The crisis in the eurozone was set to escalate on Monday night after the Germans said they could not write off Greek debts without offering financial assistance to Ireland, Spain and Portugal.
George Osborne, the Chancellor, on Monday urged Angela Merkel, the German chancellor, to consider backing down to ensure there was not a “disorderly exit” from the eurozone.
He said “the situation risks going from bad to worse” and warned that “Britain will be affected the longer the Greek crisis lasts and the worse it gets”.
He suggested Britain could fly planeloads of euro notes to Greece to assist stranded tourists.
What organisations are included?
The European Commission is an executive arm of the EU. It does the day-to-day work of implementing EU policies and spending EU funds. But it must still answer to the member states of the EU.
Germany is the EU’s largest economy and is perceived to have the final say on the Greek bailout.
Because the article has so many good points, a majority of it will be left up, as has been done here in rare cases.
Courtesy of The Trumpet:
And why the euro is incompatible with democracy
European leaders are in a panic. Greece’s banks are closed. Experts warn the global economy is under threat. And it all hinges on Greece’s place in the eurozone.
Fears of rioting and mass panic, dormant since the Greek fires of 2008, are rising again.
It shows just how fragile the eurozone is. In April 2014, the Greek government was able to borrow money on the normal financial markets at the relatively high, but not appalling, rate of 4.95 percent. As far as lenders were concerned, the euro crisis was over. Greece was no longer dangling over the edge of a precipice. Instead, it could borrow money just like any other normal nation. Continue reading
As it turns out, the Greek crisis ends not with a bang, but with a referendum.
It has been easy to ignore the doings in Greece for the past few years, with the perpetual series of summits in Brussels that never seem to resolve anything. But it’s time to pay attention. These next few days are shaping up to become a transformational moment in the 60-year project of building a unified Europe. We just don’t yet know what sort of transformation it will be.
Whatever the exact phrasing of the question (and assuming the referendum goes forward as planned), it really boils down to this simple choice: Continue reading
We’ve long said that negotiations between Greece and its creditors are more a matter of politics than they are a matter of economics or finance.
From the troika’s perspective, breaking Greece and forcing PM Alexis Tsipras to concede to pension cuts and a VAT hike is paramount, and not necessarily because anyone believes these measures will put the perpetually indebted periphery country on a sustainable fiscal path, but because of the message such concessions would send to Syriza sympathizers in Spain and Portugal. In short, the troika cannot set a precedent of allowing debtor nations to obtain austerity concessions by threatening to expose the euro as dissoluble. Continue reading
China’s outsized latticework of global infrastructure is said to be rooted in a fierce sense of competitiveness which they claim they learned from 19th century America.
In the 18th and 19th centuries, the sun famously never set on the British empire. A commanding navy enforced its will, yet all would have been lost if it were not for ports, roads, and railroads. The infrastructure that the British built everywhere they went embedded and enabled their power like bones and veins in a body.
Great nations have done this since Rome paved 55,000 miles (89,000 km) of roads and aqueducts in Europe. In the 19th and 20th centuries, Russia and the United States established their own imprint, skewering and taming nearby territories with projects like the Trans-Siberian and the Trans-Continental railways.
Now it’s the turn of the Chinese. Much has been made of Beijing’s “resource grab” in Africa and elsewhere, its construction of militarized artificial islands in the South China Sea and, most recently, its new strategy to project naval power broadly in the open seas. Continue reading
Every great con game eventually comes to an end. For years, global central banks have been manipulating the financial marketplace with their monetary voodoo. Somehow, they have convinced investors around the world to invest tens of trillions of dollars into bonds that provide a return that is way under the real rate of inflation. For quite a long time I have been insisting that this is highly irrational. Why would any rational investor want to put money into investments that will make them poorer on a purchasing power basis in the long run? And when any central bank initiates a policy of “quantitative easing”, any rational investor should immediately start demanding a higher rate of return on the bonds of that nation. Creating money out of thin air and pumping into the financial system devalues all existing money and creates inflation. Therefore, rational investors should respond by driving interest rates up. Instead, central banks told everyone that interest rates would be forced down, and that is precisely what happened. But now things have shifted. Investors are starting to behave more rationally and the central banks are starting to lose control of the financial markets, and that is a very bad sign for the rest of 2015. Continue reading
It’s funny how history repeats itself. The inconclusive general election in 2010 took place when the economy appeared to be on the mend and against the backdrop of a crisis in the eurozone prompted by Greece. As things stand, we could be in for a repeat performance in May 2015.
Be in no doubt, what’s happening in Europe matters to Britain. The eurozone is perhaps one crisis and one deep recession away from splintering. The more TV pictures of rioting on the streets of Athens or general strikes in Italy between now and the election, the better support for Nigel Farage’s UK Independence party will hold up.
In the end the central theme of most articles reporting on EU events, is that all roads end up leading back to Berlin, the powerhouse of Europe.
And who knows, perhaps Mario Draghi’s upcoming resignation and a possible wish to be the next Italian president is a sign that he wants to go back and save Italy from the wrath that Greece has suffered: Complete capitulation to Germany in exchange to economically stay afloat and keep from descending into social chaos as a result.
Italy is one of the world’s leading tourist destinations. The ruins of the Roman Empire, in particular, the Coliseum, Palatine Hill, the Pantheon and the Forum, are major attractions. New ruins are now being created to mark the political decay at work at the heart of Italy’s democracy and economic policymaking. These new ruins could well include the country’s central bank and parliament as well as the Eurozone as the stage is set for Europe’s next big economic debt crisis.
At the center of the brewing storm is the issue of confidence. When investors trust sovereign debtors, governments have access to credit markets. When investors lose confidence in a country’s ability to pay, they head for the door. The cost of borrowing goes up and at some point it hits a level where it becomes unaffordable to raise money.
Such a loss of confidence afflicted Cyprus, Ireland, Greece and Portugal between 2010 and 2012, shutting them out of public borrowing, creating the European debt crisis and forcing them to seek financial assistance from the European Union, European Central Bank and International Monetary Fund. Italy barely avoided that embarrassment. Continue reading
Europe is already a lost continent if you’ve learned that socialism is a bridge to communism. Now all Putin’s doing is reigning it in.
German intelligence sources claim the country’s only mildly-eurosceptic party, Alternative for Germany (AfD), is being wooed by Russian agents as part of the campaign “to construct a network of right-wing populism in western Europe.”
According to BILD, Moscow’s Centre for Strategic Communications has drafted the blueprint for the covert operation under the title: “Putin: the new leader of international conservatism”.
Part of the Kremlin strategy includes acquiring gold dealerships through front companies to support parties friendly to it.
As with the previous rare occasions where a full article was posted due to its importance, this will remain no exception. Please see the source website for more similar articles.
What happens after a globe-shaking financial crisis? We are stumbling through one right now, and we all want to know what we are in for next. Fortunately—and unfortunately—this situation is precedented.
Early last century, the globe’s First World War extinguished lives, torched economies and left Europe smoldering with grievances. Afterward, the world was rocked by the most violent financial earthquake in modern times—the Great Depression.
The nations were churning: brutal dictators were rising, anti-Semitism was becoming mainstream, civil war erupted in Spain, Japan invaded Manchuria, Italy invaded Ethiopia. But instead of facing the challenges, Britain and America turned increasingly inward, focusing on their own wounded economies, slashing their militaries and pointedly ignoring the world outside.
Decades after World War III, will historians be writing something similar? The nations were churning. Radical dictators were rising, anti-Semitism was becoming mainstream, Germany conquered the Balkans, Russia invaded Georgia, civil wars erupted in the Middle East, China built a military powerhouse, a new strongman arose in Russia, a crafty emperor arose in Europe. But instead of facing the challenges, Britain and America turned increasingly inward, focusing on their wounded economies, slashing their militaries and pointedly ignoring the world outside.
On Thursday, NATO fighter jets diverted a Russian IL-20 surveillance plane over the Baltic Sea near Latvia. Latvia’s army confirmed the incident on their Twitter account. Two Canadian RCAF CF-18 Hornets intercepted another IL-20 near Lithuania on Saturday.
NATO said these Russian planes do not use on-board transponders used for surveillance. The organization said the plans “pose a potential risk to civil aviation as civilian air traffic control cannot detect these aircraft or ensure there is no interference with civilian air traffic.” Continue reading
NATO commander: Deployment of western “rotational forces” needed in Poland, Romania, the Baltics
Russia is sending additional military forces toward the border with eastern Ukraine, including units equipped with ballistic missiles, as part of Moscow’s ongoing destabilization effort in support of pro-Russian rebels.
U.S. officials with access to intelligence reports said one Russian military unit equipped with short-range ballistic missiles was detected this week near eastern Ukraine, where Russia has launched a destabilization program following its military annexation of Ukraine’s Crimea in March.
The military movements coincided with the an unusual number of flights last week by Russian strategic nuclear bombers and aircraft along Europe’s northern coasts in a what NATO’s military commander called strategic “messaging” toward the West. Continue reading
- 26 Russian aircraft ran ‘military manoeuvres’ in 24 hours including two Bear bombers followed by RAF fighters
- Nato steps up its defences as it says two planes near Britain did not file flight plans or contact controllers
- Alliance reported ‘unusual’ activity after intercepting 100 Russian planes in 2014 – triple the number in 2013
Nato has sounded a warning after 26 Russian bombers, tankers and fighter jets on military exercises were intercepted around Europe in just 24 hours.
Jets were scrambled by the RAF and allies in Germany, Portugal and Turkey after the ‘unusual’ spike in activity, which saw two giant Tu-95 Bear H bombers fly close to Britain yesterday.
The alliance said Russia had conducted ‘significant military manoeuvres in European airspace’ – though it then added none of the planes had strayed into any specific country’s territory.
The two Bear bombers had been part of an eight-plane formation which was first intercepted by Norwegian F-16s over at 2am yesterday. Continue reading