Greece and the economic crisis 2017

NEWS ARCHIVE - July 8 - July 14

July 14, 2017

"...Speaking in parliament, Greek Prime Minister Alexis Tsipras said the decision was not related to recent developments in the talks and had been taken a long time ago.

He said it was an “unfulfilled debt” towards the people of Cyprus and a tribute to all those who fought and sacrificed their lives during the 1974 coup against Archbishop Makarios and the subsequent Turkish invasion and occupation of part of the island’s territory."

Nine men -- one Greek, seven Serbs and a British citizen of Serb origin -- have been arrested so far and are accused of intentional homicide. The investigation is ongoing and authorities are searching for six more suspects identified from the surveillance footage, police said.

Four of the men arrested, all Serb nationals, appeared before a judge Thursday for initial testimony regarding Henderson's death. Two of them were released on bail, which was set at 5,000 euros, or about $5,700, each.

"A key switch is expected in September when the European Commission representative, the Irishman Declan Costello is likely to leave his post, opening the way for a replacement from Portugal."

"The European Commission, the EU’s executive arm, announced that it will recommend the removal of its so-called excessive deficit procedure for Greece, a step taken when a member state’s budgetary shortfall gets too big, according to a statement on Wednesday.

While largely symbolic, the decision marks an important step for Greece, which has been relying on international bailouts to stay afloat since 2010, as it seeks to return to normality and regain market access. Adding to signs of a brightening outlook, foreign investors bought 59 percent of the 812.5 million euros ($928 million) of three-month treasury bills the government sold on Wednesday."

July 13, 2017

"Speaking on Thursday, Turkish Foreign Minister Mevlut Cavusoglu said that Turkey’s energy and foreign ministry were considering steps against Nicosia for moving ahead with drilling operations for natural gas, to which, he added, Turkish Cypriot also have rights to.

Cavusoglu made his remarks a day after the West Capella drilling vessel, operated by France’s Total and Italy’s Eni, arrived in block 11 of Cyprus’s exclusive economic zone (EEZ) to commence operations."

Timeline of Cyprus History and Greek/Turkey relations

"A heatwave is rolling across southern Europe, fuelling wildfires, exacerbating droughts in Italy and Spain and leading the Greek authorities to close some of the most popular tourist sites."

"The fight in which Bakari Henderson, a 22-year-old graduate of the University of Arizona, died occurred on the Greek island of Zakynthos on Friday. The nine men include seven Serbians and two bar workers -- identified as a 34-year-old Greek bartender and a 32-year-old British citizen of Serbian origin who worked as a bouncer.

Five of the detained men were ordered to be jailed ahead of their trials, while the other four suspects were scheduled to have hearings later this week..."

"...Going back to the markets early is a big mistake. Greece will have to pay a risk premium of several hundreds of basis points for medium term funding. All the private funding that Greece might find now will mature well before the European loans," Daniel Gros, director of the Centre for European Policy Studies, told CNBC.

Issuing new bonds is an important step for Greece to show its able to stand on its own feet. The last time Athens raised money in the bond market was in 2014. At the time, the government claimed that the sale marked the beginning of the end of tough austerity measures following a first bailout program in 2010. However, a few months down the line Greece asked for another bailout.

Graben Street in Athens

July 12, 2017

After 8 years of austerity, Greece gets EU budget approval - ABC News

"Wednesday's recommendation from the EU Commission to end the so-called excessive deficit procedure on Greece comes after a sharp improvement in the country's finances following years of spending cuts and tax increases and a recession that saw a quarter of the economy wiped out and unemployment and poverty levels swell.

"This is a very symbolic moment for Greece," said Pierre Moscovici, the EU's top economy official. "Greece is now ready to exit the Excessive Deficit Procedure, turn the page on austerity and open a new chapter of growth, investment and employment."

More Coverage:

European Commission Urges EU to End Disciplinary Measures Against Greece - Wall Street Journal

"For the first time since 2014, the environment is benign for Greece’s quest to return to the bond markets: the completion of the second bailout review, the improved state of the Greek economy and the revitalized sense of purpose in the eurozone after Emmanuel Macron’s victory in France all pave the road to success. Yield-hungry investors will grab Greek paper even before the country becomes part of the European Central Bank (ECB)’s quantitative-easing program."

"Generally sunny weather on Wednesday with the temperature rising dangerously.

The winds will blow in the northern Aegean, temporarily up to 6 Beaufort southeast. The temperature will range high."

"Turkey has reacted to the scheduled commencement of drilling for oil exploration in field 11 in the Cypriot waters by issuing a Notice to Airmen (NOTAM) and Navigational Telex (NAVTEX) for search and rescue operation exercises for Wednesday, July 12 and Thursday, July 13. The exercises are set to take place between 5 am and 10 am in the morning 14 nautical miles west of the Akama Peninsula within sea fields 5, 6 and 7, which Turkey has laid claims over."

July 11, 2017

[WSJ Paywall]

"Greece’s central-bank governor said the country has no need to return to bond markets this year, and called on the government to focus instead on privatizations as a way to win investors’ confidence. “I think it’s a bit early” to tap public markets, Yannis Stournaras said in his first comments on the issue since Greece reached a deal with... "

"According to another friend who was there but didn't want to be identified, Henderson and his friends had set their beers on a table in a place called Bar Code when two men allegedly grabbed their bottles, broke them, and held them out like weapons. This sparked a fight that spilled out into the streets. At some point, Henderson became separated from his friends as more than 10 people started beating him."

Piraeus

July 10, 2017

"Greece is eyeing the creation by mid-2018 of a state development bank that would lend to small and medium-sized enterprises (SMEs) to aid the recovery from its long economic crisis, government officials said on Monday... "

"Bakari Henderson, 22, of Austin, Texas, was beaten by a group of at least ten people, according to media reports. He died on Friday, and the arrests were announced over the weekend.

..."Police say at least 10 people followed Henderson out of the bar, including the bouncer and another employee," CBS News reports. "They are accused of beating Henderson and leaving him unconscious in the street."

More Coverage:

Police reveal details about beating death of U.S. tourist in Greece - CBS News

"Witnesses told police that Henderson and his friends wanted to take a photo with a waitress, which angered one of the bouncers..."

"The death of a recent U.S. college graduate in Greece may have been caused by an argument over a selfie. Aiden Kelley reports..."

"Police said no injuries were reported from Monday's protest and that the fire believed to have been set deliberately at the Moria camp is still burning."

July 8, 2017

"The fight escalated into a brawl and Henderson was battered to death in the street, police said. Further details on the clash were not immediately clear, but police said it involved two groups of people.

Pavlos Kolokotsas, the mayor of Zakynthos, told ABC News that both groups involved had been drinking extensively."

Gov’t seeks new way to evaluate civil servants - eKathimerini

"The Administrative Reform Ministry is seeking a new way to conduct assessments of the country’s civil servants, one of a barrage of reforms demanded by Greece’s international creditors...

Administrative Reform Minister Olga Gerovassili, who recently held fruitless talks with ADEDY representatives about the issue, is expected in the coming days to make a new attempt to address the deadlock which is said to have displeased Greece’s creditors."

"ECB reduced the ELA ceiling of Greek banks to Eur41.6 bn from Eur43.6 bn previously, effective until July 20, 2017."

"Mr. Tsipras bluntly rejected the proposal tabled by Mr. Mitsotakis in a TV interview for a parliamentary inquiry into the involvement of Greek Defence Minister Panos Kammenos who contacted a convicted drug dealer over the Noor-1 case. Mr. Mitsotakis had called for the setting up of a special committee in parliament to investigate whether Mr. Kammenos had breached any laws by speaking to a convicted felon over the phone during an interview on Star TV on Tuesday night."

Harsh blame on Turkey for the "wreck" in Switzerland - Naftemporiki.gr

Not surprising: The Turkish Foreign Minister Mevlut Cavusoglu claims the talks' failure is due to the Greek and Greek Cypriot requirement that Ankara remove its troops.

"... the aim was to establish a framework agreement to continue with the agreement with Greece, with concluding negotiations in New York. "Something like that," he added, "it was not possible because when it came to the crisis for the Conference, Turkey refused to allow vertically written record series promises he had made to the Secretary [U.N. Secretary-General Antonio Guterres]."

More Coverage:

Talks on Cyprus reunification have failed - ABC News

"Unfortunately...an agreement was not possible and the conference was closed without the possibility to bring a solution to this dramatically long-lasting problem," Guterres told reporters.

"I want to express my deep gratitude and appreciation to the leaders of the two communities and to wish the best to all Cypriots north and south."

Snow on the mountain

"While many issues remained unresolved, the deal breaker was a clash over what would happen to the more than 35,000 troops that Turkey has kept in the island’s breakaway Turkish Cypriot north since 1974, when it invaded after a coup mounted by supporters of union with Greece.

...Turkey has indicated it would consider settling the decades-old problem in ways other than reunifying Cyprus as a federation, which has been the objective of peace talks for 43 years."

"...Greece is now bracing for another week of daytime highs in the 40C region, according to meteorologists, who say the new heatwave is expected to peak on Wednesday."

Evrytania

NEWS ARCHIVE - July 2017

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