Politics Risk Tripping Up Greece on Debt Relief

Greece’s debt looks fairly manageable. It’s politics that makes it problematic.

By STEPHEN FIDLER

Updated Jan. 15, 2015 5:26 p.m. ET

2 COMMENTS

Does Greece need debt relief? Alexis Tsipras, leader of the left-wing Syriza Party and the man who could be Greece’s next prime minister, says it does.

“There is no single sensible person in the whole of Europe who seriously thinks that Greece’s debt is sustainable and must be repaid in full,” he said in a speech on Tuesday.

Αδημοσίευτο μνημόνιο: Τι προβλέπει για δαπάνες, δημόσιο, ιδιωτικοποιήσεις, χωροταξικό, μεταφορές

 (Σ.Σ..Πρόκειται για κείμενα που περιγράφουν τα μέτρα που προβλέπονται από την σύμβαση του Ελληνικού κράτους και των δανειστών τους και την πρόοδο που έχει η εφαρμογή τους. Είναι μακροσκελή.)

Πηγή:www.capital.gr

Φρένο στις δαπάνες για να επιτευχθεί πρωτογενές πλεόνασμα

Του Αλέξανδρου Κλώσσα

Απόλυτη συγκράτηση της κρατικής δαπάνης ώστε να μην ξεφύγει από τους στόχους που θέτει ο προϋπολογισμός και το πρόγραμμα δημοσιονομικής σταθερότητας προβλέπει το μνημόνιο, αφήνοντας ωστόσο περιθώρια αύξησης των δαπανών εφόσον υπάρξει υπεραπόδοση εσόδων, ενώ προαναγγέλει αναθεώρηση των στόχων του Μεσοπρόθεσμου Προγράμματος Στρατηγικής που ψηφίστηκε στη Βουλή, ώστε να ευθυγραμμιστεί με τους στόχους του μνημονίου.

Πριν 20 έτη

του Αθαν. Χ. Παπανδρόπουλου

Το καλοκαίρι του 1993 δεν θα το ξεχάσω εύκολα. Ήταν ένα από τα πιο κρίσιμα για το μέλλον της χώρας και, τελικά, από αυτά που δρομολογήθηκαν τότε, το κόστος τους καταβάλλεται σήμερα –εντόκως. Και είναι πολλά τα γεγονότα που αποδεικνύουν ότι, αν η τότε κυβέρνηση του Κων. Μητσοτάκη δεν είχε πέσει άδοξα, η σημερινή Ελλάδα θα ήταν διαφορετική.

Με υπουργό Εθνικής Οικονομίας τότε τον Στέφανο Μάνο –τον οποίον όχι λίγοι κοινοτικοί θεωρούσαν τον καλύτερο που είχε ποτέ εκπροσωπήσει την Ελλάδα στο EcoFin– η ελληνική οικονομία βρισκόταν σε καλό δρόμο και η κατάσταση θα γινόταν ακόμα καλύτερη αν η Νέα Δημοκρατία κέρδιζε εκ νέου τις κανονικές εκλογές που θα γίνονταν τον Απρίλιο 1994 –δηλαδή ένα εξάμηνο μετά την ανατροπή της.

New Europe’s Old Ghosts

JAN 9, 2015 6

Mazower Marc

http://www.project-syndicate.org/commentary/europe-nationalism-russia-germany-conflict-by-mark-mazower-2015-01

NEW YORK – The past stalked Europe in 2014. When the year started, the centennial of the Great War’s outbreak attracted much commemorative energy. But, as it progressed, disturbing parallels appeared – not to 1914, but to some of the nastier features of the interwar years.

From Scotland and Catalonia to the borders of Ukraine, the politics of nationality flared, while Europe’s economy stagnated – hostage to a German inflation phobia that dates back to 1923. And, as the year unfolded, a new geopolitical tug of war between the continent’s two early-twentieth-century giants, Germany and Russia, became apparent, while Europe’s amnesiac political elite seemed to be fumbling on one front after another.

Euro Slumps to 9-Year Low Against Dollar on ECB Easing Expectations

Currency Hits Lowest Point Against Dollar Since Late 2005

By JAMES RAMAGE

Updated Jan. 13, 2015 4:42 p.m. ET

The Wall Street Journal

The euro slipped to a new nine-year low against the dollar on Tuesday as investors bet the European Central Bank would announce broad measures to lift the economy and consumer prices at its meeting next week.

Moody's: Greece exit from euro zone unlikely, less risk of contagion than in 2012

ATHENS Wed Jan 14, 2015 1:54am EST

Jan 14 (Reuters) - The likelihood of Greece leaving the European single currency remains relatively unlikely than during the peak of the euro zone crisis and the risk of contagion to other countries is lower than in 2012, rating agency Moody's said on Wednesday.

Gold Rises to Highest Since October as U.S. Rate Outlook Weighed

By Laura Clarke and Glenys Sim  Jan 13, 2015 12:23 PM GMT+0200

Bloomberg

Gold extended gains to the highest in almost 12 weeks as investors assessed the timing of higher borrowing costs and the strength of the U.S. economy amid slumping oil prices. Silver climbed to a four-week high.

Bullion rose for a third day after U.S. data last week showed falling incomes even as hiring accelerated. Fed Bank of San Francisco President John Williams has said raising rates in June would be a close call amid “strong momentum” in the labor market and weaker wage gains.

Greek leftist: German taxpayers have nothing to fear from Syriza gov't

Tue Jan 13, 2015 4:55am EST

* Germany says Greece must stick to bailout conditions

* Tsipras' party ahead in polls, wants end to austerity

* Tsipras says Greece needs growth to repay debts

BERLIN, Jan 13 (Reuters) - German taxpayers should not be afraid of a Greek government led by the left-wing Syriza party, its leader Alexis Tsipras wrote in an article published on Tuesday in a German business daily.

Speculation is growing that if anti-bailout Syriza wins Greece's Jan. 25 parliamentary election, it will try to renegotiate European Union loans and conditions, possibly provoking a crisis between Athens and its euro zone partners.

Here's What A 'Grexit' Would Cost Europe

RICHARD LEIN, AFP

JAN. 11, 2015, 8:40 AM

Business insider

Paris (AFP) - A Greek exit from the eurozone would certainly come at a cost to Europe, but just how expensive would it be?

The amount Athens owes its partners is equivalent to just a tiny fraction of the eurozone's economy, but some analysts are still worried that a 'Grexit' could ultimately cost Europe its single currency.

No Exit for Greece

By JOSEF JOFFEJAN. 12, 2015

The New York Times

HAMBURG, Germany — Another Chapter 11 for Greece, the third in five years — and no exit in sight. The Greeks won’t do the eurozone the favor of absconding from the common currency. Never mind that they should never have been accepted in the first place, when they cooked the books to look prim and proper.

Not even Alexis Tsipras, the leader of the radical leftist Syriza party, wants out. Apparently on track to win the snap elections on Jan. 25, he has vowed: “We will stick with the euro, no doubt.”

ECB Warning to Greece Deploys Tactic Honed in Crisis

By Jeff Black and Nikos Chrysoloras  Jan 13, 2015 9:56 AM GMT+0200

The European Central Bank is threatening to choke off funding to Greece’s lenders in the hope it won’t actually need to.

Parliamentary elections on Jan. 25 hinge on whether Greek voters are willing to accept a strings-attached successor to the country’s international bailout package. Under President Mario Draghi, the Frankfurt-based ECB has made its position clear: No program means no guarantee of cash from us.

Why Grexit would not help Greece - debunking the myth of exports

by Guntram B. Wolff on 6th January 2015

http://www.bruegel.org

The genie is out of the bottle: Europe is again discussing the possibility of Greece leaving the euro. With it, the debate has re-emerged whether this would be helpful or not for Greece and whether there would be contagion to other euro area countries. A big question is, of course, how the Greek financial system would survive an exit with a debt restructuring; how long it will take until Greece would regain access to financial markets; and how big the benefit of a debt restructuring is given the relatively low interest load. The absence of external help would be a further factor weighing on Greece. All these factors speak clearly against an exit from the point of view of Greece but they are not discussed in this blog.

Greek Elections, Democracy, Political Trilemma, and all that

08/01/2015 by Dani Rodrik

From the site http://www.socialeurope.eu/

Two-and-a-half years ago I wrote a short piece titled “The End of the World as We Know It” which began like this:

Consider the following scenario. After a victory by the left-wing Syriza party, Greece’s new government announces that it wants to renegotiate the terms of its agreement with the International Monetary Fund and the European Union. German Chancellor Angela Merkel sticks to her guns and says that Greece must abide by the existing conditions.

Greece: this time is different. It just isn't any less dangerous

by  Geoffrey Smith  @Geoffreytsmith  JANUARY 8, 2015, 12:18 PM EST

Fortune

Greece and others have tired of austerity. Do Berlin, Frankfurt and Brussels still have the will to face them down?

It’s fair to say that this iteration of the Greek debt crisis is different. But that doesn’t justify the kind of complacency financial markets are showing.

Things may indeed be different in the details from 2012, when Greece nearly left the currency union, dragging half a dozen other countries with it. The problem is, the big picture has changed, if anything, for the worse. This time is just as dangerous as last time because the Eurozone still doesn’t have the political institutions to back its currency, and probably never will have.

Euro sinks to fresh nine-year low

 BBC

8 January 2015 Last updated at 15:52 GMT

The euro has hit a fresh nine-year low against the dollar, in part after a surprise decrease in German manufacturing.

German factory orders fell by 2.4% in November compared with the previous month, worse than expected.

A crowded field

Syriza edges closer to victory, but with uncertainty over its coalition partner

Jan 10th 2015 | ATHENS |

The Economist

THE far-left Syriza party continues to hold a small but steady lead in the polls ahead of Greece’s election on January 25th. After such a long period ahead of the ruling party, this lead seems unlikely to be overturned in just two-and-a-half weeks, say pollsters.

Don’t Believe the Hype: Why Germany Needs Greece to Stay in Euro

By Simon Kennedy  Jan 8, 2015 1:08 PM GMT+0200

Bloomberg

Don’t believe the hype.

A reading of the German press suggests Chancellor Angela Merkel is at peace with the idea of Greece quitting the euro. Der Spiegel says her government views that as a manageable outcome; Bild reports that officials are preparing for the prospect. Lawmaker Michael Fuchs says Greece is no longer a threat to financial stability.

All that is mostly posturing for an electorate tired of the aid and angst Greece has demanded since 2010. In fact, Germany has no interest in risking the dissolution of the single currency that a Grexit could entail.

Greek Opposition Still Holds Slim Lead in Polls Before Elections

Syriza Party Ahead in Voter Surveys, but Narrow Margin Shrinks

By ALKMAN GRANITSAS

Updated Jan. 7, 2015 4:15 p.m. ET

The Wall Street Journal

ATHENS—Greece’s leftist opposition party continued to hold a narrow lead ahead of this month’s national elections, although it appears to be shrinking, two public opinion polls showed Wednesday.

The polls show the Syriza party, which opposes Greece’s financial bailout and its economic reforms, garnering between 28.5% and 31.6% of the vote, placing it ahead of the governing New Democracy party, which has been implementing the economic austerity measures.

New Democracy would get between 25.3% and 28.6% of the vote, according to the two polls, for the Mega television channel and the weekly To Pontiki newspaper.

A Weary Greece Considers Its Options

By THE EDITORIAL BOARDJAN. 3, 2015

The New York Times

The human toll of the economic crisis in Greece has been significant: Rates of hunger, suicide and unemployment have increased sharply, thanks to years of misguided austerity policies. So it is hardly shocking that polls are showing that voters are likely to give control of Parliament to the leftist political party Syriza in an election later this month.

Samaras Warns of Euro Exit Risk as Greek Campaign Starts

By Leon Mangasarian  Jan 5, 2015 9:46 AM GMT+0200

Bloomberg

Greece’s political parties embarked on a flash campaign for elections in less than three weeks that Prime Minister Antonis Samaras said will determine the fate of the country’s membership in the euro currency area.

Samaras used a Jan. 2 speech to warn that victory for the main opposition Syriza party would cause default and Greece’s exit from the 19-member euro region, while Syriza leader Alexis Tsipras said his party would end German-led austerity. Der Spiegel magazine reported Chancellor Angela Merkel is ready to accept a Greek exit, a development Berlin sees as inevitable and manageable if Syriza wins, as polls suggest.