Greece and Its Creditors Pummel Each Other, but Fight Is Not Over Yet
Like prizefighters, the two sides of the negotiations over the Greek bailout have been circling each other, throwing punch after punch. On Friday, Greece ’s prime minister, Alexis Tsipras , headed to Russia and suggested he was looking for “safe harbors,” while the day before officials at the European Central Bank sent gasps through Athens by declaring that Greek banks might not open on Monday. It is a mesmerizing slugfest, if only because it is so out of step with the way things are usually done in the pastel corridors of the European Union headquarters in Brussels, where agreements are hashed out behind closed doors and all parties emerge with smiles and set scripts. Perhaps as never before, Europe — and indeed the world — are witnessing a messy public negotiation, where each side seems willing to predict the end of civilization as we know it unless the other […]
Greece’s defiant youth opt for ‘chaos’ over more of the same
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Merkel says deal with Greece still possible if Athens musters will
BERLIN German Chancellor Angela Merkel said on Thursday that it is still possible for Greece to reach an agreement with its international creditors – the European Union, International Monetary Fund and European Central Bank. In a speech in parliament, Merkel also said Germany’s efforts are focused on keeping Greece in the euro zone. Merkel, who was interrupted by hecklers from opposition parties, added that Greece must decisively implement reforms. "I’m still convinced: Where there’s a will, there’s a way," she said. "If those in charge in Greece can muster the will, an agreement with the three institutions is still possible." (Reporting by Erik Kirschbaum and Michael Nienaber; Editing by Paul Carrel )
Greece to Sign Russian Gas Pipeline Deal
Greek Prime Minister Alexis Tsipras is due to meet Russian President Vladimir Putin. ST PETERSBURG, Russia—Greece is expecting to sign a preliminary agreement for the country’s participation in Russia’s planned extension of a gas pipeline through Greek territory, Greek energy ministry officials said Thursday. Meanwhile, Russian gas giant OAO Gazprom OGZPY 0.18 % said it had reached a preliminary deal with three European energy companies to double the capacity of a gas pipeline that takes Russian gas to Germany under the Baltic Sea. The potential Greek-Russian agreement, which wouldn’t be legally binding, is expected to be signed Friday during Greek Prime Minister Alexis Tsipras’ visit to an economic conference in St. Petersburg. Mr. Tsipras is due to meet Russian President Vladimir Putin Friday on the sidelines of the forum. The agreement on the so-called ’Turkish Stream’ gas pipeline, which would bring Russian gas to Europe through Greece and Turkey, […]
In Eurozone, Growing Support for a Greek Exit
Of the countless writs and regulations that govern Europe’s currency club, one golden rule trumps them all: Membership is conditional. After joining the euro in 2001 and through the bailouts of the last five years, Greece has been told the same thing. To belong, it must satisfy the strict economic standards that underpin this community of 19 disparate nations. Now, as yet another Greek government resists the rule makers, the view is taking hold in Europe that its ambitious currency project would be better served if Greece just left. At its root, the euro project is an enterprise that succeeds only if its members follow the rules. Such a dire outcome is not assured, of course. Greece and its creditors could strike a deal, unlocking fresh aid and avoiding a default. Greek government officials said debt talks with creditors would continue through the weekend. And there is a chance […]
As Greece teeters, Alexis Tsipras is feted in St Petersburg
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Greek central bank warns of ‘painful course’ to euro exit
Greece, EU flags Greece’s central bank has warned for the first time that the country could be on a "painful course" towards default and exit from the eurozone. It comes as the Greek government and its international creditors blamed each other for failing to reach a deal over economic reforms. That failure is holding up the release €7.2bn in bailout funds. About €30bn was withdrawn from Greek bank deposits between October and April, the central bank added. The central bank also warned the country’s economic slowdown would accelerate without a deal. "Failure to reach an agreement would… mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report. "Striking an agreement with our partners is a historical imperative that we […]
Greek Central Bank Warns of ‘Uncontrollable Crisis’ if Bailout Talks Fail
ATHENS—Greece’s central bank warned Wednesday that failure to clinch a deal with international creditors on its future funding needs could lead the country into an “uncontrollable crisis,” describing the issue as being of historical significance for the nation. In its annual monetary report, the Bank of Greece , TELL -1.33 % the country’s central bank, said that based on evidence so far, it seems that a compromise has been reached on the main conditions attached to the lending agreement and that little ground remains to be covered. “Failure to reach an agreement would… mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and—most likely—from the European Union,” the report said. “A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable […]
Greek talks failure hits shares, buoys low-risk debt
LONDON Failure in the latest talks aimed at averting a Greek default hurt shares in Europe and Asia on Monday, drove investors into the safety of low-risk government bonds and weighed on the euro. As contagion from the collapse of Sunday’s talks spread across markets, the premium investors demand to hold Spanish 10-year bonds ES10YT=TWEB over German Bunds DE10YT=TWEB hit its highest since August. "It’s clear that each day that passes we come closer to a potential Greek default and this risk aversion is a natural reaction by the market," said KBC strategist Mathias van der Jeugt. The euro EUR= fell against the dollar, with the single currency also under pressure on investor caution before a U.S. interest rate-setting meeting later in the week. Talks between Greece and its creditors broke up after less than an hour, raising prospects of Athens being unable to repay 1.6 billion euros ($1.8 […]