23 Oct 2011

EU's Greek Problem

Occupy Europe: Thousands March in Germany and Spain

Thousands staged demonstrations against the power of banks and for greater democracy in German cities on Saturday, while several thousand Spanish teachers and parents marched in the capital Madrid to protest against austerity measures. In Berlin the second edition of the so-called 'Occupy Berlin' protest against the financial system drew several hundred demonstrators to a march which ended at the Reichstag building, Germany's parliament, on Saturday afternoon. Protesters chanted slogans against banks as they walked past Berlin landmarks such as the Brandenburg Gate. After the massive turnout at anti-bank protests last weekend, Berlin police were out in force this Saturday but no serious incidents were reported. A similar demonstration was held in Frankfurt, where several thousand people protested against the power of the banks and for greater democracy. The demonstration was organised by 'Occupy Frankfurt' and the international pro-democracy, anti-globalisation movement 'attac'. The participants marched from the centre of Frankfurt to the European Central Bank building, and a rally was held in front of the Deutsche Bank building. Meanwhile in Spain, several thousand teachers marched in Madrid under banners reading: "Our hopes for the future were never so gloomy" and "For sale", referring to cuts in public education that they say will lead to fewer teachers being employed. Teachers went on strike in Madrid on Thursday, the sixth day of stoppages since classes began last month. The protests have been triggered by local authority orders requiring teachers to teach an extra two hours of class per week, a measure that will lead to fewer teachers being hired this year. Education is run at the regional level in Spain and the order was instigated by local governments controlled by the centre-right Popular Party.

Greek Tragedy: 444BILLION

(translated from German)The financial situation of Greece is much more dramatic than the euro finance ministers thought. Athens has at least 252 billion euros in emergency loans from the other euro-zone in order to avert bankruptcy, in the worst scenario, even 444 billion euros. Thus, the European emergency fund for weak euro countries at once empty.
The only alternative is to a large part of the Greek debt remission. The bill will arrive at the banks, pension funds and insurers to lie, that the Greek debt in their hands. In July, accepted the banks losses on their Greek bonds 21 percent, it should now be increased to at least 50 percent. special emergency meeting , the finance ministers meet today in a special emergency meeting of the continued explosive figures for Greece. Who are in "strictly confidential" report from the European Central Bank (ECB), International Monetary Fund (IMF) and the European Commission. The report shows that all the lights in Greece in deep red. The economy is shrinking faster than expected, the cuts are not out of the paint, the planned privatization either. As a result, threatens the national debt over the next two years increasing to 186 percent of the gross national product. In 2030, the debt is still 130 per cent, more than twice the maximum allowable standard for euro countries. Debt relief is the only way, according to the report, while the ECB will differ somewhat distancing. Without forgiveness, the other euro countries are much more on the table than 109 billion euros in July which they already decided. That amount is then at least doubled, possibly tripled. Extensive debt according to diplomats in Brussels, the report's minds prepared to receive a profound debt to Greece. "The question is not either, but how much of that debt mountain is," says one of them. Germany and the Netherlands and the IMF are here strong for some time. France stood on the brakes - many Greek debt is held by French banks - but now see that there is no other option. If selected for a write-down by 60 percentage points, the contribution of the euro countries is limited to the previously committed 109 billion euros. With a 50 percent devaluation of the countries 113.5 billion on the table. A solution of the Greek debt crisis is part of the comprehensive response to the crisis that the government euro agreement in principle on a Sunday night hoping to achieve. Other problems therein a strengthening of the European emergency fund for weak euro countries. Final decisions on the overall approach to the crisis are just one more summit on Wednesday