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EU pulls the plug on Greek debt relief. Parliament vote may lead to snap elections

EU finance ministers suspended debt relief measures for bailed out Greece in response to extra spending on pensions announced Alexis Tsipras.

Alex Christoforou

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On Wednesday Greece received some bad news from the EU, as the shell of a once great nation, continues to be dicked around by Eurozone finance ministers and a radical left buffoon Prime Minister.

Jeroen Dijsselbloem, the head of the Eurogroup that oversees Greece’s massive 86-billion euro bailout announced…

“The institutions have concluded that the actions of the Greek government appear to not be in line with our agreements.”

“Some member states see it this way also and thus no unanimity now for implementing short-term debt measures.”

In short, Greece will get zero debt relief in response to the Syriza government’s decision to spend €600 million towards Greece’s 1 million low-income pensioners…replacing a Christmas bonus scrapped by the Greek bailout supervisors.

Last week, Alexis Tsipras was celebrating measures agreed upon with creditors that would alleviate the massive debt through a series of short-term debt concession, which would help reduce Greece’s debt servicing burden by 20% points by 2060.

Now the short-term debt concession have been pulled off the table by Eurozone ministers. It’s a carrot and stick approach that is slowly destroying Greece. Tsipras has proven to be a completely ineffective Prime Minister, unable to manage a country in complete meltdown.

Tsipras has called for a roll call in Parliament Thursday over the pension Christmas payments.

Ekathimerini reports

The move by Tsipras seeks to stick to an election pledge to revive a Christmas bonus that had been scrapped by international creditors.

Given that polls have suggested that New Democracy holds a double-digit lead over ruling SYRIZA, several analysts have claimed that the impasse may lead to early elections, which is something Tsipras has not ruled out in recent comments.

Government officials have insisted that the measure will not impact fiscal targets but eurozone creditors, who were not consulted about the move, are demanding more information as to whether it will pose a threat to the country’s financial targets.

The eurozone’s tough reaction gained added significance as it came a day before the year-end European Union summit, where Tsipras is set to outline the financial situation of the Greek economy to other leaders.

Senior European officials said Wednesday the measures appeared to be in breach of the terms of the country’s third bailout, which was hammered out in July 2015.

Finance Minister Euclid Tsakalotos said that once Greece was given the chance to explain its case it would become clear that the measures are indeed within the bailout framework.

Opposition New Democracy hinted it could back the measures “on the grounds that they will help people” hard hit by the financial crisis, but denounced the way the government has handled the issue. The conservatives said they will decide Thursday if they will offer their support in Parliament.

“We have to help people. But it’s one thing to help weak people and another to do it in a way that endangers the country,” said New Democracy vice president Adonis Georgiadιs.

Meanwhile Greek bonds are surging on news that Greece’s debt relief has been put on hold.

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Zerohedge reports

Following the news, Greek bond yields surged back over 7% amid fresh concerns that the Greek crisis may be coming back.

Today’s fiasco follows a snafu overnight, when Euro zone officials hit back at the IMF on Tuesday for publishing an article on the way forward for Greece’s fiscal and economic policy that thrust into the open a row between the lenders over Athens’ bailout.

“The European institutions were surprised that the IMF staff published a blog post on the ongoing negotiations with the Greek government as new talks in Athens are starting with the aim of concluding the second review,” said a spokesman for the euro zone bailout fund, the European Stability Mechanism.

“We hope that we can return to the practice of conducting program negotiations with the Greek government in private.”

The IMF article appeared as the Fund and the euro zone struggle to find common ground on Greek policies that would allow the IMF to take part in the latest bailout, the third one since 2010 and now fully financed by the euro zone.

And so, more than a year after the third Greek bailout, one which was predicted upon further debt reductions and even more austerity, nothing has been resolved, and the tensions between the Greek government (and its people), the IMF, and the rest of the Eurozone finmins, are nowhere close to a resolution,

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Brexit Withdrawal Agreement may lead to Theresa May’s downfall (Video)

The Duran – News in Review – Episode 151.

Alex Christoforou

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The Brexit Withdrawal Agreement has been published and as many predicted, including Nigel Farage, the document is leading to the collapse of Theresa May’s government.

During an interview with iTV’s Piers Morgan, remain’s Alistair Campell and leave’s Nigel Farage, were calling May’s Brexit deal a complete disaster.

Via iTV

Alastair Campbell: “This doesn’t do remotely what was offered…what is the point”

“Parliament is at an impasse”

“We have to go back to the people” …”remain has to be on the ballot paper”

Nigel Farage:

“This is the worst deal in history. We are giving away in excess of 40B pounds in return for precisely nothing. Trapped still inside the European Union’s rulebook.

“Nothing has been achieved.”

“In any negotiation in life…the other side need to know that you are serious about walking away.”

“What monsieur Barnier knew from day one, is that at no point did Theresa May intend to walk away.”

“Fundamental matter of trust to the electors of our country and those who govern us.”

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss Theresa May’s Brexit Withdrawal Agreement, and why the deal is a full on victory for the European Union and a document of subjugation for the United Kingdom.

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Coming in at 585 pages, the draft agreement will be closely scrutinized over the coming days but here are some of the highlights as outlined by Zerohedge

  • UK and EU to use the best endeavours to supersede Ireland protocol by 2020
  • UK can request extension of the transition period any time before July 1st, 2020
  • EU, UK See Level-Playing Field Measures in Future Relationship
  • Transition period may be extended once up to date yet to be specified in the text
  • EU and UK shall establish single customs territory and Northern Ireland is in same customs territory as Great Britain

The future relationship document is less than seven pages long. It says the U.K. and EU are seeking a free-trade area with cooperation on customs and rules: “Comprehensive arrangements creating a free trade area combining deep regulatory and customs cooperation, underpinned by provisions ensuring a level playing field for open and fair competition.”

The wording might raise concerns among Brexiters who don’t want regulatory cooperation and the measures on fair competition could amount to shackling the U.K. to EU rules.

As Bloomberg’s Emma Ross-Thomas writes, “There’s a clear sense in the documents that we’re heading for a customs union in all but name. Firstly via the Irish backstop, and then via the future relationship.”

Separately, a government summary of the draft agreement suggests role for parliament in deciding whether to extend the transition or to move in to the backstop.

But perhaps most importantly, regarding the controversial issue of the Irish border, the future relationship document says both sides aim to replace the so-called backstop – the thorniest issue in the negotiations – with a “subsequent agreement that establishes alternative arrangements for ensuring the absence of a hard border on the island of Ireland on a permanent footing.”

On this topic, recall that the U.K.’s fear was of being locked into the backstop arrangement indefinitely in the absence of a broader trade deal. The draft agreement includes a review process to try to give reassurance that the backstop would never be needed. Basically, the U.K. could choose to seek an extension to the transition period – where rules stay the same as they are currently – or opt to trigger the backstop conditions. In fact, as Bloomberg notes, the word “backstop,” which has been a sticking point over the Irish border for weeks, is mentioned only once in the text.

As Bloomberg further adds, the withdrawal agreement makes clear that the U.K. will remain in a single customs area with the EU until there’s a solution reached on the Irish border. It’s what Brexiteers hate, because it makes it more difficult for the U.K. to sign its own free-trade deals, which they regard as a key prize of Brexit.

Predictably, EU Commission President Juncker said decisive progress has been made in negotiations.

Meanwhile, as analysts comb over the documents, Jacob Rees-Mogg, chairman of the European Research Group, has already written to Conservative lawmakers urging them to vote against the deal. He says:

  • May is handing over money for “little or nothing in return”
  • The agreement treats Northern Ireland differently from the rest of the U.K.
  • It will “lock” the U.K. into a customs union with the EU
  • It breaks the Tory election manifesto of 2017

The full document…

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4 resignations and counting: May’s government ‘falling apart before our eyes’ over Brexit deal

The beginning of the end for Theresa May’s government.

The Duran

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Via RT


Four high profile resignations have followed on the heels of Theresa May’s announcement that her cabinet has settled on a Brexit deal, with Labour claiming that the Conservative government is at risk of completely dissolving.

Shailesh Vara, the Minister of State at the Northern Ireland Office was the first top official to resign after the prime minister announced that her cabinet had reached a draft EU withdrawal agreement.

An hour after his announcement, Brexit Secretary Dominic Raab – the man charged with negotiating and finalizing the deal – said he was stepping down, stating that the Brexit deal in its current form suffers from deep flaws. Esther McVey, Secretary of State for Work and Pensions, submitted her letter of resignation shortly afterwards. More resignations have followed.

Labour’s shadow Cabinet Office minister, Jon Trickett, predicted that this is the beginning of the end for May’s government.

The government is falling apart before our eyes as for a second time the Brexit secretary has refused to back the prime minister’s Brexit plan. This so-called deal has unraveled before our eyes

Shailesh Vara: UK to be stuck in ‘a half-way house with no time limit’

Kicking off Thursday’s string of resignations, Vara didn’t mince words when describing his reservations about the cabinet-stamped Brexit deal.

Theresa May’s EU withdrawal agreement leaves the UK in a “halfway house with no time limit on when we will finally become a sovereign nation,” his letter of resignation states. Vara went on to warn that the draft agreement leaves a number of critical issues undecided, predicting that it “will take years to conclude” a trade deal with the bloc.

“We will be locked in a customs arrangement indefinitely, bound by rules determined by the EU over which we have no say,” he added.

Dominic Raab: Deal can’t be ‘reconciled’ with promises made to public

Announcing his resignation on Thursday morning, Brexit Secretary Dominic Raab tweeted: “I cannot in good conscience support the terms proposed for our deal with the EU.”

Raab claimed that the deal in its current form gives the EU veto power over the UK’s ability to annul the deal.

No democratic nation has ever signed up to be bound by such an extensive regime.

Former Conservative Party leader Iain Duncan Smith said that Raab’s resignation as Brexit secretary is “devastating” for May.

“It sounds like he has been ignored,” he told the BBC.

Raab’s departure will undoubtedly encourage other Brexit supporters to question the deal, political commentators have observed.

Esther McVey: Deal ‘does not honor’ Brexit referendum

Work and Pensions Secretary Esther McVey didn’t hold back when issuing her own letter of resignation. According to McVey, the deal “does not honour” the result of the Brexit referendum, in which a majority of Brits voted to leave the European Union.

Suella Braverman: ‘Unable to sincerely support’ deal

Suella Braverman, a junior minister in Britain’s Brexit ministry, issued her resignation on Thursday, saying that she couldn’t stomach the deal.

“I now find myself unable to sincerely support the deal agreed yesterday by cabinet,” she said in a letter posted on Twitter.

Suella Braverman, MP Parliamentary Under Secretary of State for the Department for Exiting the EU © Global Look Press / Joel Goodman
Braverman said that the deal is not what the British people voted for, and threatened to tear the country apart.

“It prevents an unequivocal exit from a customs union with the EU,” she said.

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Five Saudis Face Death Penalty Over Khashoggi Killing; Crown Prince Cleared

According to the Saudi prosecutor, five people charged are believed to have been involved in “ordering and executing the crime.”

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Via Zerohedge


Saudi Arabia public prosecutor Sheikh Shaalan al-Shaalan said on Thursday that the kingdom will seek the death penalty for five suspects among the 11 charged in the killing of journalist Jamal Khashoggi, confirming suspicions that members of the murder squad purportedly sent to “interrogate” Khashoggi will now themselves face beheadings as the Saudi Royal Family closes ranks around the Crown Prince, per the FT.

As for Mohammed bin Salman who runs the day to day affairs of the world’s top oil exporter and is the de facto head of OPEC, the prosecutor said had “no knowledge” of the mission, effectively absolving him of any domestic suspicion, if not international.

The charges were handed down after the kingdom dismissed five senior intelligence officers and arrested 18 Saudi nationals in connection with Khashoggi’s disappearance. The Saudi insider-turned-dissident journalist disappeared on Oct. 2 after entering the Saudi Arabian consulate in Istanbul to pick up documents that would have allowed him to marry his fiance. Khashoggi was a legal resident of Virginia.

According to the Saudi prosecutor, five people charged are believed to have been involved in “ordering and executing the crime,” according to CNN.

The prosecutor said that the former Saudi deputy intelligence chief, Ahmed al-Assiri, ordered a mission to force Khashoggi to go back to Saudi Arabia and formed a team of 15 people.

They were divided into three groups, the Saudi Public Prosecutor said: a negotiation team, an intelligence team and a logistical team.

It was the head of the negotiating team who ordered the killing of Khashoggi, the prosecutor said.

The Saudis stuck by latest (ever changing) narrative that the Washington Post columnist was killed after a mission to abduct him went awry. The deputy chief of intelligence ordered that Khashoggi be brought back to the kingdom, Shaalan said. The team killed him after the talks failed and his body was handed to a “collaborator” in Turkey, he said.

Asked whether Saud al-Qahtanti, an aide to Prince Mohammed, had any role in the case, Shaalan said that a royal adviser had a coordinating role and had provided information. The former adviser was now under investigation, the prosecutor said, declining to reveal the names of any of those facing charges.

Al-Shaalan did reveal that a total of 21 suspects are now being held in connection with the case. Notably, the decision to charge the 5 comes after National Security Advisor John Bolton repudiated reports that a recording of Khashoggi’s murder made by Turkish authorities suggested that Crown Prince Mohammad bin Salman was behind the murder plot.

But as long as OPEC+ is planning to do “whatever it takes” to boost oil prices, the US’s willingness to give the Saudis a pass could always be tested if crude prices again turn sharply higher.

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