So says, well, the IMF in the staff report produced as fodder for the executive board to OK a €28bn loan to Athens on Thursday.
Not only is the Greek programme itself on a knife-edge – super-sensitive to yet more growth shortfalls, doubts over political commitment to implementation, the usual – but the Fund is close to the limits of its own flexibility on how much it can lend to a single country, under its snappily-named “exceptional access” criteria. Read more
The euro has fallen to a 16-month low below $1.27 – run, run for your lives! Or recognise that it’s still around the trade-weighted average for the past decade and only slightly weaker in real terms than when it launched, that a weaker currency is just what a stricken economy needs and that there isn’t much sign that the fall is disorderly and hence generally hitting confidence in eurozone assets. (The eurozone authorities are doing that.) Read more
Welcome to our continuing coverage of the eurozone crisis. All times are GMT. By Tom Burgis, James Crabtree and John Aglionby on the news desk in London, with contributions from FT correspondents around the world.
The turmoil in the eurozone has taken a troubling turn in recent days, with anxiety spreading from Europe’s periphery to its “core” countries. Even as Italy’s Mario Monti readies his economic agenda to be presented today, investors are looking at France, the Netherlands and Austria with increasing unease and wondering whether the ECB might yet ride to the rescue. Over in Greece, today is the anniversary of 1973′s mass student protests – with demonstrators once more planning to take to the streets. And the bond markets are showing ever more strain, with today’s Spanish bond auction souring sentiment still further. Read more
Silvio Berlusconi – shutting one's eyes won't make the problems go away. Image AFP/Getty
Welcome back to the FT’s coverage of the eurozone crisis. Curated by John Aglionby, Tom Burgis and David Crouch on the news desk in London, with contributions from correspondents around the world. All times are GMT.
Greece really is expected to get a new prime minister today – 48 hours later than expected. Italy, well who knows what’s going to happen there as bond yields surge and the EU’s economic inspectors arrive … And policymakers and financiers are becoming increasingly concerned about the impact of the crisis on global liquidity levels.
18.53 That’s it for our live coverage today. We leave you with a round-up of where we stand at the end of another turbulent day in Europe – and some cold hard numbers (and letters) for your bedtime reading.
Nicolas Sarkozy, French president and G20 host, blows a kiss to someone – presumably not the Greek prime minister (AFP/Getty)
- Welcome back to the FT’s live coverage of the eurozone crisis. By Tom Burgis and John Aglionby on the news desk in London, with contributions from correspondents around the world. All times are GMT.
One issue dominates the agenda for as the Group of 20 leading economies enters its second and final: the fate of the eurozone amid the turmoil in Greece.
16.41: That’s it for the live blog for today. See FT.com over the coming hours for news and analysis on the G20 summit, Berlusconi’s woes and the outcome of tonight’s Greek vote.
16.31: Before we wind up the live blog, a brief re-cap of the day’s developments
- The IMF is to monitor Italy’s progress on promises to reform its economy
- Italian bond yields rose to fresh euro-era highs as Berlusconi said he was going nowhere
- The Italian PM insisted his majority at home was “solid”, though it looks anything but
- The G20 summit in Cannes ended with plenty of rhetoric urging the euorzone to get its house in order but no actual cash to help it do so
- Any decision on boosting the IMF’s resources to help tackle the crisis was put of until when G20 finance ministers meet in February
- Greek MPs are debating a vote of confidence in the government and will vote at midnight Athens time, 10pm London
Welcome back to the FT’s live coverage of the eurozone crisis. By Tom Burgis and John Aglionby on the news desk in London, with contributions from correspondents around the world. All times are GMT.
One issue dominates the agenda for today and tomorrow’s summit of the Group of 20 leading economies: the fate of the eurozone amid the turmoil in Greece.
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19.30: And what will tomorrow bring? Who knows. It’s day two of the G20 summit, the confidence vote in the Greek parliament and the US non-farm payrolls (monthly unemployment data) are announced.
Thanks for all your comments and tweets today – especially the song suggestions! For further updates from the late-night meetings in Cannes follow ft.com Read more
Welcome back to our continuing coverage of the eurozone crisis as we head into the evening. Europe’s leaders have gathered in Brussels to try to deliver a solution to the sovereign debt crisis. It has been a nervy day in the markets and national capitals – all of which you can read about on our live coverage from earlier on. Tonight we should discover whether Europe’s leaders can overcome their differences and chart a course towards recovery or whether they will once again fail to reach a deal. We’ll bring you news and commentary as we get it.
All times are London time. By Tom Burgis on the news desk in London, with contributions from FT correspondents around the world.
22.38: We’re going to wrap up our live coverage from London now. But fear not, the FT reporters at the summit will not rest until we have an outcome from the evening’s second summit, of all 17 eurozone leaders. See ft.com for all the latest news.
It seems only right to give the final word on today’s developments to Justin Timberlake, whose new film, In Time, has the strap line: “Tomorrow is a luxury you can’t afford.” Over the coming hours we’ll discover whether European leaders – and the markets – share that sentiment.
22.35: A quick recap on what we know so far
- The 27 EU leaders agreed a statement as per a leaked draft, fleshing out some headline details of how the bank recapitalisation will work
- Silvio Berlusconi’s letter to his fellow eurozone leaders included a commitment to raise the Italian retirement age to 67
- Nicolas Sarkozy will call his Chinese counterpart tomorrow in what seems to be part of efforts to win Chinese investment for a fund to buy eurozone debt
- US markets dealt with all of this pretty calmly, finishing the day in the black
Welcome to our continuing coverage of the eurozone crisis. All times are London time.
Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.
19.20: We’re wrapping up the live blog now but we’ll be back tomorrow for more fun and games – including, notably, the European Central Bank’s rate announcement and the swansong press conference of Jean-Claude Trichet. In the meantime, do follow us on twitter – we’re @ftworldnews – and of course at ft.com
19.15: How does one go about recapitalising a continent’s banks? Patrick Jenkins, the FT’s banking editor, and Gerrit Weismann, correspondent in Berlin, have put their heads together and come up with a very nice Q&A, which tells you how big the hole is, how recapitalisation might happen and what type of capital will be raised:
Consensus is now building in the markets that a European form of the Troubled Assets Relief Programme, or Tarp, that underpinned mandatory US bank recapitalisations in the wake of the 2008 crisis, is the best way to restore confidence…
The news that the “troika” – the EU, the ECB and the IMF – will be returning to Athens on Thursday is a pretty strong signal that the next tranche of the current rescue programme is going to be released – a small mercy for Greece, at least, even if the next version of the bail-out is mired in division and uncertainty.
Among the various other displays of poor coordination in the bail-out is the difference of style: the IMF tends to send its mission chief back to a borrower country only when the negotiations are pretty much done and the fund is ready to disburse the next tranche; the EU thinks substantive negotiations should be done in-country and generally wants to send its top officials in at an earlier stage. Read more