Financial Crisis in Greece

[Onur]

Contrived justifications for past wrongs have created what I can only describe as a collective sociopathic condition.

I couldn't write better sentence to describe the situation in Greece. We all know that this is the result of western powers`s collaborative work with their peons in Greece.

In my opinion, western world doesn't prefer to see peaceful relations in Balkans and because of this, they have a policy of "controlled tension" here and doing whats necessary to maintain the confusion between the sides.


Yes, current economical situation in Greece might encourage them for better relations with their neighbors but maybe they can return to their old habits and turn their frustration and hatred towards us again. We cant be sure about what can happen.

[julie]

Fears over Greek bailout send shares and euro tumbling

http://www.guardian.co.uk/business/2010/may/14/nicolas-sarkozy-threatened-euro-withdrawal

Fears over Greek bailout send shares and euro tumblingThe markets were initially unsettled by news that the French president had threatened to pull France out of the eurozone
(126)Tweet this (102)Comments (126) Giles Tremlett, Richard Wray and Nick Fletcher guardian.co.uk, Friday 14 May 2010 13.18 BST Article history
Nicolas Sarkozy threatened to pull France out of the euro, a Spanish newspaper has claimed. Photograph: Eric Feferberg/AFP/Getty Images

Share prices have dropped across Europe and the euro has slid to an 18-month low against the dollar on fears that the eurozone bailout of Greece will fail and reports that French president Nicolas Sarkozy threatened to pull his country out of the single currency altogether to force Germany to agree to the rescue plan.

The panic selling has been stoked by news that Spain's underlying inflation rate turned negative in April for the first time on record, adding to fears that the country is facing a cash crunch.

By lunchtime the FTSE 100 index was down almost 100 points with indices across Europe in negative territory. Frankfurt's DAX index was down more than 1%, Paris's CAC-40 index down 2.6% and the IBEX 35 in Madrid down 4%. The ASE in Athens was down more than 3.0%. The euro, meanwhile, dropped down to $1.2432, having been trading early in the day 0.3% higher against the US currency.

Earlier in the day, the National Statistics Institute in Madrid said core consumer prices, which exclude energy and fresh food, fell 0.1% from a year earlier, after rising 0.2% in March. Spain is in danger of missing the government's target of a 1.8% increase in GDP in 2011 which would have a knock-on effect on its plans to reduce its deficit, which stood at 11.2% of GDP last year.

The markets were initially unsettled by news that the French president had threatened to pull France out of the eurozone. The startling threat was made at a Brussels summit of EU leaders last Friday, at which the deal to bail out Greece was agreed, according to a report in El País newspaper quoting Spanish Prime Minister José Luis Rodríguez Zapatero.

Zapatero revealed details of the French threat at a closed-doors meeting of leaders from his Spanish Socialist Party on Wednesday.

Sarkozy demanded "a compromise from everyone to support Greece ... or France would reconsider its position in the euro," according to one source cited by El País.

"Sarkozy went as far as banging his fist on the table and threatening to leave the euro," said one unnamed Socialist leader who was at the meeting with Zapatero. "That obliged Angela Merkel to bend and reach an agreement."

A different source who was at the meeting with Zapatero told El País that "France, Italy and Spain formed a common front against Germany, and Sarkozy threatened Merkel with a break in the traditional Franco-German axis."

El País also quotes Sarkozy as having said, according to another of those who met Zapatero, that "if at time like this, with all that is happening, Europe is not capable of a united response, then the euro makes no sense".

Germany has been reluctant to act throughout the Greece crisis. But the meeting in Brussels finally put together a €110bn (£94bn) rescue package.

The German government's deputy spokeswoman, however, was quoted by Reuters as saying that the speculation that Sarkozy threatened to leave the euro is "without any basis".

[julie]

http://www.businessweek.com/news/2010-05-13/volcker-sees-risk-greece-to-cause-disintegration-of-euro-area.html

Volcker Sees Risk Greece to Cause ‘Disintegration’ of Euro Area
May 13, 2010, 7:02 PM EDT
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e-mail this story print this story digg this save to del.icio.us add to Business Exchange By Simon Clark

May 14 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker said he’s concerned that the euro area may break up after the Greek fiscal crisis that sparked an unprecedented bailout by the region’s members.

“You have the great problem of a potential disintegration of the euro,” Volcker, 82, said in a speech in London yesterday. “The essential element of discipline in economic policy and in fiscal policy that was hoped for” has “so far not been rewarded in some countries.”

European leaders pledged a rescue package of almost $1 trillion this week to counter a mounting debt crisis and restore confidence in the currency. Former U.S. Treasury Secretary John Snow said this week the euro may need a common fiscal policy to survive, a comment echoed by Norman Lamont, who was U.K. finance minister when Britain opted out from the euro in 1992.

“Will economic and financial distress finally be resolved by looking toward more integration in a closely integrated Europe, politically as well as economically?” said Volcker, who chairs President Barack Obama’s Economic Recovery Advisory Board. “I do have my hopes, as a believer in the euro.”

The aid package also involved the European Central Bank, which intervened in debt markets after a rout in bonds across the euro region’s periphery. The European Commission in Brussels said it would “strengthen” its deficit oversight and “align national budget and policy planning” under a system of economic policy coordination.

Fiscal Union

“For the euro to be able to survive long term, fiscal consolidation of some kind -- tax policy consolidation, fiscal policy consolidation -- is probably necessary,” Snow said. Bank of England Governor Mervyn King also commented on the crisis, saying two days ago that it is “very clear” that the currency region needs a fiscal union “to make the monetary union work.”

Soaring bond yields on concern that Greece’s fiscal crisis would spread threatened to shut Spain and Portugal out of debt markets and sparked a weekend of talks with euro-region finance ministers and central bankers.

While the resulting 750 billion-euro ($940 billion) financial aid package has calmed bond markets, the euro has continued its slide against the dollar, breaking through the 14- month low reached last week before European leaders unveiled the bailout plan. The euro slid as much as 0.8 percent to $1.2518 at 4:45 p.m. in New York, the lowest level since March 5, 2009.

The extra yield that investors demand to hold 10-year Spanish bonds over German bunds, Europe’s benchmark, has narrowed to 99 basis points from 164 basis points on May 7. Spreads on Portuguese debt have fallen by more than half to 163 points.

Changes Needed

Volcker expressed hope that the euro will survive. “There is strong opinion to keep it going,” he told journalists after his speech at Mansion House, the residence of the lord mayor of the City, London’s financial district. “That does require, I think, changes in the structure of European economic policy.”

Closer fiscal union is unlikely to be welcomed in some countries. Ireland’s largest opposition political party said this week the commission proposals give the EU a “final veto” over Irish fiscal policy. Prime Minister Brian Cowen rejected the comments and said that there “will never be a threat” to national tax control.

Europe has so far been well-served by the euro, Volcker said. “If you didn’t have that common currency in Europe, they would have bigger problems than they have now.”

He declined to elaborate on what European governments should do as he left and walked across the street to visit the Bank of England.

“That is up to European governments,” he said. “The nature of the problem does not lend itself to one-word sound bites.”

--With assistance from Svenja O’Donnell in London. Editors: Fergal O’Brien, Christopher Wellisz

To contact the reporter on this story: Simon Clark in London at [email protected]

To contact the editor responsible for this story: Edward Evans at [email protected]

[Onur]

It was obvious that Germany didn't want to give any money to Greece but it looks like France threaten everyone to destroy EU if they wouldn't give financial support to Greece.

The thing is, Merkel will probably pay the price of this at next elections and it could be same for every EU member if their own country goes in crisis too. Their taxpayers will demand explanation from them about why they gave their money to Greeks. Even this is a proof of the EU wasn't a real union at all. Like i said here before, EU didn't give the financial support to rescue Greece and Greek people. They did this with the aim of saving their own pride and image in the world and probably they hate Greece for that atm.

if Greece survives with this huge amount of debt, then probably they cant do anything for the next 10 years except trying to payback it. Greek people will suffer for a long time, thats for sure.

And more and more clouds appear at the forecasts and darkens EU`s future everyday.

[fyrOM]

dont beri gajle.hahaha if the eu falls apart no veto.

[osiris]

the geek debt is much bigger than is being admitted too, i predict greece will default within 3 years promptly blame macedonia fro all its problems

[osiris]

greece iis fucked and the great thing about it is that they screwed themselves, the little neo hellenes.

[Soldier of Macedon]

I hope the EU disintegrates, sooner rather than later, it is a plague in Europe that basically represents the marriage of Germany and France, and their domination over the rest of Europe's people.

Macedonians in the republic should realise that we don't need them to survive and prosper, haven't we learned yet that salvation lies within, that all offers of assistance for the last 200 years have been false or come with conditions that require us to become sub-human? Have some self-respect, Macedonians!

[osiris]

dont tell me sportster the tinkach actually showed his sorry greek arse on this forum what a waste of earth space he seems to be.

westerners are still cutting greece to much slack they are still not willing to confront the fact that greece is a frankenstein and they are the ones who created it.

lets get one thing straight homosexuality is not evil nor is it exclusive to greek men. in the ancient world it was practiced by most of the warrior societies including romans macedonians celts germans etc etc.

[Bill77]

Bill, I already know what a week is...there are 4 of them every month!

well there is 4.33333333333333333 to be exact but Greeks can't realy count, just look at there economy.

Yeh mi spaling doos suk and mi grandma coold emproove. But i had no idea i was back in school. Whats important though is the message, evan a dick head like yourself should be able to decipher my message.

Finaly, since you are atacking me with personal insults and you want to play pathetic child games rather than answer comments, lets do it champ. let me ask you this, is this how you were created? or just the northern Geeks?



I apoligise to MTO and its administrators. I want to make it clear to everyone that what i post does not represent the peoples views here on the Macedonian Truth Forum. I am exercising my right to freedom of speach and if i am some how tarnishing this forums good name, broken any rule delete the post or ban me. I will not take ofence. But i do promise in future i will keep sinking as low as these scum Greeks wish me to go. Its your call guys.

[Mastika]

just like you said, Homosexuality wasnt percieved as 'evil' in those times. You forgot to mention Pedafilia was also rampant. Hmmmm is that something else Greeks gave to the world? Thank god in modern times the pedafilia perception has changed though.

What a moronic thing to say. Nobody started homosexuality nor paedophilia.

[Bill77]

What a moronic thing to say. Nobody started homosexuality nor paedophilia.

Hey Bulgar, it was a tongue in cheek comment. Haven't you heard the joke Greeks gave the wold Homosexuality? So mind your own Buisiness moron.

But if you need to know why i said it, read this.

[Daniel the Great]

What a moronic thing to say. Nobody started homosexuality nor paedophilia.

Mastika, keep out of it. Ili odi ebajsiga Bugarskata majka.

[Mastika]

it was a tongue in cheek comment. Haven't you heard the joke Greeks gave the wold Homosexuality? So mind your own Buisiness moron.

Hey Seljak, Yes, I am aware that it is a joke. Sadly many people actually believe stuff like that to be true.

Just like you I am free to comment on any part of this forum, if you want a private discussion take it to pm.

Mastika, keep out of it. Ili odi ebajsiga Bugarskata majka.

Jas nemam nikakva vrska so Bugarite ili so Bugarija. Feel free to do what you want with your Bulgarian mother.

[Bill77]

Hey Seljak, Yes, I am aware that it is a joke. Sadly many people actually believe stuff like that to be true.

Just like you I am free to comment on any part of this forum, if you want a private discussion take it to pm.

next time say something worthwhile or shut up. PM fuck that, i don't chat with Bulgars. you have anything to say to me say it here. Aslong as its not shit.