Europe cautiously optimistic of Greek debt deal this week

[webfact]

Europe cautiously optimistic of Greek debt deal this week
DEREK GATOPOULOS, Associated Press
RAF CASERT, Associated Press

BRUSSELS (AP) — Greece has finally offered economic reforms that creditors consider closer to being acceptable, giving Prime Minister Alexis Tsipras a few days to turn a spirit of goodwill into a deal that might keep the country from a painful exit from the euro currency and roil international markets.

Even though a firm deal between Greece and its lenders to get Athens more loans remained elusive at an emergency summit Monday, leaders from the 19 euro nations and the International Monetary Fund said Tsipras' new reform plan offered the basis to break a four-month deadlock in talks.

"We are advancing toward an agreement," said French President Francois Hollande. But the gap separating what Greece wants to yield in painful reforms and what creditors are demanding before providing more funds remained sizable.

"We are closer than we ever were before," said European Commission President Jean-Claude Juncker.

International Monetary Fund Managing Director Christine Lagarde said that despite the improvements in the Greek offer "it still lacks specificity. And it is still short of everything that we expected."

Uncertainty over Greece has sapped confidence in global markets, particularly in Europe, and threatened the financial future of Greeks.

"I want to end this political gambling," European Union President Donald Tusk told reporters in Brussels.

In the Greek government's compromise proposal, Tsipras is offering about 8 billion euros ($9 billion) in higher taxes and austerity measures over the next two years — several of which go against his election commitments — as he sought a belated compromise with Greece's creditors.

"The ball is in the court of the European leadership," Tsipras said late Monday.

Tusk said Greece's plans "were the first real proposals in many weeks." Jeroen Dijsselbloem, the Dutchman who chaired an emergency meeting of eurozone finance ministers ahead of the summit, said "it's an opportunity to get that deal this week."

Greece needs the money urgently as it faces a June 30 debt repayment it cannot afford.

Leaders are now looking at a two-day European Union summit starting on Thursday in Brussels to make the final thrust in the talks and reach a deal that will keep Greece solvent. Finance ministers will meet again on the eve of the summit.

Multiple deadlines for Greece to propose more reforms have come and gone, with the country living hand to mouth in the meantime. But Hollande said it was "better to take a few days, but get to an agreement."

German Chancellor Angela Merkel agreed, saying "there are still a lot of days left to come to a decision."

The more cooperative spirit gave a boost to stock markets. Athens shares closed 9 percent higher. The Stoxx 50 index of top European shares was somewhat less volatile and closed up 4.1 percent.

The need for a deal could not be more pressing. Greece must pay 1.6 billion euros ($1.8 billion) to the IMF in just over a week. Further payments are due in July and August.

A debt default by Greece could destabilize its banks — Greeks are already withdrawing increasingly large amounts of money — and could in a worst case scenario cause the country to have to leave the euro.

That would be hugely painful for Greeks but experts are more divided about its effects on Europe and the world economy. Several European countries have said publicly they are getting prepared for the possibility.

Greece's proposal for additional taxes on businesses, basic goods and middle-income households was aimed at easing pressure from lenders to slash pensions and wages after six years of recession but was expected to dash hopes of a financial recovery this year.

Athens will make tougher rules on early retirement and shift some categories of goods to a higher sales tax bracket, including hotels and certain foods. Emergency bailout taxes that had been imposed will remain, even though Tsipras had pledged to phase them out.

A Greek government official said that employers will have to contribute higher social security contributions to pension and unemployment funds. He said there would also be a special one-off tax for profitable businesses.

Beyond the pressure from within the eurozone, the United States also did its part. Treasury Secretary Jacob Lew spoke by phone with Lagarde and highlighted the need for all sides to come to a rapid agreement.

Despite the more upbeat mood in markets, tension was palpable in Greece, where people have flocked to cash machines to withdraw money.

"Everyone's going (to the banks) to take money," said Yannis Nikolopoulos in Athens. "If the banks shut it'll be a problem to go shopping and that sort of thing." Without a deal, he said, "we're doomed."

To support Greek banks in the face of growing money withdrawals, the European Central Bank increased the amount of emergency credit it allows the banks to draw on, officials said.

Reports indicate Greeks withdrew about 4 billion euros last week.

The current talks center on releasing the last 7.2 billion euros in the country's bailout program, which expires at the end of the month.
___

Lorne Cook in Brussels and Nathalie Savaricas in Athens contributed to this report.


-- (c) Associated Press 2015-06-23

[winstonc]

there is no good news for greece in all this...just for the germans/french to save face with the european dream.

[RustBucket]

Putin is running this show.

He owes the EU a black eye.

Greece WILL be out of both the Euro and the EU by September.... tops. The remaining 7.2 Bn will not even last till half way through July and Tsipras will say 'thanks for that' then will default after.

He knows that if he cuts pensions any more and adds more VAT, the people who voted Sriza into power will turn on him and he also knows they will likely be out on their ears by the end of the year and that will be the very last time any of them ever taste power in Greece.

It will be political suicide, and if there is one thing that is certain in this life, a politician puts his career before everything else, no matter what the cost.

Athens will be getting into bed with Moscow.... I guarantee that. They will return to the Drachma and devaslue it to stimulate their economy. 5 years of troika controlled austerity has not worked and will not work in the future.

Edited June 23, 2015 by RustBucket

[otherstuff1957]

The EU is just digging itself into a deeper hole. Either they will bail out the Greeks now and them they will default for an even larger amount later this year, or Greece will become a permanent welfare case for the rest of Europe to support.

[EnglishJohn]

Putin is running this show.

He owes the EU a black eye.

Greece WILL be out of both the Euro and the EU by September.... tops. The remaining 7.2 Bn will not even last till half way through July and Tsipras will say 'thanks for that' then will default after.

He knows that if he cuts pensions any more and adds more VAT, the people who voted Sriza into power will turn on him and he also knows they will likely be out on their ears by the end of the year and that will be the very last time any of them ever taste power in Greece.

It will be political suicide, and if there is one thing that is certain in this life, a politician puts his career before everything else, no matter what the cost.

Athens will be getting into bed with Moscow.... I guarantee that. They will return to the Drachma and devaslue it to stimulate their economy. 5 years of troika controlled austerity has not worked and will not work in the future.

I disagree completely:

The whole point of the EU is so that Germany and France can strut around on the world stage under the banner 'Europe' and feel like they are as powerful as the other major players.

Greece will not be allowed to exit : it might start a chain reaction. The EU is nothing about the people : it is about centralising power.

[winstonc]

Putin is running this show.

He owes the EU a black eye.

Greece WILL be out of both the Euro and the EU by September.... tops. The remaining 7.2 Bn will not even last till half way through July and Tsipras will say 'thanks for that' then will default after.

He knows that if he cuts pensions any more and adds more VAT, the people who voted Sriza into power will turn on him and he also knows they will likely be out on their ears by the end of the year and that will be the very last time any of them ever taste power in Greece.

It will be political suicide, and if there is one thing that is certain in this life, a politician puts his career before everything else, no matter what the cost.

Athens will be getting into bed with Moscow.... I guarantee that. They will return to the Drachma and devaslue it to stimulate their economy. 5 years of troika controlled austerity has not worked and will not work in the future.

I disagree completely:

The whole point of the EU is so that Germany and France can strut around on the world stage under the banner 'Europe' and feel like they are as powerful as the other major players.

Greece will not be allowed to exit : it might start a chain reaction. The EU is nothing about the people : it is about centralising power.

excellent point.very true but rust bucket is also very valid on this too.but we all agree it was never about the average person in the street or rue or strasse

[Basil B]

Another Roller Coaster week on the stock exchanges.

The Greeks are getting so predictable, the question is not IF but WHEN will the Greeks renege on their latest proposal?

Edited June 23, 2015 by Basil B

[gchurch259]

I am not European, but I am not sure the EU is a good idea to begin with, every country has it's own government. Why do they need another government to tell that government how to take care of it's business. Seems like a Welfare Scam to me. Then they open up the right for the people from poorer countries to come to other better paying countries to work while that country already has an unemployment problem. I was working, Managing, and aircraft in a maintenance facility in Ireland and a lot of the mechanic where from other countries and did not have a good command of the English Language, and all the maintenance forms were required to be in English.

None of my business, but I would let Greece go bust and any other country that is milking the richer countries to pay the high retirement and welfare of another country.

Then you add the immigration problem and the cultures they bring with them that create more problems. Most do not bring either education or skills. No wonder Europe has problems and guess what the USA is not far behind !!

[EnglishJohn]

Putin is running this show.

He owes the EU a black eye.

Greece WILL be out of both the Euro and the EU by September.... tops. The remaining 7.2 Bn will not even last till half way through July and Tsipras will say 'thanks for that' then will default after.

He knows that if he cuts pensions any more and adds more VAT, the people who voted Sriza into power will turn on him and he also knows they will likely be out on their ears by the end of the year and that will be the very last time any of them ever taste power in Greece.

It will be political suicide, and if there is one thing that is certain in this life, a politician puts his career before everything else, no matter what the cost.

Athens will be getting into bed with Moscow.... I guarantee that. They will return to the Drachma and devaslue it to stimulate their economy. 5 years of troika controlled austerity has not worked and will not work in the future.

I disagree completely:

The whole point of the EU is so that Germany and France can strut around on the world stage under the banner 'Europe' and feel like they are as powerful as the other major players.

Greece will not be allowed to exit : it might start a chain reaction. The EU is nothing about the people : it is about centralising power.

excellent point.very true but rust bucket is also very valid on this too.but we all agree it was never about the average person in the street or rue or strasse

We will soon find out !.

The world seems to be going through an extremely dangerous time at the moment. I wonder how it is all going to end.

[Travelman868]

Putin is running this show.

He owes the EU a black eye.

Greece WILL be out of both the Euro and the EU by September.... tops. The remaining 7.2 Bn will not even last till half way through July and Tsipras will say 'thanks for that' then will default after.

He knows that if he cuts pensions any more and adds more VAT, the people who voted Sriza into power will turn on him and he also knows they will likely be out on their ears by the end of the year and that will be the very last time any of them ever taste power in Greece.

It will be political suicide, and if there is one thing that is certain in this life, a politician puts his career before everything else, no matter what the cost.

Athens will be getting into bed with Moscow.... I guarantee that. They will return to the Drachma and devaslue it to stimulate their economy. 5 years of troika controlled austerity has not worked and will not work in the future.

If the "haves" paid their tax then that would help. Then, I know a big fat pension is nice but ?????? ??

[cookee68]

Putin is running this show.

He owes the EU a black eye.

Greece WILL be out of both the Euro and the EU by September.... tops. The remaining 7.2 Bn will not even last till half way through July and Tsipras will say 'thanks for that' then will default after.

He knows that if he cuts pensions any more and adds more VAT, the people who voted Sriza into power will turn on him and he also knows they will likely be out on their ears by the end of the year and that will be the very last time any of them ever taste power in Greece.

It will be political suicide, and if there is one thing that is certain in this life, a politician puts his career before everything else, no matter what the cost.

Athens will be getting into bed with Moscow.... I guarantee that. They will return to the Drachma and devaslue it to stimulate their economy. 5 years of troika controlled austerity has not worked and will not work in the future.

I disagree completely:

The whole point of the EU is so that Germany and France can strut around on the world stage under the banner 'Europe' and feel like they are as powerful as the other major players.

Greece will not be allowed to exit : it might start a chain reaction. The EU is nothing about the people : it is about centralising power.

That could well be true, and the chain reaction could be spain and many others defaulting and following suit, who then would have to burden the debt load that they leave,

[Anthony5]

http://redpilltimes.com/imf-trained-greek-journalists-in-washington-d-c-to-spin-stories-in-favor-of-imf-and-european-commission/ IMF “trained” Greek journalists in Washington D.C. to spin stories in favor of IMF and European Commission

In what can only be described as a shocking testimony, Greece’s former representative to the IMF, Panagiotis Roumeliotis, in front of the special parliamentary committee on the Greek debt, said that several Greek journalists were “trained” in Washington D.C. in order to support the positions of the IMF and the European Commission in Greek media.

In Greece, certain individuals who work for the mass media were contracted to conceal the fact that the Greek debt was not sustainable.”

Roumeliotis further testified that IMF head…

“Christine Lagarde and other high officials at the IMF contacted me before my testimony before the committee to remind me that members of the IMF are immune from prosecution.”