No Should Mean No to Protect the Euro From Greece

JUL 8, 2015 7:25 AM EDT

By Mark Gilbert

Bloomberg

Even before Greece's referendum last weekend, European Union leaders said it would be interpreted as a vote on whether to stay in the euro. So it's curious that Greece has been given five more days to come up with a credible plan to receive another bailout package. It's also downright dangerous for the European project's future integrity.  While German Chancellor Angela Merkel doesn't want to preside over a fracture of the European Union's finest achievement, she needs to concede the inevitable: The euro will be better off without Greece, and Greece may well be better off without the euro.

Can Greece Rescue Itself?

JUL 6, 2015 4:48 PM EDT

By The Editors

Bloomberg

Greece has given Prime Minister Alexis Tsipras what he asked for: It has rejected the terms offered by its creditors for further financial help. With this vote, the country has taken a bold stride toward a political and economic precipice.

It's now for Tsipras to decide whether Greece goes over the edge. To avoid it, he will need to astonish the creditors and everybody else by reinventing himself -- immediately. In the meantime, Europe must plan for Greece's exit from the euro system.

Greece faces last chance to stay in euro as cash runs out

Tue Jul 7, 2015 2:44am EDT Related: WORLD, GREECE

BRUSSELS/ATHENS | BY PAUL TAYLOR AND COSTAS PITAS

Reuters

Greece faces a last chance to stay in the euro zone on Tuesday when Prime Minister Alexis Tsipras puts proposals to an emergency euro zone summit after Greek voters resoundingly rejected the austerity terms of a defunct bailout.

With Greek banks rapidly running out of cash and the European Central Bank slowly tightening the noose on their funding, Tsipras must persuade the bloc's other 18 leaders, many of whom are exasperated after five years of Greek crisis, to open rapid negotiations for a major new loan to rescue his country.

Rift Emerges as Europe Gears Up for New Talks on Greece Bailout

By LIZ ALDERMAN and JACK EWINGJULY 6, 2015

The New York Times

ATHENS — Germany continued to maintain a hard line with Athens on Monday, just a day after Greek voters decisively rejected a bailout deal from its creditors. But some European countries showed a willingness to soften the push for austerity that has proved so contentious.

The growing rift among European leaders threatens to complicate any new negotiations, as the Greek government moves to restart talks for an international bailout. It also adds to the pressure on Greece, which is close to financial collapse with both the banking system and the government quickly running out of money.

Greece Hits the Self-Destruct Button

 JUL 6, 2015 9:13 AM EDT

By Megan McArdle

Greece has decisively voted "no" or "oxi" in the #greferendum. I mean, decisively. By Sunday afternoon here in the U.S., the election map was a solid sea of orange for the "no" side.

I am shocked. I probably shouldn't be. I've been pointing out for a while that countries often do seemingly crazy things to themselves when they are mad at foreigners. The worst possible analysis of any sort of international situation is to say "Obviously, they're not going to do that, because that would be crazy!" There were probably a lot of reporters standing around saying that in 1914, while the crazy people went off and started World War I.

Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says

by John Glover

March 9, 2014 — 1:00 PM EET

Bloomberg

March 9 (Bloomberg) -- The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates, according to the Bank for International Settlements.

Stocks, euro fall but no rout after Greek 'No'

Mon Jul 6, 2015 4:39am EDT Related: GREECE

LONDON | BY NIGEL STEPHENSON

Reuters

Shares fell in Europe and Asia, the euro stumbled and yields on weaker euro zone economies' bonds rose after Greece overwhelmingly voted against conditions for a rescue package, but there was no rout and contagion was limited.

Investors sought low-risk assets including Bunds, but the yield premium of Italian 10-year debt over Germany remained below last Monday's eight-month highs.

The Catharsis of a Greek Exit

JUL 6, 2015 4:04 AM EDT

By Mark Gilbert

Greek Finance Minister Yanis Varoufakis's  resignation -- even after Greek voters firmly backed the government's refusal to accept its creditors' demands for economic austerity -- is the clearest sign yet that Prime Minister Alexis Tsipras is serious about getting a new bailout deal. Unfortunately, it's probably too late to keep Greece in the euro.

The euro zone now faces a horrible choice. Tsipras will resume negotiations claiming to have a fresh democratic mandate, making it unlikely he'll accede to the tax and pensions changes he's previously rejected. So a new bargain would look awfully like Greece getting its own way -- a reward for bad faith and bad behavior. Kicking Greece out of the euro, on the other hand, would prove once and for all that euro membership can be revoked. Nevertheless, the latter option remains the better of two bad choices.

Emerging ‘No’ Vote in Greece Poses Merkel’s Biggest Challenge

German leader’s response will shape future eurozone, but options are limited

The Wall Street Journal

By BERTRAND BENOIT

Updated July 5, 2015 6:03 p.m. ET

14 COMMENTS

BERLIN—The resounding “no” vote in Greece on Sunday presents German Chancellor Angela Merkel with her toughest challenge since the eurozone crisis broke out five years ago.

Her choice is now between yielding to Greek Premier Alexis Tsipras and sweetening the bailout terms for his country, or sticking to her hard line—and her own voters’ sentiment—in refusing any further concession.

Goodbye Greece: No Vote Means Grexit Is Finally Inevitable

JUL 6, 2015 @ 12:01 AM 4,397 VIEWS

Chris Wright ,CONTRIBUTOR

I write about banking and finance in Asia, the Middle East and Africa.

Forbes

Greece has spoken – and it says ‘oki’.

That’s no, to most of us: no to further austerity, no to a previous deal offered by the EU, IMF and other creditors, and no, effectively, to staying in the euro. The rhetoric from Greece – such as Greece’s labour minister Panos Skourletis saying: “The government can go now with a very strong card to continue negotiations [with creditors]” – seems to suggest that the government believes it can stay in the euro and use its referendum as a method to strength its own negotiating position. But the problem is, nobody with any power in Europe seems to share that view. They all think Greece has effectively voted to leave.

If Greece is ejected from the euro zone, it faces a chaotic currency switch

Washington Post

By Michael Birnbaum and Anthony Faiola July 2 at 8:03 PM  

ATHENS — The choice can be attractive for nations in financial peril: Stop paying debts, fire up the printing presses and flood the zone with cash. But the euro, for Greece, foreclosed that option. Now, longtime advocates of an exit from the shared currency may soon prevail.

If Greeks vote this Sunday against the harsh austerity that Europe has demanded in exchange for a financial lifeline, European Union leaders have said that Greece will eject itself from the euro zone. The transition would be a financial experiment run on the fly — and even some who have long championed Greece’s old currency say they are worried about the chaos that could ensue.

As referendum looms, Greece struggles to agree on the question

The Washington Post

By Griff Witte July 2 at 6:25 PM 

ATHENS — With just a day officially to go in a blink-and-you-miss-it campaign that could shape this country’s direction for decades, Greece is bitterly divided not only over how to vote but also over what question people are being asked to decide on.

To the radical leftist government and other “no” supporters, Sunday’s referendum represents a verdict on Europe’s latest cuts-for-cash bailout proposal — even though the offer no longer stands.

To the opposition and those backing “yes,” the choice is between sticking with Europe or going it alone.

Greeks Split Down Middle Before Bailout Referendum: Bloomberg Poll

by Nikos ChrysolorasMatthew Campbell

July 3, 2015 — 8:00 AM EEST Updated on July 3, 2015 — 9:14 AM EEST

Bloomberg

Greece is divided right down the middle heading into Sunday’s referendum on European bailout proposals, portending even more upheaval for the stricken nation.

A poll commissioned by Bloomberg News showed 43 percent intend to vote “no” to reject the austerity demanded by creditors in exchange for financial aid; 42.5 percent back a “yes” to accept the conditions, the survey of 1,042 people by the University of Macedonia Research Institute of Applied Social and Economic Studies showed. The margin of error was 3 percent.

Greece Is Doing Democracy Wrong

JUL 3, 2015 2:00 AM EDT

Bloomberg

By Noah Feldman

The Greeks invented democracy. So it might seem natural and appropriate that they’re having a referendum Sunday to decide whether to take a bailout deal previously offered by the European Union that would require austerity measures.

But in fact, under conditions of crisis, a referendum is a truly terrible idea. There are times when going around elected representatives is democratically valuable -- but in the middle of a life-or-death negotiation isn’t one of them. It’s a fantasy to think that some magical “popular will” can emerge from the vote by a divided Greek public.

In a crisis, effective democracy requires an elected leader to do what he or she thinks is right -- and take the consequences later, when elections are called. Prime Minister Alexis Tsipras’s failure to do this isn’t democratic -- it’s irresponsible hedging in the hopes of maintaining popularity even after a change in the policies that elected him. The popular will is in any case a useful fiction, as the Greek public is soon to learn, in case they’ve forgotten.

Plight of Greek pensioners heaps pressure on Tsipras

Thu Jul 2, 2015 3:23am EDT Related: GREECE

ATHENS | BY LEFTERIS KARAGIANNOPOULOS

Reuters

Long lines of pensioners jostling to get into a limited number of banks opened specially to pay out retirement benefits have become a powerful symbol of the misery facing Greece and the problems mounting for Prime Minister Alexis Tsipras.

With banks closed down and capital controls imposed to shield the financial system from collapse, the depth of the problems facing the country has become clearer each day.

Tsipras' leftwing government came to power in January vowing to protect pensioners and much of the breakdown in relations with international creditors centered on its refusal to accept the cuts in pensions that the lenders demanded.

Greek Referendum on Bailout Too Close to Call, Poll Shows

The battle lines are drawn in Greece. Now the politicians are waiting for the people.

by Nikos Chrysoloras

July 2, 2015 — 10:27 AM EEST

Bloomberg

Greek voters are almost evenly split heading into a referendum in three days that European leaders said could plunge the country into economic darkness.

A GPO poll cited by euro2day.gr said 47 percent leaned toward a “yes” vote, an endorsement of austerity and the international bailout. The “no” camp, the government’s position rejecting those terms, was 43 percent. The margin of error in the survey of 1,000 people was 3.1 percentage points.

The battle lines ahead of the vote appeared immovable after a day of posturing in the wake of the expiry of Greece’s bailout deal and its missing a payment to the International Monetary Fund. Politicians across Europe poured scorn on Prime Minister Alexis Tsipras’s strategy; he said the “no” vote would improve his leverage.

The 'Demerging' Greek Economy

28 JUL 1, 2015 12:34 PM EDT

By Marc Champion

Bloomberg

Greece may need a category of its own as it struggles with unmanageable debt and the prospect of falling out of the euro: That of a "demerging" economy.

The idea of emerging economies -- formerly poor, badly run and closed markets that open up and reform to produce rapid catch-up growth -- is well-known. We have acronyms such as BRICS and MINTs to group them.

Bankruptcy is a real possibility for Greece. Does its leader have a plan?

The Washington Post

By Michael Birnbaum and Anthony Faiola July 1 at 7:59 PM

ATHENS — Even Greek Prime Minister Alexis Tsipras’s inner circle appeared Wednesday to be asking the question that has been on the minds of European Union leaders for months: Does he have a game plan as bankruptcy looms in his struggling Mediterranean nation?

The charismatic prime minister’s path toward political survival seems to be quickly narrowing. Just five months after the leftist Tsipras swept to office amid bold promises to reshape Europe’s ­debate about how to secure its economic future, his nation may be pushed off the euro if it votes Sunday against its creditors’ tough austerity demands. And if Greeks defy Tsipras by voting to take the E.U. deal, he will face heavy pressure to resign.

Greek referendum poll shows lead for 'No' vote, but narrowing

Wed Jul 1, 2015 6:39am EDT Related: GREECE

Reuters

A majority of Greeks would vote 'No' to the terms of a proposed bailout deal by foreign lenders but the lead narrowed significantly after banks were closed this week, according to an opinion poll published on Wednesday.

The poll, conducted between June 28-30 and published in the Efimerida ton Syntakton newspaper, showed 54 percent of those planning to vote in Sunday's referendum would oppose the bailout against 33 percent in favor.

Europe Wants to Punish Greece With Exit

158 JUL 1, 2015 12:01 AM EDT

By Clive Crook

 Bloomberg

In my more than 30 years writing about politics and economics, I have never before witnessed such an episode of sustained, self-righteous, ruinous and dissembling incompetence -- and I'm not talking about Alexis Tsipras and Syriza. As the damage mounts, the effort to rewrite the history of the European Union's abject failure over Greece is already underway. Pending a fuller postmortem, a little clarity on the immediate issues is in order.

On Monday, European Commission President Jean-Claude Juncker said at a news conference that he'd been betrayed by the Greek government.