Greece must still clear four hurdles before it receives its €130bn bailout package.1) The eurogroup of finance ministers, which meets on Wednesday night, must agree that it has now met the terms of the package
2) The leaders of its political parties must pledge in writing that they will implement it.
3) The German Bundestag must vote to approve the package, probably on February 27th.
4) The long-running negotiations with its creditors over debt restructuring (the Private Sector Involvement) must be concluded.
Gilles Moer of Deutche Bank told Bloomberg TV this morning that it is essential for Greece to maintain its credibility with its international partners. He said that the demand for Greece's leaders to make a commitment in writing "shows the pressure that the Troika is still prepared to put on Greece".
Speaking earlier this morning, Phillip Rösler said the vote was merely a "necessary condition" on the path to Greece's second rescue package, as Athens must also prove that the measures will be implemented. Rösler added that the German parliament must receive a report on Greece from the Troika [the IMF, the EU and the ECB] before deciding whether to give its approval for the bailout fund. That vote is expected to take place in the Bundestag on 27 February.
5 comments:
Political posturing. They know as well as anyone else that in the end it will be passed because it is in THEIR interest, and the interest of THEIR banks.
So what are the likely outcomes:
1. New Greek parliment which will not implement the reforms. Result, the money will be lost.
2. Suspension of the elections and the draconian measures implimented. Result, death spiral continues, more civil unrest with the possibility of revolution, the money will be lost.
How much longer can this sham continue
Quite what the make up of the new Greek parliment will look like it anyones guess, but it is highly doubtful they will honour any vote taken last night.
financial realities have a way of making newly elected governments cautious. New Democracy made lots of noise against austerity, until they joined the government.
Few took notice of these prophetic
words at that time of "end of history" as Fukuyama taught us. Now, we
know that, were it not for the trillions of dollars of Government’s aid in
2009, the global banking system would
have already collapsed and the world would again be deep in the throes of
another depression. But the collapse has not been
averted, it has only been delayed. The trillions of dollars spent to postpone
the day of reckoning were borrowed and soon the bill will be proffered and
payment demanded for having done so. There is no way out except complete
systemic collapse. We are now at the end of the three hundred year system of
economic slavery by credit and debt.
As if the monetary madness is not enough, we are
now staring one of the greatest resource/energy crisis humanity has ever faced.
When this crisis fully hits home, many will gnash their teeth because, it will
destroy civilisation as we know it
If you doubt this, look up your history on how civilizations collapse
The markets have probably risen because French and German Governments have been spared the public spectacle of rescuing their own banks by socialising the debt through the latest Greek bailout loan, for that is really all we have seen. 81% of that bailout loan going to repay private banks and the ECB and can anyone, and I mean anyone, seriously believe that this action has provided any kind of solution for Greece? They had 110bn less than 2 years ago and the 25bn or so that might be left from the latest one to internally support a rapidly worsening economy will probably not last 12 months. I imagine it is pitched to take them past the next elections to ensure the right answer for the EU and that is the extent of their concern. Nothing has been achieved other than to avoid a bit of egg on the face of France and Germany and doom Greece to a death spiral.. and the markets rise. Interesting times we live in..
Maybe Europeans can learn a good lesson from Koreans: In 1997/1998, a similar financial crisis hit Korea and other Asian countries because American bankers they were trying to manipulate the financial market to take away Asian wealth. When facing such a crisis, Korean government and citizens knew that they needed to survive the hardship together and they shouldn't fight against each other. Because of this mutual trust and sacrifice, their citizens would do everything they can to help their country. They would even sell their own gold and jewelery to help out. As a result, they came out of that crisis quickly. Fortunately, Asians were smart people and they learned a good lesson from that crisis and didn't fall into traps in the 2008 crisis. And now, they are the most power economies in the world, with only 3% unemployment at Korea. I doubt that the financial troubles at Greece and other European countries were also stirred up by the same bankers. Since world civilization started from Greece/Europe, we fully believe that Greeks/Europeans will be smarter than Asians to defeat these greedy bankers! Cheer for you!
The European Commission has welcomed the Greek parliament's decision to approve tough new austerity measures.
Economics commissioner Olli Rehn urged Greek officials to "take ownership" and fully implement the reforms, demanded by the EU in return for a huge bailout.
But the measures attracted massive protests throughout Greece. Buildings were set on fire in Athens and police used tear gas to disperse the crowds.
The government confirmed later that an election would be held in April.
Analysts say the biggest party in the governing coalition, the socialist Pasok, is likely to suffer at the hands of the electorate
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