“Our proposal is to link the payment of the loans’ interest rates with the growth of the Greek economy. If there is no growth, as is the case right now, Greece will not pay interest rates.
“I am neither a friend nor an opponent of Mr. Varoufakis. I am a friend of the good ideas that improve the situation and that is why I find the proposal correct because the Greek government assumes greater responsibility, the burden of Greece’s debt alleviates and is ensured that at some point in the distant future, when Greece recovers then it will be able to service its debt and interest, while the Greek people will be able to afford the burden of debt. I think that this is a good compromise,” he noted.
Moreover, he expressed the view that there will be a new haircut of the Greek debt. “Even if the issue of a haircut is considered a taboo at the moment in Europe and Germany, I am deeply convinced that there will be another cut. There is no alternative, if not immediately, probably later, when we find that the debt burden is simply too big. A part of the 240 billion euros was used to repay debt and interest rates. Yes, one can say that it did not remain in Greece … I do not know the exact figures, but certainly more than half the debt has been paid to lenders.”
He also estimated that the new government in Greece is an opportunity for a new start. Greece needs a political jolt, a political renewal. Nevertheless, I regret that it did not make good use of this chance … the Greek government rightly argues that we must deal with social injustices, to see how people will ensure minimum living conditions. Its failure is that it has not given a clear message that it wants to renew the country economically and politically. I
As the correspondent of Mega channel in Berlin revealed, the Mega reported, the dialogue of the two men, according to German sources was as follows:
Jack Lew: Greece has to be supported
Schäuble: Why not let YOU ( the US) pay 50 bln euros to be saved!
Jack Lew …On this point , of Ja ck Lews not-a-word for an answer, the German sources, the greek report said, have explained that“When Money quest comes at the table, Washington always sets back …”.
An impressive list of some of the world’s top economists and professors, even a Nobel Laureate included in the list, penned a letter to the Financial Times asking for economic sanity” and “humanity” from Europe, calling the programs the Eurozone is imposing on Greece “demonstrably failed.”
The complete text of the letter follows:
The future of the EU is at stake in the negotiations between Greece and its creditor institutions, now close to a climax. To avoid failure, concessions will be needed from both sides. From the EU, forbearance and finance to promote structural reform and economic recovery, and to preserve the integrity of the Eurozone. From Greece, credible commitment to show that, while it is against austerity, it is in favour of reform and wants to play a positive role in the EU.
In a letter to the FT in January, several of us said: “We believe it is important to distinguish austerity from reforms; to condemn austerity does not entail being anti-reform.” Six months on, we are dismayed that austerity is undermining Syriza’s key reforms, on which EU leaders should surely have been collaborating with the Greek government: most notably to overcome tax evasion and corruption. Austerity drastically reduces revenue from tax reform, and restricts the space for change to make public administration accountable and socially efficient. And the constant concessions required by the government mean that Syriza is in danger of losing political support and thus its ability to carry out a reform programme that will bring Greece out of the crisis. It is wrong to ask Greece to commit itself to an old programme that has demonstrably failed, been rejected by Greek voters, and which large numbers of economists (including ourselves) believe was misguided from the start.
Clearly a revised, longer-term agreement with the creditor institutions is necessary: otherwise default is inevitable, imposing great risks on the economies of Europe and the world, and even for the European project that the eurozone was supposed to strengthen.
Syriza is the only hope for legitimacy in Greece. Failure to reach a compromise would undermine democracy in and result in much more radical and dysfunctional challenges, fundamentally hostile to the EU.
Consider, on the other hand, a rapid move to a positive programme for recovery in Greece (and in the EU as a whole), using the massive financial strength of the Eurozone to promote investment, rescuing young Europeans from mass unemployment with measures that would increase employment today and growth in the future. This could both transform the economic performance of the EU and make it once more a source of pride for European citizens.
“How Greece is treated will send a message to all its eurozone partners. Like the Marshall plan, let it be one of hope not despair.”
Prof Joseph Stiglitz
Columbia University; Nobel Prize winner of Economics
Prof Thomas Piketty
Paris School of Economics
Former prime minister of Italy; president of FEPS (Foundation of European Progressive Studies)
Prof Stephany Griffith-Jones
IPD Columbia University
Prof Mary Kaldor
London School of Economics
Transnational Institute, Amsterdam
Prof Marcus Miller
Prof John Grahl
Middlesex University, London
Economists Against Austerity
Prof Panicos Demetriadis
University of Leicester
Prof Trevor Evans
Berlin School of Economics and Law
Prof Jamie Galbraith
Dept of Government, University of Texas
Prof Gustav A Horn
Macroeconomic Policy Institute (IMK)
Prof Andras Inotai
Emeritus and former Director, Institute for World Economics, Budapest
Sir Richard Jolly
Honorary Professor, IDS, Sussex University
Prof Inge Kaul
Adjunct professor, Hertie School of Governance, Berlin
Prof Jacques Mazier
University of Paris
Dr Robin Murray
London School of Economics
Prof Jose Antonio Ocampo
Prof Dominique Plihon
University of Paris
Peterson Institute for International Economics
Prof Mario Pianta
University of Urbino
Shifting Wealth Consultancy
Dr Ernst Stetter
Secretary General, FEPS (Foundation fro European Progressive Studies)
Prof Simon Wren-Lewis
Merton College Oxford
“They believed that by cutting wages and accepting other austerity measures, Greek exports would increase and the economy would quickly return to growth,” Stiglitz said last week. “They also believed that the first restructuring would lead to debt sustainability. The troika’s forecasts have been wrong.”
The current proposals repeat the same mistake,
the Guardian article on June 7 underlined
Tsipras and his finance minister, Yanis Varoufakis, may specialise in needling their creditors, but the troika also need to take into account the fact that Syriza has formed a legitimate, democratically elected government and cannot be told that its electoral programme is irrelevant.
So Lagarde and European commission president Jean-Claude Juncker must be the ones to table further compromises.
Neither was in charge when the first Greek bailout set all sides on the current disastrous path, the gurdian underlined, concluding that
They should explain to Ireland and Portugal, also suffering austerity, that Greece is too weak to survive more bloodletting.
German Chancellor Angela Merkel and French President Francois Hollande held “friendly and constructive” talks with Greek Prime Minister Alexis Tsipras that focussed on Athens’ completing its current bailout, a German government spokesman said on Friday, May 21, the Reuters reported,
while the NYT wrote that German Chancellor Angela Merkel and French President François Hollande have said during the meeting with Greek Prime Minister Alexis Tsipras, that they would personally help if needed to push for a speedy solution to Greece’s financing woes, reports that match, here in Greece, to the Greek political reporters’ information from PM’s office sources from Riga.
The meeting of the three lasted two hours and took place after the dinner Thursday night during an EU summit in Riga, and agreed that Athens should continue its talks with its creditor institutions, while the three leaders also agreed to keep in close contact with each other, Reuters said
According “to a senior Greek government official”, reported word-to-word the NYT. short after the meeting,
“[Ms.] Merkel and Mr. Hollande said they would personally contribute toward the direction of a viable, long-term solution for Greece and accelerate the procedure”
Tomorrow President Juncker will meet with Alexis Tsipras, Friday 22.5 at 14.30 (local time), as it is also announced.
Greece is outside Eurozone , due to the Memorandum
“What is very important is that Chancellor Merkel and President Hollande, shoed today that, indeed, they are interested in a longterm solution for Greece, commented N.Filis, Parliamentary Representative of governing SYRIZA Party, live on air, as soon correspondents reported the news on Greek tv after the meeting
” Longterm means Growth and Depth”
he emphasized, and explained to Emilios Liatsos who was interviewing him ,why these are such critical moments, not only for Greece’s present and future, but also for a viable future of Democratic Europe, itself.
\’What this government achieved so far, is the fact the Story Greece is now discussed on the table of the top European leaders, on top political level, that really never happend before, since the Memorandum.
“It is a political decision, the survival of Greece,” Nikos Filis undelined, “as it had been Greece’s accession to the European Community back in 1980 by Konstantine Karamanlis, Greece’s accession to the Economic Monetary Union in 2002 (even with biased data, Nikos Filis said, still, it was a political decision by Kostas Simitis), the same happens now, it is a political decision of the EU leaders to allow the re-accession of Greece”.
The Parliamentary Representative of Tsipras Party concluded his comments with a so shocking, -though, already widely realized in Greece-, fact:
” Greece is actually outside Eurozone , due to the Memorandum”
Greece’s leftwing prime minister Alexis Tsipras stood beside German leader Angela Merkel and demanded war reparations over Nazi atrocities in Greece on Monday night, even as the two leaders sought to bury the hatchet following weeks of worsening friction and mud-slinging, wrote the Guardian minutes after the Press Conference of the two leaders in Berlin .
It is the first time a Greek Prime Minister sets the issue of Germany’s debt and reparations to Greece, as a common part of the two countries’ and Europe’s past and history, which has been paid by “blood”, Tsipras underlined. Looking to the future of United Europe, which Angela Merkel has emphatically mentioned during the press conference, Tsipras said that it could not, but be based on solidarity.
“It’s not a material matter, it’s a moral issue,” said Tsipras, unusually insisting on raising the “shadows of the past” at the heart of German power in the gleaming new chancellery in Berlin. It is believed to be the first time a foreign leader had gone to the capital of the reunified Germany to make such a demand, commented the Guardian.
Merkel was uncompromising, while appearing uncomfortable and irritated. “In the view of the German government, the issue of reparations is politically and legally closed,” she said.
“I shouted when I saw [Nazi] cartoon in my own party newspaper.” “History shouldn’t be joked about.”