Wednesday, June 27, 2012

Around the horn in Europe - June 27th . Items of note from The Telegraph and The Guardian liveblogs , Zero Hedge , the WSJ , as well as the Greek newspapers

http://online.wsj.com/article/SB10001424052702304870304577490393074692610.html?mod=googlenews_wsj


PARIS—French Socialist President François Hollande is set to increase the minimum wage by more than inflation, betting consumers will help revive the country's stalling economy, while his government levies more taxes on the wealthy and large corporations in a bid to reduce the budget deficit.
Departing from a tradition of strictly pegging the minimum wage to the consumer-price index, the government said the Smic, as it is known here, would increase by 2% as of July 1.
With inflation expected to come in at 1.4% this year, the rise will bring an extra €21.50 ($26.90) per month in the pockets ...





http://www.zerohedge.com/news/italy-pays-more-6-month-debt-america-pays-30-year-ltro-claims-its-first-bank-insolvency


Italy Pays More For 6 Month Debt Than America Pays For 30 Year, As LTRO Claims Its First Bank Insolvency

Tyler Durden's picture
Submitted by Tyler Durden on 06/27/2012 07:02 -0400




Today Italy had a rather critical Bill auction in which it sold €9 billion in debt due six months from today. Obviously, since the maturity is well inside of the LTRO, the auction itself was rather meaningless from a risk standpoint. Still, the good news is that Italy managed to place the entire maximum amount targeted. The bad news: it cost Italy more to raise 6 months of debt, or 2.957%, than it costs the US to borrow for 30 years (2.70%). Not only that but the average yield 2.957% was the highest since December when the Italian 10 Year was north of 7%, and nearly 50% higher compared to the 2.104% at auction on May 29, or less than a month ago. The Bid/Cover of 1.62 was unchanged compared to the 1.61 at the May 29 auction. From Reuters: "Today's bill sale points to the sovereign getting this supply away but at yield levels sufficiently elevated to leave a niggling doubt at least as to the medium-term sustainability of the country's public finances," said Richard McGuire, a rate strategist at Rabobank. On Tuesday, Spain paid 3.24 percent to sell six-month bills. Madrid is seen at risk of having to ask for more aid after formally requesting a European rescue for its banks this week. But doubts are also growing on Italy's ability to keep funding its 1.95 trillion euro debt, which makes it the world's fourth-largest sovereign debtor. Domestic appetite has so far allowed the Treasury to complete 56 percent of its 445-billion-euro annual funding plan."

It gets worse. Recall that the LTRO was conceived back in December 2011 precisely to facilitate the sovereign debt ponzi in a way where domestic banks would borrow from the ECB only to buy their own sovereign debt, a circumvention of the ECB's prohibition to buy sovereign debt in the primary market, and a plan that was so circular those who actually could see through it would scream a warning to anyone who cared. Six months later, the chickens have come home to roost:

Italian banks may find it increasingly difficult to keep shouldering the country's large funding needs as foreign investors continue to shun its debt.

Italy's third-largest lender Monte dei Paschi dei Siena said on Wednesday it would progressively reduce its holdings of Italian government bonds, after tapping state aid to plug a capital shortfall partly due to its exposure to sovereign risk.

And there it is: instead of a solvency enhancing instrument, the LTRO, by forcing banks to double down on sovereign bonds, has resulted in accelerating their insolvency as BMPS showed yesterday!

Which incidentally may have just blown up Mario Draghi's Plan B - as a reminder, the only reason why sovereign debt tightened last week was due to the announcement of expansion in eligible collateral by the ECB, something which most saw as a precursor to a new LTRO. Well, if the LTRO is now seen for what it truly is: a mechanism that precipitates insolvency, will anyone have any interest in it, especially with vigilantes dying to rip apart any firm that is associated with the Stigma of needing LTRO and thus signing its own death sentence? And all this ignores the fact that, as we have been saying since January, Europe has run out of actual, money good assets...

and note how similar Italy is to Greece - the electoral process follows the same procedure of the winning party getting extra seats , note the possibility of no one party winning outright and another Coalition government - might Italy's political situation explode after the latest failed Summit .........

http://globaleconomicanalysis.blogspot.com/2012/06/monti-lashes-out-at-germany-merkel.html


Wednesday, June 27, 2012 3:43 AM


Monti Lashes out at Germany; Merkel Hardens Position; Reader from Italy Explains Why Early Elections Might Lead to "Deadlock"


Merkel Hardens Position

The EU summit is a day away and pre-summit bickering is so intense that it will be difficult if not impossible to get any major agreements.

Two days ago, in a speech in German parliament, Bloomberg reportedMerkel Hardens Resistance to Euro-Area Debt Sharing
 Chancellor Angela Merkel hardened her resistance to euro-area debt sharing to resolve the region’s financial crisis, setting Germany on a collision course with its allies at a summit of European leaders this week.

Merkel, speaking to a conference in Berlin today as Spain announced it would formally seek aid for its banks, dismissed “euro bonds, euro bills and European deposit insurance with joint liability and much more” as “economically wrong and counterproductive,” saying that they ran against the German constitution.
“It’s not a bold prediction to say that in Brussels most eyes -- all eyes -- will be on Germany yet again,” Merkel said. “I say quite openly: when I think of the summit on Thursday I’m concerned that once again the discussion will be far too much about all kinds of ideas for joint liability and far too little about improved oversight and structural measures.”

“There must not be an imbalance between liability and control,” she said today. “For instance, we would do a European deposit insurance immediately if it doesn’t lead to common liability but to improved oversight possibilities and standards.”
Monti Lashes out at Germany

In response his own falling support as much as his displeasure with Merkel, Monti lashes out at Germany ahead of summit
 Italy’s technocratic prime minister’s frustration with Germany surfaced in a combative speech to parliament, saying he would not go to Brussels to “rubber-stamp” pre-written documents and was ready to extend the two-day summit until Sunday night if needed to reach agreements before markets reopen on Monday.

Speculation over the fate of his government has become so feverish in Rome that officials were forced to deny that the prime minister had threatened to resign if he were to leave Brussels without success. 
Singling out Jens Weidmann by name, Mr Monti said the Bundesbank president had “badly misunderstood” his proposal to deploy eurozone rescue funds to bring down the borrowing costs of countries such as Italy and Spain that had honoured obligations to implement reforms and bring down their budget deficits.

Italy on Tuesday was forced to borrow at 4.71 per cent for two-year bills, its highest level since December, and will face a testing auction on Thursday of up to €5.5bn in five and 10-year bonds.

Italian officials said they were extremely concerned how markets might react Monday if the Brussels talks fail to break new ground. The summit was heading towards “complete uncertainty”, Mr Monti said.

Mr Monti is said by aides to be furious with Mr Berlusconi’s recent anti-European tack which is seen as undermining Italy ahead of the summit. Mr Berlusconi reportedly repeated on Tuesday that it would not be a bad thing if Germany exited from the euro.
Explaining Italian Politics

Reader Andrea who is from Italy but now lives in France, has some observations and comments on Italian politics in response to Monti Threatens to Resign if No Eurobonds; Specter of Early Elections
 Hi Mish,I have a few comments on your article.

First: Former prime minister Silvio Berlusconi made a third call for a euro exit, this time asking Germany to exit if the ECB will not print.

Berlusconi has a certain ability in "feeling" what people wants to hear and use it as his message. In my opinion he is testing the public opinion. I expect he will run polls to check if his anti-euro stance is allowing his party to increase consensus. In this case, I strongly believe that he will raise the level of his anti-euro stance given he has nothing to lose as his party is in freefall.

Second: Monti's days are indeed numbered because he will step down at the end of legislature (spring 2013) and he will not seek for renewal of his mandate in the new one.

However, his term could be even shorter. There could be early elections before the natural term.

In the Italian constitution, the President of the Republic appoints the prime minister, but the appointment must get Parliamentary approval. If a PM resigns or loses majority approval, a search is on to find another person. If parliament cannot find a coalition leader with sufficient votes, the only choice left is to call early elections.

Berlusconi's PDL party has the numbers to make Monti step down and to not allow any new majority. He may do just that.Berlusconi is increasingly uncomfortable in supporting Monti. So are others. Government bond yields are back at very high levels and now Monti is losing popular support. Backing Monti has cost PDL to lose a lot of votes.

However, with early elections, a dangerous competitor like Beppe Grillo's Movimento 5 Stelle (Five Star Movement) will not have enough time to present candidates everywhere. Thus, Berlusconi might also use a poor EU summit as reason to withdraw support to Monti, given the side benefit of holding elections before the Five Star Movement grows stronger.

Third: the most likely outcome of the next election in Italy is a deadlock, assuming recent polls are accurate.

The reason is the electoral law. The current electoral law gives additional representatives and senators to the "coalition" that scores first. Coalition is the key term. Even if Grillo's Five Star Movement wins as a party, he will be politically isolated whereas the center-left can form a coalition.

However, additional share is given on national basis for the Chamber of Representatives and on regional basis for the Senate. For this reason, the Senate will most likely be fragmented with no majority at all. To govern, you need majority on both.

What would happen then? Very hard to guess.


Best regards,
Andrea
For more on the Five Star Movement and Beppe Grillo's plan to dump the euro, please see ....


Mike "Mish" Shedlock


and.....


http://www.guardian.co.uk/business/2012/jun/27/eurozone-crisis-live-merkel-address-german-parliament


12.45pm: Germany is going to ask the EU commission to introduce afinancial transaction tax.
Such a levy has long been championed by Merkel who will be supported by Hollande. But it's strongly opposed by the British government who think that it will harm the competitiveness of the City. The argument is that you can't introduce a tax on transcation in Europe because the business would just go to the US or Asia.
12.28pm: Merkel also praised Spain and Italy for making important reforms and as she was speaking Italian prime minister Mario Monti won a confidence vote on labour reform.
The law aims to make it easier to sack workers, broaden unemployment benefits from 2017 and crackdown on employers who avoided taking on full-time workers.
Monti hopes the approval of the measure will strengthen his bargaining position at the EU summit starting tomorrow in Brussels.
12.18pm: Merkel reminded everyone that eurobonds are in any case constitutionally impossible in Germany and was also very clear on the linkage Germany expects if there is to be any movement on this in future.
"Supervision and liability must go hand in hand," she said, and could only be considered if and when "sufficient supervision is ensured". That means, of course, countries ceding control of fiscal policy to Germany/Brussels/ECB.
12.08pm: Merkel says there are no "quick and easy solutions" to the euro crisis and that leaders should beware of making rash promises they could not keep.
Addressing members of the lower house of parliament, the Bundestag, Merkel repeated her opposition to eurobonds and said that Germany, Europe's biggest economy, had finite resources. She said:
It is imperative that we don't promise things that we cannot deliver and that we implement what we have agreed. Joint liability can only happen when sufficient controls are in place.
11.57am: Merkel says that if Germany is overburdened, it would have unforeseeabale consequences for Europe.
11.52am: The German chancellor reiterates her position that euro bonds are economically wrong and counterproductive.
11.46am: Merkel is pleased that at least nine EU countries are ready to go ahead with the financial transactions tax. She has also called for new incentives to tackle youth unemployment in Europe.




10.22am: Protests galore across the eurozone: Greek restaurant workers have called a 24-hour strike for today to protest against wage cuts and other austerity measures imposed by the government. The strike comes in one of the key months for tourism, the country's biggest industry.
"Employers are blatantly using the avalanche of measures, which are crushing the human and social rights of workers, to violently demand submission to their demands," the Panhellenic Federation of Catering and Tourist Industry Employees said on its website.
9.53am: Nicosia 'the dog in charge of the sausages'?
Cyprus taking over the rotating EU presidency on Sunday after it sought an emergency bailout has been likened to putting a dog in charge of the sausages.
Kurt Lauk, president of the economic advisory board linked to Merkel's center-right Christian Democrats, said:
This is the paradox of the European Union, that the dog should be put in charge of the supply of sausages!
Cyprus, which is due to take over the six-month presidency from Denmark, has a banking sector heavily exposed to debt-crippled Greece and said on Monday it was formally applying for help from the EU's rescue funds.
Lauk called for all countries which have received bailouts - which also include Spain, Portugal, Ireland and Greece - to be barred from holding the EU presidency, which helps to set the agenda of the 27-nation bloc.
Bulldog with sausage
9.44am: Another one bites the dust. The head of Greece's privatisation fund, Yiannis Koukiadis, has resigned, citing personal reasons,according to Greek daily Kathimerini.
It was revealed on Wednesday that Koukiadis tendered his resignation to caretaker Finance Minister Giorgos Zannias. In his letter, Koukiadis said his decision to leave the post, which he has held since July last year, were purely personal.
Greece's coalition government has backed the privatisation process, although some reservations have been expressed about selling off so-called strategic assets.
TAIPED suspend the implementation of its sell-off program due to the political uncertainty caused by the two recent general elections.
Executive director Costas Mitropoulos told Kathimerini in a recent interview that the decision has harmed the credibility of the fund, which according to the law is independent from the government, while it also renders the target of 3 billion euros in revenues nonfeasible for this year.
Sources suggest that other members of TAIPED are also prepared to step down.
9.38am: The Italian business confidence figures, which were delayed by a staff protest, are out. Morale unexpectedly improved in June, with the index rising to 88.9 from 86.6 in May.
8.47am: It's 'Waiting for nothing,' says Paul Donovan, managing director of global economics at UBS.
Markets are waiting for nothing to happen, with the euro heads of government summit looming on the horizon. Expectations have been lowered so much that it is just possible that markets react positively to any decision. Alternatively, markets look at the broken structure of the Euro and ask "is that it?".
Weidmann of the Bundesbank keeps going on about how he does not want a debt union. We get the message. The point is that a fiscal union (as a long term end game) is all about shared tax revenues and shared spending. Eurobonds are a side issue.
There are reports of a eurogroup finance ministers' meeting to discuss Spain's request for money and Cyprus's request for money (Cyprus is refusing to indicate how much money it would like to get from the dwindling number of liquid and solvent Euro economies).
The travails of the euro seem to be infecting even the irrepressible optimism of the US consumer, whose expectations have taken a turn down. The situation feels similar to last year - soft data like consumer confidence weakens, hard data like housing stats hold up.

and...... 








http://www.telegraph.co.uk/finance/debt-crisis-live/9358201/Debt-crisis-live.html


12.10 It seems that Mario Monti has won his final confidence vote on the reforms to labour law (see 07.52)
12.08 As well as Mrs Merkel, Evangelos Venizelos, Greece's Pasok party leader, has also been holding forth this morning on the crisis. According to Bloomberg, he said that immediate intervention is required to stem a deepening recession and revive a reform program which has stalled due to the political situation.
Here's Zerohedge's take on Venizelos' comments:
11.57 Merkel says that if Germany is over-strained, it would have unforseeable consequences for Europe.
11.56 Merkel says she strongly disagrees with EU proposals that join debt liability needed for bloc. She also reiterates that euro bonds are economically wrong and counterproductive. She says that joint debt liability can only come once controls on national states are in place. She will ask EU countries if they are ready for treaty changes and will tell other leaders that time is of the essence. Merkel expects controversial discusssion at the Brussels summit and eyes will be focused on Germany. She reiterates that Germany does not have unlimited strength.
11.47 Angela Merkel says she is pleased that at least nine EU countries are ready to go ahead with a financial transaction tax.
11.42 More from Mrs Merkel. She says that European Investment Bank capital must be boosted by €10bn. She adds that Europe needs credible banking supervision.
11.40 Merkel adds that Monti and Rajoy have taken important reform steps. She also says that Europe needs new incentives to help youth unemployed.
11.37 Angela Merkel is speaking now. She says there are no quick or easy solutions to the euro debt crisis. She also says that structural reforms must be at the centre of growth initiatives for Europe.




11.07 On the Finland note, there are signs that Finns are getting tougher on Europe as the crisis drags on. Reuters reports that Finnish Prime Minister Jyrki Katainen sounded almost apologetic a year ago when he demanded collateral in exchange for bailout funds for Greece.
But twelve months on, with the eurozone still in turmoil and Greece nearer to the brink, Katainen no longer sounds sorry for demanding austerity from other member states or for opposing major steps towards closer integration that Finland considers too risky or irresponsible, such as common euro bonds.
"Too many countries have gotten too many loans too cheaply for too long," Katainen told Reuters this month. "We don't want to institutionalise this unless we know everybody will follow the rules, which hasn't been the case before."
10.21 Nicholas Spiro of Spiro Sovereign Strategy had this to say on the Italian bill auction:
QuoteIt's always a bad sign when the short end of the curve is being hammered. This is pure risk aversion. While demand from local banks continues to prop up Italy's debt market, the concessions are becoming heftier and heftier with each passing week. While yields are not as high as they were in November, psychologically speaking things are almost just as dire.
The deterioration in sentiment towards Italy is externally driven. While Italy has serious domestic problems, what concerns the markets is Germany's reluctance to do what is necessary in the short-term to shore up Spanish and Italian debt. This is not about the absence of a fiscal and banking union. Those are long-term solutions. Rather, this is about the lack of credible interim measures to bring down Spanish and Italian spreads.
10.13 At Italy's auction of six-month bills, the yield has risen to 2.957pc from 2.104pc at the sale at the end of May. The yield is the highest since December.
10.10 Luis de Guindos, Spain's economy minister, has revealed some of the details of his recent pow-wows with fellow finance ministers. He held a conference call with his French, German and Italian counterparts and would take part in another later this morning after the "top four" ministers met in Paris last night.
Mr de Guindos said that direct recapitalisation of Spain's lenders by using European Union aid funds will be discussed at the summit and will also discuss greater banking union across the monetary union, along the lines laid out in a report by European Council President Herman Van Rompuy.
09.59 Czech prime minister, Petr Necas, has spoken out about the EU proposals for deeper integration, saying his government mandated him not to accept the plans:
QuoteThe mandate orders me not to accept the proposals that have been in circulated in the media so far...Some proposals like the banking union could have extremely damaging impact on the Czech economy.
09.51 Institute of International Finance chief, Charles Dallara, has apparently told the German newspaper Die Zeit that the EU summit is "perhaps [the] most important" since its founding and that the EU's future is at stake.
09.30 More pain in Spain. The country's central bank has said that economic indicators suggest that the economy will contract at a faster rate in the second quarter than in the first three months of the year. From January to March, Spain's economy shrank by 0.3pc as Spain fell back into recession for the first time in three years. The Bank of Spain said that data showed private consumption had fallen at a steeper rate in the second quarter than the first while retail sales and car purchases had also shrunk at a faster clip.
09.07 The statisticians are revolting. In Italy, a protest by staff has delayed the release of Italian business morale data by half an hour.
Reuters reports that statisticians, researchers and computer technicians from ISTAT, Italy's national statistics office, have occupied the room where the data are handed out and are holding a labour union assembly. The 42 staff won an internal promotion two years ago that has not yet been recognised.
The Business confidence figures for June, scheduled for 0800 GMT, will now be published at 0830, the protesters said. The reading is forecast to fall to 85.5 from a three-year low of 86.2 in May.
08.35 It turns out that Mariano Rajoy has been speaking in the Spanish parliament this morning, saying that he will ask ask other European Union leaders at a summit this week to use existing EU instruments to stabilise financial markets. He said:
QuoteI will propose measures to stabilise financial markets, using the instruments at our disposal right now. The most urgent issue is the one of financing. We can't keep funding ourselves for a long time at the prices we're currently funding ourselves.
08.23 Some flashes appearing on Reuters from Mariano Rajoy, Spain's prime minister. He has apparently said that Spain cannot fund itself at current yields for a long time and that the key issue for Spain today is to finance itself on the international markets.
08.18 Yesterday, we learnt the world's oldest bank, Italy's Monte dei Paschi di Siena, was to be handed €2bn by the government to cover a capital shortfall. Today, the bank announced plans for an up to €1bn capital increase, 4,600 job cuts, branch closures and a sharp reduction in its loan book to shore up its finances.
08.05 Early this morning, the Microsoft offices in Athens were apparently attacked, with assailants driving a van through the front doors and setting off an incendiary device that burned the building entrance. A police source told Reuters that the van contained three inflammable gas canisters and five cans of gasoline. There are no reports of any injuries at the moment.
AP reports that there was no immediate claim of responsibility. It added that several small extremist or domestic terrorist groups are active in Greece, usually targeting official buildings, banks or symbols of state power with small bombs or incendiary devices.The attacks usually occur late at night and rarely cause injuries.
07.52 Still with Italy, the country's parliament is set to today approve acontroversial labour market reform so prime minister Mario Monti can go to the Brussels summit with it in his hand to reassure his EU partners.
Mr Monti's government reckons the reform is key to kick-starting growth in the recession-hit economy. The project, which was revealed in March after months of disputes with trade unions, is based on the Danish "flexicurity" model, which aims to ensure both flexibility and security in the labour market.
07.35 Ahead of this week's EU summit, Angela Merkel and Francois Hollande will meet in Paris today to try to square their differences over how to tackle the crisis. Those differences were thrown into relief yesterday as Mrs Merkel ruled out jointly guaranteed eurozone debt for "as long as I live". Hollande supports the idea of eurobonds.
Before that meeting, Mrs Merkel will address the lower house of Germany's parliament later this morning.
07.00 Over my dead body. That's what Angela Merkel had to say yesterday on the idea that we could see eurobonds any time soon. Speaking at a private meeting with MPs, she ruled out jointly guaranteed eurozone debt for "as long as I live".
The German Chancellor's comments were met with applause. One participant reportedly shouted: "We wish you a long life!"

and another resination - this time the head of the privatization fund......

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_27/06/2012_449220



Head of Greece's privatization fund resigns, citing personal reasons


The head of Greece’s privatization fund (TAIPED), Yiannis Koukiadis, has resigned, citing personal reasons.
It was revealed on Wednesday that Koukiadis tendered his resignation to caretaker Finance Minister Giorgos Zannias. In his letter, Koukiadis said his decision to leave the post, which he has held since July last year, were purely personal.
Greece’s coalition government has backed the privatization process, although some reservations have been expressed about selling off so-called strategic assets.
TAIPED suspend the implementation of its sell-off program due to the political uncertainty caused by the two recent general elections.
Executive director Costas Mitropoulos told Kathimerini in a recent interview that the decision has harmed the credibility of the fund, which according to the law is independent from the government, while it also renders the target of 3 billion euros in revenues nonfeasible for this year.
Speaking to Skai TV on Wednesday, Koukiadis said the troika's target could not be reached and that the fund's work had been held up for three months due to the elections. He also said claimed political interference in his work.
Sources suggest that other members of TAIPED are also prepared to step down.


and......

http://www.athensnews.gr/portal/1/56515


News bites @ 10
by Makis Papasimakopoulos27 Jun 2012
All the major stories making the rounds this Wednesday morning. (file photo)
All the major stories making the rounds this Wednesday morning. (file photo)

1. MICROSOFT ATTACK As yet unknown individuals orchestrated and carried out an attack on the Microsoft building early on Wednesday, using a van wired with home made explosives. The building, which is situated on 221 Kifisias Avenue in Marousi, was hit by the attack after the individuals on board the van had first threatened the security guards guarding the entrance to the structure, who had no option but to move out of the way and allow the attackers access to the ground floor. 
The explosives in the van were then detonated, the resulting fire obliterating the vehicle and causing heavy damage to the ground floor and the first floor of the Microsoft building. Police are investigating the attack.  
2. ELECTRICITY ON THE RISE? Head of DEH Arthuros Zervos has said that there is every chance that there will be further price spikes in future electricity bills. At a time when the National Electricity Company faces great difficulty in collecting unpaid bills, due to the mounting crisis, forcing them even to turn to private collection agencies to gather funds from the public, Zervos has said that while a price hike could deal with the mounting problem that the company is facing concerning fund collection, it was not his authority to green light such a decision. 
3. BAGDATIS EASES INTO SECOND ROUND. Markos Pagdatis has swept past Spaniard Alberto Montanes to claim his spot in the second round of this year's Wimbledon Grand Slam tennis tournament. Bagdatis faced no real problems with Montanes, overcoming the challenege in three straight sets, 6-2, 6-4, 6-4. He will now face Bulgarian Glygor Dimitrov, who beat South African Kevin Anderson to make it through to the next round of the tournament. 
4. PASOK HAVE NEW PARLIAMENTARY REPRESENTATIVE. Michalis Chrysochoidis is the man for the job, after Evangelos Venizelos put his name forward. Chrysochoidis had initially appeared unwilling to take up the post, but eventually agreed, despite having openly clashed with the Pasok chief during the run-up to the formation of the Samaras-led coalition government. The Venizelos - Chrysochoidis relationship however, as well as that with Andreas Loverdos, remains on choppy waters. The party's parliamentary group is scheduled to convene today, so as Venizelos to present his proposals for the future of the party, set to be finalised by July.
5. ANOTHER ONE BITES THE (COALITION) DUST. Dimitris Hadzisokratis, head of financial policy for the Democratic Left has stepped down from his post. His resignation, came after party chief Fotis Kouvelis chose to keep the seat in the second Athenian constituency, effectively blocking Hadzisokratis' path to parliament. The Democratic Left member however has stressed that he will stay close to the party and participate in all aspects of its political actions. 
6. POLICE BUST KAVALA GANG. Authorities had a major brekathrough on Tuesday, announcing the arrest of 23 possible members of one of the most infamous criminal gangs in the wider Kavala region. The gang, has been responsible for numerous bank heists, ATM thefts, have opened fire on police officers on numerous occasions and are said to have been involved in drug trafficking as well. The suspects, which include a lawyer and a special guard have not yet been identified, but more information will be revealed by authorities in due time. 
7. MERKEL CALLS. MOVE ALONG. German Chancellor Angela Merkel held a telephone conversation with Prime Minister Antonis Samaras on Tuesday. According to a statement to AMNA by a German government spokesman, Merkel wished Samaras a speedy recovery. According to the same source, "the communication constitutes a continuation of the regular contact" between the Chancellor and the Greek prime minister.
8. SAVED BY MUSIC. In what is arguably one of the definitive live music events of the summer, tonight sees Kasabian, James, Miles Kane and Band of Skulls headline the 8th Ejekt Festival. The event, set up by Detox Events, takes place at Plateia Nerou, which is situated in the Faliro Olympic Polo Center Με τη γνωστή επιτυχημένη συνταγή και μεγάλα ονόματα της rock μουσικής σκηνής επιστρέφει στην Ελλάδα το Ejekt Festival για 8η συνεχή χρονιά, την Τετάρτη. Οι συναυλίες θα δοθούν στην πλατεία Νερού, στον Ολυμπιακό Πόλο Φαλήρου. Doors open at 17.00 and tickets on the door cost 45 euros.
9. A GOOD MAN, BUT. That's what it seems the foreign press are saying about new Finance Minister Giannis Stournaras. The paint a picture of a man that is a fan of much needed reform, a man cut out for his post, but at the same time express their doubts as to whether he will be given the opportunity to progress with everything that is needed. Stournaras, who essentially takes over from finance-minister-who-never-was Vasilis Rapanos, is projected by the foreing media as a capable individual being placed in a disjointed government. Time will indeed tell, little of it as there is.  
10. GREECE GET WIN, NEED WORK. In a match that was part of the national basketball team's preparation for the pre-Olympic tournament of Venezuela, the men of coach Ilias Zouros got past the obstacle of Nigeria with a 88-76 win. The national side got into the game brightly, but stalled in the second and third period, before regaining its composure in the end and securing the win. Olympiakos hot-shots Spanoulis and Printezis led the line with 20 and 15 points respectively. 


and.....


Two men attempt to steal 15 ton bridge
27 Jun 2012
A railway bridge vanishing is not an everyday occurrence, but that is nearly what transpired in Kilkis. (file photo)
A railway bridge vanishing is not an everyday occurrence, but that is nearly what transpired in Kilkis. (file photo)

Two construction company workers were arrested on Wednesday for attempting to tear apart and steal a Hellenic Railway Organisation (OSE) bridge in the Mikro Dassos village in Kilkis, northern Greece.
The two suspects, aged 44 and 48, arrived at the location with a crane but they were spotted and were arrested in the act.
The 17x5 metre, 15 tons bridge was used by OSE for the construction of a train track.
A large number of similar incidents have taken place in Northern Greece where the so-called 'copper and cast iron gangs' are active.
Their preferences include grills from water supply networks and sewers as well as PPC transformers and cables.
Only a few days ago, thieves made off with an entire iron bridge near the Greek-Bulgarian border on the Strymonas River. (AMNA)


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