• Tag Archives Germany
  • After Brexit: Germany and the EU Will Look to Asia

    Britain’s general election went horribly wrong, with the Conservatives forced into a putative coalition with the Democratic Ulster Party. Theresa May’s failure to secure a clear majority has provoked indignation, bitterness, and widespread pessimism. The purpose of this article is not to contribute to this outcry, but to take a more measured view of the situation faced by the British government with regards to Brexit, and the consequences for Europe. In the interests of an international readership, this article will only summarise briefly the current situation in the UK before looking at the broader European and geopolitical consequences.
    While it would be wrong to dismiss the precariousness of Mrs. May’s position, there are some positive factors, which are being generally ignored. Most importantly, Brexit negotiations are due to start next week. These negotiations matter more than anything else on the government’s agenda, so are a unifying force. Mrs. May recognises this, which is why she has brought Michael Gove back into the cabinet (as Environment Secretary), and Steve Baker as a minister in the Brexit ministry. Gove is a committed Brexiteer with a track record as a capable minister, and Baker was the motivating influence behind the parliamentary campaign for Brexit.
    All ambitions to replace Mrs May are being put to one side in favour of Brexit. This message of unity has been endorsed by Conservative MPs. They will be regularly updated with developments in future, to keep them onside. There are already signs that the government is reaching out to the opposition as well. This has been read as a separate negotiation, potentially leading to a softer Brexit. While it is dangerous to prejudge the outcome, this is probably incorrect: the purpose is more likely to keep the Labour Party leadership fully briefed on both progress and the rationale behind negotiation tactics.

    This post was published at Ludwig von Mises Institute on June 20, 2017.


  • German Politicians Hammer the ECB, But Only to Get Votes

    They know: the Eurozone would plunge into a sovereign debt crisis all over again, only worse this time.
    By Don Quijones, Spain & Mexico, editor at WOLF STREET. These days it’s easy to tell when general elections are approaching in Germany: members of the ruling government begin bewailing, in perfect unison, the ECB’s ultra-loose monetary policy. Leading the charge this time was Finance Minister Wolfgang Schaeuble, who on Tuesday urged the ECB to change its policy ‘in a timely manner’, warning that very low interest rates had caused problems in ‘some parts of the world.’
    Werner Bahlsen, the head of the economic council of Merkel’s CDU conservatives, was next to take the baton. ‘The ongoing purchase of government bonds has already cost the European project a great deal of credibility and has damaged it,’ he said. ‘The ECB can only regain trust with the return to a sound monetary policy.’
    As Schaeuble and Balhsen well know, that is not likely to occur any time soon. Indeed, like all other Eurozone finance ministers, Schaeuble is benefiting handsomely from the record-low borrowing costs made possible by the ECB’s negative interest rate policy. But by attacking ECB policy he and his peers can make it seem that they take voters’ concerns about low interest rates seriously, while knowing perfectly well that the things they say have very little effect on what the ECB actually does.

    This post was published at Wolf Street on Jun 18, 2017.


  • Conservatives Prepare “Secret Plot” To Oust UK’s May If She Backs Off “Hard Brexit”

    The walls are closing in on UK’s embattled prime minister Theresa May, who after the disastrous outcome in the general election, and following a torrid week in which she faced fierce criticism for her handling of the Grenfell Tower catastrophe, in which 58 people are now presumed dead, is reportedly facing what the Telegraph calls a “secret plot” – well, not so secret any more – involving a “stalking horse” challenge to remove her as prime minister if she caves to Labour demands, and waters down the “Hard Brexit.”
    With the NYT reporting that “’Soft Brexit’ Forces Rise in Britain on the Eve of Talks” scheduled for Monday, (despite 70% of Britons still supporting Brexit according to a Thursday YouGov poll), the Telegraph reports that according to leading Eurosceptic MPs they are prepared to mount an immediate leadership challenge if Mrs May deviates from her original plan. The British publication adds that “conservative MPs – including Cabinet ministers – have concluded that Mrs May cannot lead them into the next election and they are now discussing when she could go.
    Fearing that the chorus of “soft Brexit” demands rising across the UK following May’s sudden weakness, while Germany’s economy minister Brigitte Zypries going so far as telling Reuters that an outright “reversal of Britain’s decision to leave the European Union would be great,” Eurosceptic MPs have warned that any attempt to keep Britain in the customs union and single market or any leeway for the European Court of Justice to retain an oversight function will trigger an ‘overnight’ coup.

    This post was published at Zero Hedge on Jun 17, 2017.


  • JUNE 16/DEPT OF JUSTICE SHENANIGANS/NY FED LOWERS ESTIMATE OF 2ND QUARTER GDP TO 1.8%/GOLD RISES $1.80 BUT SILVER LOSES 5 CENTS/ FOR THE 12TH CONSECUTIVE DAY, THE AMOUNT OF SILVER STANDING AT THE…

    GOLD: $1254.00 UP $1.80
    Silver: $16.64 DOWN 5 cent(s)
    Closing access prices:
    Gold $1253.40
    silver: $16.67
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME) SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1260.95 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1252.61
    PREMIUM FIRST FIX: $8.34

    This post was published at Harvey Organ Blog on June 16, 2017.


  • Brexit, Germany and Asia

    Britain’s general election went horribly wrong, with the Conservatives forced into a putative coalition with the Democratic Ulster Party. Theresa May’s failure to secure a clear majority has provoked indignation, bitterness, and widespread pessimism. The purpose of this article is not to contribute to this outcry, but to take a more measured view of the situation faced by the British government with regards to Brexit, and the consequences for Europe. In the interests of an international readership, this article will only summarise briefly the current situation in the UK before looking at the broader European and geopolitical consequences.
    While it would be wrong to dismiss the precariousness of Mrs May’s position, there are some positive factors, which are being generally ignored. Most importantly, Brexit negotiations are due to start next week. These negotiations matter more than anything else on the government’s agenda, so are a unifying force. Mrs May recognises this, which is why she has brought Michael Gove back into the cabinet (as Environment Secretary), and Steve Baker as a minister in the Brexit ministry. Gove is a committed Brexiteer with a track record as a capable minister, and Baker was the motivating influence behind the parliamentary campaign for Brexit.

    This post was published at GoldMoney on JUNE 15, 2017.


  • Sharps Pixley Sees a 252 pct Increase in Physical Gold Demand — Ross Norman

    The elections leading to a hung parliament in the U.K. have seen a rush into physical gold by investors, as the country slips into a political vacuum. The uncertainty both in the U.K. and indeed geopolitical concerns across the globe have fed into firmer gold prices which have risen 11 pct so far in 2017 in international markets.
    Sharps Pixley report they have been inundated with investor interest with a 252 pct increase in gold demand year-on-year (May 2016 vs. May 2017) ; the business has run out of some bullion products and they are again flying in fresh metal from Switzerland and Germany in order to replenish stocks. In the June month-to-date they are on track to break all records.
    Speaking of the physical demand, Ross Norman, the CEO of Sharps Pixley commented “Sharps Pixley is the first business on the high street to make physical gold readily accessible and prominent – in our first year of business we have attracted about 40m of client interest ; the current bout of buying however is exceptional and the uncertainty surrounding UK politics has prompted a rush to safe haven assets“. He added “a sharp decline in sterling is a big win for British gold buyers and only today the price has risen above the important 1,000 per ounce level.”
    “Physical gold is not just for the privileged few and the breadth of demand demonstrates that it remains a fantastic way for ALL investors to protect their wealth. Gold in sterling has risen by 470% since 2000, that’s over 11 pct a year compounded – that’s about three times the average U.K. property over the last 16 years” enthused Norman. “In addition, investments are devoid of VAT and can be capital gains tax free and the difference between the buying and selling price is competitively priced … why wouldn’t you invest ?”
    In short, physical gold may be a “minority sport” but it has certainly demonstrated a track record in serving investors well.

    This post was published at Sharps Pixley


  • Germany Continues to Bring Its Gold Home

    Germany continues to bring its gold home.
    In early 2013, the Bundesbank announced a plan to repatriate massive amounts of its physical gold reserves back into Germany. The goal is to have half of its gold back within the country’s borders by 2020. At nearly 3,400 tons, Germany’s gold reserves currently rank as the second-largest in the world.
    According to Handelsblatt Global, a scare in 2012 led to the decision to bring the gold home. The sovereign debt crisis in the eurozone that year led many analysts to question the safety of the country’s reserves. In fact, financial controllers said they weren’t even sure all of Germany’s overseas gold holdings existed. The Federal Audit Office demanded the central bank make regular spot checks to ensure its gold reserves abroad were ‘physically counted and their authenticity and weight’ confirmed.
    Germany began aggressively ramping up its repatriation program in 2014. The German central bank brought home 120 tons of gold that year. In 2015, Germany’s Bundesbank transferred more than 210 tons of gold back into the country from vaults in Paris and New York. According to the Financial Times, with the 2015 transfers, Frankfurt became the largest storage location for the country’s reserves after New York. The repatriation continued in 2016, with more than 100 additional tons of gold coming back into the country.

    This post was published at Schiffgold on JUNE 12, 2017.


  • It’s Confirmed: Without Government Subsidies, Tesla Sales Implode

    According to the latest data from the European Automobile Manufacturers Association (ACEA), sales of Electrically Chargeable Vehicles (which include plug-in hybrids) in Q1 of 2017 were brisk across much of Europe: they rose by 80% Y/Y in eco-friendly Sweden, 78% in Germany, just over 40% in Belgium and grew by roughly 30% across the European Union… but not in Denmark: here sales cratered by over 60% for one simple reason: the government phased out taxpayer subsidies.
    ***
    As Bloomberg writes, and as Elon Musk knows all too well, the results confirm that “clean-energy vehicles aren’t attractive enough to compete without some form of taxpayer-backed subsidy.”
    The Denmark case study is emblematic of where the tech/cost curve for clean energy vehicles currently stands, and why for “green” pioneers the continued generosity of governments around the globe is of absolutely critical importance, and also why Trump’s recent withdrawal from the Paris Climate Treaty is nothing short of a business model death threat.
    To be sure, Denmark’s infatuation with green cars is well-known: the country’s bicycle-loving people bought 5,298 of them in 2015, more than double the amount sold that year in Italy, which has a population more than 10 times the size of Denmark’s. However, those phenomenal sales figures had as much to do with price and convenience as with environmental concerns: electric car dealers were for a long time spared the jaw-dropping import tax of 180 percent that Denmark applies on vehicles fueled by a traditional combustion engine.

    This post was published at Zero Hedge on Jun 11, 2017.


  • Italy’s 5-Star Party Demands Immediate Elections After Failure Of Electoral Reform

    Not everyone is satisfied with today’s news that Italy’s early elections will likely be pushed back. Italy’s anti-establishment 5-Star Movement called on Thursday for immediate national elections after the previously reported deal on electoral reform – which would have resulted in the next Italian elections taking place in September, at the same time as Germany’s – among the major parties unraveled.
    “There is no chance of starting all over again. The legislature should end here and we should hold immediate elections,” said Luigi Di Maio, who is widely expected to be the 5-Star’s candidate for prime minister. He spoke shortly after the lower house voted to send the electoral reform bill back to a cross-party commission for further discussion.

    This post was published at Zero Hedge on Jun 8, 2017.


  • The ECB Has Almost Run Out Of German Bonds To Buy

    One month ago, when looking at the sudden change in ECB bond purchasing patterns, especially of German Bunds, we reported that the central bank may have as little as 4 months of space left in its PSPP program when it comes to German bond purchases. The first thing that caught our eye was that based on calculations from ABN Amro’s Kim Liu, the ECB bought roughly 400 million fewer bonds in Germany in April than its rules allow, suggesting a severe scarcity of eligible bonds.
    “It was by far the largest deviation, at least for Germany, and for me suggests that on top of the political stress and smoothing of purchases, there are scarcity constraints for the Bundesbank,” said Pictet’s senior economist Frederik Ducrozet. “What it means is that the ECB has to be very cautious with its exit and if they don’t taper within less than six months (of ending the programme) something might have to give.”
    In addition to the sharp drop in nominal purchases, the ECB data also revealed that in just six months the average maturity of monthly German debt purchases by the ECB has dropped to under five years from more than 10.

    This post was published at Zero Hedge on Jun 6, 2017.


  • Trump Talks Tough on Trade, but His Team Is Treading Lightly

    President Trump has called the Trans-Pacific Partnership deal a ‘rape’ of the United States. He has scolded Germany for being ‘very bad’ on trade because it runs a surplus. And in April he said that he was ‘psyched’ to terminate the North American Free Trade Agreement with Canada and Mexico, only to reverse course.
    Despite Mr. Trump’s incendiary talk, his top trade advisers are taking a more cautious approach to dealing with America’s trading partners, striking a more moderate tone than the president but still laying the groundwork for the changes he has promised.
    That more moderate tone has come as a relief to those who feared the Trump administration would swiftly usher in a wave of protectionism, while disappointing some people who hoped that a sweeping rewrite of trade deals would come in the administration’s early days.
    Signs of greater moderation were on display this week when Wilbur Ross, the secretary of commerce, suggested that the administration would actually try to build off some aspects of the Trans-Pacific Partnership trade agreement, or T.P.P., that Mr. Trump abandoned in January as NAFTA renegotiations begin this summer.

    This post was published at NY Times


  • Qatar Crashes In Escalating Gulf Crisis; Oil Fails To Rebound As Global Stocks Dip

    S&P futures point to a slightly lower open ahead of today’s US non-mfg ISM and Service PMI data. European shares fall, while Asian shares are little changed. Several European countries, including Germany, are closed for Whit Monday leading to subdued trading. Crude futures have reversed overnight gains following the latest unexpected Gulf Crisis overnight, in which Gulf nations cut all diplomatic relations with Qatar amid striking allegations of funding terrorism, as reported overnight.
    ***
    Looking at other asset classes, the AUD/USD continues grinding higher after a stronger than expected Chinese services PMI and inventories data reduces chances of negative GDP print, iron ore futures +2.0%; GBP/USD fills gap to Friday close, after opening lower in Asia following Saturday’s attacks Bloomberg observes. European equity markets lower from the open, oil-related stocks underperform given heightened political uncertainty. Banco Popular in Spain trades -11% after reports of liquidity pressure due to deposit withdrawals. Core fixed income markets edge lower, German long-end steepens, some focus on wage pressures within PMI data. MXN leads EMFX higher as ruling party is projected to win state election.

    This post was published at Zero Hedge on Jun 5, 2017.


  • Germany Faces Wave Of Muslim Honor Killings

    Authored by Soeren Kern via The Gatestone Institute,
    The court heard how Amer K. stabbed the mother of his three children in the chest and neck more than twenty times with a large kitchen knife, because he thought she wanted to divorce him. “Then he takes the knife and plunges it into her chest, [penetrating] the pericardium and heart muscle. A second stab opens the left abdominal cavity. Nurettin B. then pulls out the ax. With the blunt side he hits her head, cracking her skull. Then he grabs the rope. On one end he ties a gibbet knot around her neck, then he ties the other end to the trailer hitch on [his car]… He races through the streets at 80 km/h [until] the rope breaks.” – State Prosecutor Ann-Kristin Frhlich, reconstructing the husband’s actions. In Ahaus, a 27-year-old Nigerian asylum seeker stabbed to death a 22-year-old woman after she seemingly offended his honor by rejecting his romantic advances. The trial of a Kurdish man who tied one of his three wives to the back of a car and dragged her through the streets of a town in Lower Saxony has drawn attention to an outbreak of Muslim honor violence in Germany.
    Honor violence – ranging from emotional abuse to physical and sexual violence to murder – is usually carried out by male family members against female family members who are perceived to have brought shame upon a family or clan.
    Offenses include refusing to agree to an arranged marriage, entering into a relationship with a non-Muslim or someone not approved by the family, refusing to stay in an abusive marriage or living an excessively Western lifestyle. In practice, however, the lines between crimes of honor and crimes of passion are often blurred and any challenge to male authority can elicit retribution, which is sometimes staggeringly brutal.

    This post was published at Zero Hedge on Jun 2, 2017.


  • Soros: The European Union Is Now In An “Existential Crisis” And Trump’s America Is A “Hostile Power”

    Commenting on the current state of the European experiment, George Soros warned the European Union has plunged it into an existential crisis as a result of “dysfunctional” institutions and austerity mandates, and will require the bloc to reinvent itself to survive. Speaking at the Brussels Economic Forum, the billionaire investor said the EU had “lost its momentum” as he urged policymakers to abandon hopes of “ever closer union” driven by a top-down approach from Brussels, a statement which will likely displease Germany.
    “The European Union is now in an existential crisis,” Soros told a Brussels audience. “Most Europeans of my generation were supporters of further integration. Subsequent generations came to regard the EU as an enemy that deprives them of a secure and promising future.”
    Just a day after Brussels published a paper mapping out its vision of eurozone integration, Mr Soros warned that the single currency area had become “the exact opposite of what was originally intended” according to the Telegraph.
    Quoted by CNBC, Soros said Europe’s “reinvention would have to revive the support that the European Union used to enjoy.” The reinvention would have to review past mistakes and explain what went wrong, and make proposals to make things right.

    This post was published at Zero Hedge on Jun 1, 2017.


  • Here Are The Seven “Black Swans” SocGen Believes Could Shock Global Markets

    As part of its periodic Global Economic Outlook, SocGen traditionally includes a discussion of what it views are the biggest “black swans” both to the upside and the downside, and the latest just released edition titled “On a Plateau”, which took a rather grim outlook to the world economy predicting that a US recession will likely hit in the not too distant future while “China, South Korea, Australia, US, Germany, UK and Japan are in the more mature phase of the cycle”, and that current global growth is “essentially as good as it gets”…
    ***
    … was no different.
    Which particular black swan is at the top this time?
    As author Michala Marcussen writes, “to our minds, policy is the main potential source of both upside and downside risk, be it with respect to fiscal expansion, trade policies, wage outcomes, euro area reform or monetary policy. As China tightens policy, what happens next in the US has become critical, we look for modest US tax cuts but believe that, Trumpflation insufficient to offset fading Xiflation. Without tax cuts, the US economy could well slow more substantially as early as 2H18.”

    This post was published at Zero Hedge on May 31, 2017.


  • Stocks and Precious Metals Charts – Swing Fever

    Swing Kids – The Swing Kids (German: Swingjugend) were a group of jazz and swing dance fans in Germany in the 1930s, primarily in the port city of Hamburg and Berlin. They were 14 to 21-year-old boys and girls. They admired the British and American youth culture, defining themselves with swing music as opposed to the National-Socialist fashions and behaviours, especially those of the Hitler Youth (German: Hitlerjugend).
    Their dress consisted of long, often checked English sports jackets, shoes with thick light crepe soles, showy scarves, Anthony Eden hats, an umbrella on the arm whatever the weather, and, as an insignia, a dress-shirt button worn in the buttonhole, with a jeweled stone. The girls too favored a long overflowing hair style. Their eyebrows were penciled, they wore lipstick and their nails were lacquered.
    The Swingjugend rejected the Nazi state, its ideology and uniformity, its militarism, the ‘Fhrer principle’ and the conformity of the Volksgemeinschaft (people’s community). They rebelled against all this restriction of personal freedoms with jazz and swing, which stood for a love of life, self-determination, non-conformism, freedom, independence, liberalism, and internationalism.
    On 18 August 1941, in a brutal police operation, over 300 Swingjugend were arrested. The measures against them ranged from cutting their hair and sending them back to school under close monitoring, to the deportation of the leaders to concentration camps. The boys went to the Moringen concentration camp while the girls were sent to Ravensbruck. This mass arrest encouraged the youth to further their political consciousness and opposition to National Socialism. They started to distribute anti-fascist propaganda. In January 1943, Gnter Discher, as one of the ringleaders of the Swing Kids, was deported to the youth concentration camp of Moringen.

    This post was published at Jesses Crossroads Cafe on 30 MAY 2017.


  • Italian Stocks Tumble, Yields Jump On Sudden Fears Of Early Elections

    Despite a promise last week by Italian Industry Minister, Carlo Calenda, that Italy would not have early elections this autumn, Italian stocks have tumbled to one month lows and the Italian bank sector is down 3% in Monday trading, its biggest one-day loss in nearly 4 months, with traders citing rising risks that the euro zone’s third largest economy could head to early elections in the autumn.
    The reason for the sudden concern is that in an interview on Sunday former Prime Minister Matteo Renzi suggested that Italy’s next election should be held at the same time as Germany’s, adding this made sense “from a European perspective.” Germany will vote on Sept. 24, while Italian elections are scheduled for May 2018, but speculation is mounting that Italians could head to the polls in the autumn. Renzi, leader of the ruling center-left Democratic Party, told Italy’s newspaper Il Messaggero that his party “would not ask for early elections, but is not afraid of them either”.
    After regaining the leadership of his PD party in late April, Renzi has favored early elections. He told Il Messaggero that it may be possible to reach an accord on a voting system modeled alongside Germany’s proportional model, as suggested by former center-right prime minister Silvio Berlusconi.
    “In theory yes, but we must be cautious,” Renzi said. “The German system would be a step forward in overcoming the current stalemate, but it’s not a solution to all problems. Having a coalition in power is very risky.”
    The possibility of a victory for the anti-establishment 5-Star Movement, which recent polls put neck and neck with PD at around 30 percent, has made Italy the biggest risk for the euro zone in the eyes of some investors.

    This post was published at Zero Hedge on May 29, 2017.


  • Eurasian Economic Transformation Goes Forward — F. William Engdahl

    At this juncture it’s clear that the attempt of the Trump Administration and related circles in the U.S. military industrial complex have failed in their prime objective, that of driving a permanent wedge between Russia and China, the two great Eurasian powers capable of peacefully ending the Sole Superpower hegemony of the United States. Some recent examples of seemingly small steps with enormous future economic and geopolitical potential between Russia and China underscore this fact. The Project of the Century, as we can now call the China One Belt One Road infrastructure development – the economic integration on a consensual basis by the nations of Eurasia, outside the domination of NATO countries of the USA and E.U. – is proceeding at an interesting pace in unexpected areas.
    1971: America’s Twilight Begins
    It’s very essential in my view to appreciate where the post-1944 development of America’s role in the world went seriously wrong. The grandiose project dubbed by Henry Luce in 1941 as the American Century, if I were to pick a date, began its twilight on August 15, 1971.
    That was the point in time a 44-year-old Under-Secretary of the Treasury for International Monetary Affairs named Paul Volcker convinced a clueless President Richard Milhous Nixon that the treaty obligations of the 1944 Bretton Woods Treaty on a postwar Gold Exchange Standard should be simply ignored. Volcker rejected the express mandate of the Bretton Woods Treaty which would have seen a devaluation of the dollar in order to rebalance world major currencies. By 1971 the economies of war-ravaged countries such as Japan, Germany and France had rebuilt at a significantly higher level of efficiency than the U.S.
    A devaluation of the dollar would have given a major boost to U.S. industrial exports and eased the export of dollar inflation in the world arising from Lyndon Johnson’s huge Vietnam War budget deficits. The de-industrialization of the USA could have thereby been avoided. Wall Street would hear none of that. Their mantra in effect was, ‘Nothin’ personal, just bizness…’ The banks began the destruction of the American industrial base in favor of cheap labor and ultra-high-profit manufacture abroad.
    Instead of correcting that at a point it could have had an enormously positive economic effect, Volcker advised Nixon to in effect spit on America’s international treaty obligations and to brazenly dare the world to do something about it. On Volcker’s advice, Nixon simply ripped the treaty in shreds and ended Federal Reserve redemption of dollars held by foreign central banks for U.S. gold reserves. The U.S. dollar overnight was no longer ‘as good as gold.’

    This post was published at New Eastern Outlook


  • Trump Slams “Very Bad” Germans For Selling Millions Of Cars In US: “We Will Stop This”

    A day after Trump stunned his fellow NATO leaders, shoving one of them out of the way for a photo-op and demanding that they “must do more” to offset defense costs which are mostly borne by the US, Trump lobbed another bomb at the European center-right consensus by renewing his attacks on the German auto industry during a closed door meeting with two high-ranking European Union officials, according to a report in German magazine Der Spiegel, that was picked up by Bloomberg and CNBC.
    Citing unidentified attendees, Spiegel quoted Trump as saying that ‘the Germans are bad, very bad’ and adding ‘look at the millions of cars that they sell in the U. S. Terrible. We’re going to stop that.’ The comments were said to have been made during a closed-door meeting with the EU President Jean-Claude Juncker and the European Council President Donald Tusk, who reportedly both stood up for Germany, according to CNBC.

    This post was published at Zero Hedge on May 26, 2017.


  • Greek Deal on Debt Relief Founders as Talks Stretch to June

    Euro-area finance ministers gathering in Brussels on Monday failed to break an impasse on debt relief for Greece, delaying the completion of the country’s bailout review and the disbursement of fresh loans needed to repay obligations in July.
    After nearly eight hours of talks and multiple draft compromises, Athens and its creditors couldn’t reach an accord that would ease Greece’s debt and that would convince the International Monetary Fund to agree to help finance the country’s bailout.
    ‘The Eurogroup held an in-depth discussion on the sustainability of Greece’s public debt but did not reach an overall agreement,’ said Jeroen Dijsselbloem, the Dutch finance minister who presides over meetings with his euro-area counterparts. Work will continue in the coming weeks with the aim of reaching a conclusion on June 15 at the next meeting of ministers, he said.
    The IMF has been seeking more debt relief for the country, pushing euro-area creditors to ensure the sustainability of Greece’s 315 billion ($354 billion) of obligations before it participates in the program. Some nations including Germany object to a debt restructuring while also insisting that the Washington-based fund join the program to lend credibility to the bailout.

    This post was published at bloomberg