The euro’s hellhound

Charlemagne

The Economist

It is time to reform the troika that handles euro zone bail-outs

Feb 1st 2014 | From the print edition

IN GREEK mythology, Cerberus is the three-headed dog guarding the gates to Hades. In modern Greek politics, the troika is the three-headed monster that traps the country in an economic underworld. At the finance ministry in Athens, even the cleaning ladies shout “murderers” at visiting members of the troika. In Lisbon protest banners declare “Fuck the troika”. There is now a popular Portuguese neologism, entroikado, roughly meaning “economically screwed”.

Japan’s Inflation Accelerates as Abe Seeks Wage Gains

By Chikako Mogi, Masahiro Hidaka and James Mayger  Jan 31, 2014 3:49 AM GMT+0200

Japan’s inflation accelerated in December, industrial output gained and a measure of demand for workers strengthened, signaling gains for Prime Minister Shinzo Abe’s campaign to end two decades of stagnation.

Prices excluding fresh food increased 1.3 percent from a year earlier, the statistics bureau said today in Tokyo, above a median estimate of 1.2 percent in a Bloomberg survey of 32 economists. Industrial production rose 1.1 percent from the previous month, while the number of jobs for every seeker rose to 1.03, exceeding 1 for the first the time since October 2007.

Inflation in Euro Zone Falls as Unemployment Stays Flat

By DAVID JOLLYJAN. 31, 2014
The New York TImes

BRUSSELS — Europe’s labor market remained in the doldrums in December, while the inflation rate ticked back down to the same level that recently led the European Central Bank to cut interest rates, official data showed Friday. The reports suggested that the bank will be under pressure to provide more monetary stimulus to keep a nascent recovery alive.

Slump in euro zone money supply growth highlights deflation risk

FRANKFURT Wed Jan 29, 2014 5:19am EST

(Reuters) - Euro zone money supply growth slowed sharply in December and loans to the private sector contracted further, putting pressure on the European Central Bank to take fresh action to counter the threat of deflation.

With euro zone inflation running well below its target, the ECB forcefully underlined its determination earlier this month to take action should a deflation risk arise or rising money market rates threaten the bloc's fragile recovery.

Data released by the ECB on Wednesday showed that euro zone M3 money supply - a general measure of cash in the economy - grew at an annual pace of 1.0 percent, slowing markedly from 1.5 percent in November.

Carney Says Scotland Can Learn From Euro Crisis in Pound Debate

By Emma Charlton and Jennifer Ryan  Jan 29, 2014 3:15 PM GMT+020

Bloomberg

Scotland will probably need to mirror the euro-region’s integration plans and surrender some sovereignty if the nation votes to separate from the rest of the U.K., Bank of England Governor Mark Carney said.

While First Minister Alex Salmond wants to keep the pound if Scots vote for independence at a Sept. 18 referendum, Carney said policy makers need to “consider carefully” the financial stability risks associated with such a monetary union. Speaking after a meeting today with Salmond in Edinburgh, he said independence will involve “some ceding” of sovereignty.

Europe Puts Pressure on Greece to Meet Budget Targets

The New York Times

By DAVID JOLLYJAN. 27, 2014

BRUSSELS — European officials sought on Monday to keep the pressure on Greece to honor its previously agreed spending and privatization targets as they wrestled with the need to help Athens bridge a funding gap that could reach €15 billion over the next two years.

Greece declares emergency on quake-hit islands

The Washington Post

By Associated Press, Updated: Monday, January 27, 8:30 PM

ATHENS, Greece — Greece’s government announced emergency relief for the residents of the Ionian islands of Kefalonia and Ithaki on Monday, a day after they were hit by a strong earthquake that caused damage and slightly injured seven people.

Sunday’s quake, whose magnitude the Athens Geodynamic Institute revised to 5.9 from the preliminary 5.8, was followed by dozens of aftershocks that continued through Monday.

Draghi Sees Progress in Euro Zone, but Puts Banks on Notice

By JACK EWING

The New York Times

DAVOS, SWITZERLAND — Some banks in the euro zone could go out of business as a result of intense official scrutiny they will face this year, Mario Draghi, the president of the European Central Bank, said Friday as he presented a generally upbeat view of the European economy that was, however, laced with warnings.

Russia frees Platon Lebedev, oil tycoon Khodorkovsky’s business partner

By Kathy Lally, Published: January 23 E-mail the writer

MOSCOW — Russia’s Supreme Court on Thursday ordered the release of former oil tycoon Mikhail Khodorkovsky’s business partner, who remained in prison after his colleague was freed in December.

Platon Lebedev, who has been behind bars since 2003, was nearing the end of his sentence, which expires in May, but in reviewing his case the court reduced his term to time served. His attorney said he could leave his prison camp in the frozen Archangel region as soon as the paperwork was processed and that he expected him out by Friday.

Khodorkovsky was freed in a grand and widely publicized amnesty issued by President Vladimir Putin, a gesture apparently intended to burnish Russia’s human rights credentials before the Winter Olympics open in Sochi on Feb. 7. Letting an archenemy go also demonstrated to the world that Putin feels very much in charge, unthreatened by any opposition, and reminded Russians and foreigners that he alone makes the decisions here.

Greece holds investigation into migrants’ drowning

By Associated Press, Published: January 23

ATHENS, Greece — Greek judicial authorities said Thursday they are investigating the deadly sinking of a migrant boat that was being towed by a coast guard vessel, as officials denied survivors’ claims that officers badly mishandled the operation.

The small fishing boat crammed with 28 people had entered Greece illegally from Turkey. The Coast Guard said it was towing the boat to the small Aegean Sea island of Farmakonissi when it capsized and sank Monday leaving two people dead and another 10 — mostly children — missing and feared drowned.

Survivors who arrived in Athens claimed Thursday the boat was being led at speed to nearby Turkish waters to be abandoned. They said Coast Guard crew ignored their pleas to take the women and children on their boat before the accident, and then allegedly stood by as passengers struggled in rough seas.

Greece's anti-austerity Syriza party widens lead over conservatives

ATHENS Wed Jan 22, 2014 3:48am EST

(Reuters) - Greece's main opposition Syriza party has widened its lead over the ruling conservatives, a poll found on Wednesday, but most Greeks said they do not trust any party to rule the country.

The poll by Public Issue for the Efimerida Ton Syntakton newspaper found the anti-austerity party would get 31.5 percent of the vote if elections were held now, giving it a 3.5 percentage-point lead over Prime Minister Antonis Samaras's New Democracy.

Local and European Parliament elections will be held in May and Syriza, which has vowed to tear up the multi-billion euro international bailout agreement keeping Greece afloat, hopes a strong showing will strengthen its call for early elections.

UPDATE 1-Top Greek court reverses some troika-mandated wage cuts

Wed Jan 22, 2014 7:29am EST

* Top court reverses wage cuts to policemen, army officers

* Ruling could increase spending by up to 500 million euros

* Budget hole may complicate bailout talks with lenders

By Lefteris Papadimas

ATHENS, Jan 22 (Reuters) - A top Greek court has struck down wage cuts imposed by the government in 2012 on police and armed forces to comply with the terms of the country's EU/IMF bailout, court and government officials said on Wednesday.

Ομολογία Σταϊκούρα στη Βουλή: «Στα 320 δισ. ευρώ το χρέος το 2013 - ανοιχτό το πρόβλημα της βιωσιμότητας

ΔΗΜΟΣΙΕΥΣΗ: 28/08/2013 18:07 |

ΤΑ ΝΕΑ

«Η αύξηση από 305,5 δισ. ευρώ τον Δεκέμβριο του 2012 σε 321,6 δισ. ευρώ τον Ιούλιο του 2013 “δεν είναι αιφνίδια, ούτε μπορεί να αποτελέσει αιτία για την πρόκληση οποιασδήποτε ανησυχίας. Είναι παροδική, χρονικά ορισμένη και το σημαντικότερο αντιτίθεται στην απόκτηση περιουσιακών στοιχείων από το ελληνικό δημόσιο», δήλωσε σήμερα,Τετάρτη, ο αναπληρωτής υπουργός Οικονομικών Χρ. Σταϊκούρας.

Ukraine protests: Two people killed in Kiev clashes

22 January 2014 Last updated at 10:07 GMT

BBC

At least two people have died in clashes between police and protesters in the Ukrainian capital Kiev in a third night of violence.

The clashes began after police moved in to dismantle a protest camp.

Protesters threw firebombs and stones, while the police used tear gas and rubber bullets. At least one of the men who died had bullet wounds.

Greece seeks lower bank capital target to help plug country's funding gap

BY GEORGE GEORGIOPOULOS AND LEFTERIS PAPADIMAS

ATHENS Tue Jan 21, 2014 2:06pm GMT

(Reuters) - Greece wants its international lenders to agree to a lower capital ratio for its big banks so there is money left over in its bank rescue fund to help to plug the country's funding gap, bankers said on Tuesday.

Greece is in talks with the International Monetary Fund, the European Commission and the European Central Bank, the so-called "troika" of international lenders, to cut the amount of capital the country's four main banks have to set aside to cover potential loan losses.

"There are talks between Greek authorities and the troika on whether the required capital adequacy ratio (known as Core Tier 1) can be reduced to 8 from 9 percent," a banker close to the discussions told Reuters, declining to be named.

Refueling row delays Syrian peace envoys' plane in Greece

BEIRUT/ATHENS Tue Jan 21, 2014 10:40am EST

(Reuters) - A Syrian government delegation heading to peace talks in Switzerland was held up for hours in Athens on Tuesday when a Greek firm refused to refuel their plane, citing an EU trade embargo.

The incident was the latest in a series of delays and diplomatic spats in the lead-up to talks due to start on Wednesday between President Bashar al-Assad's government and opposition figures to end their three-year conflict.

Analysis: Greece hopeful, but any debt relief likely to be symbolic

BY JAN STRUPCZEWSKI

BRUSSELS Tue Jan 14, 2014 9:55am EST

(Reuters) - Greece expects the euro zone to provide some debt relief to Athens later this year but the impact on its vast liabilities will be little more than symbolic.

The magic bullet for Greece would be the writing-off of some portion of the 240 billion euros in loans it has received from the euro zone since 2010. But Athens is adamant it does not want that and the euro zone is not willing to provide it.

Instead, what Greek officials seek is some combination of at least three measures: a further lowering of interest rates on existing loans, an extension of the maturities and pay-back schedule, and some relief on financing EU structural funds.

For China, a Shift From Exports to Consumption

By BETTINA WASSENERJAN. 20, 2014

The New York Times

HONG KONG — BoConcept, a Danish furniture company that has more than 260 stores around the world, opened an outlet in Hong Kong last week amid flashing cameras, the deafening noise of drums and cymbals and a pair of lion dancers performing a traditional ceremony aimed at bringing good fortune to the shop.

The store is the first in Hong Kong for BoConcept, but the company already operates 18 in mainland China and is planning another six to eight across the country as it bets that rising affluence will continue to lift demand for its sleek sofas and coffee tables.

Greek extremist Christodoulos Xiros threatens government

20 January 2014 Last updated at 16:28 GMT

http://www.bbc.co.uk/news/world-europe-25811535

BBC

A Greek fugitive who disappeared while on prison leave has threatened the government with armed action, accusing it of ruining the country with austerity measures.

Christodoulos Xiros, who was convicted in 2003 of belonging to the far-left November 17 organisation, has vowed to return to arms.

He was serving six life sentences for bombings and shootings.

He vanished in January while on leave from prison to visit his family.

China building second aircraft carrier: reports

BEIJING Sat Jan 18, 2014 11:25pm EST

(Reuters) - China is building its second aircraft carrier, which is expected to take six years, and the country aims to have at least four such ships, Chinese and Hong Kong media reports said on Sunday.

After two decades of double-digit increases in the military budget, China's admirals plan to develop a full blue-water navy capable of defending growing economic interests as well as disputed territory in the South and East China Seas.

The country's first aircraft carrier, the Liaoning - a Soviet-era ship bought from Ukraine in 1998 and re-fitted in a Chinese shipyard - has long been a symbol of China's naval build-up.