#Greece in #Eurozone: What to expect in the next months?

 

The month-long negotiations between the Greek government and Eurozone ended up temporarily with the adoption of a 4-month extension of the current bailout program during which the Greek government is bound to undertake a specific course of action regarding these structural reforms that will convince the creditors that Greece is ready to receive the final loan package. The evaluation of the Greek proposals is due for end April, whereas by July the government should most probably sit down to the negotiation table with the creditors to discuss the steps ahead and the progress that has been made in the Greek economy.

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#Greece: What has not been said so far during latest Eurogroups

One step before reaching an agreement (?) on Greece’s bailout program, the government dispatched today the revised proposal including the extension of the current loan agreement for the next six (6) months, while introducing a moratorium in the implementation of new austerity measures suggested by troika last November. Meanwhile, the ECB decided yesterday to extend liquidity from ELA to the Greek banks, thus securing the proper function of the banking system. The Greek government and PM Tsipras want time to shift negative prospects of the economy and come back at the end of summer 2015 with entirely new facts regarding public finance performance and negotiate over a broader plan with the creditors. So far, there has been some key macroeconomic data released by IMF and OECD that confute a number of myths with regards to the Greek economy and policy-making these last years.

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#Greece has the momentum and should exploit it

Time always matter. In 1946 Great Britain’s PM Winston Churchill gave a speech at the University of Zurich pointing out the paramount need for the creation of the “United States of Europe”. The statement of Churchill came after an unprecedentedly devastating war that destroyed Europe in political, human, and economic level. Almost 60 years later, the Lisbon Treaty came to solidify the sense of belonging in the EU and train the next generations with a very specific concept: every time that a member-state would need assistance, solidarity would automatically be put forth in economic, social, and political level. Greece is in a state of humanitarian crisis, being hugely affected by austerity measures. Greece and the Greek people should not be punished, but be assisted under a new political plan that overcomes the burdens and fallacies of Eurozone’s economic strategy since 2009.

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The great hypocrisy of Eurozone against #Greece

These last days we have witnessed a growing “statement war” over the possible outcome of the negotiations in this Wednesday’s Eurogroup and the possibility of “Grexit”. This term that has been so easily used in unofficial statements and media coverage to stir anxiety in the markets and fear in the Greek and European public is coming over and over in the table. In a previous analysis we have explained why Grexit is an artificial dilemma and not a possible scenario. Still, both EU and Greek media, as well as officials from third party organizations continue to “play” with the term Grexit, always in the most counter-productive way.

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Can #Varoufakis’ perpetual bonds be a smart move?

And here it is now that we are starting pondering on different alternatives on how to manage the debt of Greece and Eurozone. In an interview with The Financial Times, the Greek Minister of Finance Yanis Varoufakis introduced the term “perpetual bond” to explain his plan to ease Greece’s immense debt burden. As the confrontation with the country’s creditors is increasing, Varoufakis’ proposal to unlock the stand-off between both parties is genuinely interesting.

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Who will lose from pushing #Greece on the ropes?

The pressure on the new Greek government is immense since the first day in power. A growing pressure that stems from every possibly side: from international media; from EU leaders; from opinion-makers; from the market; domestically in Greece, from different voices proclaiming themselves “democrats” that vie for the future of Greece, its citizens, its prosperity, the youth. We can hardly discern those criticizing the structure of the bailout programs in Greece, the shared responsibility of the Greek and European decision-makers, the lack of productive reforms, the incapacity of the political personnel in Greece that managed to bring the country in such a desperate position. In other words, the question is not whether Greece will stay or leave Eurozone; is whether Greece as  sovereign state has the right to take a rational decision.

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Is #Syriza wrong when objecting to new sanctions on Russia?

On Monday January 26 the European Council released the Statement of the Heads of States or Governments pointing out the growing concern on political and military developments in Ukraine. In the Statement the Council also underlined that the EU should consider taking and implementing new sanctions against Russia if it considers it appropriate. While such statements are common for similar cases in the past, the reaction of the newly elected government of Syriza in Greece was truly unexpected.

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Short and Mid-term economic policies of SYRIZA

 

 

Courtesy: Dimitris Arvanitis ©

SYRIZA’s landslide is definitely something many media and political analysts would not expect. Over 900 correspondents from European and international media were in Athens these last weeks to cover one of the most interesting and crucial elections in the Union. Why? Because the radical left party of SYRIZA, a party that until 2010 was around 5-7%, achieved to immensely increase its electoral appeal, reaching around 37% and making history in Greece. In the center of the debate was the economic program of SYRIZA, with the majority of media correspondents  struggling to clear up what the priorities and policy planning of the new government are.

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Two Scenarios on Draghi’s Quantitative Easing and the Greek Case

It has been months since the President of ECB Mario Draghi has announced his intention to implement the so-called “quantitative easing”, adopting a similar decision of the US Fed to calm down pressures over the bonds market. So far his intention / decision has been blocked by Germany and Chancellor Merkel, who is reluctant to give the “green light ” and thus alleviate the growing monetary and financial pressure in Eurozone. Now that the single market is faced with deflation, Draghi might feel more decisive and determined to move on. But what about the Greek bonds?

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There is no #Grexit, just another economic strategy

The major topic / concern of EU, international and domestic media towards parliamentary elections in Greece is -again- whether the country will stay in or leave Eurozone. Actually it is an artificial dilemma as front opposition SYRIZA, leading the polls, never claimed against the fate of the country in the monetary Union. Therefore, it is time to drop “Grexit” from the discussion table.

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