Category Archives: Europe

ECB and IMF to Greece: No Escaping the Austerity Hairshirt

We warned readers who are still keen to take the Syriza “Hope is coming” slogan as something more promising that a subconscious echo of the Obama 2008 “Hope and change” campaign, that the memo that Greece signed with the Eurogroup last week did not represent a victory or a lessening of austerity. The comments by the ECB and the IMF on the reform list from Greece submitted Monday confirmed our earlier readings, that austerity is still very much on in Greece.

Ilargi: How Far Is It From Kiev To Athens?

A detailed analysis of why the unbelievably uncreditworthy Kiev government is getting big IMF loans.

The Mitt Romney Connection: How the Scammers Behind Virgin Gold Mining Corporation Bit Off More Than They Could Chew (VII)

… while FBI agents, moved from white collar fraud investigations, help search behind bushes for an Al Qaeda terrorist, hundreds of swindlers roam Utah. – Lynn Packer, utahpoliticalcapitol.com Mitt would make a good Moses. Think about it. – Former Romney campaign official By Richard Smith Let’s start in 2006, with one of The Seattle Times’ […]

Eurogroup to Review Greek Reform Proposals; Meeting Set for Tuesday (Updated)

As we indicated earlier today, the Eurogroup appears to still have its hand in the mix of determining whether the reform list submitted by Greece is adequate. A meeting is set to review the proposed Greek reforms tomorrow. The journalists who are in the mix are sending tweets that suggest that they are not yet clear on some key issues in the state of play. As of this posting, only some high level details of the reform list have leaked out.

Troika Not Happy with Initial Draft of Greek Reforms; Eurogroup Reported Still in the Mix (Updated)

As most readers may know, Greece and the Eurogroup ministers agreed to a memorandum last week that would replace the bailout that expires on February 28 with a four-month deal that the memo stresses is in the same framework.

But as much as the memo language was agreed by the ministers, it is not yet a done deal. And it is already looking like we might have a wild ride among the negotiators today.

Benchmarking the Greece/Eurogroup Bailout Memo and Process

Greece and the Eurozone have entered into what amounts to a letter of intent in the form of a memo released yesterday. It’s important to understand, even as a basis for further negotiations, what this document is and is not. Because this is not a definitive agreement, as in it explicitly states that Greece’s detailed structural reform proposals must be reviewed and approved by “the institutions,” the new name for the Troika, as well as approval by the Eurogroup finance ministers before any funds are released, there is still uncertainty as to how its deliberate ambiguity will be resolved.

Greece Capitulates On Bailout, Reaches Four Month Deal

Syriza folded on its position of not taking bailout funds.

Greece’s Fate in ECB’s Hands if Eurogroup Talks Fail

As most readers know well, Greece made concessions yesterday to the Eurogroup that, although contested as to how far they went, were seen as big enough concessions to win the support of Eurogroup head Jeroen Dijsselbloem and Italy. But Germany’s Wolfgang Schauble almost immediately rejected them, setting the stage for a showdown today. As we’ve discussed from the outset, the biggest bone of contention continues to be “conditionality,” otherwise known as structural reforms. Greece wants to be able to revise some measures as long as it can still meet its primary surplus target. Germany insists a deal is a deal and Greece must reaffirm all the terms of its existing agreement.

The meeting is set to start in Brussels at 3 PM local time, so we’ll know soon enough how things turn out. The two sides are making friendlier noises as of this morning, but we’ve seen these public displays of collegiality before, only to be followed by negotiation ruptures.

The Logic of Greece’s Request for a Loan Agreement Extension

Yves here. There’s been a heated debate among members of the commentariat as to whether the latest proposal by the Greek government to the Eurogroup ministers was a significant concession or a carefully worded formulation that did not give much ground. This interview with Dimitri Lascaris, a top securities lawyer in Canada, gives a nuanced discussion of that issue, including the politics on the Greek and German sides.

Greek Government Faces Cash Crunch Next Week

Greece is facing a cash shortfall even sooner than expected.

ECB Could Pressure Greece by Refusing to Increase ELA (Update: Small Increase Approved)

The ECB seems to be keeping Greece on a short leash by approving only a small increase in the ELA.

Negotiation Breakdown Exposes Widening Rift Between Germany and Greece

The negotiations between Greece and the Eurogroup are on a worse trajectory than conventional wisdom would have you believe.

Greece, Its International Creditors and the Euro

his is an excellent background piece on how Greece got where it is and how its various bailouts were structured. It also helps explain the past and current roles the various members of the Troika play and discusses the prospects for Greece achieving its aims.