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Eurointelligence Daily Briefing: Eurogroup is sceptical about the agreement - another High Noon next week
Greek parties agree a deal with a hole to be plugged later; the eurogroup dismisses the deal, and says it wants the hole to be plugged, a parliamentary agreement, and a written statement by all leaders that they would honour it after the elections; the gap of €325m is likely to come from cuts in military expenditures and of moving forward agree wage cuts; parliament likely to accept, but some MPs said they will vote against, the Pasok deputy labour minister resigned in protest, and unions to call a 48-hour strike; Mario Draghi says he is willing to forgo profits on the ECB's stake; the WSJ story of a ESB/EFSF debt swap is also confirmed as correct; Stephen Fidler argues that such a swap would increase bondholder incentives to accept PSI; Mohamed El-Erian explains that this agreement will collapse sooner or later; a camera catches Wolfgang Schauble promising more aid to Vitor Gaspar of Portugal; the German government considers scrapping of solidarity tax to win over the SPD in the Bundesrat in support of its proposed tax cuts; Sarkozy proposes a referendum on changes in the unemployment benefits and the legal situation of foreigners in France; German banks regret not having participated more massively in the LTRO, as Draghi criticises Josef Ackermann; ECB will balance increased risks in their loosened collateral framework with steep haircuts; Boersenzeitung, meanwhile, declares the end of the eurosystem.


tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Carrie (migeru at eurotrib dot com) on Fri Feb 10th, 2012 at 05:32:55 AM EST
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