BRUSSELS--- Europe, facing a momentous Greek election after a week of mounting
financial stresses, is preparing for what some financial analysts are calling
its "Lehman moment": the prospect that Greece could leave the euro currency
union following Sunday's vote.
Mean Street host Francesco Guerrera calls on WSJ's
Charles Forelle to discuss why the European crisis is so important to the U.S.
economy.
With Greece poised to vote on austerity measures, the
Euro zone is on the verge of a painful rupture that could be its dissolution. If
Greece chooses to exit the Euro, the resulting chain of events may be hard to
contain. Yet, European officials say that even an election that results in a Greek
embrace of the euro and an acceptance of the terms of Europe's March bailout of
the country may only temporarily ease pressure on the euro zone, whose
crisis-management strategy many analysts say lies in shreds.
Borrowing costs in Spain and Italy rose sharply higher in recent days despite
efforts to insulate Spain, the euro zone's fourth-largest economy, from the
effects of Greek uncertainty by lining up a bailout request last weekend for as
much as €100 billion to boost the capital of Spanish banks.
"We are back in the danger zone," said Jean Pisani-Ferry, director of
Bruegel, a Brussels-based economic think tank.....After his side beat Russia to advance in Euro 2012, Greek national football manager Fernando Santos was asked how much modern European civilisation has strayed away from its ancient Greek roots.
He replied: "We are inspired by Greek history, not Merkel." I say : ...BUT, WHATEVER Horst Rechenbach The Governor of GREECE decides is the LAW ...!!!! Greeks have done it to themselvs !!!!
PARIS -- The quiet elections - -French voters have been taking part in a second round of parliamentary elections seen as crucial for President Francois Hollande's reform agenda. The socialist leader, who was elected last month, is seeking a solid left-wing majority in the lower house. He has promised to hire more public workers and to refocus EU fiscal efforts from austerity to "growth"......Socialists and their left-wing allies won 46% in last Sunday's first round, against 34% for the centre-right UMP. Nationwide, the turnout was a modest 57%. France's 46 million eligible voters are picking representatives for 577 seats in the National Assembly. After the first round, 36 seats out of 577 were declared in constituencies where the winner got more than 50% of the vote. Socialists and their allies won 25 of those seats.
He replied: "We are inspired by Greek history, not Merkel." I say : ...BUT, WHATEVER Horst Rechenbach The Governor of GREECE decides is the LAW ...!!!! Greeks have done it to themselvs !!!!
PARIS -- The quiet elections - -French voters have been taking part in a second round of parliamentary elections seen as crucial for President Francois Hollande's reform agenda. The socialist leader, who was elected last month, is seeking a solid left-wing majority in the lower house. He has promised to hire more public workers and to refocus EU fiscal efforts from austerity to "growth"......Socialists and their left-wing allies won 46% in last Sunday's first round, against 34% for the centre-right UMP. Nationwide, the turnout was a modest 57%. France's 46 million eligible voters are picking representatives for 577 seats in the National Assembly. After the first round, 36 seats out of 577 were declared in constituencies where the winner got more than 50% of the vote. Socialists and their allies won 25 of those seats.
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There’s trouble on the home front, too, for Angela Merkel. The German Chancellor is facing call from within her own coalition for a referendum in Germany as the price for any further eurozone bailouts.
Horst Seehofer, the head of Bavaria’s Christian Democrats, told Spiegel magazine that he would demand during elections next year that Germany’s constitution needed to be changed to allow popular votes to ratify major EU decisions.
“If the extent of Germany's financial commitment is widened, then we should ask people for their opinion. The referendum in Ireland has shown that people can handle European issues responsibly. Those who wish Europe well must not be afraid of the population,” he said.
“We should change the constitution so that referendums will in future be made mandatory in three cases: if additional powers are transferred to Brussels; if the EU wants to include new members, and if new aid programmes in the euro crisis are launched.”
Herman Van Rompuy and José Manuel Barroso have issued a joint statement on the Greek election:
The Greek people have spoken. We fully respect its democratic choice. We are hopeful that the election results will allow a government to be formed quickly. Today, we salute the courage and resilience of the Greek citizens, fully aware of the sacrifices which are demanded from them to redress the Greek economy and build new, sustainable growth for the country.
We will continue to stand by Greece as a member of the EU family and of the Euro area. We look forward to work with the new government and to support the continued efforts of Greece to put its economy on a sustainable path.
The second economic adjustment programme agreed between Greece and the Eurogroup is the basis upon which to build to foster growth, prosperity and jobs for the Greek people. We stand ready to continue assisting Greece in achieving these goals
Tomorrow's front pages are starting to emerge. The FT has gone with the headline: "Samaras leads in Greece poll", which will likely change for the final edition, while The Daily Telegraph has opted for: "Greek vote leaves euro in balance".
The Eurogroup has issued a statement on the Greek elections, which it says "should allow for the formation of a government that will carry the support of the electorate to bring Greece back on a path of sustainable growth".
The Eurogroup acknowledges the considerable efforts already made by the Greek citizens and is convinced that continued fiscal and structural reforms are Greece’s best guarantee to overcome the current economic and social challenges and for a more prosperous future of Greece in the euro area.
The Eurogroup reiterates its commitment to assist Greece in its adjustment effort in order to address the many challenges the economy is facing.
The Eurogroup therefore looks forward to the swift formation of a new Greek government that will take ownership of the adjustment programme to which Greece and the Eurogroup earlier this year committed themselves.
The Eurogroup expects the Troika institutions to return to Athens as soon as a new government is in place to exchange views with the new government on the way forward and prepare the first review under the second adjustment programme.
so if ND do fail to form a coalition within their 3 days, and then all the anti bailout DID manage to form a coalition on thursday... that would put them in power mid week, possibly in the middle of a working day.
How are the proxy drachma/capital controls going to get switched on midweek/mid day?
This could actually turn out to be the worst possible result for the Euro!
Once again the defunct, sham and illegitimate nature of 'representative' democracy shines through. this new shower still only got less than a 1/3 of the vote and want to reap destruction on the Greek population because of problems not of heir causing
the other two thirds simply won't have it. Here we go again...
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siren45
17 June 2012 10:56PM
Samaras can now be credited with one of the great political U-turns. After weeks of campaigning on a renegotiation platform, he made no mention of it at all in his 'victory' speech. He just talked about 'adding' growth measures to 'our commitments'. So after all that it's back to square one. I hope his voters are happy with themselves. He will press on with the austerity measures in full and he will drive the final nail into the Greek economy. And then he will suffer the same fate as PASOK - political oblivion
Once again the defunct, sham and illegitimate nature of 'representative' democracy shines through. this new shower still only got less than a 1/3 of the vote and want to reap destruction on the Greek population because of problems not of heir causing
the other two thirds simply won't have it. Here we go again... Samaras can now be credited with one of the great political U-turns. After weeks of campaigning on a renegotiation platform, he made no mention of it at all in his 'victory' speech. He just talked about 'adding' growth measures to 'our commitments'. So after all that it's back to square one. I hope his voters are happy with themselves. He will press on with the austerity measures in full and he will drive the final nail into the Greek economy. And then he will suffer the same fate as PASOK - political oblivion
The White House has released a statement on the Greek election:
We congratulate the Greek people on conducting their election in this difficult time. We hope this election will lead quickly to the formation of a new government that can make timely progress on the economic challenges facing the Greek people. As President Obama and other world leaders have said, we believe that it is in all our interests for Greece to remain in the euro area while respecting its commitment to reform. Going forward, we will engage Greece in the spirit of partnership that has guided our alliance and the friendship between our people.
World leaders are in Mexico today and tomorrow for the G20 Summit. The event is sure to be overshadowed by the Greek election yesterday and continuing concerns over the financial health of Spain and Italy. World leaders are set to boost the $430bn (£273.6bn) fund being used as a firewall to support struggling eurozone economies.
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