100 posts
Will Germany put its money where its mouth is?
Germany appeared to take a decisive step back from her traditional post-war role as paymaster of Europe today when Chancellor Angela Merkel issued harsh words on the prospect of a European bailout for the crippled Greek economy. During the governm...
When a Greek rescue plan is not a rescue plan, after all
The financial rescue plan devised by eurozone governments for Greece doesn’t look like a rescue plan in the classic sense. Like a thermonuclear weapon, it appears intended never to be used at all. The idea is that the Greek government itsel...
There Will Be Measures on Greece
We know that some measures will be taken to support Greece. The decision was taken during a meeting of the eurogroup on Monday. Officially we don’t know what the measures will be. Unofficially we know that most likely they will come in the form of...
About that Greek public sector
Charlemagne, over at the Economist blog, can be… uneven. But this recent post about Greece’s public sector is IMO top notch. It puts the creation of Greece’s huge, poorly paid, inefficient public sector in historical context: Take...
Greece: not a simple fable about ants and crickets
Greece is a real country, with tough politics and grim history...
The Karlsruhe factor
As riot police today were forced to use tear gas against violent crowds in Athens protesting against further Greek spending cuts to narrow the country's budget deficit (and save the eurozone), we recieved another reminder of German opposition to any...
Is Greece a natural disaster?
Two years ago, Stephen Colbert wanted to convince the US to join the EU, but now he is happy "about the self-destruction of Europe". And he knows why P.I.G.S is a perfect acronym on our continent. The Colbert ReportMon - Thurs 11:30pm / 10:30c Gree...
Setting a good example
Amid gloomy economic news about the state of Greece's public finances and impending austerity measures, former MEP and Greek singing legend Nana Mouskouri has today said she will donate her pension from her time as an MEP (1994-1999) to the public co...
Plan For Germany To Buy Greek Bonds Dismissed As 'Nonsense'
A German MEP says Germany, France and the Netherlands will buy Greek bonds to help Athens deal with its debt. A senior German official has dismissed the claims. READ MORE...
Assessing options for Greece
After weeks of contradictory statements on the question how to handle Greece, the Heads of State and Government of the EU member states used their informal European Council meeting on February 11th for a strong political signal that aimed at ca...
Another Take on Greece
Greece is one of the most important investors in the Balkans and most analysts are concerned that the financial crisis will have a spillover effect on the Balkan countries. Greece dominates the region’s banking sector with ownership or control of n...
Storm in a bowl of waaterzoi
Cripes they are all getting a little excited over in Brussels about Nigel Farage's comments yesterday. Now we hear that Yves Leterme, the Belgian PM has demanded in a letter to the President of Parliament that this should not happen again.Meanwhile J...
Greece Makes Strange Moves
Greek Deputy Prime Minister Theodoros Pangalos has criticised Germany’s attitude towards the ongoing Greek debt crisis, adding that Athens had never received adequate war reparations. The German foreign ministry said that a discussion about the...
Why blame only Athens?
The Greek economy is talk of the town. Not only in Europe but also on Wall Street in Beijing and the rest of the world. The issues at stake are well known by now. Greece needs to borrow money to finance its deficit and to refinance its debt. When Gre...
FT video: Greek shipping charts difficult course
Greek shipping has enjoyed a surprisingly good year. But there are difficult times ahead for an industry that faces increased competition and dangerous levels of overcapacity. function doLoad() {var mp = new MavenPlayer('mp_blogs');mp.setParameter('...
What makes Germans so very cross about Greece?
The problem is Greek pensions...
The Positive Side of Greece’s Economic Troubles
PARIS - On October 4, 2009, the Greek Socialist Party Pasok scored a large victory in early national elections. With a clear majority (160 out of 300 seats) in the Greek legislature, Pasok’s top candidate George Papandreou became prime minister. A...
Geopolitical Consequences of the Greek Financial Crisis
In his Transatlantic Take piece, Francois Lafond reflects on recent developments and offers some pointers for future economic governance within the Eurozone. Having just returned from Athens, let me add some additional reflections on the potential...
The provincial Government in Greece waits for instructions.
The sight of the Greek government waiting in silence whilst the EU deliberates must surely make it absolutely clear to any observer that it is no longer an independent state.Greece to decide on new measures after EU visit - finminGreece will wait unt...
Greece: citizenship for children of immigrants?
In between trying to deal with one of Europe’s worst economic crises and a crippling series of strikes, the Papandreou government in Greece has introduced a new immigration law. It would allow the children of immigrants to apply for Greek citi...
Bail-out?
EuroIntelligence gives this tip: Germany will contribute 20% to the Greek bailoutDer Spiegel has the...
Greece and Goldman Sachs
Investigative reports by the New York Times and Der Spiegel have left Goldman Sachs and Greece squirming in the limelight. For at least fifteen years, the American investment bank has been helping Greece legally massage its public finances. The arran...
A Greek Tragedy or a European Farce? Time to Re-Write the Script
In the official account of the unfolding Greek tragedy the villain is readily identified, the plot is clear, and the dénouement inevitable, tragic, but ultimately both just and morally uplifting. The villain of the piece is Greece itself: a bloated...
EMU holiday
Interesting article from Economics Professor and heavyweight Martin Feldstein in the Financial Times this morning - suggesting a temporary vacation from the single currency might be a plausible solution to the Greek debt crisis.It's one we haven't he...
Greece throws spanner in the eurozone gravy train
It was bound to happen sooner or later. The fact that it is Greece will surprise few, but the sheer extent of the deficit and debt – 12.7% and touching €300 billion respectively – will have come as a nasty shock to fellow eurozone members...
Further reading: Brussels
The eurozone: Athenian arrangers (FT reporters, FT) Let Greece take a ‘eurozone holiday’ (Opinion, FT) Brussels and the Greek debt trick (Editorial, FT) Thinking the unthinkable about the Euro (Dan Roberts, Guardian blog)...
FT video: Greece needs a reinvention
Solving Greece’s current debt crisis is just the start of fixing the economy. function doLoad() {var mp = new MavenPlayer('mp_blogs');mp.setParameter('checkSystemId', 'systemRequirementsHTML'); mp.setQueryParamsAsVariables(false);mp.setVaria...
Currency or Politics?
The financial turmoil arising from the Greek government’s indebtedness is likely to have a profound effect of the future constitutional development – and enlargement – of the European Union. So anyway it seems to me. All the improbabl...
Greece: “No Additional Measures Needed”
The Greek finance minister has rebuked claims by the European Commission that the recently approved austerity plan may be inadequate. Georgios Papaconstantinou said that taking additional action at this point would contravene the EU’s establish...
You can’t buck the market
Margaret Thatcher’s famous aphorism echoes down the decades, and is heard nowhere more clearly at present than in Greece. The Greek government is struggling to convince the bond markets that it can pay its debts. The interest rates it has to pay...
Just What Is The Real Level Of Government Debt In Europe?
“If you don’t fully understand an instrument, don’t buy it.” To the above advice from Emilio Botín, Executive Chairman of Spain’s Grupo Santander, I would simply add one small rider: Don’t sell it either, especially if you are a nationa...
Few Surprises As Greece’s Economic Contraction Accelerates
Well, I may say there were no surprises, but in fact the Greek economy contracted more than many observers expected in the fourth quarter, while downward revisions to the rest of 2009 converted the present recession into the country’s worst sin...
The Serious People want Europe humiliated
There is no need for the EU to expose itself to these difficulties. It has...
Could the Greek Crisis Turn into an Opportunity?
Greece has attracted in recent weeks a great deal of rather unwanted and unsavoury attention due to its ailing state finances. The EU Council Meeting of 11 February fell short of announcing a bailout package; it stressed, however, European support fo...
European Council Gives Moral Support to Greece
The informal European Council has fully supported the efforts of the Greek government and their commitment to do whatever is necessary to tackle its fiscal crisis. The eurozone Member states have said that they will take determined and coordinated ac...
Pigs fly: Sensible EU-related commentry in a usually eurosceptic British newspaper
I nearly dropped my copy of today’s London Evening Standard in amazement at the 2/3rds of a page comment piece by Financial Editor Anthony Hilton. He’s got a strong track-record for saying moderately sensible stuff when it comes to Europe...
I'm wary of Greeks bearing debts
The media are widely reporting that today's EU "Informal meeting of the Heads of State...
A deal to save Greece
It looks as if there is a deal to bail out Greece. It was agreed by a fairly small group which included the leaders of the two strongest countries in the Eurozone, France and Germany. Also present was the head...
Germany Rescues Greece but Demands its Pound of Flesh
Today’s European Union summit in Brussels will set out the framework for a financial rescue operation for Greece. This much is clear is from various briefings being given by officials from countries as varied as Austria, Lithuania, Poland and...
FT video: Greeks take to the streets
Hugh Williamson, the FT’s Europe news editor, reports from Athens. function doLoad() {var mp = new MavenPlayer('mp_blogs');mp.setParameter('checkSystemId', 'systemRequirementsHTML'); mp.setQueryParamsAsVariables(false);mp.setVariable("GEO_CO...
What to Do with Greece?
The pressure is mounting on the European Union to do something about Greece’s debt and fiscal deficit problems. The word “bail-out” is heard more and more often. Meanwhile the Greek public sector workers have gone on strike in the first major t...
Greece Gets The Green Light, But Will It All Work?
Well, as reported over the weekend on this blog, the EU Commission did in fact demand “more sacrifices” from the Greek people, and in the end Prime Minister Papandreou had to make a last minute TV appearance to explain to his incredulous...
How ‘Systemically Relevant’ is Greece?
‘Greek misery’, ‘Hellenic precipice’ or unwelcome comparisons with Dubai and Iceland, who both cannot repay their debts. Truly, the headlines about Greece since the start of the New Year could hardly be more telling. They are similar to a Gre...
Euro's Greek squeeze
ATHENS: I am in Greece to ride out another anxious week for the euro. It is facing its severest test since its birth in 1999. Financial eyes remain focused on Greece and whether it can finance its debt. It needs...
Great people writing for us: The EP web editors
Imagine 39 people writing for 500 million people in 22 languages. Now imagine they are young and cool. And now imagine they exist and they are the actual European Parliament web editors. If you haven't seen them or if you haven't heard of them, now...
Greek Bailout News (1)
“British or German taxpayers cannot finance the failures of others,” German Economy Minister Rainer Bruederle said at the World Economic Forum in Davos, Switzerland, according to the Associated Press. “Solidarity also means everybod...
Greek woes continue…Euro roundup
Distilled Geography: Europe’s Alcohol Belts from Strange Maps It matters where we are, for it helps determine who we are. Or, as the quote often attributed to Napoleon states: Geography is destiny. That destiny extends to drink, as demonstrated by...
Another twist
Here's another thought for the weekend.Apart from the legal obstacles (at least on paper) involved in giving emergency support to Greece - something we've touched on many times before - there may be a second legal hurdle that EU leaders have to clea...
Just who are these dark forces attacking Greece?
Here come the conspiracy theories...
Will European bonds translate into Eurobonds?
There are, we are told, no plans to bail out Greece, which has come under a lot of pressure and scrutiny for its government debt. However there seems to be a general feeling that if it came to it, Greece would be bailed out: see the Irish Times and A...
Rumours, Rumours, But No Greek Bond Sales To China
Well there certainly is a lot happening out there at the moment. And Monday’s successful bond sale which left the Greek government triumphally proclaiming they could comfortably meet their 2010 borrowing program now seems to belong to a lifetim...
Greece ought to borrow a leaf from recession-savaged Ireland
How can Greece dig itself out of crisis? From the sunny shores of south-eastern Europe, it could do worse than take a look at the windswept, north-western corner of the continent and study what the Irish government is doing. As I noted last week, G...
Euro credibility at stake in Greek economic crisis
We’ve heard a lot about banks that are “too big to fail”. Perhaps a more immediate question is whether the sovereign nation of Greece is too big to fail. The risk of default and the threat of Greece quitting the eurozone would have profound imp...
A Greek bailout, and soon?
IN Brussels policy circles, the question asked about a bailout of Greece used to be: are European Union governments willing to do this? Now, I can report, the question among top EU officials has changed to: how do we do this?Twice in the past 48 hour...
To bail out or not to bail out, that is the question
As Greece's troubles continue (save yesterday's temporary boost), the debate on whether the EU Treaties legally allow the EU to bail out one of its member states rages on. On his blog, the FT's EU correspondent Tony Barber claims that the "EU possess...
It all kicks off in Greece
Greece's financial troubles may be hitting the euro, but this has not deterred Greek farmers who have been in a ten day confrontation with their government as it desperately seeks to stabilise the budget. The farmers have marched through central Ath...
EU possesses the legal power to rescue Greece if necessary
There is a need to clear up some misconceptions about how Greece, or some other fiscal miscreant in the 16-nation eurozone, would be rescued by its partners in the event that it was unable to refinance its debts. Quite a few commentators seem to thin...
So what are the consequences of the budget deficit in Greece?
Martin Wolf has an article on the Greek financial situation where he notes that there...
Half a League Onward Rode the Six Hundred
Well you may doubt their wisdom, and you may doubt their rigour, but there’s no doubting their tenacity. This looks like being Marathon all over again. New EUR 5 Year Mandate for Greece The Hellenic Republic, rated A2/BBB+/BBB+, has mandated C...
Does Anyone Really Know The Size Of The Greek 2009 Deficit?
While investors are generally aware of the dire state of the western economies’ accounts, quite a few of them are optimistic that these large budget deficits can be closed through a combination of fiscal discipline and expenses reduction. Such opti...
The EU Is Reportedly Exploring Making a Loan To Greece
Pressure on Greek finances continues unabated. According to European Voice this morning the EU Commission and Finance Ministers remain most reluctant to call in the IMF (which I think would be the best solution) but they are themselves actively comte...
The Blockade of the Greek Border Crossings Breaches EU Law
The blockade of the Bulgarian – Greek border crossings by Greek farmers is in stark violation of EU law. The blockade infringes the right of European citizens to move freely within the territory of the Member states (art. 21 TFEU) and hinders the f...
The Eternal Conjuring Trick of Greece’s Public Finances
Greece’s fiscal emergency is a most mystifying crisis. At one level, it is the most serious test of the eurozone’s unity since the launch of the euro in 1999. Unless correctly handled, the problem with Greece’s public finances
New Deficit Plan for Greece
The Greek government has adopted a new plan to reduce the budget deficit in the next few years. The plan aims to cut the deficit to 8.7 percent of GDP this year, 5.6 percent next year and below 3 percent by 2012. The plan envisages deep cuts in hospi...
Will She….Won’t She? The Greek Government’s “Latin Tango” With The IMF
Well the wires are really alive this morning. Greece is receiving a visit from the IMF today. The meeting was scheduled well in advance, but that doesn’t mean the agenda was. A team of International Monetary Fund officials arrive in Greece tod...
The IMF Is Ready To Help Greece If Asked - So Why Not Ask Them?
“The EU should create a mechanism to help out countries which found themselves in Greece’s shoes. But one has to believe Greece will solve its problems by itself.” This is the view expressed by Marek Belka Director of the IMF’...
That “Staggering” Greek Deficit Continues To Stagger Onwards and Upwards
Only a few short weeks ago the financial and economic world declared itself staggered to learn that the 2009 Greek fiscal deficit was going to come in at 12.7% (mind you, as the conservative Dutch newspaper NRC Handelsblad pointed out, there was plen...
Is modern democracy turning into a circle of revenge?
In Greece, given the bad shape of the Greek economy, the danger of default, problems with the design of pension schemes and the redesign of educational system, everyone has a reason to be dissatisfied. More and more frequently governments become shor...
Quantifying Eurozone Imbalances and the Internal Devaluation of Greece and Spain
Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning. Winston Churchill, 1942 Summary The extent, so far, of the internal devaluation process depends on the time period used for analysis. U...
Why The Ratings Agencies Are Right And George Papaconstantinou Is Wrong
The Greek government is having a hard time of it at the moment. Only today the Finance Ministry issued a statement that it was ready to “intensify its efforts to restore the viability of fiscal and economic trends in Greece” in response t...
Beware Greeks Bearing Gilts
Crisis, what crisis? While reviewing some of the EU’s 2009 economic projections I was startled to note that this year, while more fiscally retentive states such as Germany and the Netherlands will contract by 5 and 4.5 per cent, Greece is on co...
Greece: preventing market-driven sovereign default by strong conditionality
The Greek case is moving markets – and minds. Over the last few weeks, for instance the German government including Angela Merkel has become a strong proponent of economic policy coordination in the Eurozone. Not only financial markets are nerv...
Europe Needs Action Not Words From The Greek Finance Minister
“Today our biggest deficit is that of credibility.In the last years Greece lost all traces of credibility, which is why international institutions, partners want to see actions.” Greek Prime Minister George Papandreou As the Economist points out,...
A Short Political History Of Modern Greece
Greek Governments Since 1963 63-65 George Papandreou 65-67 Chaos 67-74 Military Dictatorship 74-80 Konstantinos Karamanlis 80-81 George Rallis 81-89 Andreas Papandreou (son) 89-90 Chaos, 3 failed elections 90-93 Konstantinos Mitsotakis 93-96 Andreas...
So What’s It All About, Costas?
All the recent critical attention which has been directed towards Greece of late might seem surprising to some (or part of a global anti-PIGS conspiracy, to others) since, on the face of it, the Greek economy had managed over the last decade to appea...
A New Version of the Weak Euro Meme
Well, having been so lavishing in my praise of Ralph Atkins in recent posts, perhaps it is time for the administration of a gentle “rapapolvo” (otherwise, you know Ralph, people might start to talk), and just to hand he offers me the idea...
Potential Greek default - how doomed is the euro?
The quick answer is: not, as the Guardian notes and even the Torygraph admits (by...
Greece Blocked Decision on Macedonia?
Bloomberg reports that Greece has blocked a proposal to set a starting date for starting accession negotiations with the Republic of Macedonia. This comes after a meeting between the prime ministers of Greece and Macedonia, George Papandreou and Niko...
It’s All Greek To Me
In the long run we are all dead. But as someone else famously put it: we ain’t dead yet, and in the space between these two undeniable truths move forex traders, financial markets and a host of other would be economic participants. The financia...
