Daily Archives: February 21, 2012

Gideon Rachman

After the latest Greek bail-out, there is a great deal of focus on whether the new deal is economically or financially-sustainable. The FT’s story on the leaked “downside scenario” report suggests that even those putting the deal together have severe doubts about whether it will stick.

But it is not just economic sustainability that matters. There is also the question of whether the deal is politically sustainable? What if the voters simply reject the deal? Read more

John Paul Rathbone

Josefina Vázquez Mota. Photo AP

Women currently govern some 40 per cent of Latin America’s population. If Josefina Vázquez Mota wins Mexico’s presidential elections in July, that figure will rise to 60 per cent. “I will be Mexico’s first presidenta (female president),” Ms Vázquez said this month after she won the primary of the conservative National Action PartyRead more

Welcome back to our continuing coverage of the eurozone crisis.

After more than 13 hours of talks, a second bail-out for Greece was agreed early on Tuesday morning. We’ll be bringing you reaction to the deal throughout the day. All times are GMT. By John Aglionby, Leyla Boulton and Tom Burgis on the news desk in London.

We’re going to wrap up now since, after getting no sleep last night, diplomats and officials across the eurozone appear to be heading home while Athens remains abuzz with how it will meet its side of the second Greek bail-out. To recap today’s highlights:

  • Negotiators for private bondholders have backed the latest Greek deal forcing them to accept a haircut, but avoiding a disorderly default next month.
  • While the euro rallied, European equities closed down as the deal left investors unimpressed while US stocks neared a post-financial crisis high, driven by psychological thresholds .
  • Evangelos Venizelos, Greek finance minister, told an Athens press conference that the official offer on the bond swap would be made to bond holders by the end of this week. A government official added that the collective action clause, forcing holdout investors to participate, would be approved by parliament on Thursday.
  • Reaction on the streets of Athens was muted, with leftwing parties saying the deal was bound to make the recession worse. Aleka Paparriga, Greek Communist party leader, said “it’s not impossible that this crisis will turn into a disorderly default within months”.
  • Lucas Papademos, prime minister, convened a cabinet meeting to put the finishing touches to a pile of legislation that must pass in parliament by the end of February – if Greece’s credibility is to be maintained at the March 2 summit of European leaders, the next stage towards getting funding from the bailout agreed overnight.
  • Greek government officials confirmed that the country will hold a general election at the end of April or the beginning of May.

 Read more