Public debt, unemployment, big NPL pile weigh on Greece: central bank governor

NOVEMBER 10, 2017 / 11:57 AM / UPDATED 16 MINUTES AGO
Reuters Staff
2 MIN READ


Reuters

ATHENS (Reuters) - Greece’s banks have shown progress in tackling a stockpile of non-performing loans, Bank of Greece governor Yiannis Stournaras said on Friday, but said it would remain a challenge for the country.

Greek banks are saddled with 103 billion euros in bad loans, equal to almost 60 percent of the economy, after years of financial crisis and crippling recession. The European Central Bank wants that reduced by 38 billion euros by the end of 2019.

A Turning Point for Greece

By Marcus Ashworth

Bloomberg

Nov 6, 2017 1:00 AM EST
Greece is taking a step closer to get the respect it deserves from Europe.Yields on the country's government bonds, which have already taken great strides lower this year, hit a new low last week on news the government is preparing a major debt swap. The exercise, first reported by Bloomberg News, should allow Greece to sell bonds in future -- and help end its dependence on the largess of its main creditors.

Refugees in Greece demand transfer to Germany, start hunger strike

NOVEMBER 1, 2017 / 3:35 PM / UPDATED 18 HOURS AGO
Karolina Tagaris, Deborah Kyvrikosaios
3 MIN READ
ATHENS (Reuters) - A group of mainly Syrian women and children who have been stranded in Greece pitched tents opposite parliament in Athens on Wednesday in a protest against delays in reuniting with relatives in Germany.

Some of the refugees, who say they have been in Greece for over a year, said they had begun a hunger strike.

“Our family ties our stronger than your illegal agreements,” read a banner held up by one woman, referring to deals on refugees between European Union nations.

Papadopoulos Claimed Trump Campaign Approved Russia Meeting

By Greg Farrell , David Voreacos , and Henry Meyer
1 Νοεμβρίου 2017, 12:29 π.μ. EET Updated on 1 Νοεμβρίου 2017, 3:45 π.μ. EET
Plan to include top aides ‘approved by our side,’ he wrote
Ex-adviser’s claim unsubstantiated; no sign meeting took place

Former Trump adviser George Papadopoulos made a significant claim in an email: Top Trump campaign officials agreed to a pre-election meeting with representatives of Russian President Vladimir Putin.

Divided and Conquered, Catalonia Weighs the Damage

 It might look over, but the Spanish region’s independence bid has long-lasting repercussions.
By Charles Penty , Manuel Baigorri , and Esteban Duarte
Bloomberg

The drama in Catalonia may have reached its epilogue, but the economic and political consequences are still to emerge for a region Spain could never afford to let go.For now, the separatist leadership has been deposed, a would-be European republic snuffed out and a potential bank run avoided.
Spanish Prime Minister Mariano Rajoy has gone from lame duck premier dogged by a party corruption scandal to the country's unlikely savior. Catalan President Carles Puigdemont painted himself on Tuesday as a victim of the vengeful state after fleeing to Brussels to avoid arrest.
Yet that winner-and-loser narrative masks a delicate balance. Catalonia's 7.5 million people remain as torn as ever in the stop-start push for their own state since the death of General Francisco Franco four decades ago. A tumultuous month started with an illegal independence referendum on Oct. 1 that police tried to forcibly extinguish. It culminated with a loss of autonomy that’s cherished even by those who want to remain part of Spain.

Five Argentines among 8 dead in New York City terror attack

By Renae Merle, Devlin Barrett, Wesley Lowery, Rachel Siegel and Samantha Schmidt November 1 at 12:19 AM

The Washington Post

NEW YORK — A 29-year-old man driving a rental truck plowed down people on a Manhattan bike path Tuesday in what authorities described as a terrorist attack that killed eight and injured 11 before the suspect was shot and arrested by police.

A sunny fall day along the Hudson River erupted in chaos just around the time students were getting out from nearby Stuyvesant High School, when a rented Home Depot truck turned on to the bike path along the West Side Highway.

Don't blame others for your problems, Germany's Schaeuble tells Greece

OCTOBER 25, 2017 / 12:03 AM / UPDATED 14 HOURS AGO

Reuters Staff

3 MIN READ


REUTERS

ATHENS (Reuters) - Outgoing German Finance Minister Wolfgang Schaeuble urged debt-wracked Greece to stop blaming others for its financial woes and stick to a reform agenda instead of relying on debt relief.

Schaeuble, a leading advocate of Greece’s tough austerity programs and one of Germany’s most powerful politicians, was elected speaker of its lower house of parliament on Tuesday.

The 75-year-old lawyer, whose no-nonsense approach on austerity made him a popular hate figure among Greeks, told Greek Skai TV that Athens must take responsibility for its fiscal difficulties and act on them.

Xi Jinping's ‘New Era’ China a new era for the world?

Carrie Gracie
China editor

As Mr Xi declares China ready "to move towards centre stage in the world", it's not clear whether his mission to control will help or hinder him.

Officially no reason was given for barring the BBC, Financial Times, Economist, New York Times and Guardian, but unofficially journalists were told that their reporting was to blame. Another sign of Xi's determination to control the message at home and abroad.


BBC

Western media is still wrong. China will continue to rise.

By Eric Li October 24 at 2:28 PM

The Washington Post

SHANGHAI — As the 19th National Congress of the Communist Party of China draws to a close, analysts are parsing through President Xi Jinping’s 30,000-plus-word report — delivered in a three-and-a-half-hour address without breaks — to decipher the direction of the most populous nation in the world. It is a laborious effort, especially considering the report’s extensive official jargon and policy details.

But there is a much easier way. Read The Economist’s coverage of the congress, which is considerably shorter in length, and bet on the opposite being true. Let me explain.

Xi Jinping Unveils China’s New Leaders but No Clear Successor

By CHRIS BUCKLEYOCT. 24, 2017


The New York Times

BEIJING — President Xi Jinping thrust China into a new era of strongman politics on Wednesday, unveiling a leadership team without a likely successor among the six officials who will help him rule for the next half decade.

In a nationally televised ceremony, Mr. Xi introduced the new members of China’s highest council of power, the Communist Party’s Politburo Standing Committee, on the red carpet of the Great Hall of the People in Beijing. In addition to Mr. Xi and China’s premier, Li Keqiang, the committee included five new members, all men in their 60s.

“Over the past five years, we’ve done a lot. Some work has been finished, some we must continue with,” Mr. Xi, 64, said after briefly introducing the committee members, who stood stiffly in line. “A new era needs a new look, and even more needs new accomplishments,” he added.

China’s leader Xi Jinping declares the start of a “new era”

It sounds much like the old one—only more so

The Economist

Oct 21st 2017 | BEIJING
IN THE days before the opening on October 18th of the Chinese Communist Party’s quinquennial congress, the country’s security officials put their surveillance efforts into overdrive. On Chang’an Avenue, the boulevard that passes by the venue in Tiananmen Square, naked flames were banned. Tough luck for restaurants, family dinners and smokers. Out-of-towners driving to the capital were stopped at checkpoints and made to sign papers promising not to get into trouble during the week of the congress. Foreigners were barred from travelling to Tibet. The region is well over 1,000 miles from the capital, but the party fears that even a lone banner-waving separatist sympathiser that far away could spoil the event in Beijing.

EU ends Greece's deficit procedure in positive signal to markets

SEPTEMBER 25, 2017 / 12:04 PM / UPDATED AN HOUR AGO
Reuters Staff
2 MIN READ


BRUSSELS (Reuters) - European Union states decided on Monday to close disciplinary procedures against Greece over its excessive deficit after improvements in Greece’s fiscal position, confirming the country’s recovery is on the right track.

The move, although largely symbolic, sends a new signal that Greece’s public finances are again under control, facilitating the country’s plans to tap markets after a successful issue of bonds in July which ended a three-year exile.

EU fiscal rules oblige member states to keep their budget deficits below 3 percent of their economic output or face sanctions that could entail hefty fines, although so far no country has received a financial penalty.

Greece had a 0.7 percent budget surplus in 2016, and is projected to maintain its fiscal position within EU rules’ limits this year.

“In the light of this, the Council (of EU states) found that Greece fulfils the conditions for closing the excessive deficit procedure,” the EU said in a note.

“After many years of severe difficulties, Greece’s finances are in much better shape. Today’s decision is therefore welcome”, Estonia’s finance minister Toomas Toniste said.

The EU states’ decision confirmed a proposal by the EU executive commission in July to end the disciplinary procedure for Greece.

The economics commissioner Pierre Moscovici said the decision was “a recognition of the tremendous efforts and sacrifices the Greek people have made to restore stability to their country’s public finances.”

But he stressed that Greece still needs to positively exit its bailout program which ends in August after a third review of the country’s reforms by international creditors.

“There needs to be constructive cooperation between all institutions and the Greek authorities to ensure a smooth and swift conclusion of the third review, with no unnecessary drama,” Moscovici said.

Like Germany’s Social Democrats, left-wing parties are losing ground across Europe

By Rick Noack September 25 at 3:19 AM

The Washington Post

BERLIN — The 2017 German election fits at least three bigger trends. There was Merkel who convinced Germans to grant her a fourth term in office, reaffirming her position as the preferred choice in the center. The Alternative for Germany (AfD) joined a number of other far-right parties across Europe in gaining seats in parliament for the first time, becoming the most likely choice of those drawn to the political side-lines on the right.

And then there was the Social Democratic Party (SPD) which suffered a humiliating defeat, in yet another indication of the challenges some traditional left-wing groups across the continent are facing.

Denmark’s Social Democrats were ousted by a center-right coalition headed by the mainstream Venstre party in 2015. In Austria, the Social Democrats are similarly facing record-losses in upcoming elections, and France’s Socialist Party remains in a deep crisis following its defeat earlier this year.

The decline of Europe’s social democrats is closely associated with the rise of the far-right, experts said.

In Germany, core issues usually believed to play into the hands of the Social Democrats, such as social justice and fair wages, have become less of a concern over the last four years. Instead, immigration and security are now some of the most dominating topics.

“The core competencies of the Social Democrats currently don't really play a big role,” said Timo Lochocki, a political researcher with the German Marshall Fund, an American think tank.

“The last year really did mark a collapse of the social democrats across Europe, as the immigration debate gained momentum,” agreed Tarik Abou-Chadi, a researcher at Humboldt University in Berlin. “Many European social democratic parties are quite divided on the issue of immigration, which is why they are refraining from discussing it,” he said.

As the social democrats mostly remained silent, many voters shifted either to right-wing populist parties or to more outspoken parties on the left.

Other trends, such as a growing number of higher education graduates and a shift away from traditional industries has further eroded social democrats’ support base. Despite that process having dragged on for decades, the social democrats were still able to win elections in the past, however. Prior to the Merkel era, Social Democrat Gerhard Schröder achieved victories with record margins over the conservatives only a little more than a decade ago.

In Great Britain, the Labour Party still appears to be able to make significant gains even today, as it showed during general elections in June. Their unexpected rise in the polls may not be a sign of a social democratic revival more generally, however.

“The momentum created by Britain’s decision to leave the European Union makes Britain a special case which is hard to compare. The U.K.’s electoral system also clearly favors the biggest parties — which makes it distinct from many other European nations,” said researcher Abou-Chadi.

“It also probably has to do with the fact that Theresa May is so deeply unpopular among many in Britain. Of course, Germany’s Merkel is in a far different position,” he said. 68 percent of Germans stated in a recent Gallup poll, conducted prior to Sunday’s vote, that they were satisfied with Merkel’s leadership.

Yet, only a little more than 30 percent of the population ended up voting for her party, the CDU, and Bavaria’s CSU.

Instead of voting for the mainstream alternative, the SPD, some of them chose the far-right instead.

At a leftist protest against the far-right on Sunday evening, hundreds encircled the AfD’s election party location near the Alexanderplatz in central Berlin. “All of Berlin hates the AfD,” some protesters were shouting, as others held up posters with slogans such as “Not my party.”

Responses by protesters here reflected the dilemma the Social Democrats are now in. “I just hope that the response of mainstream politicians to today’s result won’t be a shift toward the right. Simply adopting the same policy positions won’t solve the problem,” said 29-year old designer Henrik Dagedorn. Elsewhere in Europe, some social democratic parties have experimented with adopting more anti-immigration positions, but faced a backlash by its urban and young supporters.

There was uncertainty among the protesters about how to stop the rise of the far-right instead, however.

“I fear that they might stay in parliament longer than we expect, because there won’t be any imminent solution for the problems that got them elected in the first place,” said Martina Schnepka, 51, a nurse.

For Germany's Social Democrats, there does not appear be any imminent solution, either.

As Crisis Ebbs, Tsipras Promises Doubters a 'New' Greece

By REUTERSSEPT.
21, 2017, 9:57 A.M. E.D.T.

ATHENS — Greek Prime Minister Alexis Tsipras has found a precious commodity he hopes can help him and the nation turn a corner after years of crisis and austerity -- time.

Since taking power in early 2015, he has spent most of his days and nights in firefighting mode, battling Greece's creditors to renegotiate the harsh terms of a series of bailout deals.

Merkel’s Problem: Booming German Economy Is So 20th Century

Low unemployment and high exports are masking a backlog in technology and investment.
By Rainer Buergin  and Tony Czuczka
Bloomberg

20 Σεπτεμβρίου 2017, 6:00 π.μ. EEST
Germany’s steady economy is a boon for Chancellor Angela Merkel as she seeks a fourth term on Sunday. Even the diesel-vehicle emissions scandal is barely denting national pride in German high-end manufacturing. Yet a closer look reveals a backlog in 21st-century benchmarks such as broadband and education, pointing to costly catch-up efforts facing the next government. 

It's Bailout-Review Time in Greece and Markets Are Wary - Again

By Sotiris Nikas  and Viktoria Dendrinou
20 Σεπτεμβρίου 2017, 5:00 π.μ. EEST

Bloomberg

Crunch time for Greece as review tests bailout-exit capability
IMF demands on Greek banks, debt relief among review issues
The moment of reckoning may soon be upon Greece.

As the country enters the final year of its bailout, questions remain on whether it will be able to stand on its own feet when the rescue program ends. In the immediate term, with creditor representatives descending upon Athens last week for the third review, other concerns loom large: Will this review of the bailout program be different from the previous two? What role will the International Monetary Fund play? Will Greece complete the 95 measures in the review in time?

With Combative Style and Epithets, Trump Takes America First to the U.N.

By PETER BAKER and RICK GLADSTONESEPT. 19, 2017


The New York Times

UNITED NATIONS — President Trump brought the same confrontational style of leadership he has used at home to the world’s most prominent stage on Tuesday as he vowed to “totally destroy North Korea” if it threatened the United States and denounced the nuclear agreement with Iran as “an embarrassment” that he may abandon.

In his first address to the United Nations General Assembly, Mr. Trump framed the conflicts as a test of the international system. The bombastic flourishes that generate approving roars at political events were met by stony silence, interrupted a few times by a smattering of applause, as Mr. Trump promised to “crush loser terrorists,” mocked North Korea’s leader as “Rocket Man” and declared that parts of the world “are going to hell.”

Greece Must Complete Most Pending Bailout Reforms by November-PM

By REUTERSSEPT. 18, 2017, 6:48 A.M. E.D.T.


The New York Times

ATHENS — Greece must complete most of the pending reforms agreed with its official creditors by November in order to speed up the conclusion of a key progress review and exit the bailout in time, Prime Minister Alexis Tsipras told his cabinet on Monday.

Greece's bailout progress is being reviewed by its lenders on a quarterly basis and the next review is expected to start in October. Tsipras has promised to make the country financially independent by 2018, when its third rescue programme expires.

World Wildlife Fund sues over Greece oil spill from tanker

By THE ASSOCIATED PRESS ATHENS, Greece — Sep 18, 2017, 3:37 PM ET

The World Wildlife Fund filed a lawsuit Monday over extensive pollution to the coastline outside Athens following the sinking of a tanker near Greece's largest port.

The environmental group's Greek branch filed the lawsuit in the port city of Piraeus against "anyone found responsible," a common practice when a party that could be held legally accountable has not been identified formally.

The IMF Needs to Stop Torturing Greece

The fund should write down the country's debt, not demand another bank recapitalization.
By J. Kyle Bass

19 Σεπτεμβρίου 2017, 7:30 π.μ. EEST

“Beware of Greeks bearing gifts,” wrote the ancient Roman poet Virgil. In the 21st century, it’s the Greeks who should have been more careful about accepting offerings -- specifically from the International Monetary Fund, which is now torturing the country in a misguided effort to get its money back.

Greek officials have worked hard to shore up their economy and finances. From 2010 through 2016, the government achieved the all-but-impossible task of shrinking its primary budget deficit by nearly 18 percent of gross domestic product, and is finally in surplus. After a brutal contraction of almost 30 percent, the economy is exhibiting positive signs in almost every area -- industrial production, new automobile registrations, construction permits, tourist arrivals.