Opinion: Why the EU is right on Cyprus

Peter Gumbel

Reuters

5:52 a.m. CDT, March 22, 2013

The reaction to this weekend's European Union bailout deal for Cyprus has gone from initial shock to rather predictable condemnation. "Europe botches another rescue," ran the headline on an editorial in the Financial Times. "It's as if the Europeans are holding up a neon sign, written in Greek and Italian, saying ‘time to stage a run on your banks,' " Paul Krugman, the economist and New York Times columnist wrote on his blog.

Cyprus lawmakers work on economy-saving plan

By MENELAOS HADJICOSTIS, Associated Press – 2 minutes ago 

NICOSIA, Cyprus (AP) — Cypriot authorities were putting the final touches to a plan they hope will convince international lenders to provide the money the country needs to avoid bankruptcy within days.

As well as trying to forge an overall financing package, lawmakers were meeting to decide the fate of the country's second largest lender Laiki which was hardest hit from its exposure to bad Greek debt.

Europe sets Cyprus bailout deadline, banks face cutoff

By Michele Kambas and Lidia Kelly

NICOSIA/MOSCOW | Thu Mar 21, 2013 5:32am EDT

(Reuters) - The European Central Bank gave Cyprus until Monday to raise billions of euros to clinch an international bailout or face losing emergency funds for its crippled banks and inevitable collapse.

The warning came with the island's leaders locked in talks on a "Plan B" to raise 5.8 billion euros demanded by the EU under a 10 billion euro ($13 billion) rescue, after angry lawmakers threw out a tax on deposits as "bank robbery".

Cyprus Is Drowning in an EU Spoon

The Wall Street Journal

U.S. bank bailouts have taken a beating. They were criticized for their excess, uneven distribution and preservation of a status quo that shortchanges the little guy in favor of "stability of the financial system" or, put another way, private gains and socialized losses.

And the bailouts do look pretty awful—until you compare them with what's happening in Europe.

Cyprus seeks Russian rescue, EU threatens cutoff

By Michele Kambas and Lidia Kelly

NICOSIA/MOSCOW | Wed Mar 20, 2013 8:58am EDT

(Reuters) - Cyprus pleaded for a new loan from Russia on Wednesday to avert a financial meltdown, after the island's parliament rejected the terms of a bailout from the EU, raising the risk of default and a bank crash.

Cypriot Finance Minister Michael Sarris said he had not reached a deal at a first meeting with his Russian counterpart Anton Siluanov in Moscow, but talks there would continue.

Κούρεμα καταθέσεων στην Κύπρο

Τι λέει το νέο νομοσχέδιο

Εξαιρούνται από το κούρεμα οι καταθέσεις μέχρι 20 χιλ. ευρώ σύμφωνα με το νέο νομοσχέδιο που κατήρτισε η κυπριακή κυβέρνηση. Όπως αναφέρει το stockwatch, σύμφωνα με το νέο νομοσχέδιο, για καταθέσεις από €0 μέχρι €20 χιλ. η επιβολή τέλους θα είναι μηδενική. Για καταθέσεις από €20 χιλ. μέχρι €100 χιλ. το τέλος θα ανέρχεται στο 6,75%, ενώ για καταθέσεις άνω των €100 χιλ. το τέλος θ’ ανέρχεται στο 9,9%.

EU Member States, Lawmakers Reach Deal on Bank Supervisor

Read more: http://www.nasdaq.com/article/eu-member-states-lawmakers-reach-deal-on-bank-supervisor-20130319-00768#ixzz2O44oyPbu

By Dow Jones Business News,  March 19, 2013, 11:15:00 AM EDT

BRUSSELS--The creation of a single supervisor for European banks moved a step closer Tuesday when European lawmakers struck a deal with member states on the structure of the new agency.

The deal leaves in place most of the main points agreed by European Union finance ministers in December for how the supervisor should function.

Cypriot Lawmakers Reject Deposits Seizure Bill

By MENELAOS HADJICOSTIS and ELENA BECATOROS Associated Press

NICOSIA, Cyprus March 19, 2013 (AP)

Cypriot lawmakers on Tuesday rejected a critical draft bill that would have seized part of people's bank deposits in order to qualify for a vital international bailout, with not a single vote in favor.

The rejection leaves Cyprus's bailout in question. Without external funds, the country's banks face collapse and the government could go bankrupt. Nicosia will now have to come up with an alternative plan to raise the money: the government could try to offer a compromise bill that would be more palatable to lawmakers.

Seen From Greece, Great Depression Looks Good

By FLOYD NORRIS

Published: March 15, 2013
http://www.nytimes.com/2013/03/16/business/economy/seen-from-greece-great-depression-data-looks-good.html?_r=0
The New York Times

 FIVE years into the Great Depression, one out of five workers in the United States was unemployed. The economy was nearly 20 percent smaller in 1934 than it had been at the peak, in 1929.

 The Greeks can only wish they had it so good.

 The Greek government this week released its estimate of economic output in the fourth quarter of last year, and also published its unemployment report.

Cyprus reworks divisive bank tax, delays vote

By Michele Kambas and Karolina Tagaris

NICOSIA | Mon Mar 18, 2013 3:56pm EDT

(Reuters) - Cypriot ministers scrambled to revise a plan to seize money from bank deposits before a parliamentary vote on Tuesday that will either secure the island's financial rescue or threaten its default.

The weekend announcement that Cyprus would impose a tax on bank accounts as part of a 10 billion euro ($13 billion) bailout by the European Union broke with previous practice that depositors' savings were sacrosanct. The euro and stock markets fell on concern the euro zone crisis was reigniting.

UPDATE 8-Savers forced to bear costs in Cyprus bailout

Sat Mar 16, 2013 3:08am EDT

* Cypriot bailout of 10 billion euros agreed by euro zone

* One-off levy on bank deposits to raise almost 6 bln euros

* IMF's Lagarde says backs deal, will make contribution soon

* Cypriots incredulity at decision gives way to fury

By Annika Breidthardt and Robin Emmott and John O'Donnell and Jan Strupczewski

National Bank Falls as Investor Faces Hurdles: Athens Mover

By Natalie Weeks - Mar 15, 2013 2:36 PM GMT+0200

Bloomberg

National Bank of Greece SA, the country’s biggest lender, extended this week’s slide after saying an investor’s interest in covering part of NBG Group’s recapitalization needs is facing hurdles.

Italy’s Borrowing Costs Rise at Bond Auction After Downgrade

By Chiara Vasarri - Mar 13, 2013 2:39 PM GMT+0200

Bloomberg

Italian borrowing costs rose in the first bond auction since a credit rating downgrade last week that highlighted the economic risks of the country’s current political stalemate.

Greece Faces 150,000 Job-Cut Hurdle to Aid Payment: Euro Credit

Bloomberg News

By Maria Petrakis and Marcus Bensasson on March 11, 2013

http://www.businessweek.com/news/2013-03-11/greece-faces-150-000-job-cut-hurdle-to-aid-payment-euro-credit#p1

Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing.

Identifying redundant positions and putting in place a system that will lead to mandatory exits for about 150,000 civil servants by 2015 is a so-called milestone that will determine whether the country gets a 2.8 billion-euro ($3.6 billion) aid instalment due this month. More than a week of talks on that has so far failed to clinch an agreement.

Europe's Rising Social and Political Risks

Posted: 03/11/2013 12:13 pm

Daniel WagnerCEO, Country Risk Solutions
http://www.huffingtonpost.com/daniel-wagner/europes-rising-social-and_b_2853191.html

While income inequality has been falling globally since the 1980s, it has been rising in most of Europe. The Gini Coefficient, a widely used measure of income inequality, has risen since that time not only in Eastern Europe, but among Europe's wealthiest societies.

UPDATE 1-Suffering Greece's economy shrank again at end of last year

Mon Mar 11, 2013 7:15am EDT

* Q4 GDP shrinks 5.7 pct, less than previous flash estimate

    * Slump in consumption continues, imports fall

    * GDP seen contracting by 4.5 pct this year

    ATHENS, March 11 (Reuters) - Greece's economy shrank at an

annual 5.7 percent in the last quarter of 2012, combining for a

20 percent slump in real terms

since 2008.

Greek privatisation chief quits after graft charges filed

ATHENS, March 9 | Sat Mar 9, 2013 1:00pm EST

(Reuters) - Greece's privatisation chief and a senior finance ministry official resigned on Saturday after they were charged with breach of duty over their former role as board members of a state utility.

Greece set for comeback as tourist destination

Fri Mar 8, 2013 2:46am EST

* European tourism seen up 2-3 pct in 2013

* Greece bookings rebound, Alltours sees 30 pct rise

* Emerging markets to be main driver of global tourism

By Michelle Martin and Victoria Bryan

BERLIN, March 8 (Reuters) - Tourism in Greece is bouncing back this year in an otherwise flat European market, held back by the weak economic climate, travel industry executives said.

Greece confident aid tranche to be paid, denies talks deadlocked

By Lefteris Papadimas

ATHENS | Wed Mar 6, 2013 1:30pm EST

(Reuters) - Greece is confident of getting an aid tranche due this month, its finance minister said on Wednesday, dismissing speculation that talks with foreign lenders on cutting its bloated public sector were deadlocked.

UPDATE 1-Greek unemployment falls for first time since 2008

Thu Mar 7, 2013 5:55am EST

* Jobless rate slightly down to 26.4 percent from revised 26.6 pct in Nov

* First monthly drop since May 2008

* Bailout deal may have given short-term boost to hirings-economist

* Greek unemployment still highest in euro area

ATHENS, March 7 (Reuters) - Greece's jobless rate fell in December for the first time since a crippling recession began five years ago, helped by a bailout deal that propped up companies' willingness to hire in the short-term.