Category Archives: Europe

Negotiation Breakdown Exposes Widening Rift Between Germany and Greece

The negotiations between Greece and the Eurogroup are on a worse trajectory than conventional wisdom would have you believe.

Greece, Its International Creditors and the Euro

his is an excellent background piece on how Greece got where it is and how its various bailouts were structured. It also helps explain the past and current roles the various members of the Troika play and discusses the prospects for Greece achieving its aims.

Varoufakis Charges Eurogroup with Bad Faith Dealing in Negotiations

Yanis Varoufakis describes how he was presented with one memo before the Eurogroup meeting and a very different one at the meeting proper. No wonder the Greek side got upset with how the meeting was conducted.

Eurogroup Talks Terminated; Greece “Won’t Take Orders on Bailout”

As we indicated, we were doubtful that a deal with Greece on its bailout could get done, since if nothing else the two sides had irreconcilable positions on structural reforms. That was one of the biggest reasons for Greece rejecting the idea of extending the current bailout, that they did not want the strings attached, such as continued privatizations and further “progress” on labor-crushing market reform. The only way an agreement could have been reached would have been for Greece to capitulate on these issues, which seemed unlikely given how Syriza had risen to 80% approval ratings in the polls based on its Troika-defying stance.

So it is not surprising to learn that the bailout talks are over, with no agreement reached. But what is suprising, and not encouraging, is that if anything the Eurogroup hardened its stance against Greece and expected it to capitulate.

Michael Hudson: Ukraine Denouement – The Russian Loan and the IMF’s One-Two Punch

Will America’s insistence that Europe, Russia, and Ukraine act against their economic interest ultimately lead the US to lose Europe?

Ilargi: Ukraine – Trapped in Narrative

We’re offering two posts on Ukraine tonight, in part because Greece dominated our coverage last week, and each post covers a different aspect of this devolving situation. Ilargi focuses on the thin, as in WMD-in-Iraq-like, justifications for escalation

Michael Hudson: Has the IMF Annexed Ukraine?

Ukraine is going into an IMF program in even worse condition that Greece with its various loans from the Troika in 2010, and we can see how well borrowing more when you were already overindebted worked out for Greece. In addition, this interview with Michael Hudson makes clear that the loan to Ukraine is wildly out of line with IMF rules, making it painfully obvious that this “rescue” is all about propping up the government so it can continue to wage war rather than economic development.

Bill Black: The BBC Dismisses a Real Greek Economist as a Sexy “Ideologue”

Yves here. I know some readers have begged to differ, but Very Serious People are not described in the same terms as pop culture icons. Thus, as Bill Black points out, the “rock star” branding of Varoufakis is a way to depict him as a colorful, entertaining lightweight.

John Helmer: Poland’s Lobby for Ukraine Enjoyed Kolomoisky Bank Link (Updated)

Helmer’s deep dives into Ukraine’s corruption are a cross between Graham Greene underworldliness with a contemporary veneer of financial wheeling and dealing, plus lots of think tank laundered influence peddling. For those not up on the dramatis personae in Ukraine, Igor (also spelled Ihor) Kolomoisky is one of the wealthiest men in Ukraine.

Eurogroup Ministers to Syriza: Drop Dead

Even though the US has waded into the Greece versus Troika impasse to press Eurozone officials to soften their position on austerity, the battle lines seem only to get harder.

Questus: How the Scammers Behind Virgin Gold Mining Corporation Bit Off More Than They Could Chew (V)

Here’s another New Zealand FSP scam, involving a “Malaysian billionaire”, who doesn’t look genuine, and princes from Kuwait and Abu Dhabi, who do look genuine!

Outlook Darkens for Syriza and Greece

Greece’s finances look to be more precarious than previously thought, which puts Syriza in an even weaker bargaining position.

Obama, Treasury Pushing Back Against Troika Grexit Threats; Bernie Sanders Presses for Fed to Prod ECB

The Administration realizes the risk of Grexit is real and is trying to fend that off. But even if they succeed, don’t expect that to add up to much in the way of relief for Greece.

Is Syriza About to Score a Tactical Win Against the Troika?

Those who were hoping that Syriza would be cowed by the ECB’s aggressive moves to shut Greece out of bond markets and Eurozone finance ministers’ unified resistance to the new government’s proposals are no doubt frustrated by its refusal to capitulate. On Sunday, Greek prime minister Alexis Tsipras gave a rousing speech reaffirming Syriza’s plans.