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GREECE TODAY SOUGHT to add Italy to its supporters in a fight to secure easier terms on the country’s massive debt after unveiling new proposals to end a stand-off with international lenders.
Greek Finance Minister Yanis Varoufakis told international financiers in London yesterday that the leftist-dominated government in Athens would be making proposals for “a menu of debt swaps” that would avoid the need for any of the country’s €315 billion mountain of foreign debt to be written off.
The proposal, made public in an interview in the Financial Times, was interpreted by markets as a sign of flexibility and a boost to hopes for a negotiated resolution of a crisis that Britain described as the biggest current threat to the global economy.
Stock markets across Europe powered ahead on hopes of a negotiated settlement of a dispute that has brought EU divisions on austerity policies to a head.
In Athens, the government, which was buoyed at the weekend by public backing for its cause by US President Barack Obama, denied there had been a climbdown from election promises.
If we need to use euphemism and the tools of financial mechanisms to get Greece out of its debt-slavery, we will do it,” its spokesman said.
“The Greek public debt will be sustainable, the prospect of real growth will open and the Greek people will breathe at last.”
Haircuts avoided?
The government said the mechanisms for this to happen could include the ”smart debt engineering,” outlined by Varoufakis in meetings with bankers in London.
This would involve the issuing of two new types of bonds. One would be linked to nominal economic growth to refinance European rescue loans, and the other would be “perpetual bonds” that would replace Greek bonds owned by the European Central Bank.
The approach would avoid creditors having to take a ‘haircut’ on the Greek debt, an outcome that is fiercely opposed by several EU countries led by Germany.
It would also be hard to stomach for Ireland, which was forced to stick to a painful programme of spending cuts as a condition of its own bailout in the aftermath of the 2007 financial crisis.
Varoufakis was to hold talks in Rome with his Italian counterpart Pier Carlo Padoan while Prime Minister Alexis Tsipras flew in from Cyprus to meet with his Italian colleague Matteo Renzi.
The debt swaps proposal was expected to get a sympathetic hearing from Renzi, who is well-placed to broker an end to the confrontation as he has the ear of German Chancellor Angela Merkel but is in the camp of those in the EU who want a more flexible, growth-first approach to the bloc’s economic policy.
“I believe it is crucial to send a clear message: we want to move the discussion on economic policy from austerity and rigour towards growth and investment,” Renzi said yesterday, while stressing the need for “prudence and responsibility” from all involved.
Greece’s debt is worth 1.75 times the countries entire annual economic output. Severe spending cuts mean the government now raises substantially more in taxes than it pays to fund services, but that surplus is more than wiped out by the cost of servicing the debt.
US President Barack Obama on Sunday appeared to side with Greece by warning of the dangers of “squeezing” an economy already gripped by painful recession.
Default ruled out
Tsipras has dismissed the “troika” system monitoring Greece’s economy – the International Monetary Fund, European Commission and European Central Bank” – as lacking legal status, and blames Germany for driving the tough austerity programmes his hard-left government has pledged to end.
He has however reassured markets by ruling out a unilateral default on any of the debts to the EU, European Central Bank and the IMF.
In contrast to Germany’s tough stance, France and other EU states have advocated fresh thinking to resolve the dispute and Greece is arguably in a strong negotiating position because of the chaos that could ensue if that does not happen.
European Commission President Jean-Claude Juncker said today the EU was ready to “rearrange some of our policies,” but warned Tsipras he also had to be ready to compromise.
“It’s not just one EU member that has expressed a democratic choice, there are other public opinions too,” Juncker told the European Parliament.
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Another reminder that the children’s hospital is being built in the wrong location. Every time there is an accident on the M50 roads into Dublin cannot manage the level of traffic.
Inside the M50 belt just does not make sense.
@Ciarán McPhillips: such a scary thought for a child to be in an ambulance and caught up on the M50. Disgraceful decision.
@Deborah Behan: We’re sleepwalking our way towards that exact situation. The mind boggles.
No doubt caused by some muppet hammering up the outside/city lanes and then nipping in to go northbound. We need to start a campaign to not let queue jumpers in.
@mcgoo:
Or perhaps allowing queue jumpers in would stop the accidents
Meanwhile here in Leitrim….
@Patrick J. O’Rourke: who cares about a dying county like Leitrim
@Michael Walsh: We are not dying. We’re generally quite happy that we don’t have to become a slave to make a living. Who cares about the septic tank that is Dublin? See…same question.
@Patrick J. O’Rourke: As a Dub myself id agree. Dublin is grinding to a standstill as we repeat the mistakes of the Celtic tiger years and continue to vote for political organisations who have their and not the nation as a whole best interests at heart.
@Patrick J. O’Rourke: jealous
@quality cheese: Did you post this on your 6 hour journey to work or from bed this morning? Hard to tell…. but “quality cheese”…… your at home
@Michael Walsh: like it or not your taxes keep Leitrim going.
@quality cheese: A tendency to resort to insults shows quite clearly a lack of intellect.
Tailgating is the problem. Its amazing cars doing 140kph tailgating just 1 metre behind the car in front. Amazing breaking system they must have to avoid a crash if the car in front suddenly breaks. KEEP YOUR DISTANCE. 1m for every 2kph. Eg a car must leave 200 metres distance at 100 kph.
@Brendan Mason: That and the roads were wet this morning, come this way every morning before 7am.
Speed limit drops from 100 kp to 80 kp, most people dont pay any heed to that.
Many go beyond it.
Zero police enforcement and bad driving skills, welcome to Irish driving!
@Brendan Mason: 1m for every 2kph? Therfore using your formula travelling around 100kph should have a gap of 50m not 200m. Anyway if anyone left a gap of 200m on an Irish motorway they’d be flashed at (lights) and abused by other road users.
@Brendan Mason: The accident happened close to the Luas car park junction before the M50. Given the time of morning the accident occurred, and it being a Monday which is probably the busiest morning of the week anyway, it’s virtually an impossibility that cars were traveling at 140kph, or anywhere remotely close to that speed.
@Tommy Roche: the 140 kph is an example. 4okph may be enough to cause a crash if cars are close enough to each other .
@Brendan Mason: 40 kph sorry.
@Brendan Mason: I drive as part of my job and find that if you do leave a gap to the car in front then you’ll always have a gimp who will try to squeeze their car into that gap meaning you have to jam on the breaks
@Brendan Mason: 1mtr behind a car in front driving at 140kmh? Bit of an exaggeration don’t you think. Most drivers wouldn’t be able to judge 60, 80,100mtrs. Little tip – if you are overtaking in the out most lane try keep right of centre of your lane. You will be able to see the break lights of the second car in front.
@Brendan Mason: if you keep the right distance some mope jumps in in front of you that cuts your distance your bolloxed then . This happens very often rant over
For a lot of tech companies e.g. Facebook, Dell, Amazon, people can work from home quite a bit. With some planning you dont need mega-speed broadband either. Can’t help but think some of these businesses could make the leap to commuter towns and beyond. Clonakility has a multinational, the workers have houses, sea-air, little traffic and are 30 mins from Cork for a bit of life, and the airport also. Not ignoring the lack of routes currently available, but if more large towns within 60 mins of Galway, Limerick and Cork were utilised, how much better would life be for people? It will only take one big tech company to lead the way.
Vomit. How do people put up with this shit everyday of their lives.
Life is short people.
@Ciarán McPhillips: I ment 50 metres for 100 kph.
70 metres for 140 kph etc.
@Brendan Mason: but they are not leaving a fraction of that distance. Gung ho. Flash lights. The road is mine attitude. Slap on the breaks etc.
@Brendan Mason:
Spot on. Clueless behaviour.
H
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