Here is the statement from IMF managing director Christine Lagarde: ---"Greece has made tremendous efforts to implement wide-ranging painful measures over the past two years, in the midst of a deep economic recession and a difficult social environment. The fiscal deficit has been reduced markedly and competitiveness has gradually improved. However, the challenges confronting Greece remain significant, with a large competitiveness gap, a high level of public debt, and an undercapitalized banking system. "The new Fund-supported program will enable Greece to address these challenges while remaining in the Eurozone. The program focuses on restoring competitiveness and growth, fiscal sustainability, and financial stability. The authorities are fully committed to these ambitious objectives and stand ready to take any additional measures as may be necessary. The successful debt exchange operation, debt relief and long-term support from Greece's European partners, and the commitment of the major Greek political parties to program objectives and policies provide important assurances for the new program. "Greece's priority is to undertake competitiveness-enhancing structural reforms. The government's bold labor market measures will play a crucial role in this regard, complemented by measures to liberalize professions and product markets, improve the business environment, and privatize state-owned assets. "Significant further fiscal adjustment is necessary to put debt on a sustainable downward trajectory. Reaching a primary surplus of 4½ percent of GDP by 2014 will require politically difficult cuts in government spending, as well as decisive measures to address tax evasion. It is important that the adjustment be both fair and sustainable, through strengthening the core social safety net and tax collection efforts. "Securing financial sector stability and depositor confidence is also a priority. The program secures liquidity support for Greek banks, and provides funds for their recapitalization, alongside incentives to preserve private ownership. The resolution framework and the governance of oversight agencies have been strengthened to ensure appropriate use of public funds and safeguard against conflicts of interest. "Risks to the program remain exceptionally high, and there is no room for slippages. Full and timely implementation of the planned adjustment—alongside broad-based public support and support from Greece's European partners—will be critical to success. The euro area leaders have reiterated their commitment to provide adequate support to Greece during the life of the program and beyond until it has regained market access, provided that Greece fully complies with the requirements and objectives of the adjustment program. Time to knock this blog on the head for the day (unless there are any exciting developments this evening, in which case it might roar back into life).
Access Investments-Building Awareness - European Union-ROMANIA
Friday, March 16, 2012
Here is the statement from IMF managing director Christine Lagarde: ---"Greece has made tremendous efforts to implement wide-ranging painful measures over the past two years, in the midst of a deep economic recession and a difficult social environment. The fiscal deficit has been reduced markedly and competitiveness has gradually improved. However, the challenges confronting Greece remain significant, with a large competitiveness gap, a high level of public debt, and an undercapitalized banking system. "The new Fund-supported program will enable Greece to address these challenges while remaining in the Eurozone. The program focuses on restoring competitiveness and growth, fiscal sustainability, and financial stability. The authorities are fully committed to these ambitious objectives and stand ready to take any additional measures as may be necessary. The successful debt exchange operation, debt relief and long-term support from Greece's European partners, and the commitment of the major Greek political parties to program objectives and policies provide important assurances for the new program. "Greece's priority is to undertake competitiveness-enhancing structural reforms. The government's bold labor market measures will play a crucial role in this regard, complemented by measures to liberalize professions and product markets, improve the business environment, and privatize state-owned assets. "Significant further fiscal adjustment is necessary to put debt on a sustainable downward trajectory. Reaching a primary surplus of 4½ percent of GDP by 2014 will require politically difficult cuts in government spending, as well as decisive measures to address tax evasion. It is important that the adjustment be both fair and sustainable, through strengthening the core social safety net and tax collection efforts. "Securing financial sector stability and depositor confidence is also a priority. The program secures liquidity support for Greek banks, and provides funds for their recapitalization, alongside incentives to preserve private ownership. The resolution framework and the governance of oversight agencies have been strengthened to ensure appropriate use of public funds and safeguard against conflicts of interest. "Risks to the program remain exceptionally high, and there is no room for slippages. Full and timely implementation of the planned adjustment—alongside broad-based public support and support from Greece's European partners—will be critical to success. The euro area leaders have reiterated their commitment to provide adequate support to Greece during the life of the program and beyond until it has regained market access, provided that Greece fully complies with the requirements and objectives of the adjustment program. Time to knock this blog on the head for the day (unless there are any exciting developments this evening, in which case it might roar back into life).
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4 comments:
You may want to ask who covets something that is completely irrelevant to the functioning of the UK.
If the chancellor is worried about something like this, when unemployment is soaring then there is serious doubt about whether his focus is on the correct problems.
If a government gilt drops below par, then the Bank of England can step in and purchase it for cancellation with Bank Reserves - as it has shown it can do throughout QE.
That does two things:
(i) removes a stream of income at ~2% (on Gilts) and replaces it with one at 0.5% (on Bank Reserves).
(ii) effectively acts as a tax on savings since the government paid the lower trade price rather than the higher par price to eliminate the gilt.
Hell will freeze over before the financial industry queues up to voluntarily pay a tax on their savings.
So it ain't going to happen and Fitch is talking cobblers. It is a political statement by a foreign entity attempting to interfere in domestic political concerns and should be called out as such.
Hopefully we will soon have some real cuts in public spending
You mean - real cuts in how these unelected bodies who run the Olympics piss away our money for the benefit of thier mates?
How many hospitals could have been saved from the 'overrun' of Olympic costs.
Ikonoclast
15 March 2012 8:50AM
Response to ElmerPhudd, 15 March 2012 8:41AM
We need to get with the new coallusion zeitgeist, you sack civil servants and replace them with agencies, such as A4E and Atos. For example you sack 250,000 civil servants in a year and 'create' 50,000 jobs in the private sector to replace them, it's Tory Boy numberwang. The really clever bit is making sure you sell off all the good bits to your mates ensuring that your tracks are covered and the audit trail leads nowhere. Border agency to be sold next, police to be replaced by robocops, Now court stenographers are to be sacked and replaced by a few kids who can use the words innit and abbreviate using text language..they'll just play it like it's Call Of Duty
'Weaker than expected recovery': the standard phrase of the times.
The fact is, the financial Ponzi scheme blew up between 2007 and 2010, and Peak Oil means there will never be a recovery.
However, shuffling the deck chairs on the Titanic is creating the illusion that someone somewhere knows what they are doing, and that the Titanic is going to get to port. The big question is, how long before the waves start washing the deck chairs overboard?
Meanwhile the 0.1% are looting the till as fast as they can.
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