HELSINKI—The Finns Party, which advocates Finland's exit from the euro zone,
is expected to make strides in local elections on Sunday, likely widening a
political divide in the small Nordic state about how to approach the euro-zone
debt crisis.
Formerly called the True Finns, support for the fiercely nationalistic party
swelled during national elections in 2011, and is poised to nearly triple on the
municipal level, according to a new opinion poll. The survey by Finland's
largest newspaper, Helsingin Sanomat, predicts the euroskeptic Finns will take
15.6% of the local vote, up from 5.4% in 2008....GDP is a very poor indicator of the actual health of an economy. Such a fractional rise (which appears to be dependent to a large extent on the one-off effect of the Olympics e.x england) is set against a backdrop of declining full-time employment, falling living standards, intolerable inflation on essentials, the growing VAT-ability of almost everything, wage stagnation, a complete lack of any business financing streams for SMEs, company closures, mass under-employment among highly qualified graduates and (I suspect ex-)professionals, a frozen housing market, crippling rents for younger people, the slow diminution of public services, completely frozen social mobility and a general sense of resignation and malaise about the economic future of any country.
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German lawmakers are increasingly resigned to the need for extra loans for Greece from the euro zone's bailout fund. The alternative, many in Ms. Merkel's coalition say, would be a Greek national bankruptcy and exit from the euro that could rock the currency zone just as Europe is making progress in taming its three-year-old debt crisis.
Mr. Michelbach said that reducing or delaying Greece's interest payments on its European rescue loans and helping Greece to buy back some of its outstanding bond debt were other possible measures to help Athens make ends meet. "That would be a conceivable path," he said.
Greece's deeply depressed economy, together with Athens' request for more time to implement painful overhauls, are prompting European governments to consider about €30 billion ($39 billion) of extra financing in addition to Greece's €173 billion loan program drawn up in March.
About two dozen lawmakers in Ms. Merkel's ruling coalition have signaled strong reservations against expanding the Greek bailout program, but only around 10 have so far said they would definitely vote "no." Most of them voted against previous aid deals for Greece but failed to stop them.
A major rebellion inside Ms. Merkel's coalition could embarrass and weaken the chancellor ahead of her re-election campaign in fall 2013. The expected new deal for Greece is likely to receive the backing of the opposition Social Democrats and Greens, who have fewer reservations about the move than the conservatives.
Ms. Merkel has softened her line on Greece in recent weeks, paying a high-profile visit to Athens earlier this month to signal her support for Greece's continued euro membership. She recently has expressed her sympathy for the pain that austerity measures have inflicted on Greek society, in contrast with previous rhetoric by many German politicians who have accused Greece of being resistant to change
BERLIN—Passing a more-generous bailout for Greece through Germany's parliament could prove easier than expected for Chancellor Angela Merkel, after most of her coalition appeared willing on Friday to give Greece more time and financing to repair its economy.
Senior lawmakers in Ms. Merkel's conservative-led coalition signaled that the chancellor would likely face limited resistance in parliament against an expanded aid package for Greece, belying fears that Germany's legislature would balk at a third bailout deal for Athens since 2010.
The shift in the mood in the Bundestag, Germany's lower house of parliament, makes it more likely the euro zone will agree to release urgently needed aid for Greece in November, while easing the onerous timetable of Greece's austerity program.
The German government hasn't yet agreed to extra financing for Greece. But most German lawmakers believe it is only a matter of time.
On Wednesday eurozone finance ministers will hold a conference call on Greece, two days after Monday's Euro Working Group where senior eurozone officials examine the heavily indebted country's progress in meeting the required cost savings required by the Eurogroup.
On Monday the Euro Working Group will also discuss Greece's request for a two-year extension to implement the tough austerity measures that are part of its bailout , extending the deadline 2016.
The permanent loss of national sovereignty over government budgets to Brussels is being demanded by Germany at a time when eurozone taxpayers - and primarily German taxpayers - look likely to be called on to foot the bill for solving the eurozone crisis.
A new "banking union" currently being fleshed out will make the eurozone as a whole collectively responsible for any losses associated with future bank bailouts, irrespective of which country the troubled bank happens to be located in.
There is however still uncertainty as to whether this sharing of risks will also apply to the rescue of Spain's banks that is currently being prepared, or whether the Spanish government will instead be required to guarantee the bailout.
Meanwhile, expectations are growing that Greece will be given a further write-off or "haircut" of its debts, including possible relief on its debt repayments to the eurozone's bailout funds or the European Central Bank.
Mr Schaeuble ruled out any direct debt forgiveness on Sunday.
"You don't give a debtor who doesn't service your debt claims new money," he told Deutschlandfunkradio. "We would be prevented by law from doing any more."
He did however leave the door open to an arrangement under which new bailout loans could be used by Greece to buy back its private sector debts at what are currently cheap market prices.
Greece has also been asking for two more years to meet the spending cuts demanded by international creditors.
On Wednesday, the Greek Finance Minister Yannis Stournaras had claimed that a deadline extension had been agreed.
But both Mr Draghi and Mr Schaeuble have denied this was the case, pointing out that the negotiations over the release of Greece's next tranche of bailout money were not yet complete
Draghi backs eurozone super-commissioner plan Mr Draghi said governments must give up more sovereignty if trust in the euro is to be restored Continue reading the main story
Eurozone crisisSix burning questions for Spain
Q&A: What went wrong in Spain?
Compare European debt levels
Who will help Greece now?
European Central Bank President Mario Draghi has backed German calls for a European super-commissioner to oversee national government budgets.
German Finance Minister Wolfgang Schaeuble wants the "currency commissioner" to be given the power to veto national budgets.
"I explicitly support this proposal," Mr Draghi told der Spiegel magazine.
Plans to impose strict limits on budget deficits have already been agreed by 25 of the 27 European Union members.
Only the UK and the Czech Republic have opted out of the new rules.
Draghi backs eurozone super-commissioner plan Mr Draghi said governments must give up more sovereignty if trust in the euro is to be restored Continue reading the main story
Eurozone crisisSix burning questions for Spain
Q&A: What went wrong in Spain?
Compare European debt levels
Who will help Greece now?
European Central Bank President Mario Draghi has backed German calls for a European super-commissioner to oversee national government budgets.
German Finance Minister Wolfgang Schaeuble wants the "currency commissioner" to be given the power to veto national budgets.
"I explicitly support this proposal," Mr Draghi told der Spiegel magazine.
Plans to impose strict limits on budget deficits have already been agreed by 25 of the 27 European Union members.
Only the UK and the Czech Republic have opted out of the new rules.
ROME—Days after saying he would take a back-seat in Italy's political scene, Silvio Berlusconi was back into the spotlight this weekend, threatening to pull support for Prime Minister Mario Monti's government and ranting against what he called German-induced austerity.
In a 90-minute televised news conference, Mr. Berlusconi said he wouldn't seek again the premiership job he has held for nine of the past 20 years. But he urged compatriots to vote for a party that would lower taxes, change the justice system and introduce looser rules on the use of cash.
Rome's current policies have been "imposed by Signora Merkel...
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