In the biggest non-news of the day, Germany's Finance Minister Wolfy Schaeuble finally admitted, officially for the first time, what everyone knows: Greece will need a third bailout. His exact words, as cited by
Reuters,
"There will have to be another programme in Greece," Wolfgang Schaeuble told a campaign audience in northern Germany, in comments that raised prospect of a step that could be deeply unpopular domestically just five weeks before national elections.
Which poses the question: why admit this before the German election in a few weeks: if anything this hurts Merkel's reelection chances. And not even a Greek source chiming in and promising that the third bailout will be smaller than previous ones, will do much to assuage Germany fury that Greece has become the infinite money hole (that everyone with half a brain predicted it would in May 2010) and that over three years after the first bailout, and the unofficial bankruptcy which saw bondholders getting pennies on the dollar, the country is still not "fixed." If anything this may change the election dynamic and outcome substantially.
In Frankfurt, the European Central Bank said Executive Board member Joerg Asmussen would visit Greece on Wednesday to discuss progress on reforms needed to ensure more bailout money.
Schaeuble's comments go beyond any utterances from Chancellor Angela Merkel, tipped to win a third term in the Sept. 22 election, who has taken a more cautious line on Greece to avoid angering voters who fear they will have to foot the bill for Athens.
Schaeuble has said in the past that international lenders may have to consider a new aid programme for Greece after the existing one runs out at the end of 2014, but he has never described this as inevitable, as he appeared to do on Tuesday.
So, a European bureaucrat... lied? At least the EURUSD is up on the news.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_20/08/2013_514686
Reforms 'on track,' ministers say as PM to focus on repossessions
Prime Minister Antonis Samaras and a team of key ministers met at the Maximos Mansion on Tuesday for talks that focused on the implementation of Greece's pending commitments to its international creditors.
Emerging from the meeting, ministers told reporters that the government was on track to make good on its pledges but avoided giving details.
"The deadlines will be met properly and nothing has changed," Administrative Reform Minister Kyriakos Mitsotakis said. He said in-depth talks would be held on the progress of an overhaul of the civil service later this week.
Health Minister Adonis Georgiadis struck a similar tone, telling reporters that "we will be meet all our deadlines."
Finance Minister Yannis Stournaras said the ministers discussed how they would "coordinate" to meet targets ahead of the scheduled return of the troika at the end of next month and said he was optimistic about commitments being met.
Asked whether Greece would seek debt relief in talks with the troika, Stournaras said such a demand would be based on Greece posting a primary surplus for 2013 and that would only be clear at the end of the year.
As for a possible government initiative to lift a moratorium on home repossessions and auctions, Stournaras said it was not discussed during the meeting.
Earlier Samaras reportedly said that the repossessions issue was "a significant one " that he planned to "look at personally." |
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http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_20/08/2013_514674
Top ECB official Asmussen due in Greece on Wednesday
European Central Bank Executive Board member Joerg Asmussen will visit Greece on Wednesday to discuss progress on reforms, the ECB said, as talk swirls the country may need more support to meet budget targets.
Greece unlocked 5.8 billion euros ($7.75 billion) of bailout funds from its international lenders - the euro area, its national central banks and the International Monetary Fund - in July and stands to receive another 1 billion euros in October, subject to implementation of further reforms.
The troika of international lenders will return in Athens in the autumn to find out whether the government needs to find further savings to meet its 2015-2016 budget targets.
"In the run-up to the next troika review mission, ECB Executive Board member Joerg Asmussen will visit Athens for bilateral meetings with Greek policy makers and representatives of society and the business community to discuss the Greek adjustment program and wider euro area developments,» the ECB said in an emailed statement on Tuesday.
[Reuters] |
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Submitted by Tyler Durden on 08/20/2013 08:33 -0400
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