With Eurogroup approval for Greece’s reform plans, is Grexit now significantly less likely? February 24, 2015 Christian Schulz, senior economist at Berenberg, says Yes Greece’s list of reforms allows the Eurozone to extend the bailout. That keeps the economy afloat, as the European Central Bank can continue funding Greek banks. Capital flight should slow, and economic sentiment and tax revenues should stabilise – averting a catastrophic funding crisis that could have [...]
Greece lenders approve bailout deal February 24, 2015 The euro recovered some of the loses felt earlier in the day against the dollar as European officials confirmed they had approved measures outlined by Greece to trigger a bailout deal. The deal means the country should avoid a default and subsequent exit from the Eurozone – at least for the next four months. During [...]
Eight takeaways from Yanis Varoufakis’ submission to Greece’s lenders February 24, 2015 It was only a matter of time, but the six-page document submitted by the Greek government to Eurozone leaders this morning showing the measures it plans to take in return for a four-month extension to its bailout deal has been leaked online. The FT published a copy of the document, and the contents are enlightening. [...]
Yanis Varoufakis demolishes Jeroen Dijsselbloem and Angela Merkel in this awesome rap battle February 24, 2015 Is it just us or has much of the western world has been developing a crush on rock-star economist-turned-Greek finance minister Yanis Varoufakis? When he's not wrangling with Germany over his country's debt crisis, he's out watching cool plays or throwing in casual references to literary giants. https://twitter.com/yanisvaroufakis/status/568563479076081664 He's been brought in on [...]
Testing week ahead for banks in Greece on the brink of crisis February 23, 2015 Greek banks face a week of uncertainty even after promising steps were made in the country’s bailout negotiations. Because the banks hold little cash of their own, they rely on emergency lending (ELA) from Greece’s central bank to match deposit withdrawals. But the ELA is capped by the European Central Bank at €68.3bn (£50.5bn), with [...]
Greeks rush to wrap up 11th hour debt deal February 23, 2015 The Greek government yesterday submitted a list of reforms it is prepared to undertake in order to access urgently needed funding. The finance ministry had rushed to draw up the proposals over the weekend after a deadline for today was agreed at Friday’s meeting of Eurozone finance ministers. The list of reforms are hoped to [...]
Political fallout and euro exit still a risk even if bailout’s extended February 23, 2015 A deal to extend Greece’s bailout programme could mark only a brief pause in the country’s latest saga. “If it was left with no choice but to accept austerity conditions similar to those that were in place before the election, it might feel that it had to put this to a referendum,” commented Jennifer McKeown [...]
The five sins of the Greek crisis that could doom Europe to irrelevance February 22, 2015 There is nothing so dangerous in foreign affairs as being half right. All along, this has been the primary reason I have been far more sceptical about a happy ending to the present euro crisis than conventional wisdom allows for. Both the Greek and German protagonists think they are entirely morally correct. Such an absolutist [...]
Eurogroup agrees Greece loan extension February 20, 2015 After a week of tense negotiations, Greece and its Eurozone partners have agreed a deal to end its €172bn loan standoff. The Eurogroup of finance ministers entered into last minute negotiations this afternoon. The new deal, which provides Greece with a four month extension on its loans, does not include an explanation of the conditions [...]
Eurozone “personality clash”: German and Greek finance ministers come face-to-face once more February 20, 2015 The German and Greek finance ministers will meet for a third time this afternoon, as the struggle to reach an agreement on Greece's bailout package continues. Wolfgang Schaeuble and Yanis Varoufakis will come face-to-face in Brussels at 2pm, ready to lay out their opposing demands once more. While Greece wants to renegotiate its €172bn [...]