Category Archives: Europe

Mathew D. Rose: Greece – It’s a Revolution, Stupid!

As Greece’s struggles to secure relief from impossible-to-pay-debt that served to prop up otherwise insolvent French and German banks, and to be permitted to implement measures to reduce distress and restore growth, more and more observers are recognizing that this is really a struggle over democratic self-control versus rule by an unaccountable technocracy with inflexible rules, using finance as their enforcement weapon. This speech in the European Parliament today by UKIP leader Neil Farage echoes some of the themes of Mathew Rose’s post. Rose also explains how the many Germans justify the counterproductive destruction of a society that they have turned into a vassal state.

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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.

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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.

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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.

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Fog of Negotiations: Greece and Germany Make Friendlier Noises, Restart Talks, But Press Reports Diverge

After a collapse of negotiations over whether and how to resolve Syriza’s demands for a new deal with the Eurozone with the insistence of its counterparties that the new government adhere to the terms of its existing deal, technical discussions are set to resume Friday. The drop-dead date is Monday, since any extension or modification of the current so-called bailout needs to happen by February 28, when it expires. The lead time is necessary because the Germany Bundestag and the Finnish Parliament must approve any new or extended deal. But what is the real state of play?

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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.

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