Category Archives: Europe

Troika Tightening the Noose on Greece as Government Cash Crunch Worsens

“I begin to discern the profile of my death.” That arresting sentence, culled from early drafts, served as the anchor for one of the finest novels ever written, Margarite Yourcenar’s Memoirs of Hadrian.

The Troika and Eurogroup look to be working towards the Greek government to start having similar thoughts. However, given the high level of popular support for Syriza, and press reports that Greek citizens fully expect that the new government to at best only be able to deliver on a small portion of its campaign promises, the end game for Greece is looking more and more likely to be a failed state rather than a more neoliberal-friendly government.

Impotent Western Sanctions Fail To Disrupt Russian Energy Exports

Who has won and lost from the Western sanctions against Russia?

John Helmer: Cyprus is More Important to Russia than Greece, but Not This Important

What is the significance of Cyrprus’ military basing agreement with Russia for Russia’s naval and air forces in the Mediterranean?

Do Greece, the Troika, and the Eurogroup Actually Have a Deal?

Ambrose Evans-Pritchard has a new article on Greece’s scramble to find the funds to meet it March IMF payments, which are €1.5b in total, with €300 due on Friday. Note that IMF payment dates aren’t as hard and fast as credit card due dates; the agency allows borrowers some leeway if they have a clear intent to pay.

Nevertheless, Evans-Pritchard’s most important observation may be the one at the close of his article:

Whatever piece of paper they signed in Brussels 10 days ago, the two sides are still talking past each other.

In other words, the two sides disagree profoundly as to what the memo means. And that may mean that in reality, there is no deal at all.

Greek Kolotumbas Increasing at Disconcerting Rate

I’m at risk of getting whiplash from watching the speed at which Greece is changing its position on key issues. And while I’d be delighted to be proven wrong, there are reasons to think this pattern does not bode well for the government’s ongoing negotiations.

John Helmer: What is Russia’s Answer to Greece’s Plan B? Smile, Blow the Whistle, Pass the Red Card

Helmer’s post confirms our view that Russia will not rescue Greece, and for many of the same reasons that we’ve stated.

The Alternative in Greece

Let us begin with what should be indisputable: the Eurogroup agreement that the Greek government was dragged into on Friday amounts to a headlong retreat.

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.