Greece Watch...

[biffvernon]

A view from someone in France

GERMAN DEBT: 'Do as I say, not as I do.'"
Germany has not always been as rigorous on the need to pay a debt:
It has even failed to pay her debt twice , since the Second World War.
He was then to rehabilitate the defeated countries to anchor it to the Western bloc and stabilize the old continent ....
"Regulations of the German debt"
At the London Conference, ( February 27, 1953) , following the principle established in 1950, 21 of the FRG creditors decide an exceptional effort to help the FRG .....
• The debt is reduced by 62%: it rose from 39 to 14.5 billion DM;
• A five-year moratorium is granted;
• A period of 30 years is expected to pay;
• The country may restrict payment of debt service to 5% of its export earnings;
• If, due to a poor economic climate, RFA is struggling to pay off what remains, there is provided a suspension of payments and renegotiation of conditions;
• Interest rates are reduced;
• Repairs requests are referred to later (specifically, a prospective unification of the two Germanys ...)
Reminder: Greece is among the 21 signatory creditors!
Another point of history, even more sensitive: During World War II, the Germans plundered the Greek resources.
The Central Bank of Greece in particular was forced to "pay" to Germany 476 million Reichsmarks in respect of the war effort. Today, the repayment of this debt represent more than 50 billion euros.
In the immediate post-war American pressure on the reimbursement of these repairs had been referred to a future treaty of unification of the two Germanies.
The fall of the Wall in November 1989 buried awakened this old question.
But at the time of unification talks, Chancellor Kohl refused to pay for repairs related to the Second World War ....
FINDING: Germany defaulted on its debt twice: in 1953 and 1990.
Germany should be more understanding with the debtor countries ...as Greece.

[snow hope]

Fantastic information find Biff. I would love that to become more public and see what Angela Merkel had to say about it!! lol

[3rdRock]

http://www.ft.com/fastft/353421

Alexis Tsipras will accept all his bailout creditors' conditions that were on the table this weekend with only a handful of minor changes, according to a letter the Greek prime minister sent late Tuesday night and obtained by the Financial Times.

The two-page letter, sent to the heads of the European Commission, International Monetary Fund and European Central Bank, elaborates on Tuesday's surprise request for an extension of Greece's now-expired bailout and for a new, third €29.1bn rescue, writes Peter Spiegel.

Although the bailout's expiry at midnight Tuesday night means the extension is no longer on the table, Mr Tsipras' new letter could serve as the basis of a new bailout in the coming days.

[snow hope]

Confirmed on BBC website, http://www.bbc.co.uk/news/world-europe-33345219

[johnhemming2]

However, the Eurozone are now waiting for the result of the referendum. Unless the Greek government cancel the referendum they are not really going to get anywhere.

Furthermore the EZ chairman has already said that the terms will now be harsher than they were on Saturday.

The underlying problem is that rather than a group of 19 countries working together to find a compromise you have the Greeks taking unilateral action on one side and other people responding to that.

I really don't see the EZ responding any differently during the week. Obviously things will be getting more tense in Greece itself.

Today at the time of writing the FTSE 100 is about 90 points up and essentially the financial markets (outside Greece) have either priced in or ignored any issues about Greek default.

[emordnilap]

As the crisis in Greece continues to unfold, Molly Scott Cato, Green MEP for the South West, who is a professor of economics and sits on the European Parliament’s Economics Committee, has issued a statement. She said:

“People in Greece are suffering because they are the victims of financial markets and not the authors of their own fate. I am appalled at the suggestion that pensioners should see their incomes cut and the poor should face paying more for energy just so that distant creditors can benefit.

“I applaud the decision of the Greek people to vote for a positive alternative to the politics of austerity and I support their right to democratic self-determination.

“In the months since the Greek election the negotiations have made clear that the Eurozone is actually a neoliberal disciplining device. We are all suffering attacks on our democratic and social rights because of neoliberal ideology but Greece is the most extreme example. We need to stand in solidarity and resist the attacks on these rights which we have taken for granted for 70 years.

“Greece cannot pay its debts and a restructuring and debt forgiveness, based on the legal principle that recognises some of the debt as ‘odious’, is urgently needed.

“What happens in Greece is of vital importance to Europe and the world because democracy is being tested. If the EU challenges the democratic will of the people in order to allow the greed, wealth and power of financiers and corporations to prevail this represents a serious threat to the very principle of democracy.”

The Ecologist Green Party in Greece is part of the Syriza coalition government that has promised a referendum on Sunday asking Greek citizens if they will or will not support further austerity proposals. Molly is pushing for the solutions proposed by the Greens in Europe which include a special debt conference to agree debt cancellation for Greece and a ‘Green Recovery plan’. Dr Scott Cato added:

“Austerity has enforced terrible human suffering in Greece. Rather than adding further chapters to this Greek tragedy, The EU could and should be helping to unlock the huge potential Greece has for economic recovery by supporting investment in sustainable sectors of the economy. With the right investment, Greece could become the EU’s largest exporter of green energy, helping other countries meet their EU renewables targets while simultaneously helping the Greek economy to recover.”

http://mollymep.org.uk/2015/06/30/greek ... omist-mep/

Well said that girl. There's a lot more sensible commentators airing their views on Greece than are usually allowed in such situations, which is a measure of the egregiousness of the troika's behaviour.

[emordnilap]

John, the Capitalist system died the moment we had the first corporation that was "too big to fail". From that moment on we became part of the Corporatist system where everything is done for the benefit of the large corporations and the corporations ensure that it is so by paying for the political and academic systems and by controlling the press.

Have you seen the book by a former vice chairman of the LibDems, Donnachadh McCarthy, The Prostitute State? If you haven't you really should read it and at £12 it is a snip. Available from www.theprostitutestate.co.uk.

He should also read Naomi Klein's 'No Logo' and 'The Shock Doctrine'.

Sometimes, reading itself is not enough.

[PS_RalphW]

Greek reply to reports of capitulation

The Greek government has issued a statement on the Tsipras letter. Helena Smith reports from Athens:

“The Greek yesterday delivered a new proposal to the institutions accompanied by a letter of prime minister Alexis Tsipras. Reports that say the Greek government has fully accepted the institutions’ proposal do not stand,” said the statement, adding that the government’s proposal had included “a series of amendments to the institutions’ text.”

The new proposal was an attempt to find a mutually beneficial agreement that not only gave emphasis to growth but making the country’s monumental debt load viable, the government insisted.

“Several measures that the institutions are suggesting will not be enforced immediately but in stages so that the government can find equivalent measures to replace them,” it said.

guardian

[emordnilap]

http://www.ft.com/fastft/353421

Alexis Tsipras will accept all his bailout creditors' conditions that were on the table this weekend with only a handful of minor changes, according to a letter the Greek prime minister sent late Tuesday night and obtained by the Financial Times.

The two-page letter, sent to the heads of the European Commission, International Monetary Fund and European Central Bank, elaborates on Tuesday's surprise request for an extension of Greece's now-expired bailout and for a new, third €29.1bn rescue, writes Peter Spiegel.

Although the bailout's expiry at midnight Tuesday night means the extension is no longer on the table, Mr Tsipras' new letter could serve as the basis of a new bailout in the coming days.

If Greece was a seal cub, it would be dead by now.

If this goes ahead, it's outright fascism under another guise and may spell the end of Syriza, something some people will be delighted to witness.

There again, Tspiras's letter is contingent upon the referendum - he may be confident of of a no vote.

[johnhemming2]

Well said that girl. There's a lot more sensible commentators airing their views on Greece than are usually allowed in such situations, which is a measure of the egregiousness of the troika's behaviour.

It is rare that anyone is prevented from commenting on an issue. I know of a number of cases relating to secret court proceedings, but more generally people can always comment on the net.

In the end whatever proposal is to be agreed as a further bailout has to be agreed and passed through a number of European parliaments. In essence the key thing that was worrying the EZ (default) has now happened. This has not created financial armageddon. The Greek government continues to behave unprofessionally. For example if they really wanted an agreement with the EZ they should try to get the agreement before announcing it.

If China or Russia wants to buy Greece they would have to put in enough to clear the ELA. (currently around EUR 90bn)

[3rdRock]

http://www.rte.ie/news/2015/0701/711831-greece/

Tsipras to address Greek people after submitting 'amended' proposals to creditors

Greek Prime Minister Alexis Tsipras is due to address the nation in a televised speech after submitting a new bailout deal proposal to the country's international creditors.

[emordnilap]

Well said that girl. There's a lot more sensible commentators airing their views on Greece than are usually allowed in such situations, which is a measure of the egregiousness of the troika's behaviour.

It is rare that anyone is prevented from commenting on an issue.

On the web, yes. But of course the msm is pathologically biased and would not print such views as hers.

[3rdRock]

.... and this from July 2011.

https://www.youtube.com/watch?v=rK0De210TBQ

[biffvernon]

The 1953 London Debt Accords show that European leaders know how to resolve a debt crisis in the interests of justice and recovery. Here are four key lessons for Greece’s debt crisis today:

http://jubileedebt.org.uk/reports-brief ... -debt-1953

[PS_RalphW]

Germany refuses the latest offer from Greece. No deal until after Sunday's referendum, even though the referendum has been declared insufficiently democratic by being too fast and confusion over the wording.

I guess the opinion polls are showing that Greece will vote yes and Tsipras will be forced to resign. The troika can then name their terms with his replacement.

Not looking good for the people of Greece.