http://rt.com/news/greece-wwii-reparations-germany-339/
Payback: Greek govt to launch legal battle for new WWII reparations from Germany
Published time: April 24, 2013 19:17
Greece has officially declared it will seek reparations from Germany dating back to the Nazi occupation during World War II, which could amount to over €100 billion, likely putting further strain on relations between the two Eurozone countries.
"We will exhaust every means available to arrive at a settlement," Greek Foreign Minister Dimitris Avramopoulos told parliament in Athens on Wednesday. "One can't compare the times, but also one cannot erase the memories."
A Greek Finance Ministry report leaked to local media earlier this month showed that Greece believes that Berlin owes it €162 billion – €108 billion for infrastructure damage during the occupation between 1941 and the end of the war, and €54 billion as compensation for an interest-free loan Germany took from the country to support its war effort.
If paid in full, the sum would nearly empty the national currency and gold reserves of Germany (€185 billion as of last month), though this would still not be enough to cover Greece’s national debt (over €350 billion).
Demands for such a reparation scheme have been voiced intermittently by Greek politicians over the past 60 years, but have gained renewed energy amid the recent financial crisis, in which the country has been subjected to tough austerity measures in exchange for largely German-backed loans.
The latest campaign is driven by radical Socialist opposition leader Alexis Tsipras, and is supported by 4 out of 5 Greeks, according to polls.
It remains unlikely that Germany will part with the money voluntarily.
“Instead of misleading the people in Greece [about the possibility of reparations] it would be better to show them the road to reform,” German Finance Minister Wolfgang Schäuble said when the numbers in question first surfaced several weeks ago. “The issue was settled a long time ago. Paying reparations is out of the question.”
In his speech, Avramopoulos said the “Greek people suffered, went hungry and were looted like no other country,” and few contest that alongside the Soviet Union, Poland and parts of the Balkans, Greece was the hardest-hit of the invaded countries during World War II.
Still, the legal avenues open to the Greek government seem limited.
In the aftermath of the war, Greece was awarded provisional reparations amounting to a present-day value of about $2.5 billion.
Later, the 1953 London Debt Agreement – in which around half of Germany’s external debt was written off – stipulated that Greece would demand no further reparations until the unification of Germany. When the two German republics finally reunified in 1990, Greece conceded that it had no further claims.
In 1960, Germany also compensated Greeks who suffered under the Nazis.
While anti-German protests – including some that portray Chancellor Angela Merkel as a mustachioed Nazi – have become a staple of Greek political life, and set off what the media has labeled a ‘new Cold War’ between the countries.
The demand for reparations is apparently not just about a thirst for retribution, or even necessarily a chance to retake money from Germany: as numerous historians in both countries have pointed out, the London Debt Agreement was made because Germany couldn’t pay its debts without crippling its future. Forgiving these debts set the scene for Germany’s ‘economic miracle’ in the following decade.
Similarly, Greece’s current debts are about one-and-a-half times its Gross Domestic Product. Media commentators in Athens have repeatedly pointed to the historic parallels, and say that it is now Germany’s chance to allow Greece a better future, instead of suffocating it with obligations it can never repay.
http://www.keeptalkinggreece.com/2013/04/24/pm-samaras-sees-slow-down-in-unemployment-apparently-he-is-the-only-one/
Greek prime minister Antonis Samaras is fixed on the idea to make us all believe, the debt-ridden country and its broke citizens are going forwards. During a meeting with the ministers of Finance, Development and Labour, Samaras presented amazing figures handed over to him by the Labour minister.
Hiring were exceeded the layoffs during the months of March and April and this not due to seasonal factors like the tourism. Indications show that the pace of unemployment has slowed down, ” Samaras stressed and this indication will be verified within the next frew months.
Samaras referred to a recent study carried out by ICAP at 1,085 companies whose revenues exceeded 1 million euros. The study found that one in two companies were planning or considering investing sometime this year, with more than half of the investment plans involving the hiring of new staff.
The Prime Minister further noted that some 2.9 billion euros were to be disbursed for the support of the unemployed and for training programs. According to Samaras, over700,000 Greeks could benefit from the schemes.
Citing the bank recapitalization process and new investments, Samaras noted that mood was changing in Greece, along with the country’s image.
“Society will very soon start feeling the difference, and hope, which is already gaining ground, will once again prevail,” he said. (ekathimerini)
Samaras did not elaborate the tiny “very soon”…
Nevertheless, the prime minister seems to be the only one in the country that sees ‘positive indications’.
In the outside world, over there, in the streets and the households of this country the situation looks quite different. I wrote yesterday about the four-five shops that close din my neighborhood since the beginning of April. I could roughly summarize that some 30 people lost their work – not to mention how their families have been affected. Or the businessman who had to close down what he built full of hope some years ago.
Unemployment 27.6% – Average wage 480-580 euro
If they new unemployed are lucky , that is they were employed with full contract and social security, and they can receive jobless allowance of 360 euro for several omnths only. If they are more lucky, they can benefit from the 2.9 billion euro unemployment support program and get a 4 to 6-week program where they will be training in … computers or other skills. And put 480-500 euro in their pockets. Or they could get a job one of the many in the context of the EU Funding programs: a 5-month contract for 480 euro. OK, these program are not implemented yet, but they could… soon.
If they most lucky of all, they can get a new job somewhere and start earning maximum 580 euro gross.
Of course, some of them could be wandering under an unlucky start and they won’t be able to get a new job. But maybe this grim strike hit only my neighborhood, in one of the middle class suburbs of Athens.
Yes, unemployment is slowing down, lucky Greeks are proud to claim, they had a job for 450 euro net per month. If they were not able to come along through the month with such wages, it’s not the government problem, is it?.
I think we should remind the prime minister that unemployment in January was at 27.2%, among youth at 59.3% and a total of 1,348,742 people without job. Not to mention the self-employed who are not gathered in this statistics.
To this statistics one should start adding the sacked civil servants, an action that is suppposed to start …soon.
As Samaras did not mentioned February, should we expect the jobless rates to be even higher?
PS I really do not understand, why not every Greek is cheering upon listening to the prosperous news. Really. Unless we got used to the economic crisis and cannot live without it. Or they are fed up to hear the government trying to pass a message of ‘optimism’ before large parts of the society start angrily shouting.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/04/2013_495754
Greece to seek deposit from Swiss account taxation deal
By Tasos Telloglou
The government is seeking to secure a deposit from Switzerland toward the taxes Greece will collect following the completion of negotiations over an agreement for the taxation of deposits of Greeks in Swiss banks.
Switzerland had rejected the payment of such deposits to countries other than Great Britain and Austria, with which it had reached an agreement on the taxation of their citizens’ deposits at Swiss lenders. Austria was the last country to receive such a deposit, amounting to 1 billion euros. An agreement reached with Germany was never implemented after being voted down by Germany’s upper house last December.
Bank experts said that the Greek demand for a down payment is at odds with a recent public statement by the Swiss government that no more down payments would be made in the case of any new tax agreements. However Athens will try to improve the outcome of its negotiations with Bern on the issue given they have not brought the desired results yet.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/04/2013_495751
Multi-bill to reach Parliament on Thursday
Stournaras rules out any amendment to VAT on food catering and says measure may be revised in June
By Sotiris Nikas
All the actions the government must take to allow for the disbursement of bailout tranches totaling 8.8 billion euros are included in the multi-bill that the Finance Ministry will likely table in Parliament on Thursday, so that it can be passed into law by Sunday.
If everything goes according to plan, the vote on the bill will be followed on Monday by the approval of the disbursement of the first 2.8 billion euros by the Euro Working Group of eurozone finance ministry officials. The rest will be disbursed on May 13 (4.2 billion euros by the Eurogroup) and in the second half of May by the International Monetary Fund (1.8 billion euros).
On Wednesday Finance Minister Yannis Stournaras ruled out the inclusion of a clause for a reduction in value-added tax on food catering from 23 to 13 percent, as PASOK requested on Tuesday. “That is not possible. The negotiation is over now,” Stournaras said upon exiting the prime minister’s office. He added that the measure could be reviewed in June should fiscal developments remain positive.
The multi-bill is set to include a series of significant legislative initiatives from a number of ministries that will in essence ratify the details of the latest agreement Athens has reached with its international creditors.
Among the measures included are a cut in the rate of the special property tax paid through electricity bills by 15 percent and a provision for expired debts to the tax and social security authorities to be paid in as many as 48 installments, with an annual interest rate of 8.75 percent. Taxpayers with debts of up to 5,000 euros, in particular, will be able to agree to an unlimited number of repayment installments provided that they pay at least 10 euros each month.
The bill also satisfies a fixed demand by the market for the offsetting of VAT returns with debts to the state, and the creation of a new system for the submission of VAT statements by companies.
Many so-called closed-shop professions are to be deregulated and there will be tax adjustments for photovoltaic systems in a bid to reduce the deficits in the electricity market.
Cyprus news of the day........
http://www.cyprus-mail.com/central-bank/insurers-downplay-impact-haircut/20130424
Insurers downplay impact of haircut
 Under the Central Bank's decree, insurance companies are no longer exempt from a deposit haircut at the Bank of Cyprus (BoC) and the old Laiki
INSURANCE companies yesterday sought to downplay the possible impact on policy holders as a result of the deposits haircut.
Under a decree issued by the Central Bank, insurance companies are no longer exempt from a deposit haircut at the Bank of Cyprus (BoC) and the old Laiki.
Authorities had initially excluded various entities from the write-down but were forced to rethink after it became obvious that it would increase the losses on depositors who must chip in to recapitalise stricken BoC.
Several previously exempted categories will now incur a 27.5 per cent loss on their deposits over €100,000.
These include charities licensed by the finance ministry, and private schools registered with the education ministry.
But insurance companies will be hit with a 27.5 per cent hair cut on all deposits (from the first euro) as they are bound by different legislation.
To recoup losses, the companies might be tempted to raise premiums; but industry players are understandably wary of calling it one way or the other.
“There are so many different types of policies out there, and insurance companies’ money is invested in other assets other than deposits, such as real estate and so forth,” said Stefi Drakou, head of the Insurance Association of Cyprus (IAC).
“Plus, companies keep some of their money in foreign banks. It’s hard to determine how far they will be affected... it’s not one size to fit all,” she told the Mail.
Drakou said the previous decree exempting insurance companies from the haircut was the correct one, because it contained the hit to the banks.
“Now losses may spread to the whole of the financial sector, of which we are part,” she said.
Conventional wisdom has it that life insurance policies run the most risk of being impacted, since payments are made over a long period of time and usually come out of people’s savings. Less so for general insurance (or non-life insurance policies) such as automobile and homeowner policies.
IAC data for 2011 shows that the top five life insurance companies had premiums worth a combined €315m. Laiki Cyprialife’s market penetration stood at 29.1 per cent, followed by Eurolife 27.7 per cent, Universal Life 14.0 per cent, Metlife-Alico 6.9 per cent, and Prime 6.5 per cent.
Andreas Pirishis, vice-president of Atlantic Insurance (deals with general insurance) said the company took a “very minor hit” in bank deposits but this would not in the least affect either their solvency or robustness.
Another source in the insurance industry, wishing to remain anonymous, said she did not expect companies to increase their insurance premiums: “I really don’t think this is a good time for that”.
A day earlier, Universal Life, one of the largest insurance companies, said the haircut will have little effect on its investment funds.
The losses will not exceed 0.1 per cent, the company said, adding that it will cover the cost through its own capital.
http://www.cyprus-mail.com/currency-controls/currency-controls-expected-be-lifted-within-weeks/20130424
Currency controls expected to be lifted ‘within weeks’
 Finance minister Haris Georgiades says controls will definitely be lifted within six months
CURRENCY controls are expected to be lifted within the next few weeks, definitely within the next six months, finance minister Haris Georgiades has said.
Georgiades said he anticipated the controls, imposed after a chaotic bailout last month and which led to a lockdown of the banking system for 15 days would be eased in "days or weeks".
Asked during a Reuters interview published yesterday whether measures would be eased in two, or six months, Georgiades said: "Definitely not six months. I am optimistic we shall be able to proceed much sooner."
Capital controls were imposed at the end of March to prevent a flight of funds from a banking system flush with cash from Russian and European businesses, but also from many overseas Cypriots.
Now islanders are on a cash withdrawal limit of €300 a day and have a €2,000 ceiling on what they can take abroad, while businesses cannot make transfers exceeding €20,000 overseas unless they are vetted by the central bank.
Firms have complained the restrictions are stifling, while Russia has warned it will only restructure its own loan to the island if its interests are protected.
Cyprus received a 2.5 billion euro five-year loan from Russia in late 2011. Russia had previously said it was ready to restructure the terms by extending the credit and cutting interest to 2.5 per cent from an earlier 4.5 per cent.
"I am pretty confident these necessary but temporary measures will not be needed in the next days or weeks," Georgiades said.
He also said the sale of the island’s gold reserves is not being given priority under the international bailout agreed this month and the government is still exploring all options to meet its side of the deal.
Cyprus' agreement to sell €400 million worth of gold reserves was one of several shockwaves progress towards a bailout sent through European financial markets earlier this month.
The amount is small but the precedent of a eurozone central bank being pushed to dispose of some of its reserves helped drive the biggest fall in gold prices in 30 years. Investors worry central banks in some of the eurozone's struggling larger economies could eventually be pushed to follow Cyprus' example.
But while Georgiades said the gold sale was one of several commitments to the island's international lenders, he said it was not an issue which took priority.
"We shall do whatever it takes, we shall meet all fiscal targets. I am sure we shall succeed in gathering the amounts which remain our responsibility in order to avoid any need to come back with a new (adjustment) programme," Georgiades said.
Asked whether the sale would be reconsidered if the amount elsewhere, Georgiades said: "So long as we are able to meet the financial element of our commitments I think all possibilities should be explored and they will be explored”.
http://www.cyprus-mail.com/bailout/eu-parliament-likely-back-forced-losses-wealthy-failed-bank-depositors/20130424
EU Parliament likely to back forced losses on wealthy failed bank depositors
THE European Parliament is likely to back plans to impose losses on wealthier depositors in failed banks while shielding smaller savers, its lead negotiator on the rules said yesterday.
Talks are under way to finalise EU rules on crisis-hit banks following the Cyprus bailout, in which both large and small depositors were originally going to be hit before the plan was changed to charge only the former.
The European Parliament's backing is needed for any proposals to become law.
Gunnar Hokmark, a Swedish conservative in the European Parliament, said most categories of deposits would not be protected under proposals likely to be agreed.
"There is a very clear exception for all deposits below €100,000," Hokmark, who will lead negotiations with European Union member states, told a news conference.
Bigger depositors would only suffer losses once bondholders and shareholders had been hit.
The European Parliament has an equal say alongside countries when deciding who among a bank's creditors must bear the brunt of failures such as those in Cyprus' banking sector.
Hokmark, however, pledged to protect small depositors in EU legislation. "What happened in Cyprus shall not happen again if this legislation is involved," he said.
The initial EU-Cyprus plan, which would have imposed losses on smaller, insured depositors, prompted a large backlash both from depositors and financial markets.
Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many analysts believe it marks a change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.
The European Commission has written the first draft of the law about how to share out losses when banks run into trouble, designed to prevent EU countries taking a variety of approaches to deal with struggling banks and bondholders.
It is now up to member countries and the parliament to decide whether and when savers should face losses, when a failing bank is being salvaged or shuttered.
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