Bloomberg Business, By Angeline Benoit, July 19
French President Francois Hollande said that the 19 countries using the euro need their own government complete with a budget and parliament to cooperate better and overcome the Greek crisis.
“Circumstances are leading us to accelerate,” Hollande said in an opinion piece published by the Journal du Dimanche on Sunday. “What threatens us is not too much Europe, but a lack of it.”
While the euro zone has a common currency, fiscal and economic policies remain mostly in the hands of each member state. European Central Bank President Mario Draghi made a plea this week for deeper cooperation between the euro members after political squabbles over Greece almost led to a rupture in the single currency.
Countries in favor of more integration should move ahead, forming an “avant-garde,” Hollande said.
The news says Greece has voted against Euro-Austerity. Forecasters are suggesting there will be a stern “it’s just business” reaction by the bankster community, so they will insist Greece get out of the EU, and then they shall recruit all lenders to apply every economic pressure upon Greece with ‘extreme prejudice’ . They hope to embarrass the Greek leadership while maximizing the misery of Greek citizens. Most American commentators I read say there will be almost no ripple effect felt by the American economy.
Today, in a comment by Lisa over at Ian Welsh’s blog, I read of a possible consequence that never crossed my mind: coup d’etat.
On the one hand, it does not make much sense. The governing party will be under tremendous pressure to ease the already awful economic pain Greece suffers and the odds in favor of succeeding are long. Unless the nation finds a way to sacrifice and rebuild on its own, the Greek people are very likely to boot their government out. Given the debt load, this might happen to one or more succeeding governments. With that in mind, agents who might otherwise contemplate a violent short-cut may be better off biding their time.
Lisa was one of the commenters who alluded to the history of regime change. While I have believed all along that Greece was going to vote “no” because of national or cultural pride, I had not considered that the 1% have their pride too— the pride of possession, nine-tenths of the law.
Bloomberg Business, By Matthew Campbell & Guy Johnson, July 2
Yanis Varoufakis said Greece won’t “extend and pretend” that it can pay its debts, vowing to quit as finance minister if voters don’t support him in Sunday’s referendum.
With banks shuttered and Greece’s economy hobbled by capital controls, Varoufakis said in a Bloomberg Television interview in Athens that he would “rather cut my arm off” than sign a deal that fails to restructure Greece’s debt. The 54-year-old economics professor said he “will not” continue in his post if Greece endorses austerity in the plebiscite.
The minister’s comments illustrate the gulf between Greece’s government, which swept into office on a wave of discontent about budget cuts, and the creditors who are threatening to push it out of the euro. European governments led by Germany have condemned last weekend’s decision by Prime Minister Alexis Tsipras to pull out of talks and call a snap referendum on the conditions for financial aid. Polls suggest it’s too close to call.
“Maybe we’ll change the configuration of the government”
“We desperately want to stay in the euro,” Varoufakis said. “We are going to win on Sunday.”
Short video interview with Varoufakis at the link.
Via Zero Hedge: Varoufakis Will Resign If Referendum Passes, Says Would Rather “Cut Off Arm” Than Sign
The European Central Bank is expected to end emergency lending to Greece’s banks on Sunday, the BBC understands.
BBC, June 28
Well-placed sources told BBC economics editor Robert Peston a decision to end the Emergency Liquidity Assistance (ELA) would be made by the ECB’s governing council later on Sunday.
Greek banks depend on ELA funds daily.
Greek Finance Minister Yanis Varoufakis said his government would consider overnight what measures to take “to minimise the burden on our people”.
Cutting the ECB lifeline could push Greece out of the euro.
Such an ECB cut would mean “Europe has failed”, Mr Varoufakis told the BBC’s World this Weekend.
Via Naked Capitalism: BBC: ECB to Stop Emergency Support of Greek Banks on Monday; Bank Holiday Likely
The Guardian: Greek crisis: Banks shut for a week as capital controls imposed – live updates
Greek banks will not open until July 7 in an attempt to avoid financial panic, after ECB capped the emergency funds keeping them running
The single currency is forcing its members further apart and cannot survive in its current form, new analysis shows
The Telegraph, By James Kirkup, June 21
The Eurozone is doomed and cannot survive in its current form, regardless of what happens to Greece, a major new study shows.
New research demonstrates that members of the single European currency are becoming more economically divergent, making a single rate of interest increasingly unsuitable for the bloc.
Political, social and cultural differences will also make it increasingly hard for the euro members to share a currency. Eventually, the Eurozone will have to either “integrate or disintegrate”, the analysis says.
The research, by economic consultants from the ECU Group, is part of Change, or Go, a wide-ranging study of Britain’s European Union membership and future prospects.
The Greek interior ministry has ordered governors and mayors to transfer all cash reserves to the central bank as bankruptcy closes in.
The Telegraph, By Ambrose Evans-Pritchard, June 11
The European Union has warned Greece in the clearest language to date that its patience is exhausted and the country will be abandoned to its fate unless it accepts creditor demands in short order.
Donald Tusk, the EU’s president, said the radical-Left Syriza government must stop spinning out the negotiations and face hard choices before Greece spirals irrevocably into default.
“There is no more time for gambling. The day is coming, I’m afraid, that someone says that the game is over,” he said.
The blunt language came as the International Monetary Fund pulled its officials out of the talks, citing a failure to break the deadlock after four months of wrangling. “There are major differences between us in most key areas. There has been no progress in narrowing these differences,” it said.
Hullabaloo / Down With Tyranny, By Gaius Publius, May 15
I haven’t written much about Greece lately, but there’s quite a story going on. It’s not that difficult to follow, but you have to be careful whom you read. Conventional wisdom (backed by corporate, pro-austerity media outlets here and abroad) says it’s a morality tale — bad Greeks who went into too much debt and now they can’t pay up. Good German bankers want their money and are reluctant to forgive bad deeds because it might encourage other debt-owing entities to seek debt relief as well. They’re calling that “moral hazard,” fear that a bailout might encourage more bad behavior. There must be consequences, or so they think.
The bottom line of those who tell this tale — Greece provides a place for lovers of austerity (like cuts to social programs) to point and sneer. Their refrain, which I’m sure you’ve heard, is “We don’t want to end up like Greece, do we?”
The reality of the Greek situation is different — not hard to understand, just different.
Gallic nation threatens to blow Europe’s Franco-German axis apart, warns former Italian prime minister.
The Telegraph, By Szu Ping Chan, March 21
France has become Europe’s “big problem”, according to the former prime minister of Italy, who warned that anti-Brussels sentiment and the rise of populist parties in the Gallic nation threatened to blow the bloc’s Franco-German axis apart.
Mario Monti – who was dubbed “Super Mario” for saving the country from collapse at the height of the eurozone debt crisis – said France’s “unease” with the single currency had already created tensions between Europe’s two largest economies.
“In the last few years we have seen France receding in terms of actual economic performance, in terms of complying with all the European rules, and above all in terms of its domestic public opinion – which is turning more and more against Europe,” he told The Telegraph.
Tens of thousands fill Spanish capital in support of Podemos, as anti-austerity message surges in polls.
Al Jazeera, January 31
Tens of thousands of people have marched in Madrid on Saturday in support of the anti-austerity party Podemos, whose surging popularity and policies have drawn comparisons with Syriza, Greece’s new leaders.
Protesters chanted “Yes we can!” as they made their way from Madrid city hall to the central Puerta del Sol square. Podemos and its anti-austerity message have been surging in polls ahead of local, regional and national elections this year. Podemos (“We Can”) was formed just a year ago but gained international attention after winning five seats in elections for the European Parliament last May.
Antonia Fernandez, a 69-year-old pensioner from Madrid, came to the demonstration with her family. Fernandez, who lives with her husband on a combined pension worth about $790 a month, said she used to vote for Spain’s Socialist party but had lost faith in it because of its handling of the economic crisis and its austerity policies. “People are fed up with the political class,” Fernandez said. “If we want to have a future, we need jobs,” she said.
Like Syriza, Podemos has found popular support by targeting corruption and rejecting a European austerity program aimed at lifting struggling economies out of a deep crisis. After his Syriza party swept to victory in a snap election on Jan. 25, Alexis Tsipras promised that five years of austerity, “humiliation and suffering” imposed on Greece by international creditors were over.
originally posted Jan 23
Huffington Post, By Pavlos Tsimas, January 22
On Sunday at 7:00 p.m. in Greece when the ballots are closing and the first exit polls are released in Berlin, Brussels, Madrid, London, Frankfurt and New York, all the political and financial decision-makers — and people who assist in making such decisions — will be staring at their computer screens, ready to read and interpret those numbers.
The upcoming elections in Greece are undeniably a global event, whose importance transcends Greece’s borders. The importance lies in the fact that these elections are part of a series of critical elections in Europe, from the British elections in May to Spain’s elections in November.