After vote win, Greek leaders face pressure to restart talks

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After vote win, Greek leaders face pressure to restart talks
By DEREK GATOPOULOS and ANGELA CHARLTON

ATHENS, Greece (AP) — Despite triumphing in a popular vote against austerity, Greece's leaders Monday faced the urgent need to heal ties with European creditors and reach a financial rescue deal to prevent it from falling out of the euro — possibly within days.

"Time is of the essence," German Chancellor Angela Merkel said after discussing the Greek crisis with French President Francois Hollande in Paris. "(Greek) proposals have to be on the table this week."

Prime Minister Alexis Tsipras won big in Sunday's referendum, with 61 percent of voters rejecting the economic measures creditors had proposed in exchange for loans Greece needs to remain afloat. He also received the rare backing of opposition parties to restart bailout negotiations.

But his bolstered mandate to push for better concessions from creditors hit the hard reality of the country's deteriorating finances, with banks facing the risk of collapse within days unless a rescue deal is reached.

Hours after revelers left Athens' main Syntagma Square to celebrate the "no" victory, pensioners crowded outside nearby banks to collect emergency payments, markets worldwide were rocked by the result, and European lenders warned that Greece faced a strict deadlines to avoid disaster.

The European Central Bank maintained its level of cash assistance to Greek banks ahead of Tuesday's emergency meeting of European leaders in Brussels, to be joined by Tsipras.

In a sign of compromise, Tsipras appointed a new finance minister to lead talks with creditors and replace Yanis Varoufakis, the hard-talking professor who clashed regularly with his European counterparts.

Euclid Tsakalotos, a 55-year-old economist, has appeared more willing to engage with creditors and will be tested as soon as Tuesday, at a meeting of the other 18 eurozone finance ministers in Brussels.

"I won't hide from you that I am very nervous and very anxious. I am not taking over at the easiest moment in Greek history," Tsakalotos said after being sworn in.

World leaders digested the news from the Athens and the significance of a "no" vote after leading European politicians had urged Greeks to approve the austerity measures.

Longtime Cuban leader Fidel Castro wrote to Tsipras, saying his "bravery has won admiration by the peoples of Latin America."

In Paris, Merkel and Hollande both expressed their respect for the result of the Greek vote, but urged swift action from Athens.

"I stress that there is not lots of time left. There is urgency for Greece. There is urgency for Europe," Hollande said.

Spanish Prime Minister Mariano Rajoy said Greece needs to enact reforms that will spur economic growth and comply with obligations to pay off its debt to remain part of the eurozone.

"We're inclined to help Greece but Greece must follow Europe's rules," he said in an interview on Spain's Telecinco evening news program.

The ongoing Greek drama hurt stocks around the world, particularly in Europe. The losses were not as great as some had feared, however, suggesting investors think that a Greek exit from the euro, while devastating for the country and destabilizing in Europe, would be manageable for the global economy.

"The 'no' vote in Greece's referendum on Sunday dramatically increases the risk of a slide toward a disorderly Greek exit from the eurozone," ratings agency Fitch said. "An agreement between Greece and its official creditors remains possible, but time is short and the risk of policy missteps, or that the two sides simply cannot agree a deal, is high."

Tsipras has agreed to imposing more harsh austerity measures, following a six-year recession, but he wants eurozone lenders to grant the country better terms for bailout debt repayments.

"The prime minister is ... committed to starting a fundamental debate on dealing with the problem of sustainability of the Greek national debt," a statement signed by the government and three pro-European opposition parties said in a rare sign of solidarity

European officials appear to be split on Greece's demand for easier debt repayment — with lead eurozone lender Germany still highly reluctant.

German Finance Ministry spokesman Martin Jaeger said Berlin's position "is well-known. ... A debt cut is not an issue for us."

Sigmar Gabriel, the German vice chancellor, said Europe should be preparing humanitarian assistance for Greece.

"The situation that is now being created by the referendum makes me sad, because life for the Greek population is going to get harder in the coming days and weeks," he said. "After yesterday's celebrations in the streets, there's a danger of a rude awakening soon."
___

Charlton reported from Paris. Demetris Nellas and Menelaos Hadjicostis in Athens, David Rising in Berlin, Lori Hinnant in Paris, Raf Casert in Brussels and Geir Moulson in Berlin contributed.


-- (c) Associated Press 2015-07-07

[Ace of Pop]

They only joined to get on the Gravy Train funded by dumb Germans m Brits

[Ace of Pop]

My Portugal joined like Sheep. Built super hi ways that are unused ,toll to hi. not to worry , the Politicos families got all the contracts.. Also a nice Marina costing billions built in the wrong place....4 Months of the year it's to rough for holiday Sailors. The old Men they moved out could have told the Bankers that.

[JakeSully]

From: http://www.huffingtonpost.com/2015/07/06/piketty-germany-greek-debt_n_7735866.html

Germany, Piketty continued, has “no standing” to lecture other nations about debt repayment, having never paid back its own debts after both World Wars.

“However, it has frequently made other nations pay up, such as after the Franco-Prussian War of 1870, when it demanded massive reparations from France and indeed received them,” Piketty said.

It rarely follows our ideas of order and justice.”

I think they have a point.

[TheAppletons]

My Portugal joined like Sheep. Built super hi ways that are unused ,toll to hi. not to worry , the Politicos families got all the contracts.. Also a nice Marina costing billions built in the wrong place....4 Months of the year it's to rough for holiday Sailors. The old Men they moved out could have told the Bankers that.

You forgot to mention the soccer stadiums and shopping malls. I will say, though, that those toll roads are really nice. You can tell when you are entering Spain just from the condition of the roads.

[Ace of Pop]

Correct , only Tourists ca afford them. All Populist projects, next to nothing Spent on Industry or wealth creation projects I noticed.

[IAMHERE]

What is there to talk about ? The Greeks voted to not pay back their loans. Why talk about Greece paying back a portion when everyone should suspect by now that the Greeks would just 'renegotiate' that payment in the future. They aren't going to pay back the loans, take the loss and don't loan them anymore.

[PepperMe]

The writing is already on the wall.

There is nothing the EU can do.

They can not be seen to be going easy, as this will send a message to the other 4 bailout nations who will demand even treatment across the board as they are too suffering bad austerity imposed by the exact same troika.

If they are hard with Greece, then they will get a backlash and with the UK holding a refeendum next year, they have to make themselves look benevolent even though they are utterly ruthless.

Almost ALL EU citizens already know the ECB have deliberately created liquidity problems with the Greek banks. For that alone, Greece should have stuck up a middle finger and started the printing of Drachma. The ECB has a duty to keep EVERY member state in the eurozone solvent. They have no right to cut liquidity. That was bullying tactics design for no other purpose than to bring down the Syriza government and it backfired spectacularly.

Merkel now looks a right burk..... Tsipras is holding ALL the cards.

The EU are absolutely snookered on this one.... I am loving it.

[PepperMe]

What is there to talk about ? The Greeks voted to not pay back their loans. Why talk about Greece paying back a portion when everyone should suspect by now that the Greeks would just 'renegotiate' that payment in the future. They aren't going to pay back the loans, take the loss and don't loan them anymore.

LOL.... It does not work like that.

And they didn't vote on whether or not to pay the loans.

[TheAppletons]

The writing is already on the wall.

There is nothing the EU can do.

They can not be seen to be going easy, as this will send a message to the other 4 bailout nations who will demand even treatment across the board as they are too suffering bad austerity imposed by the exact same troika.

If they are hard with Greece, then they will get a backlash and with the UK holding a refeendum next year, they have to make themselves look benevolent even though they are utterly ruthless.

Almost ALL EU citizens already know the ECB have deliberately created liquidity problems with the Greek banks. For that alone, Greece should have stuck up a middle finger and started the printing of Drachma. The ECB has a duty to keep EVERY member state in the eurozone solvent. They have no right to cut liquidity. That was bullying tactics design for no other purpose than to bring down the Syriza government and it backfired spectacularly.

Merkel now looks a right burk..... Tsipras is holding ALL the cards.

The EU are absolutely snookered on this one.... I am loving it.

Are you talking about the same situation that everyone else is?

The only cards that Tsipras holds are the two jokers....and one of them just resigned yesterday.

Edited July 7, 2015 by TheAppletons

[Baerboxer]

My Portugal joined like Sheep. Built super hi ways that are unused ,toll to hi. not to worry , the Politicos families got all the contracts.. Also a nice Marina costing billions built in the wrong place....4 Months of the year it's to rough for holiday Sailors. The old Men they moved out could have told the Bankers that.

Portugal - another one of the countries that forms the corrupt underbelly of Europe. They've all got used to never ending handouts and now have little intentions of paying things back.

Compare that to the Irish. They've worked like crazy to turn things round. Address problems and move forward.

Even the East Europeans have better work ethics.

Edited July 7, 2015 by Baerboxer

[Baerboxer]

They only joined to get on the Gravy Train funded by dumb Germans m Brits

Yep - just like Portugal, Spain, and Italy.

But the "dumb" funders have got tired of the lies, corruption and lazy grabbers.

The EU could never work with so many expecting so much for nothing.

[Baerboxer]

From: http://www.huffingtonpost.com/2015/07/06/piketty-germany-greek-debt_n_7735866.html

Germany, Piketty continued, has “no standing” to lecture other nations about debt repayment, having never paid back its own debts after both World Wars.

“However, it has frequently made other nations pay up, such as after the Franco-Prussian War of 1870, when it demanded massive reparations from France and indeed received them,” Piketty said.

It rarely follows our ideas of order and justice.”

I think they have a point.

Indeed. Much was made of the "terrible wicked" Treaty of Verailles. Only Germany never actually paid all that was demanded and agreed to. After WW2 the Americans didn't want to put the same harsh terms on them - so they got off again, just like their Japanese allies. In fact the received huge amounts of aid. The German "miracle" economy was funded by their former opponents.

France and Britain - paid the cost. America, well it was receiving repayments on the loans made to it's "allies". Eastern Europe were unlucky and got liberated (hahaha) by the Soviets who screwed them more.

Germany was fine whilst rebuilding. But has shown since it's formation after the Franco-Prussian war that it can not lead or manage other countries. It can only seek to dominate.

[ggold]

The writing is already on the wall.

There is nothing the EU can do.

They can not be seen to be going easy, as this will send a message to the other 4 bailout nations who will demand even treatment across the board as they are too suffering bad austerity imposed by the exact same troika.

If they are hard with Greece, then they will get a backlash and with the UK holding a refeendum next year, they have to make themselves look benevolent even though they are utterly ruthless.

Almost ALL EU citizens already know the ECB have deliberately created liquidity problems with the Greek banks. For that alone, Greece should have stuck up a middle finger and started the printing of Drachma. The ECB has a duty to keep EVERY member state in the eurozone solvent. They have no right to cut liquidity. That was bullying tactics design for no other purpose than to bring down the Syriza government and it backfired spectacularly.

Merkel now looks a right burk..... Tsipras is holding ALL the cards.

The EU are absolutely snookered on this one.... I am loving it.

Are you talking about the same situation that everyone else is?

The only cards that Tsipras holds are the two jokers....and one of them just resigned yesterday.

He's not wrong! Tsipras does hold the cards. If Greece is pushed to leave the Euro and print Drakmas. Where does that leave Portugal Spain Italy and Ireland who were forced to a yes vote? Even if these countries don't complain about Greece getting better terms than they did. What do you think will Happen on the money and bond markets, they are going to cause a run on the Euro and the ECB won't ba able to do anything about it.

Those countries will find they will have to leave the Euro to stay solvent. So if the EU want's the Euro to survive they are going to have to make a good deal or Tsipras will say Bye bye.

It is possible that it is all too late for the Euro anyway, If Greece is forced out, that scenario could be played out with Portugal Spain and Italy etc. They would have a run on their banks, to borrow funds bond yeilds would climb to unsustainable levels and the story repeats itself with the EU having to bail them out of push them out the Euro!

All in All, it looks as if the EU politicos have boxed themselves into a corner one way or another, I don''t think the Euro is here for much longer.

[Ace of Pop]

One small difference to Portugal n Greece.We the people said no,the Politices got their way. we tend on mass to love England, our oldest allied friend.imagine No GBP.. THE DREAM OF THE LOONY LEFT.

[h90]

They only joined to get on the Gravy Train funded by dumb Germans m Brits

And they wanted them in a wet dream of a future United States of Europe which includes beside Europe also Turkey and Israel and several other Asian countries.....So they can be the biggest......Didn't work so well.