Tag: Greece

Greek PM Tsipras faces party revolt over bailout deal

The terms imposed by international lenders led by Germany in all-night talks at an emergency summit obliged Tsipras to abandon promises of ending austerity.   Instead he must pass legislation to cut pensions, increase value added tax, clamp down on collective bargaining agreements and put in place quasi-automatic spending constraints. In addition, he must set […]

Greek deal poisons Europe as backlash mounts against ‘neo-colonial servitude’

Greek premier Alexis Tsipras faced a furious backlash from own Syriza party on Monday night after yielding to draconian demands from Europe’s creditor powers, and agreeing to let foreign surpervisors to take control of his country. The bitter climb-down clears the way towards an €86bn rescue package and the renewal of emergency liquidity for the […]

Greece is being treated like a hostile occupied state

The cruel capitulation forced upon Greece after 31 hours on the diplomatic rack offers no conceivable way out the country’s perpetual crisis. The terms are harsher by a full order of magnitude than those rejected by Greek voters in a landslide referendum a week ago, and therefore can never command democratic assent. They must be […]

Greek PM Tspiras faces party revolt over bailout deal

Greece’s leftwing Prime Minister Alexis Tsipras faces a showdown with rebels in his own party on Tuesday furious at his capitulation to German demands for one of the most sweeping austerity packages ever demanded of a euro zone government.   Just hours after a deal that saw Greece surrender much of its sovereignty to outside […]

A Greek bailout deal can’t help Greek banks

The deal does mean that banks will be recapitalised, which should give the financial system a much-needed boost. But there’s a catch. Here’s the relevant section from the bailout agreement Greece agreed to this morning:   Valuable Greek assets will be transferred to an independent fund that will monetize the assets through privatisations and other […]

Greece Debt Crisis: Eurozone Leaders, Tsipras Reach Deal in Brussels

Jean-Claude Juncker, president of the European Commission, announced: “There is no Grexit.”   However, the deal — which includes the privatization of some state assets — needs to be ratified by a reluctant legislature in Athens as well as parliaments in other eurozone countries.   Tough conditions imposed by international lenders, led by Germany, could […]

Why Greece Is The Precursor To The Next Global Debt Crisis

Here are the basics of Greece’s economy, via the CIA’s World Factbook:   Greece’s population is 10.8 million and its GDP (gross domestic product) is about $200 billion (This source states the GDP is 182 billion euros or about $200 billion). Note that the euro fell sharply from $1.40 in 2014 to $1.10 currently, so […]

The really worrying financial crisis is happening in China, not Greece

While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great […]

Greece’s bailout plan: EU market reaction

Headlines from Bloomberg on Thursday evening characterized this plan as similar to the European Commission’s plan presented on June 26. Essentially, this suggests that this “new” plan is more likely to be approved by Greece’s European creditors because they came up with the plan in the first place.   The FTSE 100 is up nearly […]

Greece and the Bulgarian lev

The EU Observer reports that shops and restaurants in Greece are accepting the Bulgarian lev from foreign tourists instead of the euro, while the FT reports that some businesses are accepting the Turkish lira too.   Despite hopes of reaching a deal over the weekend, Greece is days away from running out of cash, and […]