FROM Nick Malkoutzis
Greeks Vote for Change in Bailout Terms Voters in Greece elected a new leader yesterday — Alexis Tsipras, of the leftist Syriza party. He immediately formed a governing coalition with the right-wing independent Greeks. Both want an end to austerity, and they could make Greece the first nation to leave the Eurozone. Nick Malkoutzis is deputy editor of the English edition of Kathimerini , a national newspaper.
Protests in Athens May Shake Fragile Coalition In Athens today, tens of thousands of people filled the streets for a general strike against the latest plan for more austerity measures amounting to 6% of Greece’s GDP.
Chaos in Greece Resumes as Talk of Euro Exit Increases The Greek parliament has been unable to form a new government, and new elections have been called for next month. The President of the country says so much money's been pulled from Greek banks that, "a great fear could develop into a panic." That could have consequences for the global economy. Nick Malkoutzis is deputy editor of the English edition of the national newspaper Kathimerini . He blogs at Inside Greece .
Greek Austerity and the Spreading EuroZone Crisis One Greek writer says, if you have to choose between death and a bailout, you choose the bailout. But that doesn't mean that life will get any better. With a show of hands in an almost empty chamber, the Greek Parliament today accepted a €107 billion bailout, its second from other EuroZone countries. It also approved a 53 percent "haircut" for private bondholders, in a package that's expected to mean a fifth year of recession. Yet there are widespread predictions that things will only get worse. New austerity measures are more likely to increase unemployment and decrease pensions and public services than produce economic recovery. We hear why so many Greeks are leaving the country and why its problems are so dangerous for the rest of Europe and the United States.
Can a Divided Europe Save Its Common Currency? America's economic future will depend in part on what happens in Europe, so the crisis over the Euro demands our attention. The Eurozone is divided between prosperous countries like France -- and especially Germany — and debtor nations, including Greece, and now Italy. The strong are needed to bail out the weak, but so far there's not enough trust for the strong to provide big money or the weak to accept austerity. Can un-elected European technocrats, trained on Wall Street, overcome the politics of independent nations? Why is it all so important to the United States?
G-20 Meets amidst Crisis in the Eurozone In Cannes today, Greek Prime Minister George Papandreou (seen at left) met for two and a half hours with German Prime Minister Angela Merkel and French President Nicolas Sarkozy. Then Papandreou went home and told his parliament he was calling off his controversial referendum on the massive bailout designed to keep Greece part of the European Union. The on-again, off-again referendum has turned the G-20 Summit into a crisis meeting instead of a demonstration of economic stability. What's next for the European Union and what are the consequences for global prosperity.
Greek Brinksmanship, the European Union and the G-20 Summit In Cannes today, Greek Prime Minister George Papandreou met for two and a half hours with Germany's Angela Merkel and Nicolai Sarkozy of France. Then Papandreou went home and told his parliament he was calling off his controversial referendum on the massive bailout designed to keep Greece part of the European Union. But that's only added to the uncertainty facing the G-20 Summit meeting in Cannes. Nobody knows what Papandreou might do next. Even if there's still support for the bailout, it's unclear where $1.5 trillion will come from, especially with US influence on the wane. Is the EU a safe bet for China? What will China demand in exchange? Is the effort to demonstrate European economic stability now in a shambles?
Referendum Call on Bailout Has Greek Government on the Edge Greek Prime Minister George Papandreou stunned Europe and financial markets around the world last night by announcing a popular referendum on the new debt deal with foreign lenders. Nick Malkoutzis is Deputy Editor of the English edition of the Greek newspaper Kathimerini . He also blogs at " Inside Greece ."
Can the Leaders of Europe Save the Euro? In Europe yesterday, there was another summit and another delay in taking the action needed to stave off another worldwide recession. But even some pessimists concede there was a new sense of urgency that could lead to a rescue plan before it's too late. We hear about efforts to save the Euro and avoid another worldwide recession.
Can the Leaders of Europe Save the Euro? Yesterday's summit of European leaders put off action until Wednesday, another delay in a financial crisis that's beginning to sound like 2008. The possibility of so-called "contagion" goes like this: Greece is on the verge of default, and austerity measures have led to rioting in the streets. If Greece fails, private investors could lose faith in Spain, Italy and, possibly, even France, with US lenders potentially next in line. Nobody really knows the extent of the danger. Will the Euro, designed to stabilize the continent, require that it break apart?
European and US Economies at the Tipping Point? Europe's debt crisis is causing financial ripples all over the world, and elected leaders are trying to prevent a tidal wave. Looking a lot like Greece but much bigger, Italy is having trouble paying its bills. The national debt is 120 percent of gross domestic product and, recently Prime Minister Silvio Berlusconi announced sweeping austerity measures. The reaction was a national strike on Tuesday that shut down public transportation and air travel. Today, Berlusconi re-vamped his plan and then called for a confidence vote in the Parliament. Will Germany bail out Greece? Italy? If not, what's in store for the US and the global economy? Segment image: Angela Merkel arrives to speak during debates over the federal budget on September 7, 2011 in Berlin. German Chancellor said, 'Should the Euro fail, then Europe fails.' Photo by Sean Gallup/Getty Images
Economics and Politics in the Euro Zone It's not just Greece any more but larger countries facing an economic crisis. If they can't pay their debts, the big fear is collapse of a major financial institution. With Italy's national debt at 120% of gross domestic product, last week Prime Minister Silvio Berlusconi announced sweeping austerity measures. The reaction was a national strike on Tuesday that shut down public transportation and air travel. Today, Berlusconi re-vamped his plan and called for a confidence vote in the Parliament. Like the failure of Lehman Brothers in 2008, such a collapse could set off a global chain reaction and another recession with drastic consequences here in the US. Italians don't like austerity measures, Germans don't want to bail them out, and elected leaders in 17 countries are struggling to figure out what to do. US investors are cutting back on exposure to Europe, which could make things worse. We get updates from several countries.
Lessons from Greece in US Debt Crisis Despite public outrage and yesterday's riots over austerity measures, Athens was quiet today as the Greek parliament put the final touches on spending cuts and tax increases designed to unlock $17 billion in aid from the European Union , the European Central Bank and the International Monetary Fund . If the US doesn't bite a similar bullet, will its "full faith and credit" be suspect in the eyes of the world?
Playing Chicken with the US Economy After yesterday's riots over austerity measures, Athens was quiet today as the Greek parliament put the final touches on spending cuts and tax increases designed to unlock $17 billion in aid from the European Union , the European Central Bank and the International Monetary Fund . Meanwhile, ratings agencies say they might lower America's credit score if investors even think the debt ceiling might not be raised by August 2. House Speaker John Boehner says that deadline is " artificial ," while President Obama accuses Republicans of favoring fat cats over veterans and kids. Should both parties pay more attention to what a default by Greece might do, not just to Europe's economy but America's as well? Will economic brinksmanship cause the world to lose faith in America, a country that has never failed to pay all its bills?
Greece Tries to Avoid Bankruptcy at All Costs The heads of 16 European governments are scheduled to meet on Friday, to hasten release of 110 billion in Euros to bailout Greece and stabilize the currency. In Germany, there has been significant opposition to the bailout. In Greece itself, tough measures, including increased taxes and cuts in services, led to calls for a general strike on Wednesday. Nick Malkoutzis is deputy editor of the English of Kathimerin i, a national newspaper.
Greece: A Country that's Too Big to Fail According to one official at the International Monetary fund, "if a government wants to cheat, it can cheat." So it was "perfectly legal" back in 2001 for Goldman Sachs and other bankers on Wall Street to help Greece borrow beyond its means. That's according to Nelson Schwartz, financial reporter for the New York Times .
White House budget proposal slashes and burns President Trump's first budget request is considered dead on arrival in Congress — a familiar development in Capitol Hill. We hear what it reveals about the priorities of the new administration. What's likely to die… and what might survive?
What is Trump's plan for Middle East peace? On his first foreign tour, President Trump has promised "peace" between Israel and the Palestinians. Are there any details for re-starting talks that have been stalled for the past three years?