Greece

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  • Whether by design or accident, Athen’s Syriza-led government has achieved deep European harmony – but this has not produced agreement on a strategy for dealing with the Greek crisis
  • Dubai is hoping to be a bridgehead for deals with Iran as international investors prepare for a gold rush with the prospect of an end to nuclear sanctions in sight
  • Secret files from the Islamic State of Iraq and the Levant (Isis) show how former officials under Saddam Hussein helped design a blueprint for the militant jihadi group’s meteoric rise (Spiegel Online)
  • Who or what abdicated power in Grimsby, once the largest fishing port in the world and now a target for the UK Independence party, leaving swathes of it to rot? (London Review of Books)

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The European Central Bank’s governing council is meeting against a backdrop of an improving eurozone economy. The ECB kept its benchmark interest rate at a record low 0.05 per cent and its deposit facility at -0.2 per cent on Wednesday and is expected to continue its €60bn a month landmark quantitative easing programme.

But it is not all optimism in the eurozone. The ECB’s bond buying has helped push German 10-year bund yields towards zero raising concerns about the potential for distortions in financial markets, while jitters over the growing possibility that Greece could default on a debt repayment provides a great deal for ECB President Mario Draghi to discuss at his press conference, which starts at 1.30pm UK time. By Ralph Atkins and Lindsay Whipp

 

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Immersed in thoughts about whether Greece will strike a last-minute deal with its foreign creditors to avoid a debt default, I found myself on Tuesday evening outside an Athens souvenir shop selling a T-shirt with this slogan:

To be is to do – Plato
To do is to be – Aristotle
Do be do be do – Sinatra Read more

This week Greece finally put a figure on its demand for war reparations from Germany – €278.7bn as compensation for the death and destruction visited by the Nazis during the war. Opinion polls suggest that this gambit is widely popular in Greece. But by bringing this issue up now, the Greek government may have made a serious miscalculation that could contribute to the country’s disorderly exit from the euro.

Greece’s reparations demand comes at a time when the government in Athens is running out of money and its creditors are running out of patience. The country is likely to need a new bailout package this summer. By putting the reparations issue on the table, the Greeks may feel they gain extra leverage – as well as the possibility that they will actually get debts written off, rather than simply extended. But they have also significantly raised the risk that the Germans will simply walk away from the table altogether – forcing Greece into a default and a disorderly exit from the euro. Read more

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By Gideon Rachman
Just before Alexis Tsipras was elected Greek prime minister in January, he made a vow to the voters: “On Monday national humiliation will be over. We will finish with orders from abroad.”

When Mario Draghi gives his press conference, investors will be focusing on the details of the European Central Bank’s bond-buying programme. The purchases could eventually amount to about €850bn-worth of government bonds and the ECB is also likely to purchase just over €100bn-worth of bonds issued by eurozone institutions.

Mr Draghi will also be questioned extensively on the Greek bailout extension. By Ralph Atkins and Lindsay Whipp

 

By Gideon Rachman
Watching the Greek crisis unfold, I found myself torn between two equal and opposite thoughts. First, the euro cannot survive. Second, everything must be done to save the euro.

The election by parliament of Prokopis Pavlopoulos, a centre-right former cabinet minister, as Greece’s new president on Wednesday night has sparked criticism from members of the governing Syriza party’s far-left faction who wanted to see an “anti-austerity” politician in the largely ceremonial post of head of state.

Puzzled Syriza voters wondered how Mr Pavlopoulos could have been adopted as the candidate of a government that wants to get rid of outdated political practices, given his track record while in office. Read more

The scenes of chaos during President Jacob Zuma’s speech at the opening of South Africa’s parliament last week will be remembered as one of the darkest days of the post-apartheid era

Visitors from the Chinese mainland to Hong Kong are known as “locusts” and now a long-simmering resentment at their presence in the territory is boiling over into angry protests

Greece must impose capital controls or repeat the costly mistake of Cyprus, where emergency funding from the ECB was spirited out of the country, argues Hans-Werner Sinn

What Isis Really Wants: The Islamic State is no mere collection of psychopaths. Here’s what its beliefs means for its strategy – and how to stop it (The Atlantic)

Washington’s uneasy partnership with Tehran now extends to Yemen (Foreign Policy)  Read more

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  • Grow vegetables extensively! North Korea has unveiled a list of 310 new political slogans covering every conceivable topic (Agence France-Presse)

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Are Europe’s politicians ready to contemplate Grexit?
Gideon Rachman is joined by Ferdinando Giugliano and Stefan Wagstyl to discuss the growing stand-off between Greece and its eurozone creditors as the language becomes more uncompromising on both sides. What would happen if Greece left the eurozone and are politicians prepared to contemplate such an outcome?

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If there was any doubt that the forthcoming negotiations between Greece’s new Syriza government and its eurozone creditors would be fiery, Greek prime minister Alexis Tsipras dispelled them in his barnstorming speech to his parliament on Sunday night.

His defiant rhetoric will have gone down well not just in Greece but also with some of the political left in Europe and beyond. Some politicians and commentators have elevated the dispute between Athens and the rest of the eurozone – usually shortened to Greece vs Germany – as a battle between the progressive and reactionary forces for the soul of Europe, a fiscal Spanish Civil War for the 21st century. Read more

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  • Greece’s privatisation programme, ordered under the terms of its international bailout, was falling far short of targets even before the country’s new left-wing government vowed to scrap further sales of state assets
  • Following Isis’ brutal execution by immolation of captured Jordanian pilot Muath al-Kasaesbeh, many in the country have called for a deeper military commitment against the jihadist group
  • Foreigners are leaving Russia in unprecedented numbers, reflecting a worsening economic outlook as western sanctions bite
  • The west’s inability to comprehend how Vladimir Putin sees the world means it has trouble thinking constructively about how to deal with him (The American Interest)
  • A convicted al-Qaeda operative has claimed that more than a dozen prominent Saudi figures were donors to the terror group and that a Saudi diplomat discussed with him a plot to shoot down Air Force One (NYT)

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