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Posts tagged ‘European Union’

Greece Slams EU Bailout-ers: “We Don’t Want The $7 Billion, We Want To Rethink The Whole Program”

 greece_elections_victory

UPDATE: “CONSTRUCTIVE TALKS” are over:

  • *GREECE’S VAROUFAKIS SAYS WILL NOT ASK FOR BAILOUT EXTENSION
  • *VAROUFAKIS SAYS WILL NOT ACCEPT SELF-PERPETUATING CRISIS
  • *VAROUFAKIS SAYS DISCUSSED EURO AREA, NEW DEAL FOR GREECE
  • *DIJSSELBLOEM SAYS UNILATERAL STEPS IS NOT THE WAY FORWARD
  • *DIJSSELBLOEM SAYS GREECE SHOULD CLARIFY ITS POSITION (we think they did!)
  • *GREECE’S VAROUFAKIS SAYS WILL CONVINCE EU PEERS ON NEW DEAL

As Eurogroup chief Jeroen Dijsselbloem (of “template” foot in mouth infamy) heads to Athens for talks today, Bloomberg reports the new Greek Finance Minister Yanis Varoufakis has a clear message for his European overlords of the past: “We don’t want the 7 billion euros…We want to sit down and rethink the whole program.” While this exposes the nation’s banking system to further runs, yesterday’s revelation that Russia could step in with financing should they need it, leaves Dijsselbloem and Shulz with less and less leverage even as Spain’s chief economic advisor warns, if Greece doesn’t play along, “there will be problems on all fronts.”

“Will Greece antagonize the European union? If they don’t there won’t be any problems,” Alvaro Nadal, chief economic adviser to the Spanish prime minister, said in a radio interview in Madrid on Friday. “If they do, there will be, on all fronts.”

And, as Bloomberg reports, that is what Greece’s new government is doing (as they promised the people),

Finance Minister Yanis Varoufakis said he’s not interested in persuading Greece’s official creditors to release the final 7 billion euros ($8 billion) of bailout funds as Eurogroup Chief Jeroen Dijsselbloem headed to Athens for talks on Friday.

 

Greece wants to agree a new plan shifting from spending cuts to combating corruption and boosting public investment. The proposal hinges on the euro area and the European Central Bank agreeing to write down Greece’s public debt, a suggestion that has been met with skepticism by officials across the rest of Europe.

 

“We don’t want the 7 billion euros,” Varoufakis said in an interview with the New York Times published late on Thursday. “We want to sit down and rethink the whole program.”

 

 

“In all honesty, if you sum up all their promises then the Greek budget will very quickly be out of balance and then further debt relief won’t help anyway,” Dijsselbloem said in Amsterdam on the eve of his trip. “We want to keep Greece in the euro zone, in the European Union, but that also requires the Greeks to meet their commitments.”

Things are not going well…

European Parliament Martin Schulz confirmed the divide between Tsipras and the rest of Europe after two hours of talks with the Greek leader in Athens on Thursday.

full article at source:http://www.zerohedge.com/news/2015-01-30/greece-slams-eu-bailout-ers-we-dont-want-7-billion-we-want-rethink-whole-program

How The German Minimum Wage And Investment Could Help The Eurozone

by

The new German government has now started work in earnest following its formation just before Christmas. As ministers get to work on their projects the big question is whether there will be significant policy changes and what impact such changes would have on Germany and the still unresolved Eurozone crisis. The short answer is that there will be positive change but much more should be done.

The sobering part is that in terms of redesign of the Eurozone quick progress is as unlikely as it was last year. The coalition treaty only makes brief and unambitious references to the malaise of the European Union, which means that we are stuck with imperfect solutions for the foreseeable future. Shared debt liability is explicitly ruled out and there is also no fundamental shift away from the austerity policies that have created so much damage in many European countries.

The ECB’s OMT, currently under investigation by the German constitutional court, has provided some crisis relief but the time bought has not been used to push forward necessary institutional reforms. What is proclaimed as a banking union will include a common supervisor for big banks but no joint bank resolution fund or a joint deposit insurance scheme. Therefore the fundamental objective – breaking the vicious link between financial sector vulnerability and the solvency of governments – will not be achieved…………………….

full article at source: http://www.social-europe.eu/2014/01/german-minimum-wage/

Facebook isn’t our friend

by David Cronin

A few days ago, I was told by the organisers of a “social media” festival that the hashtag was my “new best friend“. As I’ve never hugged a hashtag or cried on the shoulders of one, I felt it was important to question this “wisdom”.

Like millions of others, I’m addicted to Facebook and, to a lesser degree, Twitter. I check these websites so frequently that I often forget they are owned by vast corporations.

Some of these firms’ activities are inherently anti-democratic.

Facebook’s Brussels office is headed by Erika Mann, a former German member of the European Parliament. She has long fought to enable the interests of big business triumph over those of ordinary people.

During her 15 years as an MEP, Mann continuously advocated that the European Union should liberalise its trade with the United States.

At one point, it seemed that her calls were being ignored by political leaders on both sides of the Atlantic. All that changed in February this year, when Barack Obama expressed his support for such an agreement during his State of the Union address. Talks aimed at reaching a very broad trade and investment deal were formally launched in July.

Now wearing her Facebook hat, Erika Mann is still extolling the apparent virtues of “free” trade at every available opportunity.

In April, she spoke at a conference in Dublin, where Facebook’s international headquarters are located. Mann argued that it would be “extremely important” for an eventual deal to make the standards faced by internet companies in the EU and US “more…. coherent”.

full article at source:http://blogs.euobserver.com/cronin/

comment:

DSCN0872

A Well written piece, thank you!

I Have long left Facebook or I have been frozen out, the fact is I cannot gain access even though I have tried to contact them here in Ireland and as mentioned in the above article there HQ in Dublin it remains impossible to contact them .But then they are not known to be user friendly: As a multi corporation using the TAX Haven that is Ireland, this company is forcing the Irish taxpayers pay the Taxes they should be paying! For every euro these corporate leeches don’t pay into the coffers of our corrupt and lying Government, we the people must stump up the difference! No wonder our natural resources are been plundered!

Wake up Ireland these multi National corporations are nothing more that leaches sucking us dry!

Russia and Europe Battle for Ukraine

By Stephen_Lendman

Ukraine matters. It’s strategically located. It’s in Europe’s geographic center. It borders seven countries.

In alphabetical order, they include Belarus, Hungary, Moldova, Poland, Romania, Slovakia and Russia. After Western/Central Russia, it’s Europe’s largest country territorially.

It’s resource rich. Zbigniew Brzezinski once said “without Ukraine, Russia ceases to be an empire, but with Ukraine suborned and then subordinated, Russia automatically becomes an empire.”

Recently he said if Russia ever reunites with Ukraine, it’ll be a Eurasian powerhouse. If Ukraine allies with Western Europe, Moscow will be significantly weakened geopolitically.

The battle for Ukraine continues. Its future is up for grabs. A previous article said street protests are manipulated.

Washington’s dirty hands are involved. Young militants were recruited. They’re street thugs. They’re up to no good. They’re paid to protest. Radical nationalists joined them. Ukraine’s future is at stake.

On Tuesday, mixed reports surfaced. President Viktor Yanukovych was quoted saying:

“We cannot talk about the future without talking about restoring trade relations with Russia.” He stressed a “future treaty on strategic partnership.”

Does he or does he not mean a Customs Union? Agreeing to one rules out an EU alliance. It’s one or the other, not both.

At the same time, he repeated what he said earlier. He favors European integration. On December 10, Voice of Russia(VOR) headlined “Yanukovych approves plan to sign Ukraine-EU agreement in March 2014.”

Former Ukrainian President Leonid Kravchuk announced it. So did Yanukovych. He did so after meeting with three former Ukrainian presidents – Kravchuk, Leonid Kuchma, and Viktor Yushchenko.

“We have sent the government a task to speed up this work,” said Yanukovych.

“As soon as we reach an understanding and such a compromise is achieved, it will be signed.”

“I have said repeatedly that since 1997, the program of the Party of Regions has had the integration of Ukraine into European space as a strategic objective.”

On December 11, a First Deputy Prime Minister Serhiy Abruzov-led delegation left for Brussels.

Work on the “joint Ukrainian-EU working group” will begin, said Yanukovych.

full article at source: http://www.marketoracle.co.uk/Article43540.html

Perfect Storm Brewing for Ireland’s Economy

By Global_Research

Caoimhghin Ó Croidheáin writes: “We are now mainly borrowing to pay interest on the burgeoning national debt”[1]

While much has been made recently of Ireland’s exit from the punishing EU/IMF bailout programme, Michael Noonan, the Finance Minister, has welcomed post-bailout ‘surveillance’. Dutch Finance Minister Jeroen Dijsselbloem, said Ireland would be subjected to ‘intensive surveillance’ “twice a year, but this would involve monitoring as supposed to new measures being imposed” because “under new European budgetary rules, countries leaving a bailout will be subject to extra attention until at least 75pc of the money owed is repaid.”[2]

The Taoiseach (Prime Minister), Enda Kenny, has even gone so far as to state that Ireland would exit the bailout without the safety net of a credit line. Unfortunately for him Ireland’s economic crisis will not go away that easily. The economic consequences of the bailout may be about to bounce back and hit him in the face. Interest repayments are already taking a huge chunk out of the economy and the Irish people will be paying back EU [EFSF and EFSM] loans until 2042 and IMF loans until 2023. A fundamental economic crisis is in the making.

In 2007 Ireland’s general government debt was €47.2bn. It is estimated to be more than quadrupled to €205.9bn by the end of 2013.  As the debt has grown so have the interest repayments. In 2012 the ‘underlying’ deficit (deficits excluding direct payments to banks) was €-13.5bn of which €-6.7bn was interest repayments showing that interest repayments grew to become 50% of the deficit compared to 2008 when the deficit was €-13.2bn of which €-2.4bn was interest repayments. [See table below]
UnderlyingDeficits[5]

[Underlying Balance = Primary Balance + Cash Interest + Prom Note Interest]

http://economic-incentives.blogspot.ie/2012/03/changing-nature-of-our-budget-deficits.html

Even the somewhat positive projections for 2014 show that all the money to be borrowed, €8.3bn, is to be spent on interest repayments.

Ireland’s low corporation tax of 12.5%, and therefore a low corporation tax take, means that ordinary taxpayers are expected to make up the shortfall. For example, in 2012, the combined figure for income tax and VAT was €25.35bn while corporation tax came to €4.22bn. [See table below]

Fiscal-Table1_2

full article at source: http://www.marketoracle.co.uk/Article43172.html

Beware of German (KfW) Bearing Gifts?..

by

As reported in today’s press, Ireland has secured a sort-of backstop to its exit from the bailout via an agreement with Germany‘s state- and local authorities-owned KFW Development Bank (see: http://www.irishtimes.com/news/politics/kfw-is-a-public-bank-providing-development-loans-at-lower-interest-than-commercial-rates-1.1595460 and http://www.irishexaminer.com/ireland/bailout-a-calculated-political-gamble-that-just-might-not-pay-off-249727.html). This was blessed by Germany (http://www.independent.ie/business/irish/merkel-backs-ireland-bailout-exit-without-overdraft-29754656.html). And it may or may not qualify as a backstop for the Exchequer (see speculative analysis here: http://www.irishexaminer.com/archives/2013/1115/ireland/bailout-exit-declaration-exaggerated-half-truth-249716.html).
One can only speculate as to the possible conditionalities imposed by Angela Merkel and her potential coalition partners on Ireland under the exit deal, but here’s an interesting parallel development that has been unfolding in recent weeks……

full article at source: http://trueeconomics.blogspot.ie/

The Bank Guarantee That Bankrupted Ireland

By: Ellen_Brown

The Irish have a long history of being tyrannized, exploited, and   oppressed—from the forced conversion to Christianity in the Dark Ages,   to slave trading of the natives in the 15th and 16th centuries, to the mid-nineteenth century “potato famine” that was really a holocaust.   The British got Ireland’s food exports, while at least one million   Irish died from starvation and related diseases, and another million or   more emigrated.

Today, Ireland is under a different sort of tyranny, one imposed by the banks and the troika—the   EU, ECB and IMF. The oppressors have demanded austerity and more   austerity, forcing the public to pick up the tab for bills incurred by   profligate private bankers.

Ireland bankrupt

The official unemployment rate is 13.5%—up from 5% in 2006—and this   figure does not take into account the mass emigration of Ireland’s young   people in search of better opportunities abroad. Job loss and a flood   of foreclosures are leading to suicides. A raft of new taxes and charges   has been sold as necessary to reduce the deficit, but they are simply a   backdoor bailout of the banks.

At first, the Irish accepted the media explanation: these draconian   measures were necessary to “balance the budget” and were in their best   interests. But after five years of belt-tightening in which unemployment   and living conditions have not improved, the people are slowly waking   up. They are realizing that their assets are being grabbed simply to pay   for the mistakes of the financial sector.

Five years of austerity has not restored confidence in Ireland’s   banks. In fact the banks themselves are packing up and leaving. On   October 31st, RTE.ie reported that Danske Bank Ireland was closing its personal and business banking,   only days after ACCBank announced it was handing back its banking   license; and Ulster Bank’s future in Ireland remains unclear………………………………….

full article at source: http://www.marketoracle.co.uk/Article42958.html

ECB to start bank stress tests in November

By MarketWatch

FRANKFURT–The European Central Bank in November will begin a thorough review of the balance sheets of 130 financial institutions from Latvia to Germany, opening a year-long process aimed at removing doubts about the strength of European banks and restoring credit to the private sector.

“Capital shortfalls identified for viable banks should, first and foremost, be made up with private sources of capital,” the ECB said in its report, noting that should that not be sufficient, “public backstops might need to be drawn upon.”

-Todd Buell contributed to this article.

Write to Brian Blackstone at brian.blackstone@wsj.com and Christopher Lawton at christopher.lawton@wsj.com

full article at source: http://www.marketwatch.com/story/ecb-to-start-bank-stress-tests-in-november-2013-10-23

 

Comment:

 

By Thomás Aengus O Cléirigh

AAAA

The Irish Banks in my opinion(Allied Irish Bank and Bank of Ireland are “Broke”:  these zombie banks and have little or no capital, they have hidden derivative losses not to mention enormous mortgage losses and are going to have to get further capital injections and the Irish government doesn’t have the means to recapitalize these toxic banks so the  highlighted section in the article is a clear indication that a smash and grab is been prepared on the depositors of these two banks.

“Capital shortfalls identified for viable banks should, first and foremost, be made up with private sources of capital,” the ECB said in its report, noting that should that not be sufficient, “public backstops might need to be drawn upon.”

So how much money are we talking about? well placed sources indicate that a shortfall of 10 Billion Euros in the magic number .So we can expect a 25-45% contribution from the banks depositors and expect no warning this is likely to be announced over a holiday weekend and reassurances from political puppets and central bankers will be forthcoming just before they pounce on the gullible depositors.

Get you hard earned savings out of these corrupt toxic banks before they get their greedy hands on it!

You have been warned!

see also:http://www.zerohedge.com/contributed/2013-09-07/exactly-i-warned-cyprusization-goes-mainstream-ireland-tap-next-citizen-fund

see also: http://www.zerohedge.com/contributed/2013-10-10/lies-damn-lies-and-eu-confiscation-greek-sovereignty-masked-bailout-never-hap

 

 

 

 

 

 

Let’s talk about tax.

By David Mc Williams

On Friday, both the Financial Times and the New York Times carried banner pieces criticising how Ireland is being used and, more to the point, is allowing itself to be used as part of a large tax avoidance scheme. Opinion is shifting against Ireland’s corporate tax system. And we are talking about the Financial Times and the New York Times – hardly the Worker’s Hammer or Militant.

Added to this, we have reports that the Irish corporate tax system might be a sticking point in the on-going German coalition talks as the left-leaning Social Democrats is demanding tax harmonisation in return for access to future EU bank bailout funds. Right across the political spectrum – left to right – momentum is moving against the way in which Ireland taxes its foreign corporations.

Not that long ago, at the G20 in Enniskillen, the world’s head honchos said that they would act together to level the playing field for corporation tax to prevent companies abusing tax shelters…………………

full article at source: http://www.davidmcwilliams.ie/2013/10/14/lets-talk-about-tax

Comment:

By Thomás Aengus O Cléirigh

AAAA

The  Irish government’s attempt to re-invent the toxic banks as “Pillar community friendly banks” is just a farce. The Banks latest advertisement that floods our TV screens is insulting and an attempt to dumb down the citizens of Ireland. These toxic corrupt dens should be closed down and the directors should be doing jail time. But there is a more sinister problem here on our door step and it is in the IFSC in Dublin.

Did you know that there is approximately 1.4 trillion Euros on deposit and under Management in the various Fund management companies in the IFSC? Now I myself have two bank accounts one in Bank of Ireland and one at Allied Irish Bank and I estimate I am paying about 2.5% in costs every year (taxes) for the privilege of having these two bank accounts. I suspect that everybody else in Ireland is paying the same through the dirt tax and penal bank charges, but what taxes are the super rich paying to hide the billions in the ISFC off shore tax haven? “Nothing”. Not a single penny, No Taxes!

Remember every euro the government gives away to these billionaires they squeeze out of our health service, our educational system and our community services. Want to know why your taxes are going up in the next budget? Easy the puppet government is giving tax concessions to the likes of all these multinational corporations. Remember that when you get your water charges, your property tax etc you are paying Google’s and Apple’s taxes for them!and dont get me started on the corrupt tax avoidance scams down at Europe’s largest hot money centre the IFSC

What a great bunch of suckers we really are!  Time to get these leaches to pay their proper taxes!

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