Brussels Greece Summit

Translation / Protagon

2015-06-27

Translation / Protagon

Martin Schulz urges politicians to be cautious in tumultuous times

Brussels – June 25 –European Parliament President Martin Schulz describes why a politician needs to act cautiously. Especially in the most turbulent times. Acting too fast and under pressure could create long term negative effects under which ordinary people suffer. Video

• At 12:00 / 06:00 EST – Prime Minister Alexis Tsipras meets with creditors to seek agreement on Greece’s reform plan.
• Next, the 19 member Euro Group ministers vote on Greece reform plan.
• At 16:00 / 10:00 EST – The summit of European Union leaders – may run parallel to Euro Group ministers meeting.
• June 30 is the deadline for Rescue Fund to release € 7.2 billion rescue funds.
• June 30 is the deadline for Greece to repay €1.6 billion.
• Greek is not likely to make the June 30 repayment should the Rescue Fund not release funds. Greek bankruptcy may result.

Mario Monti: Greek public opinion is very mature

Will Europe’s past inform it’s present?

BY KYLE ANDREW BROWN

Brussels, June 23 – Angela Merkel and Christine Lagarde – one French, one German – have conveniently forgotten the very bottom of hell from which their own two nations emerged following World War II. This is why the Greek oblique references to Germany’s Nazi past and it’s subjugation of Greece fester behind the Greek headlines.

It is not so much nor realistic that Germany pay Greece reparations. But Germany did not rebuild itself without foreign capital and expertise. It was a rescue effort of encyclopedic proportions.

The Greek situation pales to the calamity of postwar Germany and France. You’d like think all those economists at the IMF and European Central Bank would take a fourth grader look at Greece and build it into a roaring tourist mecca.  Read more

Download PDF: European Council 25-26 June in Brussels

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The EU’s foundations are threatened

BY NIKOLAS BUSSE / Frankfurter Allgemeine

Europe is facing a direction decision that goes far beyond the question of what happens to a small economy on the southeastern edge.

Frankfurt – June 23 – A withdrawal of Greece would be a heavy burden for the EU.It is reasonable that the Heads of State and Government of the euro area are again at this crucial stage with the Causa Greece have dealt. They contribute most political responsibility in the monetary union. Even in the early years of the euro crisis, the basic decisions have been made by the “bosses”.

Frankfurter Allgemeine / Translation

  Nikolas Busse, Foreign Policy Deputy Editor

Technical financial details need to be clarified by the finance ministers. But great sense should be already given at the highest level – just when it comes to such dramatic issues such as the fate of a country in the currency area.

A summit is therefore not a concession to the Greek Prime Minister, even if the still acts as if Greece had in this country a better chance than in other forum.

Europe still faces a direction decision that goes far beyond the question of what happens to a small economy on the southeastern edge. European integration is based on a fundamental idea, with whom she has long fared well: Political and economic conflicts that brings the density together many different peoples on a small continent inevitably are going to be solved by compromise.

It may be that a withdrawal of Greece from the euro area would no longer shake the financial markets today (although one does not know for sure, as long as you have not tried it), maybe it would even be a salutary shock for Greek society (the one you anyway should not want).

For the future of the EU, however, it would be a heavy burden: instead of splitting compromise, split damage instead of the common benefit – that would attack the foundations of the Union.

This does not mean that the creditors would have to meet all the unworldly and ideological demands of the Syriza troupe.

Because for enforcing national obstinacy was in the EU never a place, which was the European method of past centuries.

No government of a crisis country has the public image of the European cause so harmed as this radical coalition in Athens.  Has no verbal smashed so much china.

Unfortunately, this has already attacked another EU foundation: its acceptance by it’s citizens.

©  Frankfurter Allgemeine /  Translation

Möglicher Grexit Die Fundamente der EU sind bedroht

2015-06-23

Alexis Tsipras again at the Brussels negotiation table

BY KYLE ANDREW BROWN

Brussels, June 22 – It was just last week that that the political leaders of the European Union we demonizing Greece Prime Minister Alexis Tsipras and characterizing his nation as full of the filthy rich.

Today’s Grexit Summit in Brussels was set to expel Greece from Currency Union – effectively de-ascensioning the Greek nation from the European Union and leaving the hapless common people to join the flood of Mediterranean asylum seekers.

But what a difference a weekend makes. The news splashed cross the European capitals this Monday has a remarkable shift in tone. The President of the European Commission warmly escorted the Prime Minister into his office and gave him a playful wave across his cheek. 

Reform Proposals: Taxes – Spending – Defense

At the last minute Greece submitted new proposals for reform, now is first expected. From savings of five billion euros over the next year and a half is the speech. Where exactly will the government in Athens will save? An overview.

Tagessshaue.de / Translation

Primary surplus:

The primary surplus, ie the budget balance excluding debt service to this year at a percentage of gross domestic product (GDP) are, in the coming year then at two percent. On the creditor’s demand of one percent for 2015, the Greek Government had already received, after they initially wanted to achieve only 0.6 percent and 0.75 percent.

VAT:

Lowest VAT rate of six per cent should only apply to books and medicines. Whether VAT on hotels and restaurants will be raised to the normal rate of 23 percent, as demanded by the creditors, however, is not yet decided. For the current average rate of 13 percent will apply.According to media reports, the government could, however, emphasize reductions in VAT that apply on islands.

More tax increases:

Businesses should be taxed more heavily from 2016, the tax rate is expected to rise by 26 to 29 percent. In addition, a special tax of twelve per cent on company profits is planned with more than 500,000 euros.

The “solidarity tax” on income for individuals over 50,000 euros per year should also be raised. The taxes on luxury items such as cars with a lot of displacement, swimming pools, private planes and boats of an overall length of ten meters are expected to rise. Should also be introduced taxation of income from online gambling.

Pensions:

In particular, mechanisms of early retirement from the beginning of 2016, will be abolished.In addition to cuts supplementary pensions of more than a thousand euros – they are, however, already rare.

Privatizations:

The Greek government is committed to further privatization of some ports or airports – but only under certain conditions, such as the participation of the public sector at the buyer’s capital commitments of the investors for the local economy and the protection of workers’ rights.

A privatization of the electricity network operator Admie and state shares in telephony operator OTE precludes the government.

Tagessshaue.de / Translation

Die Reformvorschläge AthensSteuern, Renten, Rüstung

Defense:

For defense 200 million euros will be spent less. Greece has a comparatively large defense budget.

Spokesman of the left wing Syriza, Costas Lapavitsas

Threatened that his party would not accept new austerity measures. He advocates an exit from the euro in an interview Zeit.
Costas Lapavitsas: We have concrete proposals also have not seen, so we have to wait for the end of negotiations. But if the reforms consist mainly of austerity measures that negatively affect the daily lives of people in this country continue, then there will be considerable political problems..
ZEIT ONLINE: What are the red lines?

Lapavitsas: We overdo it gradually with this discussion about any red lines. It is absurd. I can only say, in total there must be no austerity measures. The package has to be right.

Lapavitsas: How can we agree to a program that is just not bring growth. There is a contradiction in terms.

ZEIT ONLINE: What if there is no agreement?

Lapavitsas: It may well be that it does not even come later this week to reach an agreement. A rift between the Greek government and donors would be no surprise to me. But that would not be because the Greek side is not willing to compromise.The lenders simply request a full surrender.

Lapavitsas: The biggest problem lies in the banking system. The situation is extreme. Greece simply can not meet the requirements of the Euro. That’s obvious.This country goes down. What you now want to burden the people again, is simply frightening. If it were only a little sense both in Greece and in the rest of Europe, we would have searched earlier for other solutions.

ZEIT ONLINE: You mean an exit from the euro?

Lapavitsas: Yes, from my five year break from the Euro or an exit from the euro by mutual agreement, so that the Greek economy can breathe again and saving today.

Lapavitsas: The problem is not the vast majority of the population, but there are the upper layers. The elites of Greece are bankrupt in every way: economically, politically, ethically. These people can not lead a state, they have no visions and no responsibility. But they control public opinion, especially by the media. That panic breaks out when one einbläut people constantly, a Euro-off would be the disaster, is therefore no wonder.

ZEIT ONLINE: Then you are not so far removed from your review and conservative voices in Germany.

Lapavitsas: That I do not care. Anyway, it would only work in Euros, when we reach the end of the first, a genuine austerity, secondly, a haircut and thirdly, a program for more growth and investment. Now it looks like but just not enough.And that is not communism or Bolshevism, I urge, but moderate economic policies within the meaning of John Maynard Keynes.

ZEIT ONLINE: Now you carry the political responsibility as a deputy. What will you and your party members?

Lapavitsas: I said it at the outset. How does a Syriza politicians justify his constituents that it is now but still is a real estate tax, new taxes on businesses, increases in VAT and so on? How does it work? I’m just a simple deputy.

Zeit / Translation

Die Geldgeber fordern eine vollständige Kapitulation

2015-06-23

Europe is pathetic
BY MARCUS GATZKE / Zeit

What is around the Greek crisis currently taking place, it is hard to see even with. A farce that caused great harm – in Greece and throughout Europe

The Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker | © Reuters

Again nothing! All have looked on Monday banned to Brussels: Day of the Greek crisis, even wrote ZEIT ONLINE. But only a few hours later, it was clear: you will not see. The new date of the decision is now Wednesday or Thursday but only (then, the finance ministers meeting) (Then come the leaders together again).

For months This has been going so: Europe rushes from summit to summit – apparently with no real progress in the fight against the crisis to achieve. The EU Commission has already invented a name for it: Paperology . It lists new reforms from Athens to Brussels and back are sent repeatedly.

And every time says at the end of the Federal Finance Minister Wolfgang Schäuble: “I see no progress.” And every time warns EU Commission President Jean-Claude Juncker, the Greeks that they stay only a short time, finally to send the right reform papers to Brussels. On Monday there were initial cautious optimism. But still was not sure if the proposals of the Greeks will be enough said Euro group chief Jeroen Dijsselbloem. It must now “be worked incredibly focused,” said Chancellor Angela Merkel in the late evening.

A farce that however catastrophic havoc: The Greek economy is likely slipped back into recession, wages, salaries and pensions may not be fully disbursed at the end of the month, the tax revenues break away. The European Central Bank holds the Greek banks with emergency loans alive – will be decided on now in the 24-hour clock.

A stronger Greece with return to drachma 

Weak Europe – Strong Greece

INTERVIEW: LÜDER GERKEN

For the economist Lüder Gerken it is certain: Even at the special summit, Greece has achieved the maximum achievement. In an interview with tagesschau.de, he explains why Europe from the beginning was in a weak negotiating position.

The decision on Greece is postponed. What can be achieved within the next 48 hours, which has not happened in the past six years?  Read more

Europe’s driftless pursuit of debt collection

BY KYLE ANDREW BROWN

Moscow, June 19 – As the European Commission big shots in Brussells verbally tongue lashed what little remains of the dignity of the Greek nation, Prime Minister Alexis Tsipras was on yet another tour of the Soviet fortress in pursuit of alms.  
Read more