Greece 3rd bailout

Written on February 4th, 2014 in politics Comments Off

Leaked: Germany says 3rd Greek bailout worth €10bn-€20bn, on Russia Today RT, Feb 3, 2014.

The next financial lifeline Greece will receive from Germany and its European lenders will be worth €10 billion to €20 billion, the German magazine Der Spiegel reports, citing a document leaked from Berlin’s finance ministry.

The rescue package, which will be the third for Europe’s most troubled economy, is considered “extra aid” by German Finance Minister Wolfgang Schauble, who said the sum would be “far smaller” than the €240 billion is has already received from international lenders.  

“What is sure is that any further aid would be much less expansive than whatever help [has been given] so far,” Schauble told the German finance magazine Wirtschaftswoche.

Schauble first hinted Greece would need a third rescue loan in August a risky move right ahead of Germany’s September elections, in which Chancellor Merkel’s CDU party won comfortably.

Manufacturing revival? … //

… Opposing views: … //

… Rigorous austerity:

Greece continues to implement its “rigorous” austerity measures, which include major job cuts in the public sector, wage and pension cuts, as well as the privatization of state assets.

Unemployment in Greece is amongst Europe’s highest at 27.8 percent, compared to the 28-member nation average of 12 percent. Youth unemployment is over 60 percent.

Six years of straight recession has hit the economy hard, and now the country is experiencing severe deflation; prices have hit 50-year lows, and disposable incomes have diminished by a third since the country dipped into recession.

(full text).

Links:

Greek Finance Minister Blames Eurozon, on Greek Reporter, Jan 6, 2014;

Crisis Control: Stability Fund Chief Expects Third Greek Bailout, on Spiegel Online International, Oct 4, 2013: Greece might need a third aid package as soon as next year, Klaus Regling told a German paper Friday. But the head of the ESM permanent bailout fund is much more optimistic about the situation in Portugal and elsewhere in the euro zone …;

Size of a third Greek bailout? Merkel remains ambiguous, on Russia Today RT, Sept 2, 2013;

Pre-election talk: Merkel denies debt write-down for Greece, on Russia Today RT, August 26, 2013;

Auf deutsch aus dem Spiegel-Archiv:

  • Die Gewalt der Zinsen, von Schnibben, Cordt, 12. November 2012: Die meisten Staaten sind so hoch verschuldet, dass ihre Politik mehr von den Gläubigern als von den Bürgern bestimmt wird – warum können Demokratien nicht mit Geld umgehen? …;
  • Auf Gedeih und Verderb, von Darnstädt, Thomas; Ertel, Manfred; Mahler, Armin; Müller, Peter; Pauly, Christoph; Reiermann, Christian; Sauga, Michael; Seith, Anne, 6. Juni 2011: Die Währungsunion wird zur größten Gefahr für die Zukunft Europas: Der Euro kettet Volkswirtschaften aneinander, die nicht zusammenpassen. Dennoch setzen die Politiker auf immer neue Hilfsprogramme. Es ist der falsche Weg …;

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