"Greek proposals for a revised bailout program don’t have enough detail
to satisfy the government’s international creditors, eurozone officials
said, making it more likely that Athens will need to go several more
weeks without a new infusion of desperately needed cash."
Indeed the Troika are singularly unimpressed with the proposals, as per a eurozone official:
"The proposals were piecemeal, vague and the Greek colleagues could not
explain technically what some of them actually implied.
So, let’s hope that they present
something more competent next week.”
Scathing comments to say the least!
The final nail in the coffin for Greece is the fact that euro finance ministers will not meet to discuss Greece until mid April, thus Greece will not get any money at all until then (if at all).
There will be an emergency debate in the Greek parliament today, the end game has begun and it is probably a matter of days before Greece bites the bullet and leaves the eurozone.
As per amna.gr the Greek government has issued a "clarification" of its stance wrt "reforms":
"The list the government will submit to the
Eurogroup for reforms will be an elaborate national reform plan of the
Greek government, it said in a non-paper released on Thursday.
The government stressed there would be no recessionist measures and
called for the understanding and support of the Greek society.
According to the statement, the memorandum ended on January 25 and the
new Greek government signed for an extension of the loan agreement based
on the Eurogroup decision of February 20.
Negotiations are taking place
on the basis of reforms proposed by the Greek side, and they do not
include recessionary measures or measures of reduced pensions and wages
or measures that will further throw the labour market off track.
"If we had signed to continue the memorandum, then what would the
purpose of negotiations be?," it asked, adding that "the new government
would have continued to apply whatever the previous government had
bequeathed it. It is obvious something like that cannot be done - on the
It cited laws that it had voted to deal with the
humanitarian crisis and the overdue debts, in contrast to the previous
finance minister's intentions.
Referring to the previous prime minister, the government said that
Antonis Samaras "in essence is doing what the technical experts began
doing when they came to Athens.
Despite the decision of February 20 -
which does not say anything about the completion of 'the current
programme' - Samaras and the technical experts thought that on January
25 absolutely nothing changed in the country." This is why, the
government said, Prime Minister Alexis Tsipras sent the letter to
European leaders to meet on the sidelines of the EU Summit in Brussels,
"to clarify the content of the February 20 decision. And that is exactly
If the main opposition, the government said, "wants to contribute to the
effort of the government to give the Greek society a breather, it would
be best if it does not try, even through rhetoric, to mix the country
up in the memorandum past - the power of habit is understandable, and
the weakness of the opposition is understandable."
"In the significant days ahead of us, we are asking for the support of
Greek society in the struggle for dignity, prosperity and social
justice," it concluded."
This of course will go nowhere, the Greek government has in effect stuck two fingers up to the Troika and the eurozone. Thus Greece will default and be forced out of the eurozone.
The much vaunted and hyped meeting between Tsipras and Merkel yesterday (hyped by Greece that is) ended in abject failure for Tsipras.
Merkel has washed her hands of Greece, pointing out that the German government won't decide if the Greek reforms (anyone seen the new list that was promised by the way?) are up to snuff and noting that Germany will not offer any extra liquidity on its own.
Tsipras has therefore walked away empty handed, and Greece's fate continues to rest on the Troika and Greece agreeing terms (only if the Troika signs off on Greece's yet to be drafted revised reform list).
For absolute clarity:
NOTHING HAS CHANGED!
However, a lot of time has been wasted and the clock is ticking. Greece will very soon run out of money.
Ahead of today's meeting between Tsipras and Merkel (wherein Tsipras will tell Merkel Greece can't keep up its payments unless it receives aid, and Merkel tells Tsipras no aid will be forthcoming without reforms) the Greeks has thrown this into the mix:
Pure coincidence of course that it is announced just ahead of the Merkel meeting!
Irrespective of Greece's games, today Tsipras either publicly accepts Germany's conditions wrt reforms and Troika access (unhindered and unfettered) or Greece will be out of the euro in the comings days.
In a speech made in May 2013, Varoufakis revealed his thinking wrt defaulting, devaluing and Greece's membership of the Euro.
The "strategy" of Greece's government and (in particular Varoufakis) has baffled many over the past few weeks. However, I have on this site noted that Greece may well not be planning to exit the Euro but instead pushing for Germany to exit it.
The smoking gun, validating this "strategy", has been identified by Zerohedge which quoted Varoufakis's May 2013 speech:
"..If Germany leaves, that is more likely for me, as far as I am concerned that Germany would depart from the euro...".
Thus we can see the "strategy" of Syriza, to make Greece so poisonous to Germany (and it certainly is succeeding there) that the Germans will eventually reject Euro membership and walk away.
Thus far the strategy has only succeeded in making Greece poisonous!
come to the decisive moments. The Commission is
not a lead player in this phase, but we'll do everything to
cooperate. What we exclude is a default. I think a solution in
the coming weeks is possible".
It is all very well living in fantasy land. However, as Juncker himself says:
"the Commission is
not a lead player in this phase".
It is up to the Troika and Greece to determine if Greece will avoid default.
"Clever people in Brussels, in Frankfurt and in
Berlin knew back in May 2010 that Greece would never pay back its
debts. But they acted as if Greece wasn't bankrupt, as if it just didn't
have enough liquid funds.
this position, to give the most bankrupt of any state the biggest
credit in history, like third class corrupt bankers, was a crime against
Greece is determined to be thrown out of the Eurozone, whatever Juncker and his fantasists in the EC may wish for.
Reuters reports that Greek Prime Minister Alexis Tsipras accused Germany on Tuesday of using legal tricks to avoid paying reparations for the Nazi occupation of Greece, and said he would support parliamentary efforts to review the matter.
For good measure, Greek Justice Minister Nikos Paraskevopoulos agreed today (the day the Troika arrive) to allow the seizure German property in Greece.
This of course will not go down well in Germany.
One can only conclude that either the government of Greece is stupid, or that this is a deliberate attempt to ensure that Germany forces Greece out of the Eurozone (thus enabling the Greek government to blame Germany for its failure to acquire funding).
"The troika is a cabal of technocrats that used to arrive
in Athens and enter the ministries with a kind of power play
that smacked of a colonial attitude.
That practice is finished.
We shall endeavor to do whatever it takes to provide the
institutions with whatever information they need.”
However, there is a vast gulf between Greece's posturing to the media and reality as Bloomberg notes:
"It’s impossible for Greece’s creditors to adequately audit
the government’s accounts without sending officials to Athens, a
troika official said. The government would need to fly hundreds
of Greek officials to Brussels for the work to be done there, he
As Draghi pressed Varoufakis to accept the return of the
troika officials, the minister said that the idea that Greece
was opposed to such a move was a misunderstanding, according to
one of the officials with direct knowledge of the exchange.
The list of measures Greece’s government sent to euro
region finance ministers last Friday, has been rejected and the country probably won’t receive an
aid disbursement this month, Eurogroup Chairman Jeroen
Dijsselbloem said on Sunday.
the Eurosystem Oversight Policy Framework, published by the European
Central Bank (ECB) on 5 July 2011, in so far as it sets a requirement to
be located within a Member State party to the Eurosystem for central
counterparties involved in the clearing of securities;
2. Orders the ECB to bear its own costs and to pay those incurred by the United Kingdom of Great Britain and Northern Ireland
Major win for UK & single market that #ECJ struck down @ecb location policy – unfair & had absolutely no place in our modern EU economy
Austria's Financial Market
Authority stepped in on Sunday to wind down "bad bank" Heta
Asset Resolution (set up from Hypo Alpe Adria).
Reuters reports that an audit
of Heta exposed a black hole of up to 7.6
billion euros which the government won't fill.
The finance ministry noted that creditors can be forced to
contribute to the costs of winding down Heta - or "bailed in" -
under new European legislation that Austria adopted this year so
that taxpayers do not have to shoulder the entire burden.