Anti-austerity protests sweep across Europe

Thousands of Czech university students rally in central Prague on February 29, 2012 .

Source: Press TV
http://www.presstv.ir/detail/229280.html

Massive demonstrations across Europe have taken issue with the austerity measures adopted by the European governments against economic adversity.

The protests were held on Wednesday in the Czech Republic, France, Greece, Belgium, and Spain against government economic reforms aimed at dealing with the unprecedented debt crisis plaguing the European Union.

Trade union leaders gathered outside the European Council in Brussels, Belgium to demand an end to austerity measures.

In Spain, protests turned violent as police clashed with anti-austerity protesters in the country’s the second largest city, Barcelona. Police in riot gear beat the protesters with batons and a number of arrests were made.

Students have staged demonstrations and sit-in protests across the country to demand an end to Madrid’s austerity measures, labor market reforms, and police violence.

Thousands of Czech university students rallied in the capital Prague, slamming the country’s Education Ministry for introducing tuition fees and boosting the number of government representatives in academic bodies.

The Czech government says the reforms are necessary to boost educational standards and secure more funding.

In France, main unions gathered forces for a day of protest action against austerity measures being imposed across the European Union.

In Greece, unions staged nationwide walkouts hours after the parliament approved new spending cuts to secure a new EUR 130 billion (USD 170 billion) bailout package promised by international lenders and meant to prevent the country from going bankrupt.

The Greek and French protests are part of a day of action called by European labor organizations to pressure the leaders of the 27-member EU into adopting pro-growth measures when they gather for a summit in Brussels over Thursday and Friday.

The eurozone economy is heading into its second round of recession in just three years. The bloc’s last recession was in 2009, when its economy contracted by 4.3 percent.

The Europe plunged into financial crisis in early 2010.

Amid the debt crisis, the European Commission has predicted that the eurozone currency bloc faces double-dip recession while the wider EU economy stagnates in 2012.

S&P downgrades Greece's sovereign credit rating to selective default

Source: Press TV
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Standard & Poor's Ratings Services has downgraded Greece’s sovereign credit rating to 'selective default' in response to the country’s decision to involve the private sector in its comprehensive debt restructuring.

Greece’s move “constitutes the launch of what we consider to be a distressed debt restructuring,” the US ratings agency said on Monday.

Greece has become the first eurozone member in its 13-year history to be officially rated in default, down from its previous rating of ‘CC’.

However, S&P said that once the debt swap is concluded, it will likely raise Greece's sovereign credit rating to the 'CCC' category.

Greece has negotiated the biggest debt restructuring in history as it seeks to reduce national debt to 120 percent of gross domestic product by 2020, from 160 percent last year, and to meet the terms of a 130-billion-euro ($170 billion) international bailout.

The private sector involvement entails a “debt swap” which aims to slice 100 billion euros off more than 200 billion euros of privately held debt if all investors participate.

The Greek government said the move was expected and would not hurt the banking industry.

"This rating does not have any impact on the Greek banking system since any likely effect on liquidity has already been dealt with by the Bank of Greece," the Greek Finance Ministry said in a statement issued on Monday.

Greece has the highest debt burden in proportion to the size of its economy in the 17-nation eurozone. Despite austerity measures and the bailout funds, the country has been in recession since 2009.

German parliament approves second Greek bailout

German Chancellor Angela Merkel (C) casts her ballot during a session at the Bundestag in Berlin on February 27, 2012

Source: Press TV
http://www.presstv.ir/detail/228993.html

The German parliament has overwhelmingly approved the second bailout package for Greece to help the heavily indebted country stabilize and avert bankruptcy.

On Monday, German MPs voted 496 to 90, with five abstentions, to approve the 130-billion-euro (174.4-billion-dollar) rescue package.

Just before the vote, Chancellor Angela Merkel addressed the Bundestag, or lower house of parliament, warning the lawmakers of the consequences of not coming to Greece's aid.

"The risks of turning away from Greece now are incalculable," Merkel told the 591 MPs of the Bundestag.

"No one can assess what consequences would arise for the German economy, on Italy, Spain, the eurozone as a whole and finally for the whole world,” she added.

The parliament was certain to back the motion after two opposition parties -- the Social Democrats (SPD) and Greens -- said they would support the plan.

Despite the motion's approval, German skepticism about Greece remains.

"The Bundestag will in the foreseeable future be dealing with a third (rescue) package for Greece," said SPD member Peer Steinbrueck, a former finance minister, adding that only strong economic growth would stabilize Greece.

German Interior Minister Hans-Peter Friedrich has openly called for Greece to leave the eurozone, saying it would have a better chance to make its economy competitive if it was outside the monetary union.

According to an opinion poll released on Sunday, 62 percent of Germans opposed the new rescue package for Greece.

The poll was conducted by the Emnid institute for the newspaper Bild am Sonntag.

Fitch drops Greek rating by two notches

People pass a begging man holding a cardboard reding' I'm hungry' in central Athens on February 21, 2012

Source: Press TV
http://www.presstv.ir/detail/228015.html

Fitch credit rating agency has further downgraded Greece from ‘CCC’ to ‘C,’ after the country said it may force losses on private creditors who do not voluntarily sign up to a debt deal.

The international agency said Wednesday that Greece's rating would drop further to 'restricted default' after the bond swap plan is completed and will be re-rated again "at a level consistent with the agency's assessment of its post-default structure and credit profile."

"The exchange, if completed, would constitute a 'distressed debt exchange'," Fitch said.

The bond swap deal with private creditors will see EUR 107 billion of Greece's debt held by banks and other private holders of government bonds written off.

According to Fitch, private bondholders will see a 53.5 percent cut in the nominal value of their credits, thus some creditors may not accept the deal voluntarily, meaning that Greece would adopt the collective action clauses (CAC).

CAC allows a supermajority of bondholders to agree to a debt restructuring that is legally binding on all holders of the bond, including those who vote against it.

On Tuesday, Eurozone finance ministers agreed to provide Greece with a new EUR 130 billion loan to help the heavily indebted country stabilize its debt-to-GDP ratio and avert looming bankruptcy.

Greece had earlier in the month approved the austerity cuts demanded by the troika of the European Union, the European Central Bank and the International Monetary Fund, which was required in order to unlock the new bailout package.

The announcement of the austerity measures caused days of violent demonstrations in Athens that led to tens of people being injured, more than 100 shops being looted and a number of buildings set on fire.

Greece has the highest debt burden in proportion to the size of its economy in the 17-nation eurozone. Despite austerity cuts and the bailout funds, the country has been in recession since 2009.

Eurozone ministers agree on 2nd bailout package for Greece

Eurozone finance ministers talk while attending a Eurogroup meeting at the European Union council headquarters, Brussels, February 20, 2012

Source: Press TV
http://www.presstv.ir/detail/227785.html

Eurozone finance ministers have agreed to provide Greece with a new bailout package to help the heavily indebted country stabilize its debt-to-GDP ratio and avert looming bankruptcy.

The long-awaited package worth 130 billion euros was sealed in Brussels on Tuesday morning after more than 12 hours of intensive negotiations.

The rescue loan is meant to bring down Greece’s debt to 120.5 percent of its gross domestic product (GDP) by 2020.

Eurozone officials had on Monday expressed concerns over how Athens could manage to reduce its debt, while imposing harsher austerity measures.

The deal, however, was vital for Greece’s coalition government to pay off a 14.5-billion-euro bond redemption payment on March 20. Athens risked going bankrupt without the rescue package as it did not have the necessary funds to make the payment.

Greece had earlier in the month approved the austerity cuts demanded by the troika of the European Union, the European Central Bank and the International Monetary Fund, which was required in order to unlock the new bailout package.

The cuts include a 22-percent reduction in the minimum wage, 150,000 civil service layoffs, and a 15-percent cut in supplementary pensions.

The announcement of the austerity measures caused days of violent demonstrations in Athens that led to tens of people being injured, more than 100 shops being looted and a number of buildings being set on fire.

Greece also implemented harsh austerity measures in return for a first 110-billion-euro bailout package received in 2010. Greeks have been turning up on the streets for anti-government demonstrations on numerous occasions since the austerity cuts were first implemented in early 2011.

The country has been in recession since 2009, despite the austerity cuts and the bailout funds, which are meant to stimulate growth for its troubled economy.

Greece’s debt stood at 161.7 percent of the GDP in 2011, which is the highest debt ratio in the eurozone. Moreover, the country witnessed its economy contracting by 7.0 percent in the fourth quarter of 2011. Unemployment currently stands at 20.9 percent in the European state. The Standard & Poor's credit rating agency rates Greece at CC, which is almost comparable to a default.

EU, Chinese officials meet to discuss eurozone debt crisis

EU President Herman Van Rompuy (C) shakes hands with Chinese Premier Wen Jiabao beside EU Commission President Jose Manuel Barroso at the Great Hall of the People during their summit, Beijing, Tuesday, February 14, 2012.

Source: Press TV
http://www.presstv.ir/detail/226629.html

Senior EU officials and the Chinese Premier Wen Jiabao have held a meeting in the Chinese capital of Beijing to discuss the eurozone’s sovereign debt crisis.

“China and Europe are all round strategic partners. In the face of difficulties and challenges we ought to have mutual understanding and collaborate towards common goals,” China’s Premier Wen Jiabao said on Tuesday while addressing the conference, adding that this relationship would “bring into harmony the basic interest of both sides.”

EU President Herman Van Rompay, who also attended the meeting as one of Europe’s senior officials, called for an increased market access for European companies in China.

“The times we are living in are challenging … we became so inter-dependent that change in the growth rate in one of the two strategic partners has a direct and palpable impact on the other one. Our economic destinies are interlinked,” Van Rumpuy said.

The meeting was also attended by the president of the European Commission Jose Manuel Barraso, who said that a closer cooperation would benefit both sides.

Since early 2009, Europe has been grappling with a financial crisis which has forced a majority of the continent’s governments to adopt harsh austerity measures and tough economic reforms. The implementation of austerity cuts have often been met with violent street protests, with the latest in Greece on Sunday.

Scores have been injured in the anti-austerity demonstrations, and many people have been arrested.

Meanwhile, the Chinese foreign ministry spokesperson Liu Weimin on Monday called on “the European Union to resolve this (debt crisis) issue” as the continent is China’s largest trade partner.

Rating agency downgrades six EU economies

Source: Press TV
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Moody’s Investors Service has lowered the debt ratings of six European countries over concerns with the eurozone’s ongoing debt crisis and also changed its outlook on Britain and France's ratings to “negative.”

The ratings agency on Monday cut the credit ratings of Italy, Spain, Portugal, Slovenia, Slovakia, and Malta.

Moody's also warned its top ratings on three other countries -- Austria, France and the UK -- could be at risk.

"The uncertainty over the euro area's prospects for institutional reform of its fiscal and economic framework" was one of the factors in the decision, Moody's said.

Spain was downgraded to A3 from A1 with a negative outlook. Italy was also downgraded a notch to A3 with a negative outlook and Portugal was downgraded to Ba3 from Ba2 with a negative outlook, Moody’s said.

The company said Malta, Slovenia and Slovakia also received one-notch downgrades and still have negative outlooks.

Monday's credit downgrades follow similar European rating cuts by Fitch and Standard & Poor's.

S&P lowers rating of 15 Spanish banks

Source: Press TV
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Standard & Poor's (S&P) has downgraded the credit ratings of 15 Spanish banks, one month after reducing the Spanish government’s overall rating.

S&P announced on Monday that it had lowered its credit ratings on 10 Spanish banks by one notch and cut its ratings of another five by two notches.

"We expect the Spanish banking system's profitability to remain below its historical average over the medium term as banks continue to operate in an unfavorable economic and financial environment," the ratings agency said in a statement.

Spain's biggest bank, Santander, was lowered to A+ from AA-, while BBVA, the country’s second-largest bank, was reduced to A from A+.

S&P reduced its rating on Spain’s long-term debt to A from AA- on January 13.

Earlier on Monday, Fitch Ratings also cut the credit rating of Santander and BBVA and two other large Spanish banks, Bankia and Caixabank.

Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking with it millions of jobs.

Analysts say Spain's economy is expected to enter into a new recession in the first two quarters of 2012.

The worsening eurozone debt crisis has raised Spain's financing costs and created fears that the European country might have to seek an EU bailout like Greece.

Eurozone states must go back to national currencies: analyst

Source: Press TV
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European states “dump the euro system” and go back to sovereign national currency to resolve the financial crisis that has for months engulfed the eurozone, a prominent analyst tells Press TV.

“The only way out is to, for these countries to dump the euro, go back to their national currency as they had before and then adopt a two-tier credit system of productive credit for real production and a Glass Steagall standard as it was in the United States,” Edward Spannaus, editor of the Executive Intelligence Review said in an exclusive interview with Press TV on Saturday.

His remarks coincide with violent clashes and demonstrations in Greece where thousands of people have taken to the streets of Athens to protest against further austerity measures in return for a new EU bailout package for the debt-stricken country.

Hundreds of thousands of people in Portugal have also staged demonstrations in the capital city of Lisbon against the government's economic policies.

Commenting on daily protests against deep spending cuts and austerity measures across Europe, Spannaus reiterated that the “people will be destroyed” if their governments accept austerity measures.

“The bailouts are not for the countries. They are not for the people. They are for the banks, so if they continue on this course these countries and their population will be destroyed,” he added.

This is while the EU and the International Monetary Fund (IMF) say adopting austerity measures is essential to save eurozone countries from a debt default.

In order to qualify for the new bailout, eurozone finance ministers say Greece must pass the new package in parliament, and impose additional spending cuts of 325 million euros this year.

Austerity cuts have been the cause of several anti-government demonstrations in Greece since early 2011. Many of the rallies have at times turned violent, leaving scores of protesters injured.

The Greek public debt currently stands at around EUR 350 billion, more than 160 percent of its gross domestic product.

Despite the austerity cuts and the bailout funds, which have been aimed at stimulating growth for the troubled economy of Greece, the country has been in recession since 2009.

Greek parliament is to vote on new austerity measures

Riot police deploys during a 48-hour general strike in front of the Parliament in Athens on February 10, 2012.

Source: Press TV
http://www.presstv.ir/detail/226293.html

The Greek parliament is set to decide in a matter of hours whether to impose another round of austerity measures on the nation in efforts to win a new EU bailout package.

The Greek Prime Minister Lucas Papademos Cabinet approved the draft bill early on Saturday despite massive public protests and resistance by some cabinet members.

Papademos promised “to do everything necessary” to ensure parliament passes the new controversial austerity measures on Sunday.

"The Greek parliament is asked to take a historic responsibility, examine and authorize the new economic program of Greece, the pre-condition for financing the country over the coming years," he said.

The Greek premier warned of "economic and social catastrophe" if the Parliament does not pass the austerity measures.

The two parties in the ruling coalition, the conservatives and the socialists of PASOK back the measures, but two socialist junior ministers and four members of the far-right LAOS Party quit the cabinet in protest.

Following the resignation of the ministers, Papademos vowed to replace any cabinet ministers that oppose his policies.

Police scuffled with thousands of demonstrators that showed up at Syntagma Square in Athens on Saturday to protest the unpopular austerity measures demanded by the eurozone and International Monetary Fund (IMF) in return for a second bailout package worth 130 billion euros to help the country avoid bankruptcy.

Austerity cuts have been the cause of several anti-government demonstrations in Greece since early 2011. Many of the rallies have at times turned violent, leaving scores of protesters injured.

The Greek public debt currently stands at around EUR 350 billion, more than 160 percent of its gross domestic product.

Despite the austerity cuts and the bailout funds, which have been aimed at stimulating growth for the troubled Greek economy, the country has been in recession since 2009.

Clashes in Athens, PM warns of default

Greek protesters shout slogans during a demonstration in Athens on February 9, 2012

Source: Press TV
http://www.presstv.ir/detail/226043.html

Clashes between riot police and anti-austerity protesters have broken out in front of the Greek parliament as the country’s prime minister warned of “uncontrolled chaos” if Athens did not accept a new bailout.

Shortly after Friday night’s clashes, the Greek cabinet unanimously approved a EU-IMF debt deal in the early hours of Saturday morning.

“A disorderly default would plunge our country into a disastrous adventure,” Greek Prime Minister Lucas Papademos said on Friday, shortly after six members of the government announced their resignation in protest against further austerity cuts as demanded by the troika of the European Union, the European Central Bank, and the International Monetary fund.

“At this time there comes a need to do whatever is required in order for the new economic program to be approved and for the new bailout agreement to proceed. Any other development would be catastrophic,” Papademos said, adding that “whoever disagrees and does not vote for the new program cannot remain in the government.”

In the clashes in front of the parliament building in central Athens, police officers in riot gear fired tear gas at protesters, who responded with petrol bombs, bottles, and stones.

Three protesters were arrested and ten people were injured.

Amongst the cuts demanded by the troika, which sparked the recent unrest, are a 20-percent reduction in the minimum wage, 150,000 civil service redundancies, and a 15-percent cut in supplementary pensions.

The country implemented harsh austerity measures in return for the first bailout, a 110-billion-euro package it received in 2010.

Despite the austerity cuts and the bailout funds, which are meant to stimulate growth for the troubled Greek economy, the country has been in recession since 2009.

Greeks have come out onto the streets for anti-government demonstrations on numerous occasions since the austerity cuts began in early 2011. Many of the demos turned violent, leaving scores of protesters injured.

Greece bailout talks impasse continues

Greek Finance Minister Evangelos Venizelos speaks to reporters in Athens after a telephone conference with eurozone ministers on February 4, 2012.

Source: Press TV
http://www.presstv.ir/detail/224900.html

Greece has once again failed to reach an agreement with its creditors on major sticking points to receive a multi-billion-dollar bailout package.

On Saturday, Greek Finance Minister Evangelos Venizelos announced that the country's negotiations with the European Union, the European Central Bank, and the International Monetary Fund (IMF) were still at an impasse.

Venizelos said the negotiations with the EU and the IMF were "on a knife edge" but insisted that a deal had to be sealed by Sunday night.

Earlier on Saturday, Venizelos stated that debt inspectors' demands for additional austerity measures were preventing a breakthrough in the talks.

Greece has to make a bond repayment of 14.4 billion euros (about $19 billion) by March 20. Athens cannot afford to make the payment, and the country will go bankrupt without more financial assistance.

Athens is under pressure to cover part of its debt as a precondition for it to receive a new aid package from EU member states and the IMF worth 130 billion euros (about $171 billion).

Meanwhile, the chief executive officer of Germany's biggest lender, Deutsche Bank, said he plans to visit Athens and observed that Europe faced a "make or break" moment on Greece.

On Saturday, Josef Ackermann stated that private investors had been "extremely generous" to Greece by offering "a loss of over 70 percent" on their bond portfolios.

"I can only ask other constituencies to do the same," he added, referring to governments and EU institutions, such as the European Central Bank, that also hold billions of euros in Greek debt.

Ackermann expressed optimism that Europe was emerging from the economic crisis but insisted that the Greek problem must be fixed.

"If we see Greece collapsing, I think we are opening a Pandora's box," he noted.

Greece strives to avoid messy default

Greek Finance Minister Evangelos Venizelos (L) and Greek Prime Minister Lucas Papademos arrive for a joint press conference following a European Union summit at the EU headquarters on January 30, 2012 in Brussels.

Source: Press TV
http://www.presstv.ir/detail/224391.html

The Greek government is frantically looking for the support of all its political leaders in order to implement more stringent austerity measures needed to avoid a disastrous default.

On Wednesday, the government spokesman said Prime Minister Lucas Papademos would meet the conservative, socialist and far-right leaders in a few days to ask them to back his government so it can clinch a deal with international creditors.

"The meeting of the political leaders is crucial," Pantelis Kapsis stated.

The International Monetary Fund (IMF) has warned that the austerity measures are necessary to secure the new bailout package that Athens needs to escape the default.

Later in the day, Athens and IMF officials said negotiations for landmark debt deals would be concluded within days.

Greece is in talks with private creditors to have them take losses on their bondholdings and with its international bailout rescuers to secure new loans.

A deal with private sector creditors to cut Greece's debts by 100 billion euros has almost been concluded, and the government is now racing to complete talks on the 130-billion-euro ($170.18 billion) bailout by the end of the week.

To achieve the bailout package, Athens must first convince the European Union and the IMF that the government will implement long-delayed reforms and make further spending cuts.

Greece's current debts stand at 340 billion euros ($440 billion) -- a sum, which equals around 31,000-euro debt per person in the country of 11 million people. The country has the highest debt burden in proportion to the size of its economy in the entire 17-nation eurozone.

Investors fear a default could mess with the international financial equation and send the global economy into recession.

Fitch downgrades five EU economies

Source: Press TV
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Fitch rating agency has downgraded the debt ratings of five eurozone states including Spain and Italy, pointing to the growing vulnerability of their economies.

On Friday, Fitch downgraded the economies of Italy, Spain, Belgium, Slovenia and Cyprus, while cutting its outlook on Ireland.

According to the agency, “near-term economic outlook highlight(s) the greater vulnerability to monetary as well as financing shocks faced by these sovereign governments."

Fitch cited that Italy faced “too-low” growth in comparison with its debt, while Spain faces "a significantly worsened fiscal and economic outlook." Italy, Spain, and Slovenia were cut by two notches.

Earlier, the European Central Bank released eurozone data suggesting that loans to the private sector fell by 1.0 percent in December in comparison with the 1.7 percent in the previous month.

Meanwhile, Spain's unemployment rate has soared to 22.85 percent-- the highest in 17 years as more than half of the country's youths remain without jobs.

There are fears that more delays in resolving the eurozone debt crisis, which began in Greece in late 2009 and infected Italy, Spain and France last year, could push not only Europe but also much of the rest of the developed world back into recession.

Merkel opposes increasing rescue fund

German Chancellor Angela Merkel gestures during the opening session of the World Economic Forum annual meeting in Davos, Switzerland on January 25, 2012.

Source: Press TV
http://www.presstv.ir/detail/223108.html

German Chancellor Angela Merkel has refused to increase the eurozone's rescue fund, stressing that the key to reassure European markets is to restore lost confidence in the EU governments' policies.

Merkel told the World Economic Forum in Davos, Switzerland on Wednesday that a 'big rethink' was required for the 17-nation zone to act well within the global economy.

The comments come as the International Monetary Fund (IMF) Managing Director, Christine Lagarde has called for the eurozone financial firewall to be reinforced by combining the European Financial Stability Fund and the European Stability Mechanism.

The IMF wants the sum available for eurozone bailouts to grow beyond EUR 500 billion (USD 647 billion).

"Now they say... 'it should be twice as big'," Merkel said.

“'If it were twice as big, we'd believe you'. Some say 'it should even be three times as big, then we'd really believe you.' And I always ask myself how long is that credible and when is that no longer credible,” the German chancellor added.

In its recently published report, 'World economic outlook,' the IMF said it was expecting a recession for the euro countries as they were struggling to overcome their debt crisis.

There are fears that more delays in resolving the eurozone debt crisis, which began in Greece in late 2009 and infected Italy, Spain, and France last year, could push not only Europe, but also much of the rest of the developed world back into recession.

Alex Salmond reveals referendum question

Source: Press TV
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Scotland's First Minister has addressed the Scottish parliament on independence from the United Kingdom, stressing he will give people a "straightforward" and "clear" choice in the referendum.

Alex Salmond launched the Scottish National Party (SNP) government's consultation on the vote with a statement at Holyrood, declaring the referendum on the country's independence was "the most important decision by the people of Scotland in 300 years.”

Stating that the vote will be held in autumn 2014, Salmond said the question was “Do you agree that Scotland should be an independent country?"

He told the MSPs that the vote should “meet the highest standards of fairness, transparency and propriety.” The SNP leader also said that the government would appoint the Electoral Commission to regulate the referendum.

Salmond also said eligibility to vote would be determined by residency, adding, "The people who live and work in Scotland are best placed to decide its future."

Yet he set out plans to extend the franchise to 16 year olds. Saying, "It is right that our young people should have the chance to play their part in decisions about their community and their country."

"If a 16-year-old in Scotland can register to join the Army, get married and pay taxes, surely he or she should be able to have a say in this country's constitutional future?”

First Minister also announced that independent Scotland would have the Queen as head of state, but would do away with the nuclear weapons and would not be forced to deploy soldiers abroad.

Discussing Scotlnad's right to have a seat at Europe's top table, Salmond said that there were only 50 independent states at the time United Nations was formed. “Today, that figure has risen to almost 200. Of the 10 countries that joined the European Union in 2004, a majority had become independent since 1990, and Scotland is bigger than six of them.”

UK Prime Minister David Cameron and leaders of main parties in Westminster, who fear staging the vote would secure the split of the UK, called on the SNP government to conduct a vote sooner rather than later.

However, Salmon argued that 2014 was the soonest that the vote “could be held in a way that meets the high standards which the people of this country have a right to expect.”

Greece, creditors fail to broker deal

Greek Prime Minister Lucas Papademos (file photo)

Source: Press TV
http://www.presstv.ir/detail/222269.html

Greece and private bond holders have failed to reach an agreement over a deal that prevents the country from defaulting but lose investors up to 70 percent of the loans they have given to Athens.

Greece's Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos met with representatives from banks and financial institutions on Friday, but failed to reach an agreement necessary for the country to avoid bankruptcy.

Athens seeks to strike a deal to cut around 100 billion euros from its debt, which would put the affiliated bankers at a 50 percent loss.

The agreement includes swapping voluntary bond redemptions, equaling EUR 14.5 billion (USD 18.5 billion), which are due in late March.

The deal is needed for the country to unlock a bailout package worth approximately 130 billion euros.

Talks have been planned to resume for a fourth day on Saturday.

Greece's debt stands at EUR 340 billion (USD 440 billion), a sum, which equals around EUR 31,000 debt per person in the country of 11 million people.

The country has the highest debt burden in proportion to the size of its economy in the entire 17-nation eurozone.

Greece, creditors talk to avoid default

Greek Prime Minister Lucas Papademos (file photo). The premier joined the Wednesday talks with the international creditors in an attempt to avoid a default by the country.

Source: Press TV
http://www.presstv.ir/detail/221822.html

Greece and its international creditors have started a new round of talks to avoid a default by the country, with both sides under increasing pressure to work out their differences.

The two sides said little on Wednesday after an over-two-hour-long meeting except that they would meet again on Thursday. Greece has to strike a deal within days to avoid defaulting on the debt when bond redemptions, equaling EUR 14.5 billion (USD 18.5 billion), are due in late March.

Greece's debt stands at EUR 340 billion (USD 440 billion) -- a sum, which equals around EUR 31,000 debt per person in the country of 11 million people. The country has the highest debt burden in proportion to the size of its economy in the entire 17-nation eurozone.

Investors fear a default could mess with the international financial equation and send the global economy into recession.

Greek officials and international bankers have expressed optimism that a deal could be reached in the coming days, despite the fact that talks broke down last week over the issue of the interest rate Greece will offer on new bonds and a plan to enforce investor losses.

An agreement with banks and other institutional investors would open the door to a funding deal from the International Monetary Fund and European lenders and help stabilize the markets within the eurozone.

"They are working hard to breach differences and they will continue tomorrow," said a source close to the talks.

Greece's Prime Minister Lucas Papademos, the country's Finance Minister Evangelos Venizelos, and Charles Dallara, the head of Washington's International Institute of Finance, who is also representing private money lenders at the talks, discussed both the issues.

Sarkozy target of thousands-strong rally

Source: Press TV
http://www.presstv.ir/detail/221828.html

Thousands of people have participated in a rally in Paris, attacking French President Nicolas Sarkozy's plans for dealing with the country's unemployment crisis, Press TV reports.

As France gauges the international fallout from losing its triple-A credit rating, Sarkozy has called for the formation of an emergency jobs council to try and boost his dipping popularity at home ahead of presidential elections, which are to be held in two rounds in April and May.

After a four-hour-long meeting at the Elysée Palace with labor and business leaders, the president on Wednesday announced an EUR 430 million (USD 550 million) plan to reduce unemployment and restart economic growth.

On Wednesday, the protesters took to the streets of the capital to voice discontent over the measures included in the plan.

activists have blamed Sarkozy's failed economic leadership for the official unemployment rate, which stands at over 10 percent, the unofficial figure amounting to over 17 percent, and the recent downgrading of France's credit rating by the New York-headquartered credit rating agency, the Standard & Poor's.

The downgrade comes, despite Sarkozy's having used to present himself as the person capable of steering the eurozone's second-largest economy out of crisis.

After the meeting, Sarkozy also said that he would introduce his employment plans before the end of January.

The president stated that he would shift part of the burden of social welfare from companies onto consumers and convince workers to agree to payment cuts in exchange for job security.

S&P's lowers EU bailout fund rating

Credit ratings agency Standard & Poor's headquarters in New York, the United States

Source: Press TV
http://www.presstv.ir/detail/221503.html

Credit ratings agency Standard & Poor's has demoted the rating of the eurozone bailout fund as the European debt crisis continues to burgeon.

The credit rating of the Financial Stability Facility (EFSF), the eurozone's rescue package, was lowered to AA+ from AAA on Monday.

The move comes as many eurozone countries have lost their credit worthiness due to their economic downturn.

France and Austria, the latest countries to be examined by the agency, saw their ratings drop from AAA to AA+ on Friday.

In December, the S&P's sounded the 'credit watch negative' alarm regarding the ratings for 15 eurozone countries including France and Germany.

Both the president of France as well as the CEO of the EFSF on Monday dismissed any potential fears caused by the S&P's move.

"We have to react to this with calm, by taking a step back," French President Nicolas Sarkozy said, adding, "At the core, my conviction is that it (the downgrade) changes nothing."

Klaus Regling, the eurozone bailout fund CEO, said that there were no needs to “get overly excited” over the news as the rescue package was only lowered by one notch.

The worsening debt crisis, however, has forced the European governments to adopt harsh austerity measures and tough economic adjustment policies.

There are fears that more delays in resolving the eurozone debt crisis could push not only Europe, but also much of the rest of the Western world back into recession.