Greek political leaders agree on bailout reforms: sources

[muriel_volestrangler]

Last edited Thu Feb 9, 2012, 11:15 AM - Edit history (1)

Greek leaders clinched a long-stalled deal on reforms and austerity measures needed to secure a bailout and avoid a messy default, government sources said, hours before the country's financial backers were to meet in Brussels on Thursday.

Athens' partners in the European Union and the International Monetary Fund have been exasperated by a lack of agreement on the sacrifices they demanded in return for a 130 billion euro ($172 billion) bailout, with time running out for Greece before a major March 20 bond redemption.

Finance Minister Evangelos Venizelos set off for Brussels without a complete deal after all-night talks with leaders of the three Greek coalition parties and chief EU and IMF inspectors left one sensitive issue - pension cuts - unresolved.

But following further negotiation on Thursday, two government sources said an overall agreement had been reached.

http://www.reuters.com/article/2012/02/09/us-greece-idUSTRE8120HI20120209

Also on BBC ticker as Greece leaders agree austerity package

[fasttense]

1. More austerity for the citizens of Greece who did not cause the economic melt down

And these 2 headlines explain why austerity never works.

Greek Labor Unions Call for 48 Hour Strike Over Reforms.

Cuts Drive Greek Unemployment to Record High.

[cstanleytech]

5. Well I dont know much about what whole situation other than that they are in trouble however since

you appear to have more knowledge on the situation how precisely would you solve their problem?

[fasttense]

8. I would use the Donald Trump method of dealing with creditors.

If I ruled Greece (not likely) I would renegotiate all the loans down to their actual dollar value. Donald Trump has been through numerous bankruptcy and he renegotiates his loans down to practically nothing. Why can't a country do exactly the same thing?

Or how about if the country prosecutes the bankers and the politicians for fraud. Jail every last crook involved in the fraudulent book keeping and force them to pay the loans off themselves through huge, giant fines.

Or call a jubilee and get the hell out of the EU.

[Johnson20]

11. And when they need loans

in the future and they will, they would in all likelihood be SOL because nobody will accept the risk

[cstanleytech]

18. Johnson20 does kinda have a point there fasttense.

In that in the future when they do need to borrow more money from an outside source that they might well make it next to impossible for them to secure loans if they were to follow through with your idea.

[CAPHAVOC]

2. Wonder how much this will cost us?

[Roland99]

6. Us? Not much. Now, the Germans.....

Greece's best solution would be to default and leave the EU.

[dipsydoodle]

7. I assume that's a joke.

If they default then due to the CDSs which will become payable they will effectively take Goldman Sachs and AIG down with them. That is unless the US bails both out and we're talking anything up to a trillion now.

[Roland99]

12. Ah...but, so far, this has been deemed a non-trigger event so the CDS won't apply

Go figure that one out.

As for the Germans, as the strongest economy involved, they'd be on the hook for most of the bailout.

[Turbineguy]

3. And for your future viewing pleasure

"Greek people agree to start paying taxes: sources"

[fasttense]

9. Only the rich Greeks were able to get out of paying taxes, sound familiar? n/t

[earthside]

4. Look for a new government in Greece.

In short order ... the Greek people won't put up with this kind of deal.

[Snake Alchemist]

10. I suspect we'll be hearing about a new bailout in 6 months. nt

[Roland99]

13. Germany says Nope...not enough

http://www.zerohedge.com/news/germany-throws-ball-back-greeces-court-schauble-says-deal-insufficient

German FinMin: Greek deal on spending cuts appears to not yet fulfill bailout conditions

[CAPHAVOC]

14. The Greeks have them over a barrel. All they have to do is say they do not want to be bailed out.

They can not afford to let the CDS's kick in.

[Eugene]

15. Greek austerity plans not ready, say eurozone ministers

Source: BBC

9 February 2012 Last updated at 18:21 GMT

Greek austerity plans not ready, say eurozone ministers

Eurozone ministers have cast doubt over a new Greek austerity plan, as they meet in Brussels to decide on a 130bn euro ($170bn; £110bn) bailout fund.

German Finance Minister Wolfgang Schaeuble said the Greek plan was "not at a stage where it can be signed off".

[font size=1]-snip-[/font]

Luxembourg's Prime Minister Jean-Claude Juncker, head of the so-called eurogroup of finance ministers, said he doubted whether the Greek plan was ready for approval.

"I do not have reasons to believe that there will be a definitive deal this evening," he told reporters as he arrived for the Brussels meeting.

[font size=1]-snip-[/font]

Read more: http://www.bbc.co.uk/news/world-europe-16971733

[dipsydoodle]

16. The sauce seems to be as reliable

as by bottle of HP which is currently MIA.

There is a later Beeb link but I cant link it using this effort.

[muriel_volestrangler]

17. The source is reliable - the Greeks agreed; it's just other Eurozone members who say

"not good enough". Perhaps you mean this BBC link:

Greek austerity plans not ready, say eurozone ministers

...
The Greek government brokered a deal after days of negotiations between the parties in its fragile coalition.

Few details of the plan have been released, but unions have already called a 48-hour strike in protest.

Luxembourg's Prime Minister Jean-Claude Juncker, head of the so-called eurogroup of finance ministers, said he doubted whether the Greek plan was ready for approval.

http://www.bbc.co.uk/news/world-europe-16971733

[BelgianMadCow]

19. There is NO agreement, and here are the details of the deal the greek PEOPLE will not accept

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_09/02/2012_426880

read it and weep, coming soon to a theatre near you (me in any case)
Just one example: reducing minimum wage from 750 euro to 590 euro per month for a full employment, and 530 if you are below 25 "to stimulate job recovery for the young" (almost 50% out of work).
Note also "bank recapitalisation" as last but not least.

On edit: and THIS gem:
"A freeze on all salary raises until the unemployment level is reduced from its current 19 percent to under 10 percent." aka till kingdom come

Consider reading the other articles too - very eye-opening. Our media are keeping us blind to what is really happening. As an example, two days of delay were blamed on "translation" but in the greek press it was clear right away that the LAOS party was in disagreement, and now they are considering leaving the UNELECTED government headed by a ECB figure. http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_09/02/2012_427050

Greece is just a test case for how far you can push a european people before they revolt. Or, if you believe more in Disaster Capitalism, the first actual application of the doctrine in Europe.

The "troika" of IMF, ECB and EU (in that order, imho) is imposing neoliberal solutions for a neoliberal crisis (neoliberalism being totally deregulated capitalism). They have to sell their gas grid, water grid and ports for example.

I am disgusted at how the average greek person is being treated and I wish them well in the fight we will soon all be in.

Greece will default, but not before the people have been sucked totally dry so as to make it a soft landing for the creditors.

[dipsydoodle]

20. Greece bailout: Eurozone ministers set new conditions

The chairman of a meeting of Eurozone finance ministers says fresh conditions will be attached to a 130bn euro ($170bn; £110bn) bailout for Greece.

Jean-Claude Juncker said an extra 325 million euros ($432m; £273m) in savings for 2012 will be needed.

The Greek parliament will also have to pass the package of cuts and reforms on Sunday.

And political leaders will have to promise to continue to implement the reforms after elections in April.

http://www.bbc.co.uk/news/world-europe-16976520