E.U. Reaches Debt Deal for Greece

Robbing from Peter to pay Paul is not a sustainable economic policy.  Many within the EU are becoming increasingly dissatisfied with Greece’s  antics.

European Union officials agreed on Thursday to unlock loans of 8.5 billion euros for Greece, to ensure it meets huge payments on its debt next month.

The deal, reached by eurozone finance ministers, will ensure that Greece can pay about €7 billion…next month on its towering pile of loans. If Greece defaulted on its debt, it could set off an economic crisis, reviving fears about the future of the eurozone.

www.nytimes.com/2017/06/15/business/eu-greece-debt.html

Greece Considers Dropping Euro for US Dollar

Greece has surprised many by its consideration of the USD in light of its ongoing debt woes and constant fighting with Germany and the IMF. This move would be of prophetic significance in that the Bible speaks of Greece in separate terms to that of the EU. At a time still yet in the future, the Jews of Israel will be held as slaves by the Greeks during the same time that the EU exists (Joel 3:6). It seems strange that the Greeks would be the only country to be named in the Bible as part of the Beast Power if that were the case.

Professor Ted Malloch revealed that senior Greek economists have enquired about the possibility of adopting the greenback if the country crashes out of the single currency.

He asserted that Athens is so desperate it is prepared to tie itself to the dollar on the same terms as the likes of Puerto Rico if it means being able to quit the eurozone.

And Prof Malloch said German leaders including Angela Merkel were “freaked out” at the humiliating possibility of losing Greece to a rival currency, which would be a devastating blow to the EU project.

Tying Greece temporarily to the US dollar would be one way for the authorities in Athens to ensure that its currency does not completely tank if it leaves the eurozone, as would likely occur with a reissued drachma.

In an explosive interview with a Greek broadcaster Prof Malloch said it would be the best thing for the the country’s people if it quits the eurozone, adding that the current situation is “simply unsustainable”.

But Greece’s debt has now got so huge, and the sense of weariness is so great on both sides of the talks, that there are now fears a deal will not be reached, causing the country to crash out of the euro.

Source: EURO HUMILIATION: Germany ‘freaked out’ as Greece ‘could ditch EU currency for US DOLLAR’

EU Faces Crisis as Greek Debts are on ‘Explosive’ Path 

The…International Monetary Fund has warned Greece’s debts are on an “explosive” path, despite years of attempted austerity and economic reforms.

Global financiers at the IMF are increasingly unwilling to fund endless bailouts for the eurozone’s most troubled country, passing more of the burden onto the EU – at a time when Germany does not want to keep sending cash to Athens.

As Angela Merkel, the German chancellor, fights a tough reelection battle, Germany is particularly reluctant to send funds directly to Greece, with populist parties in Germany arguing that the payments amount to an unfair bailout from hard-working Germans to less deserving Greeks.

A fresh crisis over Greek debt could be triggered as soon as in July when Greece is due to repay some 7bn euros to its creditors – money the country cannot pay without a fresh injection of bailout cash.

That means Greece’s “public debt remains highly unsustainable, despite generous official relief already provided by its European partners,” the IMF believes.

Even if the country successfully implements all of its planned financial and economic reforms….“Greece cannot be expected to grow out of its debt problem, even with full implementation of reforms,” the IMF warned on Tuesday.

Source: EU faces crisis as IMF warns Greek debts are on ‘explosive’ path 

Greeks Foresee Grexit and Drachma’s Revival

Be sure and read our past articles on how and why this could be prophetically significant.

Now the man who was swept to power on a platform to eradicate austerity has passed the toughest reforms to date – overhauling the pension system, raising taxes and increasing social security fund contributions as the price of emergency bailout aid.

For many, their arrival marks a new juncture, a psychological cut-off point whose consequences are yet untold. “For a long time, people had a cushion. There was fat in the system but that has now gone,” says Vassilis Korkidis, who heads the National Confederation of Hellenic Commerce.

It was thought the crisis had subsided, usurped by the drama of Europe’s refugees. But it had not gone away.

In 2016, just as in 2015 and every year for the previous five years, it had coursed like a cancer through Greek life, corroding families, closing businesses, decimating hospitals and every other form of state care, leaving ever more destitute….The choice for Europe: rescue Greece or create a failed state….

“Greeks are running out of stamina, they are running out of endurance. Who will be able to survive on pensions of €384 a month? Something will have to give.”

Source: ‘Everyone’s outraged’: angry Greeks foresee Grexit and drachma’s revival | World news | The Guardian

Soros Says Greece Now Lose-Lose Game

The chances of Greece leaving the euro area are now 50-50 and the country could go “down the drain,” billionaire investor George Soros said.

The negotiations between Tsipras’s Syriza government and the institutions helping finance the Greek economy — the European Commission, European Central Bank and International Monetary Fund — could result in a “breakdown,” leading to the country leaving the common currency area, Soros said….

“You can keep on pushing it back indefinitely,” making interest payments without writing down debt, Soros said. “But in the meantime there will be no primary surplus because Greece is going down the drain.”

Soros said in January 2012 that the odds are in the direction of Greece leaving the euro region.

via Soros Says Greece Now Lose-Lose Game After Being Mishandled – Bloomberg Business.

Game of Chicken Between Greece and EU Threatens Euro-Zone Integrity

A Greek exit from the Eurozone might have had devastating effects for the euro and other PIIGS nations years ago, but now the opposite may be true.  If Greece gets its way it could very possibly pave the way for the other financially strained countries to do the same, thus having a less dire effect on the EU and Eurozone members.

In his first appearance before his foreign counterparts, Greek Finance Minister Giannis Varoufakis initially triggered astonishment, which then gave way to mild annoyance and finally culminated in rage and indignation.

Varoufakis, a professor of economics, used his visit to the special summit of the Euro Group — which consists of euro-zone member state finance ministers — last Wednesday in Brussels to give a lecture. He spent half an hour talking about his view of the crisis and the “humanitarian catastrophe” in his country. But a concept for how he intends to tackle Greece’s gigantic debt load was not part of his presentation.

The response to his speech was unsurprising, with representatives of smaller countries, in particular, expressing their rage over the audacity of the newly elected Greek government‘s demand to renegotiate aid from its partner countries. “Your standard of living is higher than ours, and we pay for your aid,” the finance minister of one of the Baltic countries said angrily, while his counterpart from Slovenia described the event as “a total waste of time.” “I can’t take that to my parliament,” the Estonian envoy complained.

European Central Bank (ECB) President Mario Draghi was especially irate. “We can do nothing at all if you talk like that,” he said. If all you do is “constantly talk about insolvency,” he added, “even the healthy Greek banks will eventually be insolvent.”

But by the time Schäuble landed in Berlin, the compromise had already fallen apart. Greek Prime Minister Alexis Tsipras had refused to agree with the terms and had ordered his finance minister back to Athens.

With each new day of the dispute between Tsipras and his financial backers, the likelihood grows that Greece will indeed stumble its way out of the euro. Both sides have dug in their heels.

Schäuble believes that Greece’s departure from the euro zone would be manageable. Even his counterparts from France and Italy, who have often expressed their sympathy for making concessions to Greece, want to remain tough. They fear that radical parties in their own countries could feel emboldened to demand similar concessions if Europe is too accommodating to the Greeks.

The financial world also seems more serene. “Greece remaining part of the euro zone would be the best solution for the country and the monetary union — but only if the Greek government returns to a path of reason,” says David Folkerts-Landau, chief economist at Deutsche Bank.

via Game of Chicken Between Greece and EU Threatens Euro-Zone Integrity – SPIEGEL ONLINE.

Greece Struggles to Get Europe to Change Course on Austerity

OUT OF THE EURO ZONE?

Should the conflict between Greece and its creditors continue to worsen, an old question will once again surface: Should Greece stay in the euro zone or not? And how dangerous would a so-called “Grexit” be for the country and for the remainder of the common currency union? The second question is vital for determining who has the better cards in the poker game between Greece’s new government and the country’s creditors.

A possible Greek exit from the euro zone is not, obviously, a new concern. Three years ago, it looked like a realistic possibility until Berlin became convinced that the risks of contagion for other euro-zone countries was too great. But since then, the situation has changed dramatically. Both Greece and the euro zone are in better shape than they were in 2012 and would be better prepared to handle a Grexit.

Euro-zone countries may have established a functioning bailout fund and made progress on a banking union scheme, but a Greek exit could attract speculators. “International investors would quickly begin asking which country might fall next,” Ackermann believes….

Speculators could begin testing just how durable the rest of the euro zone really is and focus on countries like Portugal, Spain or Italy….

via Greece Struggles to Get Europe to Change Course on Austerity – SPIEGEL ONLINE.

Greece elections: Syriza and EU on collision course

As this article shows, Greece is at a crossroads.  The Greek people do not want to pay for their past mistakes, enter Russia.

Greek voters have rebelled against the austerity programme imposed by Brussels and Berlin in return for loans to fund Greece’s massive debt. The radical left Syriza party, which promises better terms for Greece, won a decisive victory in the general election today and is close to winning an absolute majority in parliament.

New Democracy’s Prime Minister, Antonis Samaras, was defeated because he failed to end the bailout, get a Greek debt reduction, lift the economy out of deep recession despite some recent improvements and get the IMF removed from the much-hated troika (EU, ECB and IMF) that has exercised a near-colonial control over the Greek economy.

Syriza may seek to form a government on its own or it could look for allies such as Pasok and the Potami party. But it will soon find itself in a confrontation with the EU as it look for relaxation in the austerity that has reduced four million Greeks to poverty.

At the same time, Greece remains saddled with €240bn in debt that it is unable to repay but must continue to service. Continual cuts and tax rises made it impossible for Greece to escape from a deep recession despite marginal improvements last year.

Mr Tsipras says he does not want to leave the EU or the euro and neither option is popular in Greece. The EU will not want a relaxation to austerity in Greece because of the impact this would have on heavily indebted countries such as Italy, Spain and France.

A new Greek government will immediately face problems because the creditor states have frozen $8.8bn (£5.9bn) in loan disbursements.… This means that Greece may only have the money … until the end of February to pay state employees and pensions and service the debt.

The election has once again opened up the deep traditional divisions between left and right in Greece, rooted in the German occupation, the civil war, the rule of the colonels up to 1974 and the unprecedented economic collapse of the last five years.

via Greece elections: Syriza and EU on collision course after election win for left-wing party – Europe – World – The Independent.

Russia would consider giving financial help to Greece

This could be why the Bible speaks of Greece separately from a united Europe.

Russian Finance Minister Anton Siluanov told CNBC that Russia would consider giving financial help to debt-ridden Greece—just days after the new Greek government questioned further European Union sanctions against Russia.

Siluanov said Greece had not yet requested Russia for assistance, but he did not rule out an agreement between the two countries if Greece came asking.

Siluanov’s comments come two days after Greece’s new left-wing-led government distanced itself from calls to increase sanctions against Russia—indicating that Greece could be looking east to Russia for support.

On Tuesday, EU leaders issued a statement calling for “further restrictive measures” to be considered against Russia with regard to its involvement in the ongoing conflict in eastern Ukraine.

via Russia would consider giving financial help to debt-ridden Greece.

Greece heads for a Euro collision

The Bible seems to speak of a separation between Greece and Europe in the end-time.  With Greece unwilling to do what it needs to do to get its economy back up and going and Europe losing patience with them, this may happen sooner rather than later.

Time and again, thousands of protesters have gathered in Syntagma Square in the heart of Athens to march against Greece’s agony of recession and austerity.

Yet after five years of economic crisis and countless demonstrations, Greeks will have the chance to seize back their destiny next Sunday when they vote in a snap general election.

This was an opportunity they were never supposed to have. Antonis Samaras, the prime minister, had hoped to battle on and see through the austerity plan ….

Mr Samaras, the leader of the centre-Right New Democracy Party, has imposed punitive cuts in exchange for a £190 billion bail-out from the European Union and the International Monetary Fund. With all the passion of a man who believes he is performing the Herculean task of restoring his country to health, the prime minister argues that his policies are finally showing results.

But the voters beg to differ. Millions of Greeks believe the price of the bail-out has been too high.

At a rally last week, he declared that it was “time for the people, not foreign interests, to decide Greece’s future”.

All the evidence shows that the message of this 40-year-old populist is striking home. Every opinion poll for the past two months has put Syriza in first place with a consistent lead of between three and five percentage points…. Syriza is set to win this election – and Mr Tsipras will then become prime minister of Greece and one of the youngest national leaders in the world.

And that is when his problems will begin. Mr Tsipras has promised to renegotiate the bail-out package, including by writing-off “most” of the debt.

Yet he also wants to keep Greece in the euro. Despite the trauma of the past five years, a solid majority of about 70 per cent of Greeks wants to stay in the euro. If Mr Tsipras wins this election, he will have triumphed by the simple device of telling the voters exactly what they want to hear, namely that Greece can have the euro without austerity.

via Greece heads for a Euro collision – Telegraph.