No end in sight for Canada student protests as tuition talks collapse

Students protesting tuition fee increases on May 30, 2012 in Montreal

Source: Press TV
http://www.presstv.ir/detail/2012/06/01/244072/talks-to-end-quebec-protests-collapsed/

Canada’s eastern province of Quebec is bracing for more mass demonstrations as talks between students and the provincial authorities aimed at ending months of anti-tuition hikes protests were deadlocked.

Four days of talks over the proposed tuition fee rises reached an impasse on Thursday after Premier Jean Charest’s government walked away from the negotiating table and refused to change its plan to increase university fees.

The talks were considered as the provincial government’s last chance for an immediate resolution to end the mass demonstrations that has swept across the country for about four months.

Student unions have asked for a tuition freeze but the government has ruled it out and passed an anti-protest law to limit student demonstrations across the province.

Student union leaders believed that the government had no intention to compromise with students to end the conflict, and that Minister of Education Michelle Courchesne only used the students as pawns in a political game.

“The Minister of Education said that for political reasons she could not accept a freeze on tuition fees,” spokesman for the student group CLASSE, Gabriel Nadeau-Dubois, said.

“The government is using the youth to make political gains. They only wanted to sit us down for a public relations move, for a political move, not to negotiate,” said Martine Desjardins, president of the Quebec federation of university students.

The student groups then called on students to pour into the streets of Montreal again on Saturday to voice their opposition to the government’s plans.

Over 2,500 people have been arrested since student protests began in February at over a dozen colleges and universities in Quebec.

The protests against tuition hikes spread throughout the country.

Thousands of people marched in Toronto On Wednesday in solidarity with protesters in Quebec.

Meanwhile, Amnesty International called on Quebec authorities to rescind the emergency law, which outlines strict regulations for demonstrations and conditions of heavy fines for students and their federations.

Two United Nations special reporters also voiced concerns on Wednesday, urging “federal and provincial governments of Canada and Quebec to fully respect the rights to freedom of peaceful assembly, expression and association of students affected by two new legislations.”

Quebec adopts emergency law to end student protests

Students march through the streets of Montreal protesting against tuition fee hikes on May 17, 2012.

Source: Press TV
http://www.presstv.ir/detail/2012/05/19/241948/quebec-emergency-law-student-protests/

Quebec's provincial government has voted in favor of an emergency law aimed at ending the 14-week rallies and protests against tuition fee hikes.

Following a 21-hour debate overnight Thursday, the National Assembly members approved the legislation, voting 68-48.

The controversial emergency legislation outlined strict regulations governing protests and includes conditions for heavy fines for students and their federations.

Under the new legislation, any individual who prevents students from entering an educational institution or disrupt classes will be fined between CAD 1,000 and CAD 5,000.

The punishments will rise to between CAD 7,000 and CAD 35,000 for a student leader and to between CAD 25,000 and CAD 125,000 for student federations or unions.

The law also forces regulations to govern student protests, requiring protesters to inform police of their demonstration plans including eight hours notice for details such as the itinerary, the duration and the exact time of the action.

Critics, however, considered the law as an affront to individual’s rights to freedom of expression, association and conscience, and believed that the legislature of the French speaking province has showed ill-considered improvisation in dealing with student strike actions.

Lucie Lemonde, a law professor who teaches at University of Quebec in Montreal, even compared the law with the notorious War Measures Act imposed in Quebec during the 1970 FLQ crisis.

"It's the worst law that I've ever seen, except for the War Measures Act. We knew something was coming, but I didn't think they would use it to change the rules of the game in terms of the rights to demonstrate,” he said.

Thousands of people descended to the streets in Montreal and Quebec City late Friday night to voice their opposition to the controversial law.

Quebec students have been holding almost daily demonstrations over the past weeks in an attempt to voice their outrage at the proposed tuition fee rises.

Under the provisional agreement, university fees would increase CAD 1,780 over seven years, or about CAD 254 a year, bringing the total to CAD 4,000 per year. The plan is scheduled to be effective from 2012-13 until 2016-2017 academic years.

MARTIAL LAW MONTREAL: Quebec Emergency Law an Attack on Freedom of Assembly and Expression

Bill called "draconian" and an assault on fundamental freedoms

On March 22nd, over 250,000 people marched in Montreal against the tuition fee increase. Another similar mass demonstration is planned for May 22

By: Tim McSorley

Source: Global Research
http://www.globalresearch.ca/index.php?context=va&aid=30915

The Quebec government has introduced legislation which they say is necessary in order to restore social order during the ongoing student strike, but which critics are denouncing as threatening the right to protest in Quebec.

“This bill, if adopted, is a breach to the fundamental, constitutional rights of the citizens,” said Louis Masson, president of the Quebec Bar Association. The Quebec Bar Association is just one of the organizations that have spoken out since the law was introduced to parliament last night.

The debate began around 9pm Thursday and is ongoing.

Among other things, the law will require all organizers of a demonstration of 10 people or more to submit their itinerary, including route, date, time and duration, to police eight hours in advance, and to refrain from demonstrating within 50 meters of any teaching establishment.

This morning, in a press conference, student leaders and unions also spoke out against the law.

"If we are no longer able to protest in our society, it becomes a totalitarian society," said Louis Roy, head of the Confédération des Syndicats Nationaux (CSN), which represents most university and college teachers in the province. "We are telling our members to defend their fundamental right, the right to demonstrate," he added

One of the spokespeople for the organization representing the majority of the 155,000 students on strike said they may participate in civil disobedience to challenge the law. "[We] are not excluding the possibility of disobeying this special law," said Gabriel Nadeau-Dubois, co-spokesperson with the Enlarged Coalition of the Association for a Solidarity Among Student Unions (CLASSE).

As of 12:15, a petition calling for the law to be stopped had 23,000 signatures. The organizers of the petition, online at http://loi78.com/ are trying to reach 100,000 signatures by 4pm today.

The proposed law, known as "Bill 78: A Law Allowing Students to Receive the Education Provided by the School Which They Attend," contains 36 articles. Several of these articles are raising concerns, including:

•Any demonstration including 10 or more people would need to submit its route, location, time, date and duration to police at least eight hours in advance for approval. Police would be allowed to order modifications to the protest.

•Protest organizers, as well as any student association or federation of associations that participate in a demonstration, are accountable for the actions of all participants in the demonstration, under threat of fine.

•All protests that may hinder access to classes, whether directly or indirectly, are not allowed within 50 meters of the grounds of any teaching establishment. All protests within schools that hinder access to classes, stops the resumption or continuation of classes are also banned.

Read the entirety of the proposed legislation here.
http://www.scribd.com/doc/94026910/Quebec-Bill-78

These rules apply to both any action or omission which may lead to classes being disrupted.

The law would also require teachers to report any disruptive actions, which has already led union leaders to denounce that their members would be transformed into a pseudo-police force.

Should any student association be reported to be taking part in these kinds of activities, the government reserves to right to suspend all student union fees (at the rate of one semester's worth of fees per day that the law is broken), as well as access to campus offices. Both fees and access to offices are provided under the Quebec student union accreditation law.

The bill also stipulates that any person who, by act or omission, aids, or by encouragement, counsel, consent, authorization or order, brings, another person to break any of the provisions of this law is also held accountable and is liable to the same fines.

Fines for breaking any aspects of this law would be:

$1,000 to $5,000 for individuals

$7,000 to $35,000 for leaders, employees or representatives of any student association or employees' association, leaders or representatives of an institution, or individual who organizes a demonstration

$25,000 to $125,000 for any student association, federation of associations, employees' association or institution, or moral person, organization or coalition which organizes a demonstration

In case of recurring offenses, fines would double.

If this bill passes, which it most likely will, since the Liberal party holds a majority in parliament, it is still unclear when it will go into effect. Montrealers have held 23 straight night-time demonstrations, with the 24th scheduled for this evening. Each of the demonstrations would have broken multiple provisions of Bill 78 on several occasions.

It is also unclear how the bill will define indirect actions hindering classes. When asked whether wearing a red square in class would violate the law, Education Minister Michelle Courchesne said that that would be up to the courts to decide.

Even those who support the law, such as the Conseil du Patronat du Québec, have expressed concerns that is does not actually lead Quebec out of the tuition fee impasse. On CBC Radio Montreal today, the head of the council said that the government still has not presented a solution to actually end the student strike.

CLASSE has already been calling for a major demonstration on May 22nd, the one hundredth day of the strike. Unions expressed their support for the May 22 action and for challenging the regulations, and comments online and in the media are brimming with anger over the law. Should the government not change route and negotiate with students leaders, all signs point to a continued strike and a very large demonstration on May 22.

UK police join nationwide strike

Police officers march in London, joining the UK-wide public sector strike on 10 May

Source: Press TV
http://www.presstv.ir/detail/240614.html

More than 30,000 off-duty police officers in London have joined a massive nationwide strike staged by British public sector workers against the government’s changes to pays and pensions.

Trade unions in Britain have said over 400,000 people took part in the 24-hour UK-wide strike on Thursday 10 May. Furthermore, London’s Metropolitan Police said around 32,000 off-duty police officers joined the striking public servants marching through London.

Unions are angry with the government’s pension changes saying that public sector workers are being “robbed” as they will have to pay more and work longer for lower pensions.

“We care very deeply about the communities that we serve. We have seen what happens when we have a government that has given policing a very low priority. If you are cutting our jobs, then you are cutting the service we can deliver and the public's safety is at risk”, said Paul McKeever, chairperson of the Police Federation, the union which represents officers.

However, the British government tried to downgrade the nationwide strike as Cabinet Office Minister Francis Maude described it as “futile”. Maude also said the figure released by unions was “widely inaccurate” and only 150,000 public servants took part in the strike.

“It is now time that union leaders put the best interests of their members first by asking them to accept our generous offer”, said Maude.

Riot erupts in Montreal between police and protesters

A protestor is arrested by police after a student demonstration against tuition hikes in Montreal on April 20, 2012(Reuters / Christinne Muschi)

Source: Russia Today
http://rt.com/news/montreal-police-protesters-rally-608/

Law enforcement officers in Montreal, Quebec, Canada fired grenades and tear gas into crowds of protesters on Friday as students demonstrated against tuition hikes in a rally that turned violent.

A clash between college students protesting the continuously increasing cost of education in Canada and police erupted on the streets of the city center. Hundreds of demonstrators are reported to have rallied in downtown Montreal against tuition hikes, only to be confronted with police in riot gear during the early afternoon.

By mid-day, at least ten protesters were arrested by authorities and both demonstrators and law enforcement alike have reported to have incurred serious injuries after the students’ rally became marred by fighting on both sides.

"I wasn't doing anything violent," Nicolas Moran, 21, tells a CTV affiliate in Montreal. "A police officer hit me over the head… But I doubt the education minister will denounce violence from police," continued Moran.

The Canadian Broadcasting Corporation says police used batons, chemical irritants, tear gas and concussion grenades on the protesters. The demonstrators are reported to have met that firestorm with rocks and other projectiles. CTV reports that cars and media trucks have been damaged in the rally.

Moran is a law student at the Université du Québec à Montréal and was one of many protesters that entered the city’s

Palais des congrès on Friday where Premier Jean Charest was scheduled to deliver a speech. Moran suffered a head injury; at least one officer experienced the same.

Premier Charest was expected to lecture on his Plan Nord, a massive development program expected to cost billions of dollars over the next two decades. CTV says Charest claims the initiative will create half a million jobs, but opponents such as Moran and other students say it doesn’t represent what Quebecers really want.

Michel Chossudovsky, the head of the Center for Research on Globalization, says that the reason for the anger is not just the tuition hike but the fact that the government puts the bill for their austerity measures on young people while spending billions in favor of corporations.

“I think that the demonstrations were held at the moment the prime minister decided to launch his Plan Nord, which has advantage of 1.6 billion [Canadian] dollars, is illustrative of the fact that this handout to corporations in millions and millions of dollars is financed at the expense of the livelihood of the young people of Quebec,” Chossudovsky told RT.

Increased tuition imposed on students there have only worsened sentiments between grievous Canadians and the country’s government.

“It’s not just the tuition increase,” 18-year-old Alexis Remartini adds to The Canadian Press. “The movement has grown to include other things we don’t agree with.”

Eight students were arrested as they entered the Palais and delayed Premier Charest’s speech by 45 minutes. The Canadian Press says Charest joked after the protesters were removed from the building that they were probably just trying to get one of the jobs he claims the investment will bring.

Stateside, arrests were reported in Lower Manhattan in New York City at the same time Friday during a separate rally waged by members of America’s Occupy Wall Street movement.

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.

Eurozone states must go back to national currencies: analyst

Source: Press TV
http://www.presstv.ir/detail/226277.html

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.

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.

Italian prime minister steps down

Former Italian Prime Minister Silvio Berlusconi

Source: Press TV
http://www.presstv.ir/detail/209754.html

Italian Prime Minister Silvio Berlusconi has resigned after 17 years of domination in Italy's political scene, as thousands of people gathered in center of the capital to celebrate his departure.

Berlusconi handed his resignation to Italian President Giorgio Napolitano on Saturday night after Italy's lower house of parliament approved a package of austerity measures demanded by the European Union, Reuters reported.

Former European Commissioner Mario Monti is expected to replace Berlusconi.

Berlusconi, 75, has been under immense pressure to step down over a series of scandals as well as for mishandling the country's economy.

Berlusconi's popularity rating recently slipped to a record low of 22 percent as his government was unable to address the financial crisis that has engulfed the eurozone. He also faced legal battles over bribery, tax fraud and abuse of power.

Italy's debt is 120 percent of its gross domestic product. In August the country passed a 60-billion-euro austerity package to balance the budget by 2013.

There is growing fear among the EU leaders that Italy might be drawn into the crisis that has already claimed Greece, Ireland and Portugal.

Crisis in Italy spurs fears of euro zone break-up

A demonstrator waves a flag in front of the Colosseum during a demonstration in Rome, September 6, 2011.

Credit: REUTERS/Remo Casilli

Source: Reuters

http://www.reuters.com/article/2011/11/10/us-eurozone-idUSTRE7A831520111110

(Reuters) - Political and economic crisis in Italy spurred fears of a split in the euro zone with borrowing costs for Europe's third biggest economy near unsustainable levels and the bloc unable to afford a bailout.

The escalating crisis prompted European Commission President Jose Manuel Barroso to issue a stern warning of the dangers of splitting the zone. EU sources told Reuters French and German officials had held discussions on just such a move.

"There cannot be peace and prosperity in the North or in the West of Europe, if there is no peace and prosperity in the South or in the East," Barroso said.

German Chancellor Angela Merkel weighed in with a call to arms. She said Europe's plight was now so "unpleasant" that deep structural reforms were needed quickly, warning the rest of the world would not wait. "That will mean more Europe, not less Europe," she told a conference in Berlin.

She called for changes in EU treaties after French President Nicolas Sarkozy advocated a two-speed Europe in which euro zone countries accelerate and deepen integration while an expanding group outside the currency bloc stays more loosely connected -- a signal that some members may have to quit the euro.

"It is time for a breakthrough to a new Europe," Merkel said. "A community that says, regardless of what happens in the rest of the world, that it can never again change its ground rules, that community simply can't survive."

The European Central Bank, the only effective bulwark against market attacks, intervened to buy Italian bonds in large amounts but remained reluctant to go further and Italy's 10-year bond yields shot above 7 percent, a level widely deemed unsustainable, as investor confidence evaporated.

"Financial assistance is not in the cards," one euro zone official said, adding that the bloc was not even considering extending a precautionary credit line to Rome.

POLICY VACUUM

Italy replaced Greece at the center of the crisis as Prime Minister Silvio Berlusconi's insistence on elections instead of an interim government threatened prolonged instability.

Having lost his majority in a parliamentary vote, Berlusconi confirmed he would resign after implementing economic reforms demanded by the European Union, and said Italy must then hold an election in which he would not stand.

He opposed any form of transitional or unity government, which the opposition and many in the markets favor, and said polls were not likely until February, leaving a three-month policy vacuum in which markets could create havoc.

Italian President Giorgio Napolitano said there was no doubt about the resignation of Berlusconi once economic reforms were implemented by parliament within days.

"Therefore, within a short time either a new government will be formed ... or parliament will be dissolved to immediately begin an electoral campaign," Napolitano said.

Even with the exit of a man who came to symbolize scandal and empty promises, it will not be easy for Italy to convince markets it can cut its huge debt, liberalize the labor market, attack tax evasion and boost productivity.

Worries that the debt crisis could be infiltrating the core of the euro zone were reflected in the spread of 10-year French government bonds over their German equivalent blowing out to a euro era high around 140 basis points.

FRUSTRATION

Policymakers outside the euro area kept up pressure for more decisive action to stop the crisis spreading.

Christine Lagarde, head of the International Monetary Fund, told a financial forum in Beijing that Europe's debt crisis risked plunging the global economy into a Japan-style "lost decade."

"If we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand."

Berlusconi has reluctantly conceded that the IMF can oversee Italian reform efforts.

Euro zone finance ministers agreed on Monday on a road map for leveraging the 17-nation currency bloc's 440-billion-euro ($600 billion) rescue fund to shield larger economies like Italy and Spain from a possible Greek default.

But there are doubts about the efficacy of those complex plans, and with Italy's debt totaling around 1.9 trillion euros even a larger bailout fund could struggle to cope.

Lagarde said she was hopeful the technical details on boosting the European Financial Stability Fund (EFSF) to around 1 trillion euros would be ready by December.

Many outside Europe are calling on the ECB to take a more active role as other major central banks do in acting as lender of last resort. German opposition to that remains implacable, seeing it as a threat to the central bank's independence.

"The ECB will be drawn like everyone else by the weight of gravity (to act)," one euro zone official said.

"CORE" ZONE DISCUSSED

EU sources told Reuters German and French officials had discussed plans for a radical overhaul of the European Union that would involve establishing a more integrated and potentially smaller euro zone.

The discussions among policymakers in Paris, Berlin and Brussels raise the possibility of one or more countries leaving the zone, while the core pushes to deeper economic integration.

In a speech in Berlin, Barroso said Germany's gross domestic product could contract by 3 percent if the 17-member zone shrank and its economy would shed a million jobs.

"What is more, it would jeopardize the future prosperity of the next generation," he said.

Barroso said any push toward deeper integration should not come at the price of new divisions among EU member states.

GREEK DRAMA

In Greece, a deal on forming a national unity government collapsed as the country headed toward an economic abyss and revived early on Thursday the chances of former European Central Bank vice president Lucas Papademos heading the coalition.

Papademos made his demands for both major parties to back the bailout package, which includes austerity measures that are likely to prove highly unpopular, amid warnings that Europe is running out of patience with Greece and may cut a financial lifeline that the party leaders seem to take for granted.

On a day that was bizarre and chaotic even by Greek political standards, Prime Minister George Papandreou wished his successor well and headed off to meet the president -- only for it to emerge that there was no successor due to feuding in the political parties.

Papademos, whose candidacy had seemed doomed, insisted that both the socialist and conservative parties sign written undertakings to support Greece's 130-billion-euro bailout, as demanded by the European Union, a government source said.

The outgoing prime minister had agreed to the terms laid down by Papademos, who as Bank of Greece governor oversaw the country's adoption of the euro in 2002, the source said.

(Additional reporting by Dina Kyriakidou and Lefteris Papadimas in Athens, Emelia Sithole-Matarise, Kirsten Donovan and William James in London; Writing by Mike Peacock; Editing by Janet McBride and Andrew Roche)

Deal on Greek premier collapses, Papademos re-emerges

Greece's Prime Minister George Papandreou holds an emergency cabinet meeting at the parliament in Athens November 8, 2011.

Credit: Reuters/www.papandreou.gr/Handout

Source: Reuters
http://www.reuters.com/article/2011/11/09/us-greece-idUSL6E7M601O20111109

(Reuters) - A deal on forming a Greek national unity government collapsed as the country headed toward an economic abyss and revived early Thursday the chances of former European Central Bank vice president Lucas Papademos heading the coalition.

Prime Minister George Papandreou said he was handing over to a coalition that does not exist and then failed to install an old-style politician and personal ally as premier.

On a day that was bizarre and chaotic even by Greek political standards, Papandreou wished his successor well and headed off to meet the president -- only for it to emerge that there was no successor due to feuding in the political parties.

Papademos, whose candidacy had seemed doomed, insisted that both the socialist and conservative parties sign written undertakings to support Greece's 130 billion euro ($176 billion) bailout, as demanded by the European Union, a government source said.

The outgoing prime minister had agreed to the terms laid down by Papademos, who as Bank of Greece governor oversaw the country's adoption of the euro in 2002, the source added.

Papademos made his demands for both major parties to back the bailout package, which includes austerity measures that are likely to prove highly unpopular, amid warnings that Europe is running out of patience with Greece and may cut a financial lifeline that the party leaders seem to take for granted.

Stefanos Manos, a former finance minister, said the behavior of Papandreou and conservative leader Antonis Samaras was undermining Greece's future in the euro and risking a possible return to the national currency.

"The Europeans are sick of us. Papandreou and Samaras don't realize they will stop giving us money and we will return to the drachma," said Manos. "They are going to destroy us. These problems demand decision-making. They can't decide on anything and they are fighting like cat and dog."

Greeks and the nation's international lenders have watched in growing horror for three days as party leaders feuded over a shrinking list of credible candidates to lead the national unity coalition after Papandreou's government imploded.

Greece will run out of money next month unless the new government agrees emergency funding with the European Union and International Monetary Fund, Greece's last remaining lenders.

LAST MINUTE SNAGS

Earlier, party sources said senior members of the socialist and conservative camps had settled on the speaker of parliament, veteran socialist Filippos Petsalnikos, as the new prime minister -- barring last-minute snags.

Papandreou then gave an emotional television address, supposed to be his last to the nation as premier, saying this deal had saved country's membership of the euro zone.

"I am proud that, despite the difficulties, we avoided bankruptcy and ensured the country stayed on its feet," he said. "I want to wish the new prime minister success, I will support the new effort with all my strength.

"Today, despite our differences -- political and social differences do exist -- we have put aside our fruitless conflict and disagreement," Papandreou said.

Papandreou and Samaras then began talks with President Karolos Papoulias on the new coalition. However, before leaders of smaller parties could join them to seal the coalition, the meeting was abruptly halted.

But snags had indeed emerged, with large sections of Papandreou's PASOK party and the conservative New Democracy refusing to back Petsalnikos.

Party sources said some lawmakers saw him as a pawn of Papandreou. "We wanted a strong a man who could handle all the economic issues," a socialist lawmaker said. "This candidacy is so close to Papandreou's policies, it does not signal the change the Greek people wanted."

The president's office said a meeting of party leaders would be held at 0800 GMT Thursday, although in the current chaotic atmosphere political talks are often delayed or fail to happen at all.

One of the few things that the parties agreed was that early elections be held on February 19. However, the government sources said that Papademos had also stipulated that the coalition's life could extend beyond that date if necessary.

The next government has much to do. As well as winning parliamentary approval for the bailout, it has to pass the 2012 budget and secure the latest 8 billion euro installment of Greece's original rescue that was pulled together last year, to avoid bankruptcy when big debt repayments come due in December.

For its part, the European Union needs to put out the fire in Greece to prove to international financial markets that it can tackle another blaze in Italy, a far bigger economy also in economic and political crisis.

Some lawmakers backed a return to the earlier plan, which had appeared stalled, of recruiting Papademos to give the new government the credibility that politicians lost long ago.

"The only solution is Papademos. If he accepts by tomorrow morning we will be able to form a strong government that will pull the country out of the crisis," socialist lawmaker Spyros Vougias told Reuters.

Papandreou discussed a Papademos candidacy late Wednesday with Samaras, and urged the conservative leader to contact the former ECB policymaker, a government official said.

GREEKS WANT EUROS - IN CASH

Bank of Greece governor George Provopoulos made a rare intervention in Greek politics Wednesday.

"The uncertainty is hurting the economy and the banking system," Provopoulos told Reuters. "There must be a strong government that will work hard to ensure the country's future in the euro zone."

Greeks have pulled their savings from banks over the past week because of the deepening political crisis and fear of an exit from the euro, banking sources said. [nL6E7M94KI]

They withdrew as much as 5 billion euros -- nearly 3 percent of total deposits -- after Papandreou's shock call last week for a referendum on the euro zone bailout, said one banker, who declined to be named.

"Many people withdrew their money from banks Thursday and Friday and money couriers had a hard time supplying banks with cash to satisfy the emergency demand," said another banking source, who also requested anonymity.

Papandreou provoked uproar with the plan, due to the likelihood voters would have rejected the package, pushing Greece into bankruptcy and casting doubt on its future in the euro. Under intense pressure from home and abroad, he backed down but was forced to make way for the unity coalition.

Many wealthy Greeks moved their money into foreign banks last year as the crisis deepened. Now other people are demanding sometimes large amounts in euro banknotes, fearing that any bank savings might be converted into devalued new drachma if Greece is forced to revert to its national currency.

"We got to the point where customers ordered amounts of up to 600,000 to 700,000 euros in cash to take home -- unbelievable," the first banker said.


(Additional reporting by Harry Papachristou, Lefteris Papdimas, George Georgiopoulos; and Angeliki Koutantou; Writing by David Stamp; Editing by Jon Hemming)

Greek PM wins vote of confidence

Greek Prime Minister George Papandreou

Source: Press TV
http://www.presstv.ir/detail/208440.html

Greek Prime Minister George Papandreou has won a vote of confidence after he promised to hold power-sharing talks.

On Friday, before the vote of confidence, Papandreou gave an address to parliament for more than half an hour, saying that “immediate elections will be catastrophic,” but he would be prepared to negotiate a power-sharing settlement, the state-run BBC reported.

Papandreou said the economic bailout deal for Greece currently on offer by the European Union had to be accepted, and it would be “historically irresponsible” to lose it, though he is “past caring about his power and post.”

“I have been in contact with the (Greek) president and I will visit him tomorrow (Saturday) to inform him of my intentions and that I am moving forward with all the parties for a broader coalition government, and to agree on common goals, a timeframe and people, to agree on its composition and even the head of this coalition,” he stated.

“I therefore ask for a vote of confidence in order to ensure the security of this nation.”

Papandreou shocked his European Union partners last week when he called for a referendum on an EU deal to bail out debt-ridden Greece, but the finance minister confirmed on Friday that a referendum was not going to be held.

World markets were thrown into turmoil after the Greek prime minister's proposal for a referendum.

Germany had said that “a referendum would essentially be a vote on whether Greece wanted to be part of the EU” and that “the stability of the eurozone was more important than Greek membership.”

Eurozone leaders are worried that failure to solve the Greek debt crisis would raise the risk of serious financial instability spreading to other vulnerable economies, particularly Italy.

Since last year, the EU and the International Monetary Fund have provided Greece with two rescue packages worth over $380 billion (283 billion euros) in return for tough austerity measures adopted by Athens.

Greek PM rules out early election

Greek Prime Minister George Papandreou

Source: Press TV
http://www.presstv.ir/detail/195025.html

Greek Prime Minister George Papandreou has ruled out the possibility of an early election amid growing pressure on the government over its handling of the debt and financial crisis.

"We are a democratically elected government and we will certainly honor to the fullest the mandate given to us by the Greek citizens. The citizens want changes, not elections," George Papandreou said in an interview, AFP reported.

Papandreou also ruled out any scenarios of dropping the euro as the country's currency and turning back to the drachma.

"Not only is there not an issue of the country exiting the euro, on the contrary, through this adventure [which] we entered first because of the previous government, the euro will [also] strengthen," he added.

However, Greek opposition group New Democracy was critical of the comments, calling it “childish”.

"Such childish fireworks cannot hide the nakedness of the government whose own deputies ... call for elections. Precisely because they, as well, see the deadlock to which the country was led by Mr. Papandreou,” New Democracy spokesman Yiannis Mihelakis said.

Meanwhile, the European Union and the International Monetary Fund (IMF) began auditing Greece's finances last week to determine if it should receive the sixth tranche of funds under its EU bailout package.

Since last year, the EU and the IMF have granted Greece two rescue packages worth over EUR 269 billion (over USD 380 billion) in return for tough austerity measures.

The measures, which included the cutting of public sector salaries and pensions, increasing taxes and overhauling the pension system, sparked nationwide protests in Greece.

Europe has been vexed by a financial crisis as the 17-nation eurozone has been plunging into the abyss brought on by fissures between strong economies such as Germany, and weaker ones such as Greece, Ireland and Portugal, which risk being engulfed by unprecedented levels of government debt.

EU, IMF audits Greece finances

Greece Finance Minister Evangelos Venizelos

Source: Press TV
http://www.presstv.ir/detail/194565.html

The EU and the International Monetary Fund (IMF) have begun auditing Greece's finances to determine if it should receive the sixth tranche of funds under its EU bailout package.

Greek Finance Minister Evangelos Venizelos will hold talks with EU, IMF and European Central Bank officials mostly to explain the failure of Greece to sell off state assets meant to bring in a revenue of EUR 50 billion by 2015.

Since last year, the EU and the IMF have granted Greece two rescue packages worth over EUR 269 billion (over 380 billion dollars), in return for tough austerity measures.

The measures, which included the cutting of public sector salaries and pensions, increasing taxes and overhauling the pension system, sparked nationwide protests in Greece.

The protests turned violent at times, leaving scores of protesters and security forces injured.

The bailout funds will be given to Greece in installments following regular audits. About EUR 65 billion has already been disbursed.

Europe has been vexed by financial crisis as the 17-nation euro zone has been plunging into the abyss brought on by fissures between strong economies such as Germany, and weaker ones such as Greece, Ireland and Portugal, which risk being engulfed by unprecedented levels of government debt.

So far, Greece, Ireland and Portugal have received bailout packages from the European Union.