Re: New EC Thread

[Panda]

Don’t betray Ireland’s trust


1 June 2012

Presseurop


Ireland has said “Yes” to the fiscal compact. Signed last February by 25 of the 27 EU countries, it is supposed to build confidence in the single currency and the homogeneity of the eurozone by introducing more discipline – and some penalties – into the management of public finances. More monetary security in exchange for the transfer of a little more sovereignty to Brussels.

The vote, which cannot be appealed, was marked by an exceptional abstention rate – just over half the voters turned out, compared to nearly 60 percent during the last referendum on the Lisbon Treaty – and by an intense campaign waged by both sides.

Paradoxically, it is one of the fiercest advocates of “No", the businessman and vigorous eurosceptic Declan Ganley who probably uttered the most accurate words about the meaning of the vote for the Irish, who are now the European citizens bearing the highest private debt in the world (more than 41,000 euros per capita): “The majority of the electorate here have expressed trust and faith in our partners in Europe to do the right thing by us with regard to this bank debt."

And these are times that need that faith, because all indications are that the situation in Europe is not getting better. Starting with unemployment, which in recent months hit record levels, continuing with the Greek crisis, which is still threatening the euro, and closing off with the Spanish banking crisis, which could trigger a record 300 billion euro bailout. And much faith is needed to confide economic policy to institutions whose levels of transparency and democracy are not their outstanding characteristics.

The Irish have once again decided to place their trust in Europe – that same Europe that imposed draconian conditions to get the country out of the debt crisis that carried away the Celtic Tiger with it. Let's hope that this trust will not be betrayed.


Author




Gian Paolo Accardo (b. 1969) is an Italo-Dutch journalist. He worked as an editor at Internazionale, Courrier international and as a correspondent for Italy's ApCom press agency before becoming assistant editor in chief of presseurop.eu.

[Angelina]

I do wonder whether the coalition will make it full-time to the next election.

Lib-Dems are supposedly already to be in talks with Labour again. Could they be planning to walk away earlier than expected?

It's very possible, the Press were commenting the other day that Cameron and Osborne made 9 changes to the Budget after it was announced. I can't
stand Ed Milliband though, in fact there is not one Politician I would vote for and Cameron will not serve a second Term anyway . In fact, I didn't see
him at the Pageant yesterday, but Boris was there waving a Union Jack. Actually , I quite like him, at least he got voted in again as Mayor.!!

I can't stand any of them! I'm thoroughly disappointed in this coalition. Boris makes me laugh, but I don't take much notice of the Mayor so I'm not sure if he's good at the job or not. At least we don't have to look at that weasel face Ken Livingstone any more.

I think there was an (inside) street party at Downing St yesterday. Obviously they weren't invited to the Jubilee

[Panda]

Lapdogs of the Union? Outside a polling station during the EU fiscal treaty referendum, Dublin 31 May 2012.

Bloomberg via Getty Images


On Thursday 31st May the Irish electorate voted 60/40 in favour of the EU fiscal compact. But it was not an act of ringing endorsement for the Union, but rather that of a dispondent country, argues this Irish Independent leader.

Our masters in Europe and our administrators in Dublin would be wise to not read too much into Friday's fearful act of acquiescence. Far from being a vote of confidence in Europe, or the government for that matter, the sullen Yes this referendum secured from a grudging citizenry was an act of despair.

On Friday a heavy-legged electorate gave “their formal consent” to the ratification of the fiscal compact. Few, however, will say of a treaty delivered under the threat of 'immediate and terrible' austerity that it was granted with “full consent”.

In retrospect it was too idealistic to daydream about the possibility that we might be the mouse that roared at the failed policies of austerity. The smart money in the bond markets had already bet that Ireland, the dependable EU lapdog, always ready with an appeasing smile or a merry quip about feta cheese, would deliver and that house never loses.

For all our self-mystification as a rebel nation, when it comes to the battle between the heart and the head, our capacity to suck our collective thumbs and go with the head, which as far back as 1913 inspired the national poet W.B. Yeats to the despairing cry of “Romantic Ireland is dead and gone” is one of our defining characteristics.

In different, more conservative times one of the features of Irish life was the “unfortunate” girl who because of an excess of passion “got herself into trouble”, disappeared for a mysterious period and then returned to a life-time of pointed stares and squinting windows. Of course, no attention was ever paid to the sober-suited source of the trouble sitting at the front of the church each Sunday.

After our own “trouble” Ireland is, for now, back in the bleak heart of a European Union that appears to have quite forgotten that the prudent Prussian banker in the serge suit played no small role in Ireland's fiscal “sin”.

Sadly, despite Ms Merkel's patronising “respect and appreciation”, last Friday only served to confirm that, whatever about “Romantic Ireland”, Independent Ireland is definitely “dead and gone”. A political undertaker called Taoiseach Enda Kenny now appears to be standing over the tombstone with a shovel in his hands lest there be any retreat from our new national ethos of living to only “pray and save”.

The Government has escaped from this dangerous contest with a relatively unscathed hide. The future, however, will not be easy. In the immediate aftermath of his election triumph Mr Kenny famously noted one of our defining traits was that “Paddy likes to know the story”. The “story” this Government sold to a dubious “Paddy” last week was that a “Yes” would bring “investment, stability, recovery” and “a working Ireland”. But while, on this occasion, “Paddy” accepted, rather than believed, Enda's story; Mr Kenny and Europe must now make good on these promises or “Paddy” might not be so receptive the next time.

On the web
Original article at Irish Independent en

[Badboy]

SPAINS BORROWING HAS BEEN DOWNGRADED TO JUNK(BBB) BY FITCH?

[Panda]

Kazanevsky


Angela Merkel wants to move towards greater federalism and is suggesting a two-speed Europe. But that presents legal difficulties in Germany and is deepening the split with François Hollande.

More power to Brussels, says Germany’s Chancellor. On June 7 Angela Merkel declared on German television that monetary union should be accompanied by a political union that would “give Europe more opportunities for control.”


In this case, headlines the Financial Times Deutschland, “the federal eagle will lose some feathers.” The business daily indeed warns that –




Transferring competencies is an extremely difficult operation. From the perspective of foreign policy, its price is the division of the EU into a two-speed Europe. Merkel is aware of that, but it no longer bothers her.


In legal terms, the only solution is an interstate treaty along the lines of the fiscal pact,” writes the FTD. More precisely, it is the fiscal pact that creates a two-speed union and that could extend to a fiscal or political union. Only bump in the road: such an agreement may be easy to conclude, but the states will need the votes of reluctant countries like the United Kingdom and Slovakia in order to use the EU institutions – the Commission, Parliament and the Court of Justice. Another sizeable obstacle is the German Constitutional Court –




It is the sole judge of where the limit [of transfer of powers] lies. For a real political union, it will have to go through a referendum on a new Basic Law [the German Constitution]. The move towards political union will probably be done sneakily, through cooperation between all the political parties.


In Paris, Le Figaro notes the distrust that is developing between François Hollande and Angela Merkel. In its editorial the conservative daily does not fail to note that –




The German Chancellor, who was said to be ‘isolated’ at the Elysée, has not waited for the (French) legislative elections [on 10 and 17 June) to put her new counterpart in his place. The insistent call from the French president for the pooling of European debt has brought an expected reply: the fiscal federalism that he is calling for will not happen without political federalism. [...] He will have to explain to the French that the eurozone crisis requires substantial transfers of sovereignty.


But, regrets the daily in another commentary, the French president is hiding behind a “deafening silence. Focusing on short-term solutions, he could only be embarrassed by a debate on political union.”




For François Hollande, the situation is particularly uncomfortable. [...] The possibility of a new reform of the fiscal pact, and its ratification, poses a real difficulty. [He] must consider the club of ‘nay-sayers’, including two representatives who have been appointed to the Quai d'Orsay [the Foreign Affairs ministry]. [...] The ball has been tossed by the German Chancellor into the French camp – and sooner or later François Hollande will have to pick it up.

Source profiles
Financial Times Deutschland
Le Figaro

On the web
Angela Merkel interview de

Related
Le grand “com

[Badboy]

SPAIN NEEDS 40-100BILLION EURO BAILOUT.

[Panda]

SPAIN NEEDS 40-100BILLION EURO BAILOUT.

I know Badboy, but Rajoy doesn't want a Bail-out and the austerity that goes with it. Rajoy wants the money paid into the Spanish Natiuonal Bank and then transferred to the ailing Spanish Banks. There is some suggestion that this may not be Legal and other Countries wanting bail-outs could ask for
the same arrangement. Merkel is becoming more alienated, even Obama has said the EU MUST get to grips with the crisis. There will be phone links to discuss the problem over the weekend and the Election in Greece on the 17th which could again not have a majority Party lead, or Sziriza win outright.

[Panda]

I saw this on the News last night , he hit her across the face at least 3 times.!!!!

9 June 2012 Last updated at 00:38 Share this pageEmail Print Share this page


Thousands have protested in Greece against the far-right Golden Dawn party after one of its members assaulted a woman on live TV.

Demonstrators shouted "Neo-Nazis out" in rallies called by left-wing and anti-racism groups in Athens.

On Thursday, Ilias Kasidiaris, a Golden Dawn MP, was filmed hitting a left-wing politician during a chatshow.

The rally comes nine days before elections which could result in a Greek exit from the Eurozone.

In polls a month ago, Golden Dawn surprised many by winning 21 seats in Greece's 300-seat parliament.

A second election is taking place as no party was able to forge a coalition.

Arrest warrant

Prosecutors said an arrest warrant has been issued for Mr Kasidiaris, whose whereabouts remain unknown after he fled the television studio on Thursday.

The assault took place during a live debate on a daily morning political show on the private Antenna television.

Mr Kasidiaris appeared to have been provoked when Rena Dourou of the radical left-wing Syriza party mentioned his alleged involvement in an armed robbery in 2007.

He jumped up and threw a glass of water across the table at her, a You Tube clip of the Antenna television channel showed.

When Liana Kanelli of the Greek Communist party, the KKE, apparently threw a newspaper at him, he responded by slapping her around the face with three right-left blows.

Speaking to a TV station from an undisclosed location on Friday, Mr Kasidiaris said he had been provoked.

"She (Communist party member Liana Kanelli) raised her hand and hit me first and since I respect my honour and my name, I had to defend myself. The police ought to arrest her," he told Star TV, according to Reuters news agency.

The government and other political parties have condemned the attack.

"The government condemns in the most categorical way the attack by Golden Dawn spokesman Ilias Kasidiaris against Liana Kanelli and Rena Dourou," government spokesman Dimitris Tsiodras said.

"This attack is an attack against every democratic citizen."

Mr Kasidiaris is already facing charges of theft and bodily harm, which he denies.

[wjk]

I wonder if he's turned up yet?
He just looked like a thug to me.

[Panda]

I wonder if he's turned up yet?
He just looked like a thug to me.

He was really vicious didn't he wjk.....God help the Election next week-end, the latest news on Spain might tip the balance in Greece about whether they want to stay in the Euro.

[Panda]

:

Viadeo
Spain in eurozone crisis crosshairs By Irene Chapple, CNN
June 9, 2012 -- Updated 1051 GMT (1851 HKT)
Protesters with Spain's Indignant movement attend a rally at Puerta del Sol on May 15, 2012 in Madrid, Spain. The movement was formed to protest against the economic crisis and high unemployment.
A protester hits a pot while walking past the Bank of Spain on May 15, 2012 in Madrid, Spain. Spain's 'Indignants' prepared events across Spain to mark the anniversary of their movement.
Spanish miners burn tires during an anti-austerity demonstration in Vega del Rey, near Oviedo, in northern Spain on June 4, 2012. People demonstrate against Spain's banking sector in front of Bankia, on June 02, 2012. Bankia asked for €19 billion in aid.
Commuters are reflected on the headquarters of Bankia SA on May 29, 2012 in Madrid, Spain. Spanish borrowing costs have increased after the government announced a rescue plan for Bankia involving more public debt. Spanish Prime Minister Mariano Rajoy leaves the Elysee Palace on May 23, 2012 in Paris, France.
HIDE CAPTION
Spain's pain 'Indignant' challengeSpain protests Spain's banks stumble Bankia's bailoutSpain in crisis <<< 1 2 3 4 5 6 >>>STORY HIGHLIGHTS
Spain, a eurozone behemoth, is in the crosshairs of Europe's financial crisis
The country faces soaring borrowing costs, a banking system in disarray and high unemployment rates
If such a major economy were to fail, the repercussions could cause unprecedented havoc across the globe
But the situation in Spain is developing like a "perfect storm," with money being pulled out of the country
(CNN) -- Spain, a eurozone behemoth, is in the crosshairs of Europe's financial crisis. The country is suffering from soaring borrowing costs, a banking system leaking cash and unemployment rates at devastating levels.

Greece might be teetering toward expulsion from the eurozone but Spain's situation is now the focus of concern. If such a major economy were to fail, the repercussions could cause unprecedented havoc across Europe -- and the globe.

Just how bad is the pain in Spain?

This week Spain's treasury minister Cristobal Montoro bluntly admitted it was "technically impossible" for Spain to bail itself out, and that the country needed help to access funds.

The country is facing a credit freeze after its financial problems were thrown into sharp relief by the bailout of Bankia, the country's fourth-largest bank.

Bankia last month called for €19 billion ($23.7 billion) of assistance, panicking markets. It sent Spain's cost of borrowing (for the sovereign ten-year bond) toward 7% -- a level which is regarded as unsustainable and has precipitated bailouts of other euro countries.

Spain's former Prime Minister Felipe Gonzalez last week warned the country is in a state of "total emergency" and that the crisis is proving to be the "worst we have ever lived through."

But Spain -- in its second recession since 2009 -- has been dubbed "too big to bail, too big to fail."

The Spanish economy is the eurozone's fourth-largest -- after Germany, France and Italy -- making up around 11% of the bloc's GDP.

To put that in perspective, Greece, Portugal and Ireland -- the three eurozone countries which have already been bailed out -- combined make up less than 6% of the bloc's economy.

How did Spain reach this point?

Spain's banking sector is facing up to years of bad investments, largely in real estate, which was buoyed by cheap credit and the country's sunny climate.

Its housing boom-times of 2002 to 2008 were fed, in part, by retired north Europeans buying up second houses in places such as Valencia and Murcia, according to political scientist Julio Embid, of think-tank Fundación Alternativas.



Tough sell for Spain's real estate Families also bought up expensive houses with long mortgages during this time, he said. When the economy collapsed in 2008, people lost their jobs -- and with them their homes.



What can Spain do to beat debt crisis? Real estate prices have now fallen some 30% to 50% from their highs, leaving Spain's banks, or cajas with housing stock on their books whose current value is much lower than the original.

Meanwhile hundreds of thousands of houses built during the boom remain unsold, and people wanting to buy may find it difficult to get credit.

Embid also points to the cajas' politically-driven executive appointments as a contributing factor to the crisis. "Many senior bankers were low-profile regional politicians or majors, without any financial experience or bank background," he said.

What has Spain done to try and sort through this mess?

The government set up the FROB (Fund for Orderly Bank Restructuring) in 2009, to help reorganize its banking sector, and has received international recognition for its efforts to date.

According to April's International Monetary Fund report, the country has reduced the number of financial institutions from 45 to 11. The report noted: "The authorities are, rightly, focusing on strengthening the banking sector."



Big incentives for Spain home purchases It said the authorities were showing "an appropriate sense of urgency" but also warned that "unless the weak institutions are quickly and adequately cleaned up, the sound banks will suffer unnecessarily by a continued loss of market confidence in the banking sector."



Spain: Too big to fail, too big to bail As it stands, the banks have an estimated €300 billion of problem loans on their books, with the full cost of recovery not yet clear.

What other headaches does Spain face?

In addition to the financial sector's problems, Spain could be liable for the debts of several regional governments, which have been hit with ratings downgrades.

Spain also has an unemployment crisis, with more than half those under 24 out of work, and almost one in four people overall. Spain's jobless rate has helped pushed the eurozone's total unemployment rate to 11% -- its highest since the eurozone was created in 1999.

The IMF is now in the country for its annual economic review, with the mission expected to last until the middle of the month.

Why is the economy collapsing now?

The situation in Spain is developing like a "perfect storm," with money being pulled out of the country, despite the desperate need to stem capital flight and support its banking system.

This leaves Spain in a precarious financial state, driving investors away, pushing up its borrowing costs and making it more likely to need a bailout.

It's a reminder of how governments are inextricably tied to their country's banking systems, essentially the lifeblood of their economy.

In Ireland, the banking sector's similar gorge on property forced the country to take a €67.5 billion bailout in 2010.

The mood of the markets may, ultimately, dictate Spain's ability to pull itself from its financial hole. Investors already twitchy about the prospect of a "Grexit" -- a Greek exit from the euro -- will react badly to further bad news out of Spain.

Ratings agency Standard & Poor's has put the chance of Greece exiting the euro at around one in three, but says the impact of such an outcome on other countries is not yet clear.

While it seems likely to increase the chance of other countries departing, S&P says other countries "would be unlikely to follow ... having witnessed the resulting economic hardships and long delay in harnessing benefits from national currency devaluation."

The struggles in Europe were exacerbated by miserable news out of the U.S. last week, with official figures showing just 69,000 jobs were gained in May compared to expectations of 150,000.

Where does Madrid stand when it comes to making cuts to public services?

Spain's emergence as the crisis epicenter has again fed debate over the value of austerity over stimulus.

Greece, the first euro country to take a bailout, has been swallowing austerity medicine since 2010. But its economy has slid further into recession, and initial hopes it could detach itself from external life-lines within two years now look wildly optimistic.

The ruthless drive to cut costs has instead created a backlash against the politicians that support the plans. Greeks head back to the polling stations on June 17 after the first election in May failed to deliver a government, and it is not clear if voters will fall behind their European paymasters, or vote to reject their demands.

Spain has also been implementing austerity measures to try and combat its crisis. The retirement age has been raised from 65 to 67, while public sector wages and welfare payments have been cut.

Conservative Popular Party leader Mariano Rajoy, who won a landslide victory over the Socialist Party in November 2011, focused on cost cutting and labor reforms. But, as with other fragile countries within the euro bloc, Spain's economy remains weak and its unemployment levels continue to rise.

Some European leaders are now voicing concerns against austerity measures, including Italian Prime Minister Mario Monti who has warned of a backlash against such policies.

Academics and financiers are also wading into the policy debate, with billionaire George Soros saying in a speech this month that the "wrong remedy" has been applied to the crisis. "You cannot reduce the debt burden by shrinking the economy, only by growing your way out of it," he said.

Soros said he believed there was just three months to correct mistakes and reverse trends. And that, he said, would require "extraordinary policy measures."

So what's next for Spain?

Spain's auction of government bonds -- to fund government spending -- was Thursday, and raised just over €2 billion. Spain's 10-year borrowing costs went up to 6.1%, compared to 5.8% the last time such bonds were auctioned.

The country also faces a bond repayment of almost €13 billion next month, with another €20 billion due in October. While the July repayment is expected to be covered, the October bill could prove problematic, according to Symonds. "By this time we should have some more of an idea of just how much will be required to recapitalize the Spanish banks," he said.

In a much-awaited report, the IMF estimated Friday that Spain's banks need at least €40 billion (about $46 billion) in fresh capital to preserve the country's financial stability.

The IMF assessment -- roughly in line with that of ratings agency Fitch -- comes on the eve of critical talks between the Spanish government and European institutions over the terms of aid to Spanish banks, which are saddled with bad debt.

Across Europe, policy makers continue to try and stem the crisis, including plans announced Wednesday for a coordinated banking union that would deal with future crises rather than national governments. European Commission President Jose Manuel Barroso said the proposal was "an essential step" toward a banking union that would make the sector more responsible. But it won't be in place in time to tackle Spain's immediate banking crisis.

Focus also remains on Greece as it heads towards the election, playing what Schroders chief economist Keith Wade calls "financial chicken" with the European Union.

But is not yet clear who will blink first -- or what the outcome will mean for Greece, Spain, and the future of the euro.

CNNMoney's Aaron Smith, Alfred Souza and Ben Rooney, and CNN's Al Goodman and Tim Lister contributed

[Badboy]

BILLION OF EUROS ARE BEING SPEND ON BAILOUTS AND MORE BILLIONS ARE GOING TO BE SPEND ON BAILOUTS.
ANY IDEAS OT THE TOTAL?

[Panda]

BILLION OF EUROS ARE BEING SPEND ON BAILOUTS AND MORE BILLIONS ARE GOING TO BE SPEND ON BAILOUTS.
ANY IDEAS OT THE TOTAL?

These are are very perilous times Badboy and the EU is making up the remedies as it goes along. On the News just now, the EU estimate is the Spanish
Banks need E 100 billion which the IMF is not helping to finance. It will be the ECB printing money. Also, the debt will be a Spanish Government debt,
not the Banks as Rajoy wanted. BUT.....there will be no austerity measures imposed because the EU thinks Spain has done much to try to improve it's
situation .!!!!!!!

1. Will this incense Greece so that they vote in Sziriza next Sunday who has promised to default on the Loans and go back to the drachma.?

2. Will Ireland and Portugal complain that they obeyed the austerity measures but were given no relief?

3. Will Italy, the next Country to fail demand the same consideration as Spain.?

This crisis has proved just how little thought was put into the adoption of the Euro and Merkel's austerity plan is now in tatters.

Add to this the fact that Spanish Banks owe British Banks a reported £100 million , presumably other Foreign Banks are owed money too, what next???

[Badboy]

IF ITALY FAILS,WE ARE POSSIBLY TALKING A TRILLION EUROS.
MY HEAD MIGHT START TO HURT WITH THESE DIZZILING(SP?) SUMS OF MONEY,MIGHT HAVE TO LAY DOWN ON A BED

[Panda]

It's monopoly money Badboy, I just had to edit my post, Spanish Banks may need E100billion. All we can do is sit tight and if we expect the worst we
might find this crisis is not going to get worse.

[Badboy]

DIDN'T I SEE THE FIGURE 630 BILLION EUROS IN RELATION WITH SPAIN OR AM I MISTAKEN?

[Panda]

By RAPHAEL MINDER, NICHOLAS KULISH and PAUL GEITNER

Published: June 9, 2012 152 Comments



MADRID — Responding to increasingly urgent calls from across Europe and the United States, Spain on Saturday agreed to accept a bailout for its cash-starved banks as European finance ministers offered an aid package of up to $125 billion.




.



Related

Times Topic: European Debt Crisis




Enlarge This Image

Pedro Armestre/Agence France-Presse — Getty Images

“What we are asking is financial support, and this has absolutely nothing to do with a full bailout,” Luis de Guindos, the Spanish economy minister, said.

Read All Comments (152) »


European leaders hope the promise of such a large package, made in an emergency conference call with Spain, will quell rising financial turmoil ahead of elections in Greece that they fear could further shake world markets.

The decision made Spain the fourth and largest European country to agree to accept emergency assistance as part of the continuing debt crisis. The aid offered by countries that use the euro was nearly three times the $46 billion in extra capital the International Monetary Fund said was the minimum that the wobbly Spanish banking sector needed to guard against a deepening of the country’s economic crisis.

The announcement of a deal came amid growing fears that instability in Spain could drag down an already sputtering world economy. The decision was the culmination of weeks of a contentious back-and-forth between Spain and its would-be creditors in which it was hard to tell how much of Spain’s resistance to financial help was tactical maneuvering for a better deal and how much a refusal to admit the depth of the banking sector’s troubles.

The escalating tension prompted President Obama to push Friday, in unusually explicit terms, for quick European action.

European officials have said they wanted their offer to go well beyond Spain’s immediate needs to shield the country from any destabilizing effect from next weekend’s Greek parliamentary election. Spain has fought to avoid the stigma of a bailout and on Saturday portrayed the Europeans’ offer as coming with few strings attached. Although the European statement on the aid package gave few details, it did not mention new austerity measures and said the conditions of the agreement were focused instead on banking reforms, as Spain had requested.

Spanish officials on Saturday denied that their country was in the same position as Greece, Portugal and Ireland, which have all received bailouts that demanded they slash spending.

“What we are asking is financial support, and this has absolutely nothing to do with a full bailout,” Luis de Guindos, the Spanish economy minister, said at a news conference in Madrid announcing the request, saying the assistance “allows us to have an ample safety margin” and “will return trust and confidence to the euro project.”

The deal to shore up Spain’s banks is only the latest in a marathon crisis that has seen one stopgap solution after another over the last three years. The 11th-hour fixes have always given way to new speculation about the long-term solidity of the currency union, and European leaders remain deeply divided about the way to carry out a more lasting solution. Ahead of a summit meeting this month, members of the euro zone are debating a variety of fixes related to forming a tighter political and fiscal union.

The amount of the financing package is expected to be completed after two consulting firms publish their audit reports on Spanish banks on June 21.

The maximum figure of $125 billion was intended to cover the “estimated capital requirements with an additional safety margin,” according to the statement issued by euro zone finance ministers. The statement also said that the euro group “supports the efforts of the Spanish authorities to resolutely address the restructuring of its financial sector.”

Christine Lagarde, the managing director of the I.M.F., said the scale of the proposed financing “gives assurance that the financing needs of Spain’s banking system will be fully met.” And the United States Treasury secretary, Timothy F. Geithner, called the support European partners were showing Spain “important for the health of Spain’s economy.” He said that Spain’s request for aid and Europe’s agreement were “concrete steps on the path to financial union, which is vital to the resilience of the euro area.”

“It’s a calming signal at a time when calming signals are badly needed,” said Jens Boysen-Hogrefe, an economist at the Kiel Institute for the World Economy. But Mr. Boysen-Hogrefe said it did not solve the underlying problems of Spain or the euro area as a whole. “The uncertainty is still high and bad news can pop up anywhere in the euro area. This is not a final solution.”

Many financial analysts expect the Greek elections next week to spook the already unsettled markets and test the very cohesion of the euro zone.


Raphael Minder reported from Madrid, Nicholas Kulish from Berlin, and Paul Geitner from Brussels. Annie Lowrey contributed reporting from Washington.

[Panda]

8 June 2012 Last updated at 16:57 Share this pageEmail Print Share this page

C News, Belfast

Irish fans with their "Angela Merkel thinks we're at work" flag at Dublin airport.
Continue reading the main story
Related Stories
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Skandalös! How about this for a Euro bail-out of a different kind?

Gerry Nolan and his friends from Limerick made this cheeky sign that reads "Angela Merkel thinks we're at work."

Thousands of Irish football fans have put work on hold to support their team in Europe.

Euro 2012 begins today in Poland and Ukraine. Ireland will play their first game against Croatia on Sunday.

The group of friends who all graduated from college in Limerick together left Dublin this morning and posed with their flag at Dublin airport before jetting off to Prague.

The boys plan on taking in the Spain game and the Italy game but are still on the hunt for tickets to Ireland's opener against Croatia.

#donttellmerkel

So why did the boys decide to put such a tongue in cheek message on their flag?


“
Start Quote
It was purely a joke, it wasn't political at all. ”
End Quote
Gerry Nolan

Ireland fan

"It was purely a joke, it wasn't political at all.

"We were just talking about getting a really big flag and were having a think about what to put on it. We just wanted to lighten the mood a bit - Germany gets quite a hard time.

They are now hoping the hash tag #donttellmerkel will now start trending on the social networking site Twitter as a bit of an in-joke among Ireland fans.

Mr Nolan, 25, thinks Ireland could win it. "I'm hoping they will do ok. I've booked time off to the final so they would need to do well."

"I think we will do well in our group, I reckon we could beat Croatia and Spain - hopefully we can make sure Spain will be the first county to exit the euro!"

Never mind Angela Merkel thinking he is at work, what do Mr Nolan's bosses say about him taking so much time off?

"We told them there would be no booze or women on the trip. We are here purely for the culture and the football."

BBC News has tried to contact the German Chancellor to see if she had a message for the football fans. We haven't had a response yet.

Perhaps she is too busy with work.
More on This Story

[Badboy]

I RECEIVED A TWEET YESTERDAY WITH A LINK TO AN ARTICLE ABOUT THE`COSTA CATASTROPHE',SOME HOMES LEFT EMPTY IN SPAIN BECAUSE OF THE PROPERTY BUBBLE ARE SELLING FOR A MILLION EUROS LESS THAN THE ORIGINAL PRICE.
SOME SPANISH BANKS LIKE SANTANDER HAVE SET UP THEIR OWN REAL ESTATE WEBSITES TO SELL OFF THE PROPERTY FORCLOSED TO THE BANKS BY BANKRUPT PROPERTY DEVELOPERS.

[Panda]

Berlin blind to lessons of history


11 June 2012


Der Spiegel, Financial Times Comment34



Germany has failed to grasp the historical dimension of the European crisis, warn British historian Niall Ferguson and Turkish economist Nouriel Roubini. In an essay published jointly by Der Spiegel and the Financial Times, the two professors, Ferguson teaches at Harvard University and Roubini at the University of New York, recall that in 1933, it was a banking crisis that caused the fall of democratic systems in Europe. They are asking for concrete measures to avoid the collapse of the EU –


The more a disorderly Greek withdrawal from monetary union seems probable, the more the pressure on Spanish banks will increase. This could unleash a bank-run so serious that it could overwhelm the European Central Bank. A major re-nationalisation of the banking system has already begun in Europe. This process could lead the Union toward towards total disintegration.

Ferguson and Roubini see no alternative than to share the responsibility for amortising of the debt through the creation of a temporary fund. They propose direct credits to recapitalise the banks. Especially, Germany should also agree to a higher rate of inflation and abandon austerity policies –


For that, growth must be stimulated in the eurozone and an excessive austerity policy abandoned. The ECB must ease its monetary policy, the euro must weaken and fiscal incentives must be established. We need infrastructure programmes and salary hikes in key countries to stimulate consumption.

[Badboy]

it is being said that greece might impose capital controls ETC

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it is being said that greece might impose capital controls ETC

Morning Badboy, my Computer has been out of action for a couple of days , fixed this morning. Apparently the Bail out to Spanish Banks rather than
the Spanish Government was intended for the Government not to bear the loss if the Banks defaulted. Fitch has downgraded another 2 Spanish Banks,
including Santander.

Greece is complaining that the Spanish Bank Bailout will incur less Interest and Ireland and Portugal have commented. Yesterday, share prices increased
around the world but today they have opened lower as analysts say this will not resolve the Euro crisis.

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Pismestrovic


The parliamentary elections of June 17 must allow a government to be formed, following the failure of the May 6 elections to come up with one. The outcome though remains uncertain, as voters seem to be shifting from one party to another against a backdrop of disaster.

Angelos Kovaios


On June 17 Greece is heading for a crucial vote in a climate of national economic, social and political collapse. The acts of violence in society and in politics are stoking the tension, and the statistics on the country’s economy leave no wriggle room to whatever government emerges from the polling booths. The country is essentially becoming internationally isolated, since large credit insurance companies (Coface, Euler-Hermes) have stopped insuring imports to Greece, and Greek companies, which have to pay cash for their imports, are struggling to stay alive.

The danger of raw material, medicine and food shortages is palpable and calls for immediate responses; representatives of the business community are already talking about “a nightmare reminiscent of Hoxha’s Albania” if no solution is found.

Greek companies lack raw materials, so their production depends on imports. On the energy front, the country is teetering on the brink of disaster: credit has run out, and Greece may soon lose access to the Iranian market because of the international embargo imposed on Tehran.

Pro-system vs anti-system

Meanwhile, economists and international political circles feel the possibilities of leaving the country in the euro area are increasing, now that the country’s isolation is reflected in the freezing of commercial exchanges and agreements in tourism, trade, and transport. Multinational corporations still active in Greece are meanwhile taking precautions and keeping very little cash in-country.

In this environment of political tensions coming to the fore, especially after the violent incident between political representatives shown on television last week, or the case of Paiania [a 15-year-old boy who took the law into his own hands and killed a burglar to protect his family), most political analysts believe strongly that the June 17 elections will be dominated by the ‘vote of fear’, while the ‘anger vote’ of May 6 fades into the background.

Most researchers already have data on trends that they hope to use to figure out which way the vote will go, based on the polls recorded at the beginning of last week, but are unsure about whether the attack by the deputy of the Golden Dawn party on the communist party deputy will have a major effect on the outcome.

An analyst who works with one of the former major political parties believes that the very character of the election has changed. “The elections of May 6 were decided by anger; the June 17 elections will be decided by fear," he said, on condition of anonymity. He estimates that the so-called ‘pro-system voting’ [for parties in favour of the memorandum on austerity] will strengthen, followed by a contraction of anti-system voting. His analysis points up two characteristics.

One concerns the evolution of some voters who, “in total ignorance”, voted for the Golden Dawn in the last election but who, sticking with the anti-memorandum logic, will vote in the end for Syriza, the Coalition of the Radical Left [which came second on May 6 and is the favourite to win on June 17]. He also considers it will be possible to limit the drain of Communist Party voters to Syriza.

Golden Dawn is already in decline

The second characteristic concerns the probability of a decline in the anti-system vote, in the switching of Golden Dawn voters to the Party of the Independent Greeks [right-wing party opposed to the memorandum] and especially by those who will not vote for left-wing or centre-right. According to the president of a leading polling organisation, the Golden Dawn is already in decline and cannot climb back up to the seven percent it won on May 6. What remains to be seen is whether the neo-fascist party will return to Parliament or remain outside it.

Most political analysts and opinion pollsters believe, therefore, that next Sunday we should expect a stronger rally of “more conventional political forces”, among which is Syriza, now one of the dipoles of decision-makers that will shape the country’s future.

This means that the distancing of political parties [from their previous positions] will encourage a wave of migration to the majority parties based on the May 6 returns, while at the same time there will be a wave of “voter switches” between the smaller or so-called ‘extremist’ parties, with one possible consequence being the difficulty for any one of them to get into Parliament. “Last Thursday it was still thought that the most vulnerable party was the Independent Greeks. The Golden Dawn is now another, because its voters are less homogenous,” says one expert.

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THE BILL FOR THIS CRISIS WILL RUN INTO TRILLIONS,I RECKON

[Badboy]

it is being said that greece might impose capital controls ETC

Morning Badboy, my Computer has been out of action for a couple of days , fixed this morning. Apparently the Bail out to Spanish Banks rather than
the Spanish Government was intended for the Government not to bear the loss if the Banks defaulted. Fitch has downgraded another 2 Spanish Banks,
including Santander.

Greece is complaining that the Spanish Bank Bailout will incur less Interest and Ireland and Portugal have commented. Yesterday, share prices increased
around the world but today they have opened lower as analysts say this will not resolve the Euro crisis.

I WONDERED WHERE YOU GOT TO.

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