The prospect that Greece's fiscal crisis could force it to default on its sovereign debt has prompted speculation that it may eventually be pressured to depart the 16-member euro zone. In an effort to end such talk, Mr. Papandreou said in a nationally televised appearance that the country was committed to the common currency. His comments came as the ECB warned Greece that a proposed law to restructure private-sector debt could do more harm than good, saying bluntly that key parts of the law were "not consistent with the principle of an open market economy" and might squeeze off the flow of credit. ... The proposed law, which would ease debt repayments by households and small businesses affected by the financial crisis, was one of the key campaign promises of Greece's recently-elected Socialist government.
His comments came as the ECB warned Greece that a proposed law to restructure private-sector debt could do more harm than good, saying bluntly that key parts of the law were "not consistent with the principle of an open market economy" and might squeeze off the flow of credit.
...
The proposed law, which would ease debt repayments by households and small businesses affected by the financial crisis, was one of the key campaign promises of Greece's recently-elected Socialist government.
"There is no case of Greece leaving the euro zone or resorting to other kind of help, such as the IMF," Papandreou told a news conference to mark the socialist government's first 100 days in office. Papandreou said Greece wanted to establish a sense of trust and certainty among its creditors, and Greeks were not just ready but avid for change and for things to move forward. ... "It would not be a courageous measure to make the poor and wage-earners pay -- this is not our policy," he said.
Papandreou said Greece wanted to establish a sense of trust and certainty among its creditors, and Greeks were not just ready but avid for change and for things to move forward.
"It would not be a courageous measure to make the poor and wage-earners pay -- this is not our policy," he said.
The Commission, the European Union's executive arm, is responsible for upholding EU law. It had already once launched proceedings against Greece for unreliable deficit statistics in 2004, but closed them in 2007. "There will probably be another infringement procedure... because providing timely and reliable statistics is an obligation under EU law and they have failed in their obligation," the EU source said. Greece revised its 2008 budget deficit to 7.7 percent of gross domestic product from 5.0 percent reported in April and also revised its 2009 budget deficit forecast to more than 12 percent of GDP from 3.7 percent forecast in April.
"There will probably be another infringement procedure... because providing timely and reliable statistics is an obligation under EU law and they have failed in their obligation," the EU source said.
Greece revised its 2008 budget deficit to 7.7 percent of gross domestic product from 5.0 percent reported in April and also revised its 2009 budget deficit forecast to more than 12 percent of GDP from 3.7 percent forecast in April.
"The fact that Eurostat has not validated those figures does not necessarily imply that the final figures will be higher. It simply means that Eurostat at this stage is not capable of validating the figures," Commission spokeswoman Amelia Torres said.
The Federal Statistics Office announced on Wednesday that Germany's largely export-driven economy recorded its biggest-ever decline since World War II last year. The country also breached the EU's deficit limit. The extent of the damage felt in Germany by the global financial crisis was revealed on Wednesday with the release of new economic figures by the Federal Statistics Office. "As an export-dependent nation, Germany was particularly affected by the financial crisis," commented Federal Statistics Office President Roderich Egeler. "With a GDP drop of five percent, the country is relatively far behind other nations." Germany's gross domestic product (GDP) shrank by five percent in 2009, with a particularly heavy slump in the first half of the year. But the statistics show that the GDP stabilized in the second half of 2009.
The extent of the damage felt in Germany by the global financial crisis was revealed on Wednesday with the release of new economic figures by the Federal Statistics Office.
"As an export-dependent nation, Germany was particularly affected by the financial crisis," commented Federal Statistics Office President Roderich Egeler. "With a GDP drop of five percent, the country is relatively far behind other nations."
Germany's gross domestic product (GDP) shrank by five percent in 2009, with a particularly heavy slump in the first half of the year. But the statistics show that the GDP stabilized in the second half of 2009.
NYTimes: Mixed Signals Complicate European Bank's Task
With signals about European growth mixed and some weaker members of the European Union still in debt crisis, the European Central Bank is in a tough position as it seeks to pull back on measures that helped the euro zone through the recession. The bank's governing council will hold a regular meeting on Thursday in Frankfurt, its first of the year. Analysts do not expect it to announce any policy changes, but they will listen closely for any shift in how the central bankers seem to assess the economy and when they may raise interest rates. Recent indicators and corporate financial reports show that Europe is recovering slowly and unevenly. The British retailer Tesco said on Tuesday that sales during the six-week holiday period through Jan. 9 were up 6.9 percent from a year ago, without adjusting for currency fluctuations. The German retailer Metro said its sales dipped 3.6 percent in 2009. Over all, retail sales in the euro zone fell 1.2 percent in November from October, according to European Commission figures released last week.
The bank's governing council will hold a regular meeting on Thursday in Frankfurt, its first of the year. Analysts do not expect it to announce any policy changes, but they will listen closely for any shift in how the central bankers seem to assess the economy and when they may raise interest rates.
Recent indicators and corporate financial reports show that Europe is recovering slowly and unevenly. The British retailer Tesco said on Tuesday that sales during the six-week holiday period through Jan. 9 were up 6.9 percent from a year ago, without adjusting for currency fluctuations. The German retailer Metro said its sales dipped 3.6 percent in 2009. Over all, retail sales in the euro zone fell 1.2 percent in November from October, according to European Commission figures released last week.
The Minister for Employment, Celestino Corbacho, said on Wednesday that he considered `submerged activities' made up between 16% and 20% of G.D.P. and admitted that the number usually increased in times of recession. Presenting the numbers for 2009 in the fight against fraud in the labour market, he said that there had been a 30% increase in the number of work inspections over the year, and that this had resulted in fines worth 960 million € being issued, 12.4% more than in 2008. In addition the inspections led to an extra 48,742 people registering to start contributing into the Spanish social security system.
Presenting the numbers for 2009 in the fight against fraud in the labour market, he said that there had been a 30% increase in the number of work inspections over the year, and that this had resulted in fines worth 960 million € being issued, 12.4% more than in 2008. In addition the inspections led to an extra 48,742 people registering to start contributing into the Spanish social security system.
The number of counterfeit euro bank notes withdrawn from circulation rose 8% during the last six months of 2009, with the €20 bill the most widely forged, the European Central Bank said Monday. ... The increase in counterfeits recovered in the second half wasn't as sharp as in the previous six months, when there was a 17% jump. The total number of counterfeit notes recovered in 2009 was 860,000 -- up from 666,000 the previous year. The forger's favorite euro bill remains the €20 note, which accounted for 47% of the forgeries, the ECB said. It was followed by the €50 note, which accounted for 39%.
The increase in counterfeits recovered in the second half wasn't as sharp as in the previous six months, when there was a 17% jump. The total number of counterfeit notes recovered in 2009 was 860,000 -- up from 666,000 the previous year.
The forger's favorite euro bill remains the €20 note, which accounted for 47% of the forgeries, the ECB said. It was followed by the €50 note, which accounted for 39%.
The European Union's designated financial services chief has pledged to examine curbs on short-selling and extend a planned regulatory shake-up to every corner of the industry, blamed by many for the economic crisis. Outlining his plans to push through a welter of rules that will tighten the policing of banks as well as curbing runaway borrowing, Michel Barnier said: "We need to turn the page on an era of irresponsibility." "We are going to reform. No market, no financial player ... should be able to escape. I will not shy away from the difficult subjects of sanctions and short-selling."
Outlining his plans to push through a welter of rules that will tighten the policing of banks as well as curbing runaway borrowing, Michel Barnier said: "We need to turn the page on an era of irresponsibility."
"We are going to reform. No market, no financial player ... should be able to escape. I will not shy away from the difficult subjects of sanctions and short-selling."
How about enforcing the rules, for a change? En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
And driving up equity asset prices should be a policy goal? En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
The problem they are having is that the small investor has undergone a change of psychology to fear from greed and are mostly sitting out this bogus rally. Without someone to buy up their hyped and levitated shares they just keep on keeping on---until they can't. But it will probably at least be highly impractical for small investors to short the market so as to profit on the puke. That is for the big boys.
At any rate that is my sense of things. Giethner, Bernanke and Obama are now the chief shills for Wall Street. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
a request by AIG to keep secret an exhibit to a year-old regulatory filing that includes some of the details on the most controversial aspect of the AIG bailout
You will recall the series of Congressional committee subpoenas issued prior and perhaps conclude, regardless of president the order is unenforceable. I would be amazed if the House sued the SEC -- although I could readily, inevitably imagine SCOTUS deciding standing.
The situation is fucked up. The people must act accordingly. To my mind, how we act --long-, medium-, or short-term, coordinated or anarchical-- isn't important so long as we do. Run the motherfuckin train off the track.
Any way is ultimately determinative. I trust my neighbors before a golum fuck.
Good or bad I can live with. Sleeze, not so much. Diversity is the key to economic and political evolution.
