Wednesday, October 24, 2012

European morning news and data - The Guardian and The Telegraph liveblogs , Greece news of the morning.......

http://www.zerohedge.com/news/2012-10-24/guest-post-secession-fever-sweeping-europe-meaningless-without-debt-repudiation


Guest Post: Secession Fever Sweeping Europe Meaningless Without Debt Repudiation

Tyler Durden's picture
Submitted by Tyler Durden on 10/24/2012 22:51 -0400



Submitted by Ron Holland via The Daily Bell blog,
While regional independence is superior to both the failing European Union and the façade of special interest controlleddemocracy, one further action should taken by any jurisdictions that choose secession: Newly restored sovereign nations should repudiate their share of the illegitimatesovereign debt when they exit existing unions and nation-states. Created by distant banking elites buying national politicians and parliaments to load up on sovereign debts that can never be paid off, this massive national debt load is illegitimate and destructive to existing and new national economies.
Governments have three ways to deal with debt loads of this magnitude: The first is hyperinflation designed to destroy the payoff value of the debt, second is the official repudiation of the debt or third, a combination of both options.
Attempting to hold the bankers accountable is not an option. The investment banks likeGoldman Sachs and a few others have already made their money packaging and selling the debt and derivatives so they are now out of the deal. At this point, the world waits for eventual sovereign debt repudiation.
The first nations to repudiate sovereign debt will have the advantage; this is why restored nations should repudiate these debts and not burden their new national economy and citizens with this junk debt. In addition, these nations should repudiate their existing politicians and representatives, controlled by the financial elites who supported the debt accumulation; because once independence is restored there is nothing to stop politicians on the take from doing the same thing again.
European Style Secession Fever
Now, there is no question that regional secession has a bad reputation, primarily due to the bloodbath that took place in the United States from 1861 to 1865. Today,most national governments strongly oppose independence and secession because this legal and legitimate action reduces tax revenues. However, few governments would consider the deplorable Lincoln alternative of military conquest that killed almost 600,000 Americans, North and South.
Although the establishment press issues many negative news accounts aboutsecession fever sweeping Europe, I believe this is actually a positive political development and possibly the only solution to the sovereign debt crisis. For instance:
It is time for the restoration of formerly independent countries, each with their own unique cultural and ethnic heritage, that were forced at gunpoint into larger empire states. My recommendation is to leave most of the illegitimate sovereign debt behind when they go.
Venice wants out of Italy, Catalonia out of Spain, Bavaria out of Germany, Scotland and Wales want to leave the United Kingdom, the Flemish want out of Belgium. Even Vermont and some in the South want to regain their former status as sovereign republics separate from the most debt-ridden empire in world history, the United States.
Just as important, Greece, Italy, Ireland, Spain and Portugal – and there are even demands in Germany itself – want to leave the EU and euro witches' brew created by their leaders. After all, the EU is a failure and these member nations may have to leave the European Union and restore their national currencies in order to grow their economies once again.
The Necessity of Sovereign Debt Repudiation
Once austerity measures and tax increases have bankrupted most of the private sector and the current sovereign debt crisis reaches critical mass, then every nation will repudiate most of its debts as well as renege on promised health and social benefits. Newly sovereign nations can act now to position themselves with a distinct advantage when this occurs. These nations will have been able to limit austerity measures, reduce confiscatory tax increases and safeguard their citizens' private wealth by repudiating sovereign debt. If these steps are taken immediately upon independence, they should be able to avoid the majority of economic collapse caused by the coming Western sovereign debt repudiation.
Citizens are deservedly outraged at their politicians, bankers and governments and new governments, taxing jurisdictions or political lines drawn on a map may provide some nationalist, cultural or historical benefits. But independence without repudiation will do nothing to solve the collapsing standards of living and crippling austerity measures I see in our collective future.
Most of the countries in the West will eventually default on their sovereign debts using a war or financial crisis as the excuse. Like the Reichstag fire underHitler, the excuse can be either a manufactured black-flag event or a policy readied in advance and implemented when the right excuse comes along.
This will not happen until most middle-class wealth and benefits, including retirement and health benefits, are stolen using the twin theft traps of austerity or hyperinflation caused by the sovereign debt crisis. For once, even most government employees will be raped and pillaged, as their promised benefits will evaporate because in the future their make-work jobs alone will be enough to guarantee their votes. It isn't like most will or can work in the private sector after a lifetime of government employment.
History Shows All National Boundaries and Structures Change Over Time
All government boundaries and structures change over time. Comparing a map of early 20th century Europe, Asia or Africa with one outlining national boundaries or tax jurisdictions today makes that clear.
The same is true for governments, Russia being a case in point. It began the 20th century under a monarchy czarist government, became communist in 1917 and later returned to a similar centralized government under Putin, following the collapse of communism and the Soviet Union.
The United States fought for independence and was governed for over a decade under a confederation form of government like Switzerland until the Constitution was instituted. Then it was a decentralized republic until the Civil War when it shifted to an increasingly powerful Washington government until the early 20th century when it became an empire.
Early forms of governments began under tribal associations where chieftains led and the people followed. This was then often either supplanted or combined with religiousinstitutional leadership to better control and manipulate the population and take their crops, wealth etc.
Later with the rise of the Roman republic and its transition under Caesar into a worldwide empire in the West, government ruled with some degree of benefit for the populations. Following the fall of the Roman Empire in the West, once again chieftains, who eventually became royalty and monarchs, ruled alongside the Church for centuries until the Protestant Reformation developed with help from the Gutenberg printing press. Then the Catholic and Protestant churches ruled in conjunction with monarchy and the divine right of kings. The Protestant movement split into many Churches and religious institutions, some in support of government and others in opposition.
At first, wealthy and educated people began to rightly clamor for a parliament and for a say in their government. This citizen input really improved government and for the first time made it accountable to the people – at least those educated and with property. This was probably a time of the best government in the West.
Parliamentary democracy grew in popularity along with the growth of money, trading and banking. Central banking actually began in Venice and broader forms of democracy were added so that wealthy banking families could rule behind the scenes under the cover of mob-rule styled democracy. As the power of monarchy and the Church weakened, democracy evolved into mob rule of the masses and politicians were forced to borrow and go into massive debt in order to stay in power by promising more than the government could provide. This in turn has led to the sovereign debt crisis the West is facing today.
This has now turned into an austerity and sovereign debt crisis, and people rightly long for a return to local accountability and leadership under their smaller and culturally distinct governments. The result is a growing secession movement toward regional, independent governments and away from the new but distant supranational governments like the European Union. This is good news for liberty and prosperity but bad news for the power eliteswanting to control wealth and people across the Western world.
Following are a few thoughts on home rule, secession and the restoration of independent nations:
Follow the New Guard Rather Than the Old Elites

New nations today are usually the return to nation status of a country or region forced by previous military force or non-elective actions to join a union such as the EU. Supporters and advocates should follow the real independence leaders and parties rather than any "Johnny-come-lately," old-guard political hacks or existing parties who see their power and control challenged. Beware existing political elites who often will do anything to maintain their power base and financial incentives, even for a time becoming "patriots."

Repudiate Much of the Existing Sovereign Debt
Remember, all sovereign debt principal and interest/debt servicing accumulated over the last couple of decades are just a giant Ponzi scheme, run for the benefit of the banks selling the debt and the politicians using borrowed funds to buy votes and temporary political support. This is a most cruel and illegitimate type of generational theft and debt whereby politicians, banks and voters of one generation actually work together to better their situation at the expense of future generations.

Sadly, majorities in the West have chosen to steal from their children and grandchildren in order to live it up today. Instead of creating a legacy of wealth for their posterity, too many of this generation have stolen and squandered the economic future and prosperity of the next generations.
Create An Independent Currency

Why should a shadowy, central banking cartel have the sole, very lucrative franchise in each nation to create the fiat paper money supply out of nothing, thus enriching themselves and their backers at the expense of each nation and citizens? Central banks, if they exist at all, should be loyal and accountable to the nation in which they are domiciled and operate under close audit and supervision by the government and the people in each national jurisdiction. Of course, each nation should decide whether to offer fiat currency, a commodity-backed currency or currency competition including private alternatives.  
Learn From Switzerland, the Only Successful Political Structure in the 20th Century
Each new and restored nation must, of course, meet the unique needs and demands of its population but why duplicate failure with the same politicians that earlier led that nation to ruin and bankruptcy? Although there are exceptions, the replacement of national government politicians with local or regional government politicians who formerly supported the federal structure – or in the case of the EU, supra-national government structure – accomplishes little of substance.
I consider Switzerland, with its decentralized confederation form of government held in check by its citizens through the political rights of referendum and initiative, to be the best government solution for prosperity and liberty. This is ultimately the reason Switzerland did not join the EU and why this nation with few natural resources is the economic success story of the world.
Therefore, to the coming restored nations of Europe, I wish you well in your attempt to break away from powerful interests and foreign central governments that have forced their control and authority over you. May you succeed in the restoration of a legitimate local and historical government that hopefully will avoid the mismanagement of your economy, exploitation of your resources and destruction of your heritage, culture and prosperity.
As you undertake this endeavor, keep this in mind: All government bureaucracies grow until contained, taxes rise until curtailed and politicians borrow and seek power until thrown out of office. A limited confederation style of government is the best way to ensure that power and authority remain with the citizens instead of the powerful interests that always seek to corrupt and take over government to benefit themselves over the citizenry.
Hopefully, all formerly independent nations and free people are able to peacefully withdraw from the larger nation-states with restored sovereignty, increased freedom and a limited, confederation form of government. They can thereby set a political and economic example for other nations in the EU and elsewhere that smaller, regionalized government is far superior to large, inefficient nation-states.
Remember, smaller is always better when talking about the size and extent of government.





and.....







http://www.zerohedge.com/news/2012-10-24/european-nash-dis-equilibrium-through-eyes-greek


The European Nash Dis-equilibrium Through The Eyes Of A Greek

Tyler Durden's picture
Submitted by Tyler Durden on 10/24/2012 19:58 -0400




In a somewhat mind-blowing 'gotcha' this evening (that we saw coming from the moment the words left his lips), the Greek finance minister has been forced to admit he's a lying cheat drop claims that he had secured a two-year extension for debt repayments and an agreement with creditors over EUR13.5bn in proposed austerity measures - because HE HADN'T! AsThe Guardian reports, Stournaras played to stereotype perfectly (the Greeks only got in the euro thanks to off-market currency swaps to reduce debt optics off-balance sheet) by lying once again (if you lie big enough it has to stock, right?). The U-turn - which he was forced to make after Germany denied the deal (yes Zee Germans again the only ones that anyone should be listening to) - caused chaotic scenes in parliament. As we have vociferously described, and Mr. Panos confirmed, the leverage is all with the Greeks (as much as the world does not want to admit it) as one Greek official said (frighteningly honestly ! ):
"Even if the troika give us a negative report, what are they going to do? Are they really going to not give us the installment [to keep Greece's economy afloat] two weeks before the US elections, with everything that entails – default, bankruptcy, global market turmoil? These labour reforms will turn our country into Bangladesh. They have no fiscal benefit and will actually derail the adjustment program. The political system will collapse if we impose them. The troika is demanding that we commit suicide!"

Chaos in the Greek parliament following a row over the country's revised bailout plan brought fresh gloom to the eurozone as figures showed the currency union moving closer to recession.

The Greek finance minister was forced to drop claims that he had secured a two-year extension for debt repayments and an agreement with creditors over €13.5bn (£10.9bn) of proposed austerity measures when he addressed MPs on Wednesday.

Yannis Stournaras had previously told MPs that a deal was ready, only to later admit that negotiators had yet to approve a final draft. The U-turn, which Stournaras was forced to admit after Germany denied any deal, triggered chaotic scenes in parliament as opposition MPs objected to proposed tax rises and job cuts.

It was unclear last night whether the government will be able to submit two separate bills on austerity cuts and labour reforms due to be debated in parliament next week.

Greece has spent months in talks with its creditors, headed by the troika of the International Monetary Fund, the European Central Bank and the European Union.

Stournaras wants Greece to cut its debt pile by reducing the interest and extending the term of its bailout loans. Analysts still expect Athens to win improved loan terms, though not until it relinquishes more supervisory powers to the troika, which wants to closely monitor any deal.


One Greek official said the troika would need to back down over demands for tough labour laws or risk a political revolt.

"Even if the troika give us a negative report, what are they going to do? Are they really going to not give us the instalment [to keep Greece's economy afloat] two weeks before the US elections, with everything that entails – default, bankruptcy, global market turmoil?" he asked.

"These labour reforms will turn our country into Bangladesh. They have no fiscal benefit and will actually derail the adjustment programme. The political system will collapse if we impose them.
"The troika is demanding that we commit suicide, which is why we believe this is a matter that should be solved on a political level by the prime minister and not with the troika."


Stournaras was forced into his U-turn after the German finance minister, Wolfgang Schäuble, told reporters in Berlin that a deal would be impossible until the troika concluded its report.

Schäuble, who is a key architect of the austerity measures dominating Europe's economic landscape, warned that the eurozone's finance ministers must also read the report before agreeing to the two-year loan extension called for by the Greek government.
...
and as a reminder, The Greek Plan for Dummies:














http://www.zerohedge.com/news/2012-10-24/andalusia-seeks-greater-bailout-spain-says-amount-regional-bailout-fund-was-underest


Andalusia Seeks Greater Bailout From Spain, Says Amount For Regional Bailout Fund Was "Underestimated"

Tyler Durden's picture
Submitted by Tyler Durden on 10/24/2012 09:14 -0400



The latest headline out of broke Europe, where Germany entering recession apparently benefits from a rising EURUSD even as Mario promises to print even more currency, is perfectly expected: the insolvent Spanish region of Andalusia has requested even more bailout aid. From Bloomberg:
  • Spanish region of Andalusia says it is seeking more aid from Spain
  • Andalusia Says Spain Must Help as Regions Shut Out of Markets
  • Fund set up by central government to aid regions is only option
  • And what we have said all along:
    • Amount for Spanish regions’ fund was “underestimated:” Andalusia spokesman says
    All of this is perfectly expected. This is whatwe reported last week:
    What may however surprise many is that as of Friday, Spain's "temporary" €18 billion regional bailout fund is now practically empty: a discovery which will hardly make any additional regions, who have so far dragged their feet in demanding a national bailout, happy with the Prime Minister's handling of Spain's creeping bankruptcy.

    Calculating:


    • Total bailout fund size:€18 billion
    Bailouts already requested:
    • Cataluña: €5.023 billion
    • Andalucía: €4.906 billion
    • C. Valenciana: €4.500 billion
    • C. La Mancha: €0.848 billion
    • Canarias: €0.757 billion
    • Murcia: €0.528 billion
    • Baleares: €0.355 billion
    • Asturias: €0.261.7 billion
    Subtotal: €17.179
    Bailout funding left: €0.821 billion. Oops.Those who waited in hopes things will get better: tough luck.

    And as we observed last week, here is why the regional "bailout issue" is only going to get much worse.


    To summarize: Spanish regions:broke; Spanish banks: broke: Spain itself: on the verge of being bailed out by Europe. => Time to buy more SPGBs.

    Do now you see what happens Larry, when you keep bailing out and bailing out and bailing out insolvent entities, whose capital shortfalls are merely plugged on a one-time basis and nothing fundamentals ever changes, as they merely go broker and broker?
    At some point the klepto-socio-fascist Ponzi money ends. Until then, to quote Chuck Prince: "you must keep dancing."


    and.....


    OCTOBER 24, 2012 · 5:29 PM
    ↓ Jump to Comments

    GREEK SOURCES: ‘Troika deal won’t be enough to save New Democracy’

    Greek Prime Minister Samaras has brokered a deal that is no deal at all. A major realignment of Parties in Greece is now on the cards.
    Late in August, I posted this piece saying that – whatever rhetoric was flying between Berlin-am-Brussels – there was a deal on the table and both sides wanted it. I was confident in my sources, and I still am. But what I suspect my sources overestimated was the quality of the deal from a Greek point of view.
    Greek Finance Minister Yannis Stournaras told the Athens Parliament today that he’d “hammered out a deal” for a loan agreement that gave the country a two-year extension to meet its budget targets in exchange for deep budget cuts.
    Whatever the eunatics say, it is a compromise. But on reading the details late last night, my first thought was, ‘Is that it?’

    If the demand on the table is that one flies to Jupiter and back unaided by June 2013, and then suddenly the new deal is that you fly to Saturn and back by October 2015, does it help the situation? Call me wacky, but I’d say “No” emphatically.
    Greece’s economy, now in its fifth year of contraction, is expected to shrink more than 6% this year and 4.5% next year.
    Only an idiot or a sociopathic schemer would suggest that things will be on the mend by 2015. Barroso and Van Rompuy are idiots, but Schäuble and Merkel aren’t. Frankly, I’d be amazed if Greece can last until Spring 2013 without the need for another major bailout.
    I don’t know what Antonis Samaras is thinking about tonight, but I have a reasonable idea what Athenian political circles are discussing. I fancy the main topic around power-dinner tables there will be this: the Prime Minister has come out of this largely empty-handed. What does he do now?
    The answer has to be “Something very big, and very soon”. There will be more unrest, more police clashes, more hubris from Golden Dawn, and more shrewd analysis from Syriza’s leader Alexis Tsipras. Fatboy Venizelos – the last idiot to leave the Coalition bunker – will convince himself that a gesture of last-minute distancing will help him survive. But the fact remains that the Democratic Left has already gone, and as predicted here eight days ago – Prime Minister Samaras is looking to much grander gestures.
    These may well prove to be delusions of grandeur, but Samaras is looking for a new Grand Coalition. So many people are feeding back this line to me now, it seems impossible to think it is merely disinformation bollocks.

    Stay tuned. This is could easily turn into an anarchic circus sooner rather than later.



    http://www.zerohedge.com/news/2012-10-24/germany-officially-rejects-latest-greek-lie


    Germany Officially Rejects Latest Greek Lie


    Tyler Durden's picture
    Submitted by Tyler Durden on 10/24/2012 08:27 -0400

    Literally minutes ago we made it clear that the Greek FinMin is now officially lying on the tape, declaring his "hope" as a fact. It took Germany moments after our post to chime in and confirm that indeed, things are very, very serious, if the finance minister of a country is now blatantly lying. Via BBG
    • GERMAN SPOKESMAN: NO BASIS FOR 2-YR GREEK EXTENSION REPORTS - DJ
    And EURUSD... spikes on the rejection of the lie. In other news, the market is about as unmanipulated as the Mitt Romney flash smash yesterday.


    http://www.zerohedge.com/news/2012-10-24/total-confusion-greece-says-troika-agreement-reached-germany-says-nein


    Total Confusion: Greece Says Troika Agreement Reached, Germany Says "Nein"

    Tyler Durden's picture
    Submitted by Tyler Durden on 10/24/2012 08:06 -0400



    What better way to start the morning for EUR trading algobots (which at last check account for 50% of the volume and rising) than with a bout of total confusion over the Greek bailout (non) extension. On one hand we have the Greek FinMin Stournaras saying a two year grace period has been reached - something which the European core has said is not standalone, and which will need much more bailout cash, and on the other we once again have Germany flat out denying this report, saying the official Troika reports has not been completed, and that Greece is expected to show deviations from the fiscal plan. From Kathimerini: "Finance Minister Yannis Stournaras has informed journalists that there is an agreement between the Greek government and the troika on all aspects of the austerity and reform program and the coalition is likely to be in a position to submit the measures to Parliament by the end of the week.  “The package has been sealed,” Stournaras is reported to have told journalists, less than 24 hours after coalition partners Democratic Left and PASOK expressed objections to some aspects of the measures."  And yet, moments ago, headlines blast thatGERMANY DEP FINMIN:TROIKA REPORT ON GREECE NOT YET FINISHED and GREEK REPORT TO SHOW DEVIANCE FROM AGREED GOALS, KAMPETER SAYS. Go figure it out.

    More on what Germany will likely officially deny any second now:

    Democratic Left, the smallest of the three parties in the coalition, objected to some of the labor market reforms but it appears that a compromise with the troika has been found.

    Sources said that instead of reducing the notice companies have to give to employees before making them redundant from six to three months, a compromise has been reached on four months.

    Democratic Left had also objected to a restrictive cap on compensation for workers who are fired when they have at least 16 years of service. It appears it has been agreed that employees’ compensation for their first 16 years of service will be paid according to their salary, while the remaining years will be capped at 2,000 euros per year, which is higher than the troika originally proposed.



    Greece’s lenders have also agreed to maintain a benefit for married couples and have set aside for now a request to scrap the automatic three-year wage maturation for workers on the minimum wage.

    Stournaras said that Greece would inform the Euro Working Group of the status of negotiations when technical staff meet in Brussels on Friday and Monday, ahead of the next Eurogroup meeting on November 12.

    The measures of the new bailout memorandum will now be drafted in two bills that will be tabled in Parliament Stournaras reportedly said. He added that the bills would be categorized as urgent to speed up debating time.
    The aim is for everything to have been approved by the House by November 12.
    Of course, if caught lying on tape, the pristine Greek reputation of only telling the truth would be damaged. And everyone knows Greece is so careful about only telling the truth...
     

    and......


    http://www.guardian.co.uk/business/2012/oct/24/eurozone-crisis-greece-austerity-memorandum-draghi


    AUSTERITY MEASURES DETAILED

    Although there have been rumours and leaks for the last four months, the94-page draft memorandum which emerged overnight is the first time that Greece's new austerity measures have been seen in full.
    We should caution that these details have not been officially released.
    Here's a list of the key points (via Ethnos)
    • Maintaining the emergency solidarity levy until 2018 - this is an increase in personal taxation of up to 5% that was introduced last year.
    • Lowering the number of income tax bands to three or four, from eight at present.
    • Big cuts to the public payroll: with 20,000 civil servants leaving in 2013, and a further 5,000 in 2014
    • Increasing the retirement age by 2 years, from 65 to 67
    • Increase in interest on deposits from 10% to 15% in 2014.
    • Eliminating various tax exemptions
    • Increasing taxes on farmers.
    • Retroactive reductions from 1 August 2012 to "special payrolls", on a sliding scale from 2% to 35%.
    • A huge cut in the the number of associate professors from 15,226 to 2,000.
    • Increasing urban traffic ticket prices by 25%, from March 2013.
    • Remove special seasonal unemployment benefit payments.
    The plans for civil service job cuts would see tens of thousands of people transferred into a 'labour pool', with 5,000 being laid off each quarter until the Troika's demands have been reached - according to a report on Skai News today.












    http://www.telegraph.co.uk/finance/debt-crisis-live/9629680/Debt-crisis-live.html


    11.04 To add to the glum news we've been faced with this morning, the latest German Ifo survey shows German business confidence unexpectedly fell to the lowest in more than two years in October.
    The economic research institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped to 100.0 from 101.4 in September. That’s the sixth straight decline and the lowest reading since February 2010.
    10.31 It has been widely reported that a problem in Greece is the lack of tax paid by its workers. Well by the look of this tweet the Greek taxman may be chasing the wrong people.



    10.22 Government debt in the eurozone has hit a record high and is up to 90pc at the end of the second quarter, according to Eurostat, up from 88.2pc at the end of the first quarter.
    Greece had the highest ratio of debt to GDP at the end of the second quarter at 150.3pc, followed by Italy at 126.1pc and Portugal at 117.5pc.
    The lowest was in Estonia at 7.3pc, Bulgaria at 16.5pc and Luxembourg at 20.9pc.




    09.13 Here is the Eurozone PMI chart:



    09.05 Just in: Flash Eurozone PMI Composite Output Index has fallen to a 40-month low of 45.8, down from 46.1 in September.
    09.00 Commenting on the Flash Germany PMI data, Markit senior economist Tim Moore said:
    QuoteGermany’s private sector suffered a disappointing lack of momentum in October, reversing the signs of a step in the right direction during the previous month.
    Within the manufacturing industry, particular weakness was found in the automobiles sector amid softer exports to southern Europe... At the same time, relatively subdued investment spending in Asia was reported to have weighed on capital goods exports.
    Worries about future demand and space capacity in turn contributed to the first back-to-back monthly contraction of German private sector employment since the beginning of 2010."




    08.54 Weaker-than-expected German PMI data released this morning has caused the euro to drop against the dollar. German PMI Manufacturing fell to 45.7 points in October from 47.4 points in September, against expectations of a rise to 48 points.
    The euro fell 0.15 percent to $1.2965 on trading platform EBS, from $1.2993 before the data was released.
    08.40 Looking at Spain, which didn't have a great day yesterday with Moody's downgrading five of its regions, Ambrose Evans Pritchard has reported that The EU-IMF Troika in charge of Spain's €60bn (£48bn) bank rescue is to demand much tougher action by the country's authorities to clean up toxic debts.
    He said this riskied a clash that could deter Madrid from requesting a full sovereign bail-out. He reports:
     BNM Mare Nostrum, and other mid-tier "Group 2" banks such as Popular, Caja 3, and Liberbank, have little chance of tapping the markets to cover most of their capital deficits, according to Troika officials.
    They are also losing patience with the glacial pace of cuts at Bankia and other nationalised lenders such as Catalunya-Caixa and Banco Valencia, according to the Spanish newspaper El Confidencial.
    Brussels fears a repeat of the fiasco at Bankia, which had to be rescued just weeks after its recapitalisation plans had been approved. "We have had too many bad experiences with financial restructuring in Spain to be sure the plans will work this time," said one official.

    and from Greece......

    Troika presses Athens on privatizations


    By Vangelis Mndravelis
    Greece’s creditors have asked the government to move ahead with the privatization of the country’s ports and regional airports in the first half of 2013, while in the same period the tender for the concession of digital frequencies must take place, as the sell-off timetable is getting much tighter, in a bid to fetch revenues as soon as possible.
    The plan dictated by the troika – i.e. the representatives of the European Commission, the European Central Bank and the International Monetary Fund – provides for the government to adopt the new national strategy that will ensure the interconnectivity of ports with the rest of the country’s transport networks by December. Then, in March, the first invitations of interest for the utilization of ports will be issued.
    As far as Public Power Corporation is concerned, the government must submit in November the company’s restructuring plan with a view to its privatization as it will include the sections of the company that will be privatized, along with a timetable for their sale.
    Also in November, the government must separate the arms of the Hellenic Railways Organization (OSE) that do not concern the operation of train services. TRAINOSE, the railway service operator, will then be passed on for sale in March.

    ekathimerini.com , Wednesday October 24, 2012 (22:07)  

    http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_24/10/2012_467139


    Greece to sack 5,000 civil servants each quarter, report says


    Greece will reportedly dismiss 5,000 civil servants this year and then fire another 5,000 each quarter from the start of next year until the end of 2015 to meet the troika’s demands for fewer employees in the public sector.
    Skai TV and radio claims that the civil servants will be placed in a type of labor pool. It was suggested a few weeks ago that sacked bureaucrats would receive part of their normal wages for a year before being formally dismissed.
    Greece agreed in 2010, when it signed the loan agreement with the European Union and International Monetary Fund, to reduce the number of people employed in the civil service by the end of 2015.

    http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/10/2012_467137

    No decision yet on fiscal extension for Greece, says Asmussen


    No decision has been made to give Greece an additional two years to reach its fiscal targets but the troika of international lenders is making progress, European Central Bank board member Joerg Asmussen said on Wednesday.
    "So far there is no final agreement by the troika with the Greek government. We are making progress in Athens, but we are not there,» Asmussen told German public broadcaster ARD. «If one were to stretch the fiscal targets by two years, it would mean the other euro zone states having to provide more financial means."
    A draft of agreed measures and targets between Greece and its lenders obtained by Reuters showed that the austerity cuts would be spread over four years as sought by Athens rather than the two years originally envisaged under Greece's bailout.






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