Eurozone leaders are scheduled to hold an emergency summit on Monday evening to try to reach a last-ditch deal with Greece on a new bailout and to prevent it from defaulting on debts that are due at the end of next week. Athens submitted new reform proposals overnight but eurozone finance ministers said after a meeting there would not be a deal today. Markets, which rallied early on Monday on the cautious optimism, remain upbeat despite the politicians delaying the deadline.
By John Aglionby, Ferdinando Giugliano and Mark Odell
By Gideon Rachman
When the radical left won power in Greece in January much was made of the fact that Yanis Varoufakis, the new finance minister, is an academic economist. Many expected that Greece’s negotiating strategy would display a new subtlety and brilliance, now that it was guided by the co-author of Game Theory — A Critical Introduction.
Greek bailout negotiators have come up with a set of revenue-raising projections for 2015 and 2016 that troubles even the most optimistic Athens economist.
The leaked eight-page proposal published by Kathimerini includes administrative measures aimed at raising €1.6bn in the second half of this year and €2.3bn next year and include the following measures: Read more
By Gideon Rachman
Neither man would appreciate the comparison, but Alexis Tsipras and David Cameron are in remarkably similar situations.
Welcome to our live coverage of the European Central Bank President Mario Draghi’s press conference.
While we are not expecting quite the same excitement as six weeks ago when a protester jumped out from the journalists’ seating area yelling “end the dictatorship”, the eurozone economy is looking perkier, so many investors will be listening out for whether Mr Draghi strays into dovish or hawkish territory with his comments. The ECB kept its benchmark interest rate on hold at 0.05 per cent.
There will also be the inevitable focus on Greece, as bailout talks with creditors reach knife edge. Cash-strapped Athens is threatening to delay making a €305m loan repayment to the International Monetary Fund if there is no deal in the next few days.
By Ralph Atkins and Lindsay Whipp
Christine Lagarde made headlines on Friday saying in a German press interview that Grexit was “a potential.”
Coming from the head of the International Monetary Fund, her words rightly caused a stir – even if they were little more than a statement of the obvious. Those charged with maintaining financial stability are not supposed to rock the boat, even if the water is already coming over the gunwales. Read more
Greece on the brink
Greece is said to be about to run out of money and yet there’s no sign of a deal with its creditors. Gideon Rachman is joined by Martin Sandbu and Kerin Hope to discuss whether a further crisis can be avoided.
By Gideon Rachman
The relationship between the government of Greece and the rest of the eurozone increasingly resembles a bad marriage. The two sides are sick of the sight of each other. Mutual trust has broken down. Efforts to patch things up continue, but nothing seems to work.
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
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
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