The Greek Society and its institutions are going through very difficult times, emanating from several years of severe economic crisis. The gross national product of Greece decreased by almost 7% last year alone, and the unemployment rate exceeded 20%….
496 voted 'Yes', 90 'No' and 5 abstained from voting out of 591 present MP's (Bundestag consists of a total of 622 MP's)
Earlier, Chancellor Merkel addressing the Parliament called for the approval of the second support package for Greece, highlighting that the road is long and risky....
The next rescue package for Greece has been put together, but so far peace has not come to the debt-plagued country. There is little joy for the Greek since the proposal by Chief of Austrian Chamber of Industry and Commerce Christoph Leitl. Leitl had suggested that Athens might for reasons of budget consolidation even sell islands - in the neighboring country of Turkey." Turkey would be very much interested, according to Leitl, in acquiring uninhabited, remote islands.
Former Greek Minister of Finances Giorgos Papakonstantinou Interviewed by “Zeit”: “We’re reaching our limits”
DIE ZEIT: Mr. Papakonstantinou, the EU released on Monday the next aid package for Athens. Greece is now saved?
Giorgos Papakonstantinou: The decision enables a fresh start. It secures our funding and signals to the people that at some point in the future things are going to get better.
TIME: At the moment the Crisis is still accelerating.
In the worst possible time, a new government dispute comes: Prior to the vote for Greece Minister of Internal Affairs Friedrich talks about Athens' farewell to the euro. The opposition frothed while Merkel puts her foot down.
Up until today, two statements of the German Euro Policy seemed to be carved in stone: 1) Greece remains in Euro-Zone no matter what and 2) The Euro-Zone protection Firewall will not be further increased.
However, both certitudes seem abruptly not so sure - and that only hours before the Parliamentary decision on the second rescue package to Greece.
Mike Hudson, President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971), gave an enlightening interview to Paul Jay from RealNews.com talking about what's happening now in Greece from a financial but nevertheless pretty understandable point of view.
Click on "Continue Reading" to watch the video.
For the first time a member of the German Government advises Greece to leave the euro zone. It's been highlighted that this should not be misinterpreted as an eviction.
German Minister of Internal Affairs Hans-Peter Friedrich (Christian Social Union), in light of the threat of bankruptcy, has advised Greece to exit the Eurozone.
Outside the monetary union, [...]
Being interviewed by French radio station Europe 1, the Greek Deputy PM said he understands the reaction of the Greeks, however, he has always been a European federalist...
Anonymous uploaded a new video in YouTube, warning the Greek Media for upcoming attacks (video is in greek language with english subtitles).
This message records the "action" of the Mass Media of Taming (according to the wording Anonymous used). It is highlighted, that in the events of the 12th of February, the media tried to influence the consience of the viewers.
Their message in detail is as follows:
"Media of Mass Deception, Greetings. We are Anonymous.
In an interview in Frankfurter Allgemeine Zeitung, the central banker of Latvia, which went bankrupt in 2007, notes that his country followed the diffucult path of internal devaluation, which included - among others - wage cuts.
"Those who say that without devaluation, adjustment is not possible, are those who don't want it to be achieved. People that don't want to take action always find a reason: the influence of the labour unions, the very small size of the country, the past - an excuse is always there to be found. The truth is that it IS possible", he argues.
Ilmars Rimsevics also highlights that in such a process speed is of the highest importance. "It would be better if all the major painful cuts could be applied within a year."
In a letter sent this month to his clients, the hedge fund estimates that Greece will possibly need 90 billion euros to cover financial demands that will arise from the long-awaited deal for the PSI (Private Sector Involvement) in the effort to contain the greek debt, the recapitalization of banks and other financial needs.
According to fund executives, a possible bankruptcy of Greece can cause a bigger shock in the system than the collapse of the Lehman Brothers.
IMF examines the option of contributing "only 13 billion €" to the new austerity help plan to Greece, reports the Wall Street Journal.
"IMF's level of participation has not yet been finalized" but the international financial institution is examining this option according to WSJ's sources.
IMF agreed in May 2010 to provide a loan of 30 million euros to Greece, contributing to a plan of 1100 billion euro.
Not only this was not enought for the greek economy to recover; now it's going through deep recession, which has actually increased public debt, notes the AFP.
According to WSJ, executives of the IMF express fears that IMF has been 'overly' exposed to the debt zone in the EU.
In the second document the MP goes into a comprehensive analysis, predicting that the Memorandum 2.0, will create a recession of approximately 7%, although it is presented to the Greek people as a solution for growth (instead of an actual recession trap). It should be noted that in the previous relevant analysis of Louka Katseli for the first Memorandum , she predicted a 5% recession for 2012. Her predictions were vindicated –not by the Ministry of Finance (Filippos Sachinides, the deputy minister of Finance actually accused of not knowing what she’s talking about) but– by Troika’s similar predictions for a recession of about 4-5%.
Katseli supports that Greece is able to pay salaries and pensions due to surplus. All that needs to be done is to negotiate a PSI that won’t have the terms for cutbacks included in the Memorandum. This, according to her opinion, is doable if Greece decide to enter a negotiation mindset. EU cannot expulse Greece from the euro, but it will have to suffer all the necessary consequences from Greece’s abidance. EU will therefore be forced to ultimately choose a different kind of PSI, one that won’t drive Greece straight to recesion