The consequences of Greece’s impending breakdown

By Lawrence Summers June 20 at 12:45 PM

The Washington Post

Lawrence Summers is a professor at and past president of Harvard University. He was treasury secretary from 1999 to 2001 and an economic adviser to President Obama from 2009 through 2010.

When, as now appears likely, Greece financially separates from Europe, it will at one level be no one’s fault. The Greek leaders will rightly explain that having imposed more austerity on themselves than any industrial country has suffered since the Depression, they could not do more without light at the end of tunnel in the form of a clear commitment to debt relief. European leaders will rightly explain that they adjusted their positions repeatedly to accommodate the Greeks. They will stress that their publics would not permit Greece to play by different rules than the rest of Europe. And the International Monetary Fund will rightly explain that it would have blessed any plan agreed to by Greece and Europe that added up.

The Endgame in Greece

By THE EDITORIAL BOARD

JUNE 19, 2015

The New York Times

A meeting of eurozone finance ministers on Thursday, which was billed as the last chance to stave off a Greek default and a Greek exit from the euro, collapsed in rancor and recriminations less than an hour after it started. Eurozone leaders then promptly scheduled a summit meeting for Monday to deal with the crisis. After five years of this, the world can be forgiven for not heeding the serial cries of “wolf.” Only this time, there really is a wolf at the door.

Greece Stares Into Unknown as Tsipras Insists a Deal Can Be Done

by Corina RuheStephanie BodoniNikos Chrysoloras

June 19, 2015 — 11:32 AM EEST Updated on June 19, 2015 — 1:40 PM EEST

Bloomberg

Greek Prime Minister Alexis Tsipras insisted a deal to avert a default can be reached at an emergency summit of European leaders on Monday as his country clings to the euro after almost five months of brinkmanship.

Markets swayed as investors parsed each new twist for signs of a possible accord. Banks stocks reversed gains and led the Athens Stock Exchange lower on Friday as the European Central Bank prepared to discuss whether to maintain a lifeline at an emergency session. Greece’s existing bailout agreement expires on June 30, the day it’s due to make a payment to the International Monetary Fund.

EU Leaders Need an Emergency Plan B for Greece

JUN 19, 2015 2:00 AM EDT

By Mohamed A. El-Erian

Bloomberg

After finance officials failed to reach an agreement on Greece on Thursday, European leaders wisely decided to hold an emergency summit Monday. Although the main objective is to break the deadlock opposing Greece and its creditors, this gathering should have a second important goal: unifyimg 18 euro-zone members around a Plan B if efforts to salvage the 19th member, Greece, falter again.

The primary aim of the summit is to deliver the long-sought accord that would keep Greece solvent, and within the currency union. Without such an agreement on both policies and emergency financing, it would be a matter of days before Greece's banking system imploded. Then the government would have to impose capital controls, default on debt and supplier obligations, and issue IOUs to meet domestic payments.

Still Deadlocked With Greece, Europe Sets Emergency Summit Meeting

By JAMES KANTERJUNE 18, 2015

The New York Times

LUXEMBOURG — European leaders will try again in an emergency summit meeting on Monday to break the deadlock between Greece and its international creditors after a meeting of eurozone finance ministers ended on Thursday with no deal on Greece’s bailout.

Without additional aid, Greece faces the prospect of effectively going bankrupt by the end of June, when it owes a payment of 1.6 billion euros, or about $1.8 billion, to the International Monetary Fund, and when the European part of its bailout program ends.

Greek Central Bank Issues Dire Warning on Bailout Talks

Report warns of ‘uncontrollable crisis’ without a deal; ECB drawn into fray

By STELIOS BOURAS And  BRIAN BLACKSTONE

Updated June 17, 2015 6:54 p.m. ET

81 COMMENTS

ATHENS—Greece’s central bank, in unusually stark language that angered the ruling party, warned Wednesday that failure to clinch a deal with international creditors on desperately needed funding could “snowball into an uncontrollable crisis” for the country.

Η αξιολόγηση που δεν έκλεισε ποτέ

ΕΛΕΝΗ ΒΑΡΒΙΤΣΙΩΤΗ, TΑΣΟΣ ΤΕΛΛΟΓΛΟΥ

Καθημερινή

Το ηλιόλουστο πρωινό της 7ης Νοεμβρίου 2014 στις Βρυξέλλες, ο τότε Ελληνας υπουργός Οικονομικών Γκίκας Χαρδούβελης βρίσκει στο κινητό του τηλέφωνο ένα email–ορόσημο, όπως θα φανεί αργότερα, από την τρόικα. Ηταν για πρώτη φορά τόσο σαφές ότι η αξιολόγηση δεν θα έκλεινε, καθώς η τρόικα φαινόταν να σκληραίνει τη στάση της ζητώντας την εφαρμογή όλων των συμφωνηθέντων χωρίς καμία απολύτως ευελιξία.

GREXIT: END OF THE ILLUSION

Pieria

http://www.pieria.co.uk/articles/grexit_end_of_the_illusion

Posted by John Weeks on Jun 15th 2015,

That is the real story. It is very simple - force the Greek government to withdraw in circumstances that allow the Troika to deny culpability. Without knowing it, we have been following the manoeuvres by the Troika to achieve that end. The drawn-out nature of the conflict is a Troika strategy, to drain the Greek government of money until it must accept what Prime Minister called "absurd" demands or choose an increasingly costly exit from the euro zone.

What Happens if Greece Misses Payments?

The Wall Street Journal

7:05 pm ET

Jun 15, 2015

By  MATTHEW DALTON and  GABRIELE STEINHAUSER

With little sign of progress in talks on Greece’s international bailout, some European policy makers are considering whether Athens could default but stay in the eurozone. The whole situation is fraught with unknowns, however. Here are some of the complications:

Greece, Eurozone Seek to Resolve Differences as Deadline Looms

Finance ministers to meet in Luxembourg in effort to reach agreement on Greek bailout

The Wall Street Journal

By VIKTORIA DENDRINOU

June 18, 2015 2:27 a.m. ET

LUXEMBOURG—Eurozone finance ministers have another chance to break the deadlock in talks over Greece’s international bailout Thursday, but neither side has shown any sign of shifting its position, even as warnings grow of the potential impact of a Greek default and exit from the euro.

The Endgame in Greece

JUN 16, 2015 30

Project Syndicate

Jeffrey D. Sachs

Jeffrey D. Sachs, Professor of Sustainable Development, Professor of Health Policy and Management, and Director of the Earth Institute at Columbia University, is also Special Adviser to the United Nations Secretary-General on the Millennium Development Goals. His books include The End of Poverty, Common Wealth, and, most recently, The Age of Sustainable Development.

Read more at http://www.project-syndicate.org/columnist/jeffrey-d-sachs#wqrkiiQVKEBjoR1A.99

Opinion: How to know when Greece is about to exit the euro

MATTHEW LYNN'S LONDON EYE GET EMAIL ALERTS

Published: June 17, 2015 3:00 a.m. ET

Market Watch

Crunch talks in Athens. The IMF flying home in a huff. German ministers leaking that the eurozone can survive a Greek exit, and Greek ministers insisting that austerity can’t be tolerated any more.

If it is Wednesday, at least one of those factors must be threatening to dump Greece out of the euro EURUSD, +0.4234%   by the weekend. Or Monday. Or the end of the month.

Merkel Tries to Get Greek Talks Back on Track

by Marcus BensassonNikos Chrysoloras

June 17, 2015 — 12:28 PM EEST Updated on June 18, 2015 — 3:26 AM EEST

Bloomberg

With Greece’s fate in the balance, European finance ministers converge on Luxembourg with little hope for a deal as German Chancellor Angela Merkel seeks to restore calm to increasingly rancorous exchanges.

Ο ΣΥΡΙΖΑ που ξέρατε τελειώνει εδώ!

Δημοσιεύθηκε: 10 Ιουνίου 2015 - 07:45

http://m.euro2day.gr/1340079/article.aspx

Απειρία, ιδεολογία, λαϊκισμός και εξουσιομανία είναι τα κύρια χαρακτηριστικά του κυβερνητικού σχήματος. Το θλιβερό και καταστροφικό για τη χώρα παιχνίδι των ψευδαισθήσεων φθάνει στο τέλος του. Είναι η ώρα των αποφάσεων.

Με απόφαση τεσσάρων Ελλήνων στους δέκα η χώρα, ελέω ενός απίθανου και αντιδημοκρατικού εκλογικού συστήματος, έχει σήμερα μία κυβέρνηση άπειρων, απαίδευτων και ιδεολογικά καθυστερημένων καιροσκόπων της πολιτικής, οι οποίοι καλούνται να διαχειριστούν το μέλλον πολλών γενεών Ελλήνων.

Greece's future in EU in doubt if talks fail, central bank warns

 Jun 17, 2015 2:59pm EDT Related: GREECE

ATHENS | BY GEORGE GEORGIOPOULOS AND MATTHIAS WILLIAMS

Reuters

The Greek central bank warned on Wednesday that the country risked a painful exit from the euro and ultimately even the European Union if Athens and its creditors do not strike a swift aid-for-reforms deal.

A top Greek negotiator told Reuters that Prime Minister Alexis Tsipras' leftist government was ready to make unspecified concessions but he once again ruled out any cuts to pensions - a major sticking point in the negotiations.

Greek PM tears into lenders as euro zone prepares for 'Grexit'

Tue Jun 16, 2015 4:42pm EDT Related: GREECE

ATHENS/BERLIN | BY LEFTERIS PAPADIMAS AND ERIK KIRSCHBAUM

Reuters

Prime Minister Alexis Tsipras accused Greece's creditors on Tuesday of trying to "humiliate" Greeks with more cuts as he defied a growing drumbeat of warnings that Europe was preparing for his country to leave the euro.

The unrepentant address to lawmakers after the collapse of talks with European and IMF lenders at the weekend was the clearest sign yet that the leftist leader has no intention of making a last-minute U-turn and accepting austerity cuts needed to unlock frozen aid and avoid a debt default within two weeks.

Greek PM tears into lenders, euro zone prepares for 'Grexit'

Tue Jun 16, 2015 1:46pm EDT Related: GREECE

ATHENS/BERLIN | BY LEFTERIS PAPADIMAS AND ERIK KIRSCHBAUM

Reuters

Prime Minister Alexis Tsipras lashed out at Greece's creditors on Tuesday, accusing them of trying to "humiliate" Greeks, as he defied a drumbeat of warnings that Europe is preparing for his country to leave the euro.

The unrepentant address to lawmakers after the collapse of talks with European and IMF lenders at the weekend was the clearest sign yet that the leftist leader has no intention of making a last-minute U-turn and accepting austerity cuts needed to unlock frozen aid and avoid a debt default within two weeks.

How to Defend a Post-Greece Euro

5 JUN 16, 2015 2:00 AM EDT

By Mark Gilbert

Bloomberg

With bailout talks between Greece and its creditors collapsing, it seems sensible to start reflecting on what defenses the euro might need against the fallout of a nation leaving the common-currency project. Once euro membership is proven to be anything but irrevocable, the remaining members will need to reassert their unity. And one way to do that would be to resurrect, in slightly modified form, the concept of euro bonds.

Greek Showdown Puts Merkel's Teflon Legacy at Risk

by Patrick Donahue

June 16, 2015 — 1:14 AM EEST

Bloomberg

The Teflon chancellor may be vulnerable after all.

The specter of insolvency in Greece poses the biggest threat to the legacy of German Chancellor Angela Merkel whose political longevity rests on her crisis-fighting diplomacy.

From the threat of the U.K. leaving the European Union to the festering conflict in Ukraine, Merkel’s credibility as the continent’s most powerful leader and her guiding philosophy of a more united, competitive Europe risks unraveling.

And it might just be Greece, an economy a fraction the size of Germany’s, that could deal the most painful blow.

Greece Won’t Present New Proposal to Eurogroup to Unlock Aid

by Nikos ChrysolorasEleni Chrepa

June 15, 2015 — 4:17 PM EEST Updated on June 16, 2015 — 1:11 PM EEST

Bloomberg

Greece snubbed European pleas to submit a proposal to avert a default, dimming chances of a compromise at a key meeting this week.

Greek stocks fell for a third day on Tuesday on concern time is running out. The country needs to seal an accord or get an extension before the euro area’s bailout expires on June 30, or risk missing payments on its debt of about 313 billion ($354 billion) euros.

“The overwhelming sense of Greece’s creditors is that the government does not fully understand the institutional constraints it faces, the level of reform detail necessary for a deal and that is massively underestimating the risk and impact of capital controls,” Eurasia Group analysts Mujtaba Rahman and Federico Santi wrote in a note on Tuesday. “Even if a Euro summit is called, it may prove too late.”