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Kathimerini: Greece will be bankrupt in July if it does not receive next part of EU/IMF bailout on schedule
Greek paper Kathimerini reported over the weekend that Greece only has enough money to last until 18 July if it does not receive the next tranche of funds from the original bailout. The EU/IMF/ECB are currently reviewing Greece’s progress on the adjustment programme and, with its failings widely known, it is still unclear whether it will receive the money given that it did not achieve the required reforms.
On Friday Greece’s credit rating was downgraded again, this time by Fitch, which stated that it expected Greece to receive a substantial second bailout. Jens Weidmann, President of the Bundesbank, said that, if Greece failed to enact the current reform programme, “further support should no longer be taken for granted and the country should be prepared to bear the severe consequences that are likely to ensue once financial assistance is withdrawn". Over the weekend Christine Lagarde, French Finance Minister, suggested that a voluntary extension of Greek loans would be acceptable to France, meaning that the ECB is now the only party within the negotiations left rejecting the idea of a Greek debt restructuring.
Greek Prime Minister George Papandreou will meet with his cabinet today and opposition parties tomorrow in an attempt to come up with a comprehensive reform plan aimed at convincing the EU/IMF that a debt restructuring is not necessary.
Meanwhile, Standard and Poor’s put Italy’s credit rating on a negative outlook on Friday, arguing that political deadlock could hamper debt and deficit reduction. In response the Italian Treasury issued a statement highlighting the fact that the most recent budget deficit and economic growth data were better than expected.
WSJ Kathimerini Zero Hedge Nea CDT Saturday’s Mail Saturday’s Telegraph Keep talking Greece WSJ FT Weekend Saturday’s Times Sveriges Television Kathimerini Vima Nea Sunday Times FT Handelsblatt Irish Independent Saturday’s Guardian CityAM: Heath Telegraph blogs: Lilico WSJ: Stelzer Saturday’s Times: Wighton FT Weekend: Leader FT: Munchau Independent: King Conservative Home: Reckless Conservative Home: Baker FT 2 Tesoro Il Sole 24 Ore Saturday’s Independent Bundestag press release Elsevier
Ashton prepares for showdown over EU diplomatic service
At a meeting in Brussels today, a number of EU member states are expected to present EU Foreign Minister Baroness Catherine Ashton with their proposals to improve the effectiveness of the EU’s new diplomatic corps, the European External Action Service (EEAS). EUobserverquotes a diplomat saying that a separate joint paper to be submitted by Belgium, the Netherlands and Luxembourg will stress that "there must be better co-ordination between EU institutions in relation to international events. It's ridiculous that [European Council President Herman] Van Rompuy, [European Commission President José Manuel] Barroso and Ashton all issue different communiqués."
Catherine Ashton visited Benghazi yesterday to open an EU mission and pledged support for democracy in Libya. The EU mission will co-operate with the rebel forces on border management, security reform, the economy, health, education and the building of a strong civil society, reports the Irish Times.
EUobserver Le Figaro Telegraph SVD Irish Times BBC EurActiv France El País
Spanish Socialists suffer heavy defeat in local elections
Spain’s ruling Socialist Party has suffered a crushing defeat in yesterday’s local elections. Opposition Partido Popular is on course for victory in 11 of the 13 regions where the vote took place, including some Socialist strongholds such as the Castilla-La Mancha region, which had always been governed by the Socialists in the post-Franco era. However, Spanish Prime Minister José Luis Rodríguez Zapatero has said that he will not resign. Meanwhile, the estimated 30,000 protesters who have occupied Madrid’s Puerta del Sol during the last week have announced that they intend to remain in the square for at least another week. In a comment piece in El País, Joaquín Estefanía notes that “what creates concern about yesterday’s elections is not only the possibility of a schizophrenic political map…but also the fact that the incoming regional governors or the mayors of the country’s main towns may unmask a deficit which has so far remained hidden or disguised. This would make the chances of bringing the deficit of all the Public Administrations below 6% of GDP by the end of the year even more remote.”
FT WSJ Times EurActiv El País El País: Estefanía El Mundo EUobserver
Osborne backs French Economy Minister as future IMF Chief
French Economy Minister Christine Lagarde looks set to take over the IMF chairmanship, as a growing number of European governments are voicing support for her candidacy. In a statement on Saturday, Chancellor George Osborne said: “On the basis of merit, I believe Christine [Lagarde] is the outstanding candidate for the IMF – and that's why Britain will back her.” In an interview with Bild am Sonntag, German Finance Minister Wolfgang Schäuble also said that "if Christine Lagarde decided to be a candidate, Europe would have the best chance of occupying [the IMF chairmanship] again." However, Handelsblatt reports that FDP leader in the German Bundestag Rainer Brüderle is rallying against Germany's support for Lagarde, arguing: "I can also imagine German candidates." Meanwhile, the FT Weekend reported that Turkey’s candidate for the IMF top post Kemal Dervis has ruled himself out of the race, saying: “I have not been, and will not be, a candidate.”
Open Europe blog EUobserver Le Figaro Irish Independent Telegraph FT Weekend FT WSJ Times: Emmott Daily Mail IHT Irish Times Guardian Independent Sunday Telegraph: Halligan Sunday Telegraph Handelsblatt FAZ
Spanish Europe Minister Diego López Garrido has sent a letter to EU Justice Commissioner Viviane Reding saying that “the Spanish government enormously deplores” Reding’s previous criticism over the “very low level” of protection that Spain guarantees to the victims of domestic violence, reports El Mundo.
El Mundo
German governing parties hammered in Bremen regional vote
Bloombergreports that governing Christian Democratic Union slumped to its worst defeat in regional elections for more than 50 years in Bremen yesterday, finishing third behind the SPD and the Greens. The FDP, part of the governing coalition, lost all of its seats in the region. The result was put down to anger over the government’s handling of the eurozone crisis and the indecision over nuclear power.
Bloomberg FAZ Welt Sunday Times IHT
Discussions on forming the new Finnish government have continued into their fourth day in Finland, as parties struggle to agree on vital points, reports Yle. The position of Finland in NATO has been a major dividing point.
Dutch daily NRC.next cites Open Europe’s recent research on the EU’s aid to North Africa and the Middle East, which criticised the use of direct support to the now-toppled Egyptian and Tunisian regimes.
Open Europe research
The Telegraph reports that, at tonight's meeting of European foreign ministers, Croatia will be told it that can become the 28th EU member on 1 July 2013.
Telegraph Focus
Gabriel Bernadino, Chairman of the EU’s Insurance and Occupational Pensions Authority, has said that he expects the EU’s Solvency II insurance regulations to come into force on time by January 2013, despite influential insurers warning they could make the industry more vulnerable to economic downturns, the Telegraph reports.
Telegraph
Het Nieuwsblad reports that European Council President Herman Van Rompuy announced on Friday that he will probably seek a second term in office.
Nieuwsblad
According to the Telegraph, British holiday homeowners in France may face a property tax to be introduced in January next year, which could cost thousands of pounds a year. Around 200,000 British homeowners would be liable to the extra levy.
Telegraph Sunday Times
Lobbyists and digital rights campaigners have argued that the EU’s ‘Intellectual Property Rights Strategy’, to be released tomorrow, will weaken citizens’ fundamental rights and increase censorship.
EurActiv
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