Economists estimate initial claims increased to 273,000 from 267,000 a week ago. "Claims have been very low, suggesting that there are fewer involuntary layoffs than the recent trend," Nomura economists said. Personal Income And Spending (Thurs): Economists estimate income climbed 0.5% as spending rose by 0.7%. From BNP Paribas: "A rebound in control group retail sales and an increase in unit auto sales suggest that spending on goods was solid. Additionally, we are looking for a pickup in services spending, in line with recent income gains and low gasoline prices. Meanwhile, accelerations in the growth rates of both average hourly earnings and aggregate hours worked are expected to have supported a modest gain in personal income." Markit US Services PMI (Thurs): Economists estimate this services index climbed to 56.5 in June from 56.2 in May. Kansas City Fed Manufacturing (Thurs): Economists estimate this regional activity index improved to -10 in June from -13 in May. U. Of Michigan Sentiment (Fri): Economists estimate this sentiment index was unchanged at 94.6. From Barclays: "Trends in initial jobless claims and equity markets since the end of the preliminary survey period should, on net, prove positive for sentiment. At the same time, retail gasoline prices have been about flat. Together, we expect slightly more upside for sentiment from the mid-month level." Market Commentary What's priced into the markets? Despite what sounds like an elevated level of urgency in Greece, the financial markets have been relatively calm. JP Morgan's Jan Loeys aimed to explain all of this in a note to clients on Friday. Here's Loeys (emphasis added): "We find that there are two very different views on this among investors, both using the recent calmness of markets as evidence. The first view, prevalent in Europe, is that everyone knows that Greek exit is a lose-lose situation for both sides and that the current standoff is simply a normal negotiation stance, if not a game of chicken, where somebody will swerve away from a collision at the last moment. That is, the market is calm because the risk of an accident is low. The alternative view, more prevalent outside Europe, is that everyone knows that the Greek-Europe marriage is doomed by a mutual lack of appreciation for each side’s views and needs, which will lead to a divorce, which hurts Greece badly, hurts the Euro area slightly, but has little impact on world markets, beyond a week of volatility. Hence, markets are calm either because nobody expects a Greek exit, or because it will have little impact on world economies and markets. This analyst is biased to the second interpretation. But some investors will surely be dismayed by a Greek exit and will consider changing their allocations."Join the conversation about this story » NOW WATCH: How to invest like Warren Buffett

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Greece debt crisis: EU leaders step up efforts for deal

French President Francois Hollande has warned that "everything must be done" to keep Greece in the eurozone. Greek PM Alexis Tsipras set out new ...

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Greece will hurt Europe no matter what

Summary The economic crisis in Greece is far from over, and as it plays out it will have political and economic ramifications across Europe. The most Athens and its lenders can hope for at present is a temporary agreement to prevent a Greek default and buy time to continue negotiations, but the possibility of Greece exiting from the eurozone remains. And while a default and a "Grexit" would impact global markets and European politics most drastically, drawn out negotiations will themselves also erode confidence in the viability of the European Union. Analysis Athens and its lenders still have a chance to negotiate a deal that could prevent a Greek default. For a disorderly default and an exit from the eurozone to occur, Greece would have to fail on several fronts: First, it would have to fail both to reach an agreement with its lenders and to repay its debt to the International Monetary Fund by the June 30 deadline. Then, it would also have to fail to reach a deal with creditors in early July and default on its debt payments to the European Central Bank due in the coming months. At that point, Greek banks would stop receiving liquidity from the European Central Bank, savers would panic, and Athens would be forced to start printing some kind of currency. Greece would then either be suspended from membership in the eurozone or expelled completely. But regardless of the specific legal mechanism and language used in the process, the result would be the same: a Greek exit from the currency union before the end of the year. This would be the most traumatic outcome for the European Union. Upon Greece's exit from the eurozone, depositors might withdraw their savings from other potentially vulnerable eurozone members such as Portugal, Spain and Italy to avoid taking a hit should these countries also default on their payments. Investors might divert their money into the sovereign bonds of more solvent states such as Germany, the Netherlands and Austria, making it more difficult for countries in Europe's periphery to find financing. For the past three years, the European Central Bank's promise to protect the eurozone calmed financial markets. However, a disorderly Grexit could resurrect anxieties about the volatile financial situation in much of Mediterranean Europe. Meanwhile, Greece's exit would also stoke fears about the European Union's potential dissolution, though perhaps not immediately. In the short run, a Grexit could actually lead to stronger support for the eurozone across Europe, as social unrest, high inflation, capital controls, and political fragility would beset Greece following a default. Voters in countries like Spain and Italy may deem a similar departure too risky. In the first months after Greece's exit from the currency union, Euroskeptic parties such as Spain's Podemos and Italy's Northern League would likely lose some support. But in the longer term, a Grexit would raise serious questions about solidarity in the European Union, specifically whether the bloc's largest economies are really willing to protect their weaker members. Regardless of the outcome of the Greek crisis, financially vulnerable countries will see Germany as the villain. The initial panic surrounding Greece's departure would eventually die down, and more importantly, at some point the Greek economy would start growing again — proving that there is life after the eurozone. At that point, Euroskeptic parties would probably reemerge, possibly even stronger than before. Greece's debt crisis is not likely to come to such a dramatic conclusion. And if Athens and its creditors reach a temporary agreement, a more nuanced economic and political dynamic could play out across Europe. After falling significantly since the crisis days of late 2011, when the collapse of the eurozone seemed imminent, bond yields started rising again between late February and early March of this year, as Athens and its lenders continued negotiations. The recent behavior of bond markets is a reminder that the lengthy negotiations and the constant threat of a Greek default and exit from the union could prove just as dangerous as an actual Grexit. Spain During the second half of the year, Spain will be a key country to watch. The Spanish economy is growing again, and — even though many new job opportunities are precarious at best — the country's unemployment rate is slowly decreasing. However, the political consequences of the crisis are only now becoming clear. Most notable, the country's traditional two-party political system is broken. Spain'sregional and municipal elections in May showed that four parties are now in close competition for votes. After the May elections, Spain's center-left and left-wing forces managed to form alliances in several regions and municipalities. To varying degrees, many of the new local and regional governments question the measures of fiscal consolidation that have been introduced in Spain during the past four years. Some new leaders who campaigned on the promise of debt renegotiation will be closely watching the progress of the Greek negotiations. Spain's finance minister recently announced plans to meet with several mayors and regional presidents in the coming weeks. The conservative central government's main fear is that the new administrations will try to reverse the austerity measures that it introduced with support from the European Union. But Spain's ruling Popular Party may not even be in power in six months. The country will hold general elections before the end of the year, and Spain will face one of two potential scenarios: It may have a conservative government that will become locked in permanent fight to keep rebellious regions and municipalities under control, or it could have a progressive government that pushes for a break with previous policies. In either case, savers and investors may fear that Spain has become too unpredictable and decide to take their money elsewhere. Italy Another country to watch is Italy. Unlike Spain, Italy does not have to hold general elections until 2018. However, it is already experiencing a similar political breakdown, and the Italian government is likewise feeling the political impact of years of economic crisis. The ruling Democratic Party performed worse than expected in recent regional and municipal elections, weakening Prime Minister Matteo Renzi and reigniting internal frictions in the party. Renzi's opposition is also divided, with the anti-establishment Five Star Movement and several right-wing forces struggling to form a coherent front. However, dropping voter turnout and falling support for the Democratic Party show that the Italians are still upset with the current political leadership. Like Madrid, Rome has benefitted from the recent calm in financial markets, but Italy has the second highest debt-to-GDP ratio in the eurozone, and several Italian banks performed poorly in last years' stress tests by the European Central Bank. Discord within the Democratic Party could complicate the introduction of reforms to Italy's financial system. A lingering Greek crisis combined with political paralysis in Rome could hurt confidence in Italy. And while the rebels within the Democratic Party are unlikely to make Renzi's government fall, in the case of early elections, Italy could see a runoff between the center-left and the Euroskeptic right. France Somewhere in between Spain and Italy is France, where popular support for President Francois Hollande remains very low. France is not under particularly heavy pressure from financial markets, but its political situation poses the greatest threat to the European Union. The nationalist National Front party is still very popular and will probably make it to the second round of presidential elections in 2017. The Greek crisis vindicates the party's anti-EU rhetoric, while the United Kingdom's push for a referendum on its membership in the European Union has inspired the French party to promise the same. The European Union could arguably survive a Greek exit, but it would not survive France leaving the bloc. In recent months, member states and EU officials have focused on the dangers of a Greek default. But even if Athens and its creditors reach a deal in the coming days, it would only set the stage for additional negotiations later in the year, prolonging the impact of a real or potential Greek exit on Greece's partners in the currency union.Join the conversation about this story » NOW WATCH: Why many entrepreneurs have a problem focusing

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Greece and Germany and the weight of history

The two main players in the current Greek crisis are Greece and Germany. History has taught the two countries different lessons and has complicated ...

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European Markets Seen Better Positioned to Handle Greek Default

When Greece last stood on the brink of default, markets in Europe went into deep turmoil. This time around, investors are relatively unmoved. European equities are off recent highs, but remain near record levels. Bonds of other eurozone countries have ...

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Italy's Renzi says no tension with France over migrant crisis

Italy's prime minister and France's president put on a show of unity on Sunday, dismissing suggestions of tensions between their countries over handling the waves of migrants landing on southern Europe's shores. Ministers in Paris and Rome have exchanged barbs after France began turning back migrants at the French-Italian border earlier this month, invoking EU rules requiring refuge seekers to do so in the first European country where they set foot. Italy has long argued that it and Greece cannot cope alone with the influx just because they are the closest landing points for refugees and economic migrants from Africa and the Middle East streaming toward the European Union in rickety boats.

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Greece debt efforts intensified

EU leaders intensify efforts to reach a deal over the Greek debt crisis ahead of Monday's emergency summit in Brussels, as thousands rally in Athens.

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Tsipras Said to Risk Miscalculating Merkel on Greek Aid

Greek Prime Minister Alexis Tsipras is testing Angela Merkel's patience, risking the best hope for keeping his country in the euro area. While the ...

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A way past the insanity over Greece

Default need not trigger a sudden exit from the currency union, writes Willem Buiter

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The Guardian view on benefits reform: Labour needs a compelling response

With the latest cuts likely to hit the poorest and most vulnerable the hardest, this could be the issue that makes or breaks the Labour party for the next five yearsAll through the austerity years, the unravelling of the Greek economy – now seemingly heading for another interim deal – has served as a convenient backdrop for George Osborne’s own drive to hack back the state. The British banks are not about to fail, nor are British pensioners about to suffer the plight of millions of their Greek counterparts, but some pretty severe belt-tightening is coming here too. On Saturday, tens of thousands of demonstrators marched through British cities, including a quarter of a million in London and Glasgow, in a show of support for the other side of the argument: that austerity should be ended now. Meanwhile, Labour has been fumbling for a response for five long years. The construction of a coherent, persuasive narrative on welfare reform, and what part it should play in deficit reduction, must be at the top of the in-tray for the party’s next leader.The Conservative attack on Labour’s opposition to the coalition government’s cuts played a big part in reinforcing their claim that the longest and deepest recession in modern times was all down to excessive state spending. And barely had the anti-austerity protesters got home on Saturday than Mr Osborne and the work and pensions secretary, Iain Duncan Smith, were declaring their commitment to go full throttle with more austerity measures. In a joint article in the Sunday Times, they declared that they had reached agreement on the £12bn cuts pledged before the election, despite speculation that Mr Osborne was under pressure from other senior Tories, including Mr Duncan Smith, to back off for fear of the reputational harm that more cuts might bring. Continue reading...

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Greece is beset by Europe’s ideological loan sharks

Re your front-page article (Greece: can’t pay, won’t pay, 18 June), it is not so much that Greece cannot pay and will not pay, because the difference in the amount that Greece is prepared to concede and the amount that the troika are prepared to contemplate is not huge in the context of the size of even the smaller economies in Europe. The problem lies in the terms of “reform” that are being demanded by the troika. These demands are not evidence-based in economics. For example, there is an emerging divergence between the public pronouncements by economists at the IMF about the desirable policy for growth and the declared position of the negotiators acting on behalf of the board of directors of that organisation.This suggests that the shareholders – European governments hold large blocks of shares – are less concerned about requiring evidence-based reforms than in making ideological demands designed to effect a regime change in Greece. This is a dangerous game which could derail the democratic project of the EU. Modern democracy in Europe is not deep-rooted. Inter-ethnic violence and governance through repression have been the norm for far too long until the attempted creation of a democratic Europe under the umbrella of the EU.SP ChakravartyBangor, Gwynedd Continue reading...

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Tsipras of Athens – a gripping drama entering its final act

The scene was set for Greece to default on its debts and perhaps tumble out of the euro. But, like all the best plays, there is more than one possible endingIn the film Shakespeare in Love, one disaster after another befalls the impresario Philip Henslowe. The London theatres are closed by the plague. The voice of the male actor playing Juliet cracks just as he is about to go on stage. Henslowe never despairs, and he insists all will turn out well. Asked how, he has a stock answer: “I don’t know, it’s a mystery.”Over the last week, those who have said a solution will be found to the Greek crisis have tended to fall back on the Henslowe explanation. Talks have broken down. Summits have come and gone. Insults have flown in all directions. The deadline for Greece to make a 30 June payment to the International Monetary Fund has edged ever closer. There has been nothing but bad news. Yet, through it all, the relative calm in the financial markets has reflected a belief that, despite everything, the drama Tsipras of Athens will have a happy ending. Related: Greece crisis: creditors aim to strike deal to include six-month rescue extension Related: Why David Cameron is an anxious spectator of the Greek drama | Andrew Rawnsley Continue reading...

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Greeks fear further pension cuts as eurozone deadline looms

Pensions are area that Greece’s negotiators will be under greatest domestic pressure not to concede, but agreement must be reached this week Maria Nikolaidou had her 40th birthday on Friday. But, she said: “I am now too old to get a job.”In Greece, where economic output has fallen by a quarter and the unemployment rate is 26%, employers can pick and choose, and offer the successful applicants pay that would have seemed derisory before the country’s descent into its economic hell. Continue reading...

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Is Greece’s Debt Worth the Risk?

Ahead of Monday’s emergency summit of eurozone leaders to discuss Greece, there’s a real danger the negotiations are stalling on the wrong points. Creditors insist on significant increases in revenue from the value-added tax and deeper cuts to pension ...

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Tax measures may force Greek companies to flee

The government’s idea to impose an extraordinary levy on 2014 earnings will place Greek corporate tax rates among the highest in the world this year, on a par with Zambia and Sudan, as they will represent 29 percent of corporate gains.

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National Bank chief: Failure to reach deal would be 'insane'

The head of Greece's biggest bank voiced optimism on Sunday that the country would avoid a default, saying it would be «insane» if there was no deal with creditors.

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Greece crisis: PM Alexis Tsipras makes proposals to EU leaders ahead of crunch debt summit

Greek Prime Minister Alexis Tsipras has presented European Union leaders with a new set of proposals ahead of Monday's emergency Eurozone summit in a bid to avert a Greek default and possible exit from the euro.

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Varoufakis: 'We're heading for a deal'

Greece's left-wing government believes it can reach a deal with its creditors, Finance Minister Yanis Varoufakis said on Sunday, after almost eight hours of meetings to thrash out proposals ahead of a last-ditch summit with European leaders on Monday.

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Most fund managers expect a Greek default

Most major fund managers (57 percent) expect a credit event from Greece, whether the country stays in the eurozone or is forced to exit, according to a survey conducted earlier this month by Bank of America Merrill Lynch.

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Greek PM to meet heads of EU Commission, ECB, IMF on Monday

ATHENS, June 21 Greek Prime Minister Alexis Tsipras will meet the heads of the European Commission, European Central Bank and International ...

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Greek Drama a Regional Sideshow in Global Markets, JPMorgan Says

“The risk scenario of Greek exit from the EMU is a drama for Greece, but in this analyst's view, not for world markets,” Jan Loeys, chief market strategist ...

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EU leaders need urgent plan for Greek exit

European Economic and Monetary Affairs Commissioner Pierre Moscovici attends a news conference at the EU commission headquarters in Brussels, ...

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Greece at make or break moment

Tsipras knows that without a deal with Europe, and the International Monetary Fund, he risks leading Greece into default -- it owes the IMF about 1.5 ...

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Greece and creditors meet Monday in 11th-hour bid to avoid default

Greece and its eurozone creditors are scheduled to meet Monday in a last-ditch effort to avert a default that could shake global financial markets and ...

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Greece Offers New Deal Ahead Of Crunch Meeting

Greece has presented new proposals to its creditors in a bid to prevent a debt default, Francois Hollande has said.

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Greek Islands Can’t Handle Mass Migrant Influx

The situation in several islands of the Aegean Sea is out of control as hundreds of refugees and irregular migrants arrive daily from the coasts of Turkey, creating grave problems to local communities. Refugees from war-torn Syria and irregular migrants from Bangladesh, Afghanistan and Pakistan arrive daily on rickety boats and pile up in inefficiently equipped hospitality centers or police and coast guard stations. Those who cannot be accommodated, camp out on beaches, fields or even cemeteries, as is the case on the island of Chios. Many search for food while waiting for coast guard boats to carry them to Athens to be processed by immigration authorities. On the island of Lesbos and the Mytilene port, about 400 migrants arrive daily. They have to walk several kilometers to the two migrant camps in Moria and Kata Tepe. Mytilene Mayor Spyros Galinos said the local authorities were unprepared to receive such large numbers. He talked about bloody fights between migrants from different countries and between them and coast guard officers, leaving several wounded. On Leros, hundreds of migrants walk around unwashed and full of rashes from bad hygiene conditions. Leros Mayor Michalis Kollias said that the island receives about 100 migrants per day and they have to be there at least two days before their papers are ready to be transferred to Athens. However, there is shortage of staff and the migrants’ stay is prolonged. Kollias also said that there are not enough coast guard boats, so many migrants have to be transferred on commercial liners, thereby posing a problem to the tourists. On Symi, more than 4,000 migrants have arrived in the past six months. Most of them have found shelter in port buildings and the police station. Mayor of Symi Eleftherios Papakalodoukas said that the coast guard boat commissioned to transfer migrants to Athens is broken down and cannot be used. He also said that the presence of migrants have forced many tourists to leave the island early and seek other holiday destinations. “Tourism is currently hanging on a thread. For us, the presence of migrants discredits the image of the island.” On Chios, many migrants have camped on a cemetery, getting into fights with the relatives of the dead for desecrating the graves. Others stay in containers or camp out wherever they can. “We receive 100 to 250 migrants daily,” said Chios Mayor Emmanouil Vournous. “We have used municipal funds to create some hospitality facilities for these people,” he added.  

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Italian PM and French President Optimistic Over an Agreement Between Greece and its Creditors

Italian Prime Minister Matteo Renzi and French President Francois Hollande on Sunday, during a press conference given after their meeting in the international exhibition in Milan, expressed their optimism that a solution between Greece and its creditors will be found. “We are expecting the final discussion tomorrow. Greece has sent new proposals to the institutions and the European Commission. We are not far from an agreement. Greece does not want tougher measures for low-income pensioners, and we can understand that, given the consequences of the crisis. Therefore alternative proposals were requested. If Greece does what it has to do, it will receive the funds and I can say that I am neither optimistic nor pessimistic. Every moment is important,” Hollande noted. “We need to do everything possible so that Greece remains in the eurozone while respecting its commitments. If Greece exited the eurozone, it would be a negative development for all. The agreement must be comprehensive and long term, because we need stability. We, at this stage, are trying to facilitate as much as possible the deliberations of the institutions with Greece.” On his part, the Italian prime minister stated that an agreement will be reached provided there is political will. “My sense is that the conditions for a win-win agreement exist. It would be a mistake to miss this opportunity. Therefore, we expect the results of tomorrow’s emergency summit.” Renzi also added: “We want Greece to stay in the eurozone, for its own good, but also for the good of the eurozone and the community.” (source: ana-mpa)

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Grexit – Critical Times for Greece

Yesterday, supporters of Greece against IMF EU-Troika’s economic blackmailing tactics to break down the Greek spirit brought thousands of people out into the streets. It was a great success attracting masses of people of all nationalities to flood squares and streets right across the capitals of Europe as well as in other countries. BRAVO and CONGRATULATIONS for the organizers and those people who dared to be counted and do what is right! What happened here in Cyprus? Nothing as far as I am aware. I saw no mass rallies in Nicosia, Limassol or other places to shake the foundations of reasoning; unless they did take place and it’s me living in cuckoo land and saw and heard nothing. Was there a media blackout? Who knows…. It was certainly not covered in the mainstream media and wasn’t even mentioned in any political party agenda or in the plans of our petty-politicians’ initiative to show direct support for Greece and get off their behinds and trigger spontaneous support for the Greek people. What happened to them all? Where were Simmahia Politon, Edek, Deko, Evroko, Dusy, the Greens and others? Not a sound; except for the high-pitched sound of cicadas now ruling Cyprus! But do not despair we are in good hands; those are the same political parties and the same people who share aspirations to govern this island. ARE our minds so controlled by a system that we fail to even show support against Injustice and do what is right? If so, Cyprus deserves what it gets because it lost the spirit to stand up against bankers and a self-serving political system that are failing and abusing the basic principle of Democracy. Greece will succeed and if necessary it will abandon the EU and so much the better but at least the people will decide and not politicians. It would be hard at the beginning but Greece would regain its dignity back and be free from the constraints of  the IMF EU-Troika economic colonization. As a nation it will again prosper beyond exactions and will prove to all those doomsayers wrong for choosing not to be supplicant to IMF EU-Troika any longer – just like Iceland did. As for Cyprus…well, what can I say.

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ECB to decide tomorrow on emergency Greek funding

Greek Prime Minister Alexis Tsipras will meet European Commission chief Jean-Claude Juncker tomorrow morning, ahead of an emergency eurozone ...

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Greece crisis: creditors aim to strike deal to include six-month rescue extension

Deal may also include up to €18bn in rescue funds, and later debt relief, but EU officials stress Alexis Tsipras must make concessionsGreece’s creditors are aiming to strike a deal on Monday to stop Athens defaulting on its debt and possibly tumbling out of the euro, by extending its bailout by six months, supplying up to €18bn in rescue funds, and pledging later debt relief for the austerity-battered country.But EU officials, privately disclosing details of the proposed deal, stressed that a breakthrough hinged on the prime minister, Alexis Tsipras, making concessions on fiscal targets, pensions cuts and tax increases that he has resisted since he came to power five months ago. Following a cabinet meeting in Athens, Tsipras is believed to have offered Greece’s creditors concessions on tax and pensions reform. But it was not clear whether the offer went far enough to make a final agreement possible on Monday. Related: Greek crisis: episodes of despair and drama as moment of truth nears Membership Event: Guardian Newsroom: Should Greece leave the Euro? Continue reading...

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Greek bank chair: Situation serious, no debt deal 'insane'

Andrew V. PestanoATHENS, Greece, June 21 (UPI) -- The head of the National Bank of Greece said it would be "insane" not to reach an agreement with the European Union and the International Monetary Fund.

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German tourists in Greece: 'everybody has been so kind – overfriendly, even'

Despite the political tension between Athens and Berlin, both sides of tourist trade say Germans are welcome at Greek resortsGazing out over Thessaloniki’s waterfront, Regina Jost, a social worker from Jever, in northern Germany, was on her last day of a week’s holiday discovering Greece’s picturesque northern beaches. “When I told my friends I was going to Greece on vacation, they said: ‘Oh be careful, something might happen, you’ll come up against bad feeling against Germans, people will hold it against you for being German,’” she said.But despite the political tension between Athens and Berlin as Greece battles for economic survival, Jost said she had not experienced what some German media have described as “the fear of spit in the ouzo”. After six years of Greek caricatures of Angela Merkel in Nazi uniform, Greek demands for Nazi war reparations and the resentment at Berlin’s stance as unrelenting paymaster, only one person had been slightly frosty towards Jost – and that was a German whom she had asked for directions. Related: Greece and eurozone leaders in last-ditch scramble to reach deal Continue reading...

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Greek debt: 'Insane' not to reach an agreement in EU's crisis talks

The head of Greece’s largest bank has said that it would be “insane” if the country did not reach an agreement at emergency talks on Monday.

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Greek finance minister Yanis Varoufakis doesn't drive a car to work

Some people take the bus. Some people take the train. Many drive their own cars, while some privleged folks are driven. But when Greek Finance Minister Yanis Varoufakis — aka the most interesting man in the world — goes to work, he takes his motorcycle. Even as he and Greece's leaders negotiate a deal to unlock bailout funds to prevent their country's banking system from collapsing, Varoufakis prefers his two-wheeled ride.Here's Varoufakis arriving at the Maximos mansion in Athens on Sunday for a governmental council meeting with Prime Minister's Alexis Tsipras. Some say he's reckless. But at least he wears a helmut. Varoufakis doesn't carry a briefcase. He's got a backpack. Wasting no time, Varoufakis has his backpack in hand before he even enters the building. See the rest of the story at Business Insider

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Tsipras told that Monday's EU Summit NOT for negotiation

A Financial Times report says that France and Germany have told Greece it must have an agreement on economic reform measures with the trio of bailout monitors finalised and delivered before a crucial leaders’ summit between Athens and ...

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European Central Bank Plays Dual Role in Greek Crisis

Of that, €122 billion is propping up the banking sector through an emergency lifeline and other funding, and €27 billion comprises longer-term Greek ...

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Greece offers new proposals ahead of emergency summit

ATHENS/BRUSSELS (Reuters) - Greek Prime Minister Alexis Tsipras made a new offer on a reforms package to foreign creditors on Sunday, signaling eleventh-hour concessions to break a deadlock that has pushed Greece to the brink of bankruptcy.

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European leaders working hard to keep Greece in eurozone

ATHENS, Greece (AP) — A day ahead of a crucial emergency eurozone summit, European leaders renewed efforts to reach a deal between Greece and its creditors that would allow the debt-ridden country to avoid a default and a potentially disastrous exit from the euro.

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European leaders say accord between Greece, creditors is possible ahead of Monday's summit

ATHENS, Greece — A day ahead of a crucial emergency eurozone summit, European leaders renewed efforts to reach a deal between Greece and its ...

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Greece and Germany Agree the Euro Can't Work

The costs to Greece and to the EU of a default followed by Greece's ejection from the euro system could be huge. But even if the worst doesn't happen, ...

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Washington fears losing Greece to Moscow

Throughout the prolonged showdown between Greece and its creditors, the Obama administration has largely sat on the sidelines, issuing the ...

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Greece to Present Proposals to Creditors Ahead of Crunch Meeting

ATHENS—Greece's government was expected to present its latest fiscal proposals to its creditors in Brussels on Sunday, in a last-ditch effort to avoid ...

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Tsipras Calls Merkel, Hollande, Juncker to Present Mutually Beneficial Proposal

Prime Minister Alexis Tsipras on Sunday had phone contact with German Chancellor Angela Merkel, French President Francois Hollande, and European Commission President Jean-Claude Juncker to present a proposal for a mutually beneficial agreement. Tsipras told the top European officials that the Greek proposal will give a definite solution to the Greek debt problem. The Greek prime minister also held a long cabinet meeting on Sunday in which they discussed the situation regarding the Greek problem and tomorrow’s crucial summit of Eurozone heads of state. He also briefed his ministers on the talks with the three European leaders. German newspaper Frankfurter Allgemeine Zeitung (FAZ) claims that reliable sources said the European Commission is to offer Greece an extension to the current bailout program until September, offering a bridge deal of 6 billion euros in exchange for painful reforms. The deal will have to pass the Greek Parliament. By mid-July, the parliaments of Eurozone member states, including Germany and the Netherlands, will approve or not if further aid to Greece can be granted. This way, 3.7 billion euros cane be disbursed immediately. Then additional funds from the European Financial Stability Fund can be given along with funds from the Hellenic Financial Stability Fund intended for the recapitalization of Greek banks. Tsipras will leave on Sunday evening for Brussels for Monday’s critical summit.

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Greek Prime Minister presents new bailout proposal to EU ahead of emergency summit

Greek Prime Minister Alexis Tsipras has presented a new bailout agreement proposal ahead of a crucial emergency eurozone summit.

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Pressure Mounts on Europe to Arrest Greek Drift Toward Default

Greek officials on Sunday were expected to present a new proposal to creditors' representatives in Brussels that would seek to reach ambitious fiscal ...

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Main Opposition Leader Samaras Proposes National Consensus

Greece’s stay in the eurozone is non negotiable, main opposition New Democracy (ND) leader Antonis Samaras said in an interview with Sunday’s Kathimerini newspaper. “Greece’s exit from the eurozone,” he said “it would have serious repercussions.” Samaras also stressed the importance of changing policy. “We can still get out of that impasse,” he said “by implementing reforms, speeding up privatizations and reducing the state debt instead of imposing new taxes.” In that framework, Samaras proposed “great national consensus.” The former prime minister also attacked the Greek government accusing it of “having received a country with surpluses and on recovery course, but it lost valuable time and plunged the economy again in deficits and recession while it cannot resist the creditors’ demands.” “It downgraded its negotiating position,” he stated. “It managed to isolate Greece,” he said adding that now it is faced with the dramatic dilemma of a really bad agreement or a devastating default. (source: ana-mpa)

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Greek bank chief urges debt deal

The head of Greece's biggest bank has said she hopes "sanity will prevail" and that a deal will be agreed at emergency talks on Monday on the ...

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U.S. Treasury Sec: Greece Must Make Tough Decisions to Reach Deal

The Greek government must make tough fiscal decisions to reach an agreement with international creditors, or it risks catastrophic consequences for its economy and people, U.S. Treasury Secretary Jack Lew said in an interview released on Saturday. “I think we’re at a moment now where the burden is on Greece to come back with a response that’s the basis for reaching an agreement as quickly as possible,” he said on CNN’s “Fareed Zakaria GPS,” according to a transcript. “What we know is the best solution is for Greece to make some tough decisions and for this to be worked out,” he said. Greece is close to default on a 1.6-biilion-euro repayment to the International Monetary Fund on June 30, with the government announcing that it has no money to make the payment unless it receives further financial aid until then. Bankruptcy and Grexit scenarios are prevalent in international mass media. Greek depositors are pulling money out of banks at an alarming rate, making the capital controls threat all the more tangible. Creditors, on the other hand, insist that the Alexis Tsipras government must proceed with certain required reforms as dictated by the current bailout program. Negotiations have stalled, with Athens insisting that its debt problem requires a political solution. A blame game is taking place in the last few days with the two sides accusing each other for lack of cooperation. The United States is keeping an eye on developments and urges Greece to return to the negotiating table with solid fiscal proposals. Last Tuesday The Treasury Secretary called Alexis Tsipras to emphasize “the urgency of Greece making a serious move to reach a pragmatic compromise with its creditors.” “The risk of contagion obviously is different than it was in the past because Greek sovereign debt is no longer sitting on the balance sheets of financial institutions. It’s mostly sitting in sovereign places,” Lew told Zakaria. However, Lew said, no one can predict how the international markets will react to Greece’s default or exit from the Eurozone. “I don’t think anyone should want to find out,” he said. Finally, the U.S. Treasury Secretary said, “It’s clear that within Greece, the consequence of a failure here would mean a terrible, terrible decline in their economic performance. It will hurt the Greek people.  They will bear the first brunt of a failure here.”

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