...Greek papers this morning are saying the famous 6th tranche of aid (the €8bn euro needed to cover public sector payments by Nov 10th when the government has admitted it will run out of cash) is now in question following Prime Minister George Papandreou's deeply controversial decision to put last week's latest EU/IMF rescue package for the country to popular vote. Prominent commentator Ioannis Pretenderis, in the usually pro-government Ta Nea, wrote that: The prospect of a referendum is catastrophic. First because it throws the agreement struck on October 26th up in the air and will lead the country to bankruptcy. At this moment, in the general European uproar, not even the sixth aid installment is guaranteed. Secondly, because it cunningly turns the question of the governance of the country into one about its European perspective. Third and worst of all, because it turns the European future of Greece that was always a given into something that is questionable. Already, the damage is huge almost irreparable. I don't know the motives or thought process that lead Papandreou to make this decision. Already, the damage is huge, almost irreparable. Such stinging rebukes are being much echoed in the ranks of Papandreou's ruling Pasok party which has been in melt-down since the surprise announcement was made. An emergency meeting of the entire cabinet, called by the embattled leader after the defection of an MP showed all the signs of becoming a full-on mutiny, went on into the early hours as ministers voiced their shock and disgruntlement over the decision. With tensions running so high Pasok insiders say it' far from assured that the government will receive a make-or-break vote of confidence that Papandreou has called for midnight Friday...
Access Investments-Building Awareness - European Union-ROMANIA
Wednesday, November 2, 2011
...Greek papers this morning are saying the famous 6th tranche of aid (the €8bn euro needed to cover public sector payments by Nov 10th when the government has admitted it will run out of cash) is now in question following Prime Minister George Papandreou's deeply controversial decision to put last week's latest EU/IMF rescue package for the country to popular vote. Prominent commentator Ioannis Pretenderis, in the usually pro-government Ta Nea, wrote that: The prospect of a referendum is catastrophic. First because it throws the agreement struck on October 26th up in the air and will lead the country to bankruptcy. At this moment, in the general European uproar, not even the sixth aid installment is guaranteed. Secondly, because it cunningly turns the question of the governance of the country into one about its European perspective. Third and worst of all, because it turns the European future of Greece that was always a given into something that is questionable. Already, the damage is huge almost irreparable. I don't know the motives or thought process that lead Papandreou to make this decision. Already, the damage is huge, almost irreparable. Such stinging rebukes are being much echoed in the ranks of Papandreou's ruling Pasok party which has been in melt-down since the surprise announcement was made. An emergency meeting of the entire cabinet, called by the embattled leader after the defection of an MP showed all the signs of becoming a full-on mutiny, went on into the early hours as ministers voiced their shock and disgruntlement over the decision. With tensions running so high Pasok insiders say it' far from assured that the government will receive a make-or-break vote of confidence that Papandreou has called for midnight Friday...
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Something new to worry about - French bonds. The gap between the amount of interest investors charge to hold German government debt compared to French government debt is at its widest since the euro was set up. In layman's terms, that means investors see lending money to France as a riskier bet than to Germany. Yields on French government debt are 1.3 percentage points more interest than Germany on debt due in 10 years - 3.1pc compared to Germany's 1.84pc. Andrew Roberts, head of European rates strategy at Royal Bank of Scotland Group, described French bonds as a "key short" meaning investors should expect the price to fall and the yield to rise.
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