This week, the EU will decide if Greece should be allowed to receive the latest tranche of 31.5 billion euros in bailout funds. Delay and disagreement amongst international creditors over how to make Greece’s debt more sustainable has raised fresh doubts over Athens’ long-term fiscal health.
Monday, November 19
Trade unions have coordinated a series of general strikes across Spain and Portugal, as well as 20 other countries, with thousands taking to the streets in protest against austerity measures which are destroying public services and jobs.
Organised by the European Trade Union Confederation, the so-called European Day of Action and Solidarity calls on leaders to address growing social anxiety and abandon austerity measures, in favour of jobs, which have been blamed for prolonging and worsening the eurozone’s economic crisis.
Eurozone leaders have agreed to give Greece two more years to meet its deficit reduction targets. However, no decision has been made on the latest 31.5 billion euros tranche of bailout funds, a lifeline that the debt-stricken country desperately needs by Friday to avoid a default.
European Central Bank chief Mario Draghi yesterday said that the bank has exhausted all legal means when it comes to helping Greece and added that the onus of helping Greece, and the eurozone at large, is now “entirely in the hands of governments.”
Speaking at his monthly news conference, Draghi said the ECB is unlikely to assist Greece any further, putting the onus on eurozone governments to find the money needed to give Athens a little more breathing space.
German Chancellor Angela Merkel has urged the UK not to turn its back on the European Union and insisted that she wanted to see a strong Britain remain part of the Union.
Merkel’s comments came amid a growing dispute over the controversial EU budget, with British Prime Minister David Cameron describing plans to expand the EU budget by €100 billion ($128 billion) as “completely ludicrous.”
Former French Prime Minister Francois Fillon has warned President Francois Hollande to rein in his “clumsy” attacks on German Chancellor Angela Merkel, adding that the economic policy divergence between both countries is now so wide that it risks damaging the previously close relationship forged by Sarkozy and Merkel.
Germany’s finance minister has dismissed a report that the troika could be considering a Greek debt haircut aimed at reducing the country’s massive debt load, arguing that it would not be economically viable nor legally plausible.
Greece’s finance minister said on Wednesday that debt-stricken Athens has been given more time to meet its bailout targets. However, officials from the ECB and IMF have refuted the claims, saying a decision will only be made after the troika releases it assessment report on the Greek economy.
Addressing the Greek Parliament on Wednesday, finance minister Yannis Stournaras said Greece’s European partners have agreed to give Athens additional time to carry out its austerity programme.
Stournaras told parliament:
The European Commission yesterday backed plans by 11 European Union economies to impose a “Robin Hood” financial transaction tax, better known as a Tobin tax, to help raise funds to tackle the region’s growing debt crisis.
The European commission gave the greenlight for a eurozone “coalition of the willing” to go ahead with a financial transaction tax (FTT), likely to be levied at 0.1 percent on shares and bonds, and at 0.01 percent on derivatives.
German Chancellor Angela Merkel said on Friday that a single banking supervisory body will be set up in the course of next year, opening the way for the eurozone’s rescue fund to inject capital directly into the region’s ailing banks.
The announcement effective ends the political deadlock that had threatened to slowdown the European Union’s push for closer economic integration.
