Greece

Greece’s latest annual survey of living standards, published on Monday by the country’s independent statistical agency Elstat, highlights the deepening impact on households of a wrenching six-year recession. Some figures leap off the page, even though observers in Athens are used to a flow of gloomy statistics. 

Tony Barber

The consensus, such as it is, on the eurozone crisis was neatly summed up on Monday by Hugo Dixon, author and editor at large of Reuters News: “The euro crisis is sleeping, not dead.”

What about the crisis in Greece? Over the past four to five years Europe, supported by the International Monetary Fund, has invested more time, effort and money in Greece than in any other struggling eurozone state. The aim is to reform a country so inefficiently governed, so riddled with corruption and so burdened with debt that it seemed, for certain spells in 2011 and 2012, to pose a threat to the eurozone’s survival.

So it seems reasonable to ask: if this time, effort and money have not changed Greece for the better, what has it all been for? 

  • Golden Dawn is filling in the gaps in the Greek welfare system and establishing itself in society for the years to come.
  • Despite his “Demolition Man” nickname, Matteo Renzi has responded cautiously to recent scandals and it still seems that corruption is the norm in Italy.
  • China’s property bubble could really burst and Beijing’s resolve to avoid traditional stimulus programmes is unlikely to hold, says George Magnus.
  • The Telegraph interviewed 27 European immigrants about their experience living in the UK. They discuss whether immigrants take jobs from the British and the British love for beer.

 

• Putin is proving his skills as Russia’s great propagandist, with his use of Soviet-era symbolism alarming those fearful for the country’s democracy.

• The Ukraine stand-off offers Beijing a broader role on the global stage.

• The FT’s series on the Fragile Middle continues, with a look at how India‘s petty entrepreneurs face an uncertain future.

• About to take over a crisis-ridden company with a demoralised workforce? Look no further the Vatican under Pope Francis for a case-study in how it should be done.

• As forests of empty new housing towers fill the horizon in Chinese cities, yet more state sanctioned construction would amount to yin zhen zhi ke – “drinking poison to quench one’s thirst”.

Mukhtar Ablyazov, a former banker accused of fraud and one of the Kazakh president’s main political opponents, says the UK is being manipulated by a kleptocratic dictator after London decided to revoke his asylum status. 

By Luisa Frey
Will the Palestinian economy ever be able to break its isolation? The past two decades’ rounds of failed peace talks didn’t manage to build an independent Palestinian economy which can break free of Israel – the question is now if a new $4bn plan to revive the economy will be able to change that.
♦ Tests taken from Yasser Arafat’s corpse have shown high levels of radioactive polonium-210, suggesting the former Palestinian leader could have been poisoned. Arafat’s widow describes it as “the crime of the century”.
♦ External pressure is also threatening Georgia. The FT’s Neil Buckley reports about the “borderisation” of South Ossetia.
Greece may be the next Weimar Germany, says Greek professor Aristides Hatzis. The parliament contains neo-Nazis, Stalinists, Maoists, populists and defenders of conspiracy theories. Although there is a strong coalition government, failures in implementing reforms seem to be outweighing successes.
♦ Meanwhile, “power, prestige, and influence of the United States in the broader Middle East is in a death spiral”, writes Bob Dreyfuss. He argues in Le Monde Diplomatique that the disastrous invasions of Afghanistan and Iraq, America’s economic crisis and the Arab Spring contributed to the decay of American influence.
♦ The future of the US-Egyptian relationship is also in focus. Washington’s establishment of relations with former Egyptian President Gamal Abdel al-Nasser “can serve as the most promising template for a stable and productive relationship between the two countries today”, says Robert Springborg in Foreign Affairs.
♦ Peter Baker, from Foreign Policy, writes about how the warm Russian-American relationship became icy. Through interviews and secret notes and memos, he reconstructs the story of former President George W. Bush’s pas de deux with Vladimir Putin, offering lessons for Obama as he struggles to define his own approach to Russia.

Gideon Rachman

The arrest of the leader and deputy leader of Golden Dawn – alongside other Golden Dawn MPs and party members – has been greeted with applause by liberals inside and outside Greece.

There is little doubt that Golden Dawn is a genuinely nasty party whose members are guilty of rhetorical and actual violence against immigrants and whose leadership revels in paramilitary and fascist imagery. All those who fear that economic turmoil will undermine Greek democracy have been able to point to the gains made by Golden Dawn.

And yet, while the party is undoubtedly authentically horrible, I wonder whether the crackdown is really such a great idea. Mass arrests of legitimately elected politicians should always spark unease. As several commentators have pointed out, the last time this kind of thing happened in Greece was after the fall of a military junta, in 1974. 

By David Gallerano
♦ Claire Jones outlines how any decision the Federal Reserve will take on tapering has implications far beyond the United States.
♦ Robin Harding takes stock of the situation regarding the nomination of the new Fed chairman. Though it seems the propitious moment for a Yellen selection, there is the chance that the White House might opt for a more thorough selection process. After all, Ben Bernanke’s appointment in 2005 did not come until late October
♦ Meanwhile, John McDermott reproaches Obama for his weak support of Lawrence Summers’ candidacy.
♦ The German elections will pave the way for a third bailout for Greece. How will the Greek economy react? Peter Spiegel outlines the most likely scenario.
♦ The Pacific Standard examines six reasons why Zambia is – and will probably remain for long time – a poor country

Michael Steen

(Getty)

For campaign issues that Germany’s political elite had all but agreed to shy away from, the eurozone debt crisis in general and Greece in particular are proving remarkably capable of generating unscripted campaign trail surprises. 

♦ In Syria, loyalists proclaim their success, but there are plenty of reminders that their progress is limited and potentially reversible.
♦ In Egypt, critics accuse Mohamed Morsi and the ruling Muslim Brotherhood of ineptitude and authoritarianism that has damaged the economy and fuelled public discontent.
♦ Greece is struggling to avoid the collapse of a second big privatisation – bidders for the state gaming monopoly want to change the terms of a deal agreed last month.
♦ The New York Times looks at how Barack Obama engaged with Nelson Mandela’s history.
♦ The former second ranking officer in the US military is now the target of a Justice Department investigation into the leak of information about a covert US cyber attack on Iran’s nuclear programme.
♦ DNA testing has gained in popularity as people go searching for their African roots.
♦ Eric Lewis, a partner at an international litigation firm, argues based on the Supreme Court’s decisions this week that, “
Even with the jubilation surrounding the defeat of DOMA, this has been a strange and sad week for the Court and the nation.” 

Turkey
♦ Why was the Turkish media’s coverage of the protests so inadequate? – it is a “compromised media sector that is largely the property of conglomerates with wide-ranging interests, and a Turkish state that exercises particular sway over business life.”
♦ The protests have shaken Turkey but will not topple the prime minister, says Turkish journalist Mustafa Akyol.
♦ Protesters are using gaming lingo in their fight against the government.
Elsewhere
♦ Poetry magazine has dedicated their June issue entirely to poetry composed by and circulated among Afghan women.
♦ The IMF admits to errors in its handling of Greece’s first bailout. Here’s some context from FT Alphaville’s Joseph Cotterill.
♦ Take a look at the BBC’s view from Qusair, of a city that has disappeared.