No plans for immediate Eurogroup meeting after Greek vote-EU official
Source: Reuters
Asked whether a meeting of the Eurogroup was planned for Monday, the official, speaking on condition of anonymity, told Reuters: "No way. (The ministers) would not know what to discuss."
The European Commission had no immediate comment on the early results, which showed a 60-40 'No' vote against the conditions of a cash-for-reforms deal to keep the country afloat, which the leftist Greek government rejected this month.
Read more: http://www.reuters.com/article/2015/07/05/eurozone-greece-eurogroup-idUSL8N0ZL0T420150705
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PoliticAverse
(26,366 posts)magical thyme
(14,881 posts)Not only to prevent the rest of the PIIGS nations from collapsing, but also because of European bank exposure to the default.
In the meantime, Tsirpras and co. hasven't only been meeting with the Troika. They signed a deal within the last few weeks with Russia. And China, which had hinted it would help them within the framework of the EU, has more recently hinted it would help them directly as well. Plus they have port deals with China in the works. China is, of course, cash- and gold-rich and has assisted other "poor credit risk" countries in the past.
Yo_Mama
(8,303 posts)Most remaining Greek government debt owned by outsiders is in the hands of governments or the ECB or the IMF.
Less than 20% is in private hands, and to tell the truth most of that wasn't acquired at face value and won't take that much of a writedown.
Yo_Mama
(8,303 posts)That would allow the banks to open, at least in theory.
Spitfire of ATJ
(32,723 posts)They use that like a slam.
Also, the "reforms" are like when the Right here talks about "saving" Social Security.
CountAllVotes
(20,878 posts)
Bossy Monkey
(15,863 posts)another_liberal
(8,821 posts)It will be held Tuesday evening.
Down with the fat-cat, greedhead bankers who thought they owned the whole World!
It's the people who own our World!
One can see the details here: http://sputniknews.com/politics/20150706/1024246711.html
bemildred
(90,061 posts)bemildred
(90,061 posts)Greek Prime Minister Alexis Tsipras’s stunning referendum victory may come at the cost of the country’s banks.
The No result in Sunday’s vote, signalling rejection of the creditors’ loans-for-austerity demands, was the nightmare scenario for the banks, whose leaders and shareholders had been lobbying hard for a Yes vote – acceptance of the creditors’ demands.
The governor of the Bank of Greece, Yannis Stournaras, was to call Mario Draghi Sunday evening to try to convince the ECB president to pump more emergency loans into the Greek banks. The ECB’s governing council is to meet in Frankfurt on Monday to decide if the banks will get that assistance.
If more emergency loans are to come, they would have to come fast.
http://www.theglobeandmail.com/report-on-business/international-business/greek-banks-desperate-for-emergency-loans-after-voters-reject-bailout/article25308556/
geek tragedy
(68,868 posts)ELA is supposed to be a temporary program, to be made to solvent banks to keep them liquid.
It's not a perpetual support program designed to shovel money at banks regardless of whether it will ever be paid back.
Greece has more debt than it could ever pay back. So, no one is going to lend it more.
Igel
(35,380 posts)Because that means control.
Russia used it with Ukraine, and many here delighted in the idea because it would spite the EU and NATO. China uses with other countries--for now, there's the semblance that it's voluntary, but while the EU wants economic conformity for trade, the Chinese want ports and raw materials and damned preferential trade policies for markets. Russia tends to want ports, military bases, and political fealty, but having a source of food isn't a bad thing either.
geek tragedy
(68,868 posts)That considerably reduces the value of Greek debt.
Greece isn't accepting debt with strings attached. It is only accepting gifts with strings attached.
bemildred
(90,061 posts)DallasNE
(7,404 posts)How could the Eurogroup not have a Plan B that addressed a "no" vote. They would then address Plan B - duh! The markets will not put up with delay. Where is the leadership? What say Merkel.
there is a plan 'b' - its to not grant further ELA (physical money supplied by the rest of the EZ) coming out of Greek cashpoint machines.
the Greek banks are within two or three days of running out of physical cash, capital controls mean that direct bank transfers are banned, and Greek retailers and businesses stopped accepting credit and debit cards months ago due to the high charges and concern that if you don't have the cash in your hand, you don't really know if the money will be available for you to spend.
within a week or so there will be a significant sortage of food in the shops, and people won't have the money to by it anyway. medicines are already in short supply and petrol will become unavailable and unaffordable. the Greek government, even if it makes no payments to any creditor of any kind, has about two weeks of money left for pensions and wages. it has no money to buy food, medicines, fuel etc..
it will get about a weeks grace from the public while talking about this being an eeeeevviiiiiiiiiillllll EU plot etc.. but when the food runs out (Greece grows about 40% of its food needs) the Greek people (understandably) won't care about who's fault it is, they'll just want it fixed.
the Greek government will then face a choice - get money from somewhere else, or cave to the EZ with far worse conditions than those rejected by the government and referendum. they'll choose to go elsewhere and that means a return to the Drachma, EuroDrachma, RoubleDrachma or whatever. its worth will be around 1/3rd of the value of the Euro, and no one outside Greece will touch it with a 50ft bargepole.
plan B is not to kick Greece out of the Euro - the structures for that don't exist, and it would require unanimmity among the other Euro nations that isn't there (the French for example, though for reasons of self preservation rather than a principle of solidarity with Greece) - the plan B is to allow Greece to fall to a point where its government decides that it cannot remain.
this, for Germany, is not about Greece. its about the two, three, or four countries next in line who would want the same conditions that Syriza wanted. Germany could afford to keep Greece afloat, it could not however to keep Greece, Spain, Italy and France afloat.
magical thyme
(14,881 posts)
brooklynite
(94,807 posts)They have plenty of cash, unlike the Greeks.
