Nick Malkoutzis via Macropolis| Next summer, Greece is due to exit its eight-year programme. Athens and its creditors, who have closely shaped and overseen this long adjustment process, will want to argue that a changed country is emerging. The sorry state of the judicial system currently stands as one of the biggest blots in their copybook. The case against the former head of the Hellenic Statistical Authority (ELSTAT), Andreas Georgiou is a case in point.
Greece debt restructuring
Greece’s creditor countries in Europe do not feel like giving it a debt ‘haircut’. Furthermore, Greece says that the IMF is too pessimistic about the future. But Europe wants the IMF’s participation, which would give the agreement a greater hallmark of respectability.
“What is clear is that Greece cannot pay its debt and will never pay it. There needs to be an acquittance. And European legislation does not allow for waivering of debt. What they are going to do now, and it should have been done seven years ago, is to modify the conditions in such a way that the debt will be practically waivered,” says Spanish economist Fernando Eguidazu, as he leaves his Foreign Office post of Secretary of State for the European Union.
Nick Malkoutzis via Macropolis | The Greek government expects the economy to grow by 2.7 percent and living, working and investing in Greece might seem a more enticing prospect. It is difficult, though, to be anything other than cautious about the prospects of such a turnaround. Firstly, there will have to be a dramatic improvement in several sectors of the economy for this kind of growth to be achieved.
After the 2006 publication of his book “The Crash is Coming,” economist Max Otte became famous. In 2011 he launched another best seller, “Stop the Euro Disaster!,” which signalled the exit of Greece from the euro area and recommended that Spain return to the peseta. Otte has always argued that the euro has not united Europe.
Yiannis Mouzakis via Macropolis | The head of the European Stability Mechanism (ESM) Klaus Regling leads an organisation that in its previous form as the European Financial Stability Fund (EFSF), issued loans of 17.7 billion euros to Ireland, 26 billion euros to Portugal and just under 131 billion to Greece.
What is the meaning of all this dynamic of successive bankruptcies and bailouts?
Germany’s central bank calls for more supervision of the adjustments and reforms in Greece, while the IMF casts doubts over the sustainability of Greek debt.
MADRID | By JP Marin-Arrese | European governments are openly expressing dismay at the Greek election outcome. They have waited quite a long time to convey their congratulations wishes to Tsipras, the new elected Prime Minister. Berlin and Brussels stressed that debt restructuring was out of question while reminding him of the need to keep pledges from former governments as a pre-condition for securing financial support. Yet, they should come to terms with him, the sooner the better, as a thoroughly deceived and frustrated European Council member can inflict damage to EU action.