Posts tagged "greece"

Greece faces new black hole in finances amid rising tensions with creditors

Greece faces new black hole in finances amid rising tensions with creditors

Greek finance minister Yannis Stournaras prepares for dressing down in Brussels over evidence of resistance to reforms. Read more…

Posted by admin - January 27, 2014 at 09:37

Categories: News   Tags: , ,

Nigel Farage becomes popular in Greece after outburst against the PM

Nigel Farage becomes popular in Greece after outburst against the PM

Ukip leader claims he received deluge of support after giving Antonis Samaras a dressing down in European parliament. Read more…

Posted by admin - January 19, 2014 at 11:08

Categories: News   Tags: , , , ,

Austerity measures push Greek universities to point of collapse

Austerity measures push Greek universities to point of collapse

University of Athens faces ‘most serious crisis in its history’ and suspends operations because of cuts, while others follow suit. Read more…

Posted by admin - September 25, 2013 at 15:48

Categories: News   Tags: , , , , ,

FTSE falls for third day to seven week low on takeover tales and Greek woes

FTSE falls for third day to seven week low on takeover tales and Greek woes

Leading shares hit by corporate and eurozone worries, as well as continuing central bank concerns. Read more…

Posted by admin - June 12, 2013 at 19:25

Categories: News   Tags: ,

Greek coalition in disarray after state broadcaster’s closure

Greek coalition in disarray after state broadcaster’s closure

Greece takes draconian move to show government is serious about meeting bailout austerity measures. Read more…

Posted by admin -  at 19:16

Categories: News   Tags: ,

Golden Dawn gathers strength as Greeks desert traditional parties

EU criticises the establishment’s failure to deal with violence in a country suffering from effects of harsh budget cuts

It wasn’t just that their symbols looked like swastikas. Or that thousands of Greek flags filled the marble square beneath the Acropolis. Or that they were marking the 560th anniversary of the fall of Constantinople.

It was that there were so many of them. Angry men and angry women furiously screaming “Greece belongs to Greeks” in the heart of ancient Athens, as tourists – some befuddled, some shocked – looked on or fled at the sight of neo-Nazis coming to town.

“Now we are in the thousands,” thundered Nikos Michaloliakos, the bespectacled mathematician who leads Greece’s far-right Golden Dawn party. “Long live victory!”

Like the soldiers on whom they model themselves, the Greeks who subscribe to the ultra-nationalist, neo-fascist dogma of Golden Dawn are the first to say they are at war. This week, as Antonis Samaras’s coalition government struggled to contain an escalating crisis over efforts to curb the extremists, it was they who appeared to be winning that war.

Amid a dramatic surge in attacks on immigrants blamed on the neo-Nazis, the debt-stricken country’s ruling alliance has come under unprecedented pressure to crack down on racially motivated crimes. Legislation calling for a ban on parties perceived to incite such violence was proposed by prime minister Samaras’s two junior leftist partners last month. Claiming that it would “victimise” Golden Dawn, which has 18 of the 300 MPs in parliament, the conservative groups last week rejected the bill as counterproductive. On Friday they put forward their own, less punitive law.

As parliament prepares to debate how best to apply legislation that will curb the party, – measures that have unexpectedly electrified the political scene – the far right is flourishing in the knowledge that, in a country reeling from the twin ills of austerity and despair, it is they who are in the ascendant. Since elections last year, Golden Dawn’s appeal has almost doubled, with successive polls showing support of between 11% and 12% for the neo-fascists. Privately pollsters acknowledge that, as Greece’s third-strongest and fastest-growing political force, the group could garner as much as 15% of support in local elections next year.

“It is wrong to believe that they are an ephemeral phenomenon,” said Professor Dimitris Kerides, who teaches political science at Athens’ Panteion University. “They are not only a product of this country’s economic crisis. There is something sick in Greek society that Golden Dawn expresses,” he added, referring to the rise in “Greek-only” blood banks and food rallies organised by the extremists. “They are here to stay. And as of 2014 they are going to be everywhere, with access to state resources because, for sure, they will win seats in municipal elections and, in some towns, place mayors.”

Emboldened by success, the neo-Nazis have become ever more visible. Across Greece, party branches have been opened at a record pace, with pupils actively recruited in schools. In villages, black-clad supporters proudly sporting the party’s insignia have proliferated, and in the southern Peloponnese, traditionally a stronghold of the right, Golden Dawn graffiti are scrawled over the roads and even rocks that dot the landscape of seaside resorts and archaeological sites.

Racially motivated violence has soared to such a degree that European officials blasted Greece for failing to take adequate action. Nils Muižnieks, the European commissioner for human rights, recently felt moved to point out that democracy was at risk in the birthplace of democracy because of “the upsurge in hate crime and a weak state response”. It was vital, he said, that domestic and international anti-racism laws were enforced to crack down on violence that had been “linked to members or supporters, including parliamentarians, of the neo-Nazi political party Golden Dawn”.

The Greek police and justice systems – both of which have been accused of colluding with the extremists – also had to be reformed, he said.

Indicative of the far right’s growing political grip, the conservatives fear that legislation proposed by their leftwing partners will further alienate traditional voters who have migrated to Golden Dawn in disgust at the political establishment blamed for the country’s crisis. The party’s spectacular rise has been attributed, in part, to defections from the Greek orthodox church and the army.

“The whole thing is a mess,” said Dimitris Psarras, an investigative journalist who has followed the group since its incipiency on the collapse of military rule in 1974. “Even if the law is passed, the message that is conveyed is that democracy is divided in knowing what to do with this neo-Nazi threat.” For too long, said Psarras, Greeks had watched with complacency as the far-right group went from strength to strength.

Just as in Weimar Germany, when Hitler’s National Socialist German Workers’ party rose from obscurity, opponents have remained eerily quiet. Until last week, when the 92-year-old poet Nanos Valaoritis deplored Golden Dawn as “having all the characteristics of the party which led Germany to destruction”, few in Greece’s political or intellectual elite had been willing to take on the extremists.

The lack of public debate has added to the mystique of an organisation whose workings remain opaque. The local media appears to have missed the story of Golden Dawn. To this day, the party’s financial backers and advisers remain shrouded in secrecy.

“Few in the establishment have openly addressed the danger of Golden Dawn and almost no one in the media has looked into it,” lamented Psarras. “Only now is it being taken seriously, but in my mind that could be too late.”

Capitalising on the deep wells of antipathy towards mainstream politicians, the far right has begun targeting the middle class. In recent months Golden Dawn offices have appeared in affluent areas around Athens.

Greece’s petit bourgeoisie of shopkeepers and small businessmen has, like civil servants, suffered most from crushing budget cuts demanded by the EU and IMF in return for emergency aid.

In an atmosphere thick with resentment and rage, immigrants from Asia and Africa have made easy scapegoats, with growing numbers of Greeks blaming foreigners for the country’s record rate of unemployment – at over 27%, the worst in the eurozone.

“Anger always wants a target,” said the prominent clinical psychologist, Dr Iphigenia Macri. “Golden Dawn provides a target, which is immigrants. It is targeting all that anger and sense of abuse that, collectively, Greek people feel at the hands of the government and state.”

In a bid to keep passions at bay among a population that reached boiling point long ago, the government has desperately tried to convince Greeks that, three years after the onset of their worst crisis in modern times, there is “light at the end of the tunnel”. Optimism has been propelled by economic progress.

However, the neo-Nazis’ rise defies any notion that all is well. “The victorious party is Golden Dawn,” said political commentator Nikos Xydakis. “Real life is very removed from the success story the government is selling. The neo-Nazis have succeeded not only in demystifying brutality; they are a reflection of the fear and poverty in this country.” © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

Be the first to comment - What do you think?
Posted by admin - June 2, 2013 at 09:09

Categories: News   Tags: , , ,

Eurozone crisis live: Finance ministers gather as tensions rise in Spain

Eurogroup will decide today whether to approve aid tranches for Greece and Cyprus, after seeing fresh anti-austerity protests in Spain over the weekend

Graeme Wearden


Be the first to comment - What do you think?
Posted by admin - May 13, 2013 at 14:34

Categories: News   Tags: , , ,

Greek PM intervenes in ‘difficult’ talks with creditors

Finance minister reportedly lashed out at mission chiefs from EU, ECB and IMF as pressure builds over next repayments

Almost three years after Greece narrowly avoided bankruptcy with its first bailout from the EU and IMF, the country’s relations with its international creditors have taken an unexpected turn for the worst.

The Greek prime minister Antonis Samaras was forced to step in on Sunday after stalled negotiations became bogged down in acrimony when visiting inspectors resumed talks last week.

Indicative of the tensions, Athens’s normally mild-mannered finance minister, Yiannis Stournaras, reportedly lashed out at mission chiefs from the EU, ECB and IMF during a heated exchange in his office on Thursday, telling them they could “take the keys” to the economy ministry if they continued to demand more austerity from a nation experiencing a sixth straight year of recession.

Emerging from the building, the economics professor uncharacteristically labelled the talks as “very difficult” and gave a taste of his own frustration. “The negotiations for the next loan tranches are still very difficult. I can assure you that things are not simple at all,” he said.

After troika representatives abruptly cancelled a meeting with Stournaras late on Saturday, Samaras tried to smooth over the cracks. At stake are two slices of aid worth €8.8bn (£7.5bn) that have been put on hold because of the slow pace of structural reforms.

The first instalment, of €2.8bn, is contingent on the governing coalition agreeing to sack 25,000 civil servants by the end of the year and 150,000 by 2015. The demand has placed what is being called “intolerable pressure” on Samaras’s already fragile administration, with his two junior leftwing partners openly opposing the measure at a time when unemployment is nearing a record 30%.

Highlighting the discord, the administrative reform minister, Antonis Manitakis, in charge of streamlining the bloated public sector and aligned with the small Democratic Left party, threatened to resign – a move that would dramatically undermine the government’s unity.

Other sticking points, according to well-placed sources, include the recapitalisation of Greek banks – and a possible merger between the National Bank of Greece and Eurobank – and a highly contentious property tax levied through electricity bills the conservative-led coalition pledged to scrap when it assumed power last June.

Household incomes have fallen by as much as 50% since the debt crisis erupted in Athens more than three years ago. In an attempt to placate lenders and keep a restive population at bay, Samaras and his coalition partners proposed last week that the property levy be substantially reduced by broadening the tax base to include farmland and undeveloped real estate. Creditors, so far, have failed to react.

Greece faces two debt repayments, including €3.6bn in maturing treasury bills, this month and next. “Not reaching an agreement is not an option,” said Pandelis Kapsis, a prominent political commentator and former government spokesman. “There may be a delay [in disbursement of rescue funds] but there is absolutely no way we can move ahead without an agreement,” he told the Guardian.

Greece is likely to suffer from the turmoil in Cyprus, whose economy is expected to contract sharply following its own bailout agreement. But last week Samaras spoke for the first time of an economic recovery amid signs that fiscal consolidation was finally beginning to pay off.

“Even those who until recently had their doubts are today convinced that we can make it,” he told an audience in Athens, insisting that with private sector hirings outpacing firings in March the country was at long last breaking the vicious cycle of recession.

The investment bank Morgan Stanley also predicted that Greece would achieve a primary surplus by the end of the year, saying it was now optimistic about the country.

Helena Smith © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

Be the first to comment - What do you think?
Posted by admin - April 7, 2013 at 18:14

Categories: News   Tags: , , ,

Greek consul’s London villa fetches £23.3m as part of state’s fire sale

Body overseeing debt-stricken country’s privatisation drive says it has raised £41.1m from selling four diplomatic properties

A small corner of Notting Hill is to play a part in reducing Greece’s debt mountain, following the sale of the luxury home of the Greek consul for £23.3m.

The 8,700sq ft Victorian villa in west London has nine bedrooms and views of Holland Park, and has been sold to an unknown buyer for £3m more than expected in its initial valuation last September.

The Hellenic Republic Asset Development Fund (TAIPED), which is overseeing the country’s privatisation drive, announced on Tuesday that it had raised €41.1m from selling four diplomatic properties, including the London consul’s residence. As well as the diplomatic residences, Greece has embarked on a fire sale of its sun-kissed islands, airports, marinas and royal palaces.

The Holland Park property has been in the hands of the Greek state since 1973, but became an asset for sale as the economic crisis took hold. Kensington and Chelsea is the second most expensive borough for property in the UK, behind Westminster.

What the Greek government and the consul have lost, Greece’s creditors will gain. The proceeds will go to the European Union, the European Central Bank and the International Monetary Fund.

TAIPED said other sales included diplomatic buildings in Nicosia, Brussels and Belgrade, with respective price tags of €8.3m, €3.24m and €2.075m.

“After all the delays in our privatisation programme, this has to be good news,” one Greek insider said.

Independent property developer Julian Bryson said converting the west London property into an “oligarch’s London mansion” could cost around £600 per sq ft – a bill of around £5.25m. This would pay for a very “high-end job” to install entertainment systems and ensuite bathrooms and overhaul the layout to turn offices into living space.

That value could easily double, he said, if the buyer wanted to excavate the basement to install a swimming pool and create extra living space, as is becoming typical for London’s space-pressed millionaires, who are prevented from building upwards and outwards by planning laws. Costs would escalate again if the owner let loose landscape gardeners on the overgrown wilderness at the back of the property.

Nevertheless, Bryson said someone had made a good buy. “If I had £23m I would have bought it. It is a fantastic property.” The unknown buyer’s neighbours include Simon Cowell and Richard Branson, according to Marsh & Parsons estate agents.

“From Russian oligarchs to Hollywood celebrities it epitomises the glitzy, but it’s also got a residential feel to it which is quite nice,” said Bryson.

Although the borough is best known for chic eateries, upmarket boutiques and riding stables in nearby Avondale Park, it also boasts two state secondary schools rated “excellent” by Ofsted, estate agents point out.

Jennifer Rankin
Helena Smith © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

Be the first to comment - What do you think?
Posted by admin - April 4, 2013 at 17:55

Categories: News   Tags: , , ,

Greece rules out more public sector job cuts

International creditors told that mass layoffs out of the question with unemployment at European high of 27%

Greece was heading for a full-on collision with its international creditors on Sunday as Athens’ uneasy coalition, struggling to meet the onerous terms of the country’s latest bailout, ruled out layoffs in the public sector.

Flying into the capital at the start of a quarterly review of the debt-choked economy, mission heads from the EU, International Monetary Fund and European Central Bank were told flatly that mass firings were out of the question when unemployment had reached a European record of 27%.

“The public sector has shrunk by 75,000 people in the last one and a half years,” the finance minister, Yannis Stournaras, told a newspaper in a taste of the stiff resistance the auditors are likely to meet. “There will be no layoffs.”

The Eurogroup of finance ministers is expected to discuss the dire situation in Greece and Cyprus, which has asked for a bailout worth almost 100% of its national income.

Stournaras, a technocrat widely credited with smoothing often fraught relations between Greece and its foreign lenders, has encountered mounting hostility from within the tripartite government over the dismissals.

Athens agreed to cut 150,000 posts from its unwieldy public sector by 2015 as part of a wide-ranging package of austerity reforms promised when the “troika” unlocked €54bn in long overdue aid in December.

Under that plan, 25,000 employees were to be transferred this year to a “mobility” scheme, the first step towards redundancy. Streamlining so far has relied on a policy of natural attrition, with only one person being hired for every 10 who retire.

But the conservative-led administration has faced growing pressure from its leftwing junior partners. Acutely aware of the country’s economic tailspin, Fotis Kouvellis, who leads the Democratic Left, has warned that with 1.4 million Greeks now unemployed, the prospect of yet more losing work could threaten the fragile social peace.

Mired in what economists are calling a “great depression”, with its GDP set to contract for a sixth straight year, Greece is projected to see unemployment exceed 30% by the year’s end as a growing number of businesses file for bankruptcy. Over 60% of those without work are under 25.

Public-sector firings are among a series of neuralgic points likely to be raised by the troika. Representatives, who indicated they would not be visiting Athens “to renegotiate its rescue package but supervise its economic performance”, are also expected to address the thorny issues of progress on privatisations, tax administration reforms and bank recapitalisation.

Paitence is in short supply. Creditors have committed more funds to Greece – at €240bn, the biggest bailout in world history – than any other troubled economy since the tiny nation, revealing the unsustainable level of its public debt, triggered the eurozone crisis in late 2009.

Piling on the pressure ahead of the monitors’ visit, the Euro Working Group chief, Thomas Wieser, emphasised that Athens had to keep its side of the deal. “All that was agreed in the bailout plan has must be implemented. These reforms were agreed to make the Greek economy stronger, flexible and more competitive,” he told the Greek newspaper Realnews.

Although the IMF has publicly admitted that it seriously underestimated the impact of Greece’s recession on its ability to deliver, there are growing concerns over the government’s determination to crack down on tax collection – the single biggest drain on the country’s economic performance.

A confidential report prepared by the EU and IMF and leaked to the Greek media last week showed that the nation was lagging severely in key revenue targets, with Athens’ tax collection mechanism being singled out for particular criticism.

While Greece had managed to rein in public spending – pulling off the biggest fiscal consolidation of any OAED country – tax avoidance, particularly among high earners, remained “astounding”, said the report, estimating that at €55bn unpaid tax amounted to nearly 30% of GDP.

Indicative of the febrile mood enveloping Greece, the radical left Syriza opposition party said that in light of the missed targets, it was clear the coalition partners were preparing new wage and pension cuts. “They are discredited and dangerous,” it said in a statement. “The sooner they leave, the better for Greek society and the economy.” © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

Latest financial, market & economic news and analysis |

Posted by admin - March 4, 2013 at 03:44

Categories: News   Tags: , , , , ,

Next Page »