Voting in the Dark: Greece Goes to the Polls

How do you hold an election in a country that has lost its sovereignty, its sense of its own past and its imagined future? What promises can discredited politicians sell, in the fifth year of recession, to people whose wages have vanished or plummeted by a third, pensioners living on less than 300 euros a … Continue reading

Eurozone private sector drops, signalling recession: PMI

(BRUSSELS) – Eurozone private sector activity retreated in March, providing new evidence that the 17-nation single currency area is in recession, a key survey showed on Wednesday. The composite Purchasing Managers Index (PMI) compiled by Markit research firm hit a three-month low, dropping to 49.1 points in March compared to 49.3 in February. A score … Continue reading

Europe’s Economic Suicide

By PAUL KRUGMAN On Saturday The Times reported on an apparently growing phenomenon in Europe: “suicide by economic crisis,” people taking their own lives in despair over unemployment and business failure. It was a heartbreaking story. But I’m sure I wasn’t the only reader, especially among economists, wondering if the larger story isn’t so much about individuals as … Continue reading

Greece calls May 6 poll that may create stalemate

(Reuters) – Greece called a snap election for next month on Wednesday, launching a campaign that may produce no clear winner and threaten implementation of the international bailout plan that saved the nation from bankruptcy. Prime Minister Lucas Papademos announced the May 6 date after meeting the president and his interim cabinet, which he said had done … Continue reading

German finance minister: We’re Greece’s scapegoat

The ill will many Greeks feel toward Germany for imposing painful financial conditions on the massive loans the country made to them are just a normal response to a difficult situation, says German Finance Minister Wolfgang Schaeuble. It’s natural for people suffering from their own mistakes to blame others, Schaeuble tells Steve Kroft for a … Continue reading

Pimco chief Mohamed El-Erian expects ‘second Greece’ in Portugal

Mohamed El-Erian, Pimco’s chief executive, said Portugal will need a second rescue as the original package of €78bn (£65bn) falls short, setting off a political storm over EU rescue costs. “Unfortunately, that is how it will be. It will make the financial markets nervous because they are worried about a participation of the private sector,” … Continue reading

Greece: It’s the geopolitics, stupid!

BY JACEK SARYUSZ-WOLSKI BRUSSELS – The eurozone decided to grant Greece a second bailout, but this does not mean that the country received a wallet full of money and that the risk of default is gone. Greece and its political elites need sober determination to implement socially difficult reforms also after the April elections. The Union … Continue reading

‘The Problem Has Only Been Deferred’

Nearly 86 percent of private investors have agreed to join in the debt-swap deal that will help Greece avoid an uncontrolled default. But is that good news? Many experts have their doubts. In a SPIEGEL ONLINE interview, economics professor Harald Hau argues that not only will the plan put the burden on taxpayers, but it will mean an … Continue reading

Is Greece a Failed State?

Two years ago, Greece’s Prime Minister George Papandreou compared his country’s travails to “a new Odyssey.” Since then, about half a million Greeks have lost their jobs, tens of thousands of businesses have closed, the economy has shrunk by more than a tenth, Athens has witnessed several riots, and Papandreou’s government has collapsed. If Greece … Continue reading

Eman El-Shenawi: The Eurozone’s coup d’état in Greece is complete

Greece has not been bailed out; the eurozone has. This is an agonizing point analysts are continuing to drum home to a world which eagerly follows the thespian events in the country’s debt saga. Last week, Greece was readying itself to endorse a debt swap with private bondholders to slice €100 billion off the country’s … Continue reading