Greece - German Parliament approves new Greek bailout plan

German lawmakers on Friday voted overwhelmingly in favour of a new bailout plan for Greece after German Chancellor Angela Merkel warned that Greece would face chaos without a deal.

The bailout of Greece took several big strides forward Friday after German lawmakers overwhelmingly gave their backing to another financial rescue and the European Union confirmed it would get Athens enough money to avoid an imminent debt default.

The developments, which capped a week in which Greece has cleared a string of hurdles, prompted a positive assessment from Europe's bailout fund. In a statement, the European Stability Mechanism said its board of governors approved a "decision to grant, in principle, stability support to Greece in the form of a loan program."

Though the broad outlines of the Greek bailout were agreed Monday by the eurozone's 19 leaders, the ESM's decision formally kick-starts the process by which Greece negotiates the nitty-gritty of its bailout program.

The discussions, which are expected to last four weeks, will include economic targets and reforms deemed necessary in return for an anticipated 85 billion euros ($93 billion) over three years.

Read more: Europe - German Parliament approves new Greek bailout plan - France 24

Greece: Eurozone sets Greece tough terms as euro exit looms

Eurozone leaders set Greece brutal take-it-or-leave-it conditions for a desperately needed bailout deal at a summit on Sunday as an exit from the single currency loomed ever larger.

Hawkish Germany pushed for a Greek "time out" from the euro if leftist Prime Minister Alexis Tsipras fails to agree terms for a three-year rescue plan worth up to 86 billion euros ($96 billion).

Athens faces demands to push through new reform laws next week to win a third bailout since 2010, with the government in a tight corner as the cash-starved country's banks look set to run dry in days. 

"There will be no agreement at any price," Merkel said as she arrived for the summit of 19 eurozone leaders, complaining of a loss of trust in Athens and warning of "tough negotiations" ahead.

Read nore: Eurozone sets Greece tough terms as euro exit looms - Yahoo News

Turkey: New Greek Defense Minister Prompts Turkey To Scramble Jets

Greece's new nationalist defense minister prompted Greece's perennial rival Turkey to scramble jets on Friday, just days after he took office, by flying over uninhabited islets off the Turkish coast that nearly triggered a war in 1996.

Turkish fighter jets entered Greek airspace and were intercepted by Greek jets as Defense Minister Panos Kammenos and military chiefs flew by helicopter to the islet of Imia to drop wreaths in memory of three Greek officers killed nearby in a helicopter crash 19 years ago, the Greek Defense Ministry said.

Kammenos heads the small, right-wing, Eurosceptical Independent Greeks party, and the episode underlines the risk that its unlikely coalition with Prime Minister Alexis Tsipras's leftwing Syriza party, winner of last week's election, will come under strain on issues not related to their shared desire to end Greece's austerity program.

Read mre: New Greek Defense Minister Prompts Turkey To Scramble Jets

Italy: Matteo Renzi tipped to be new Italy PM as Letta quits

Matteo Renzi (39) tipped as new Italian PM

Italy is looking for a new prime minister again after Enrico Letta’s resignation was accepted by President Giorgio Napolitano.

Letta drove himself to the presidential residence, the Quirinale in Rome – amid yet more political turmoil in the country.

Letta announced on Thursday that he would stand down after a meeting of his centre-left Democratic Party (PD) voted in favour of changing the government.

The man expected to take over as prime minister is the new party leader Matteo Renzi, 39. He could be named premier as soon as this weekend, and would be the country’s youngest-ever leader.

The president is now beginning meetings with political parties to find a solution to the leadership crisis and pave the way for a new government.

There has been growing criticism over the slow pace of economic reform in Italy which left Letta increasingly isolated.

A low-key moderate, he was appointed in April last year to lead the cross-party coalition patched together after deadlocked elections had brought weeks of fruitless wrangling between rival parties.

Letta did not attend Thursday’s party meeting, which was brought forward from next week.

Read more: Matteo Renzi tipped to be new Italy PM as Letta quits | euronews, world news

France not seeking anti-Merkel alliance say French PM

French Prime Minister Jean-Marc Ayrault sought on Friday to calm tensions with Berlin, insisting Paris was not seeking to isolate Chancellor Angela Merkel as it seeks new solutions to the euro zone debt crisis.

New French President Francois Hollande is eager to show that he can hold his ground against Merkel as he tries to shift Europe's focus towards reviving growth and away from German-imposed austerity, where for years Paris stood alongside Berlin.

Ayrault, a former German teacher, denied that France was trying to form a united front with Italy and Spain against Merkel and austerity. Asked on Europe 1 radio if France was seeking such a thing, Ayrault replied: "Absolutely not. That would be the wrong way. That is absolutely not my position nor that of France."

Read more: France not seeking anti-Merkel alliance: PM - chicagotribune.com

Europe Eyes Shift from Austerity to Growth - by Carsten Volkery

When European Commissioner for Economic and Monetary Affairs Olli Rehn presents the European Union's spring forecast for the bloc's economy on Friday, one word will be a leitmotif during his speech: growth. Once a favorite buzzword of eurocrats, it is now back in fashion these days.

Even prior to François Hollande's victory in the presidential election in France, growth had been on the Brussels agenda. Now, it is near the top. European Council President Herman Van Rompuy has invited the 27 EU leaders to a special summit on growth on May 23. And the plan is to adopt a "growth pact" at the next regular EU summit at the end of June.

At first glance, this seems like a fundamental about-face. After two years of rigid austerity aimed at combating the European debt crisis, the EU would appear to be changing its course. Disappointing economic data in southern Europe and the recent Greek election, where voters made their rage at the mainstream political parties clear, has apparently led to a rethink. European leaders have come to the realization that austerity alone just makes the situation worse. Now, the time to invest has arrived.

But Europeans should not get their hopes up too soon. The limited EU funds that are currently the subject of discussion are not sufficient to give the economy in southern Europe a significant boost. It would not be the first growth pact which was announced with much fanfare in Brussels and then fizzled out. The Lisbon Strategy of 2000, for example, was supposed to transform the continent into the most competitive region in the world within 10 years. Instead, Europe found itself in a less enviable position in 2010 -- as the world's number one cause of economic concern.

Note EU-Digest: change in the EU  can only happen through political cooperation and moving away from the hidden agenda by the political right which is based on "that what is good for Wall Street is good for the World".

For more: EU Considers Proposals to Boost Growth - SPIEGEL ONLINE

Ireland votes on Europe's deficit-fighting treaty - by SHAWN POGATCHNIK

 Irish voters were deciding Thursday whether their government can ratify the European Union's fiscal treaty, a deficit-fighting pact designed to bind Ireland and other debt-hit eurozone members to much tighter spending limits. 


The agreement, already signed by the leaders of Ireland and 24 other EU nations, is designed to promote greater confidence in the eurozone by creating new deficit limits for each ratifying nation. Automatic spending cuts would be imposed on those deemed guilty of violating them. Germany, the eurozone heavyweight facing most pressure to keep bailing out its weaker neighbors, is the treaty's key backer but almost all Irish political parties have campaigned for its passage too.

All opinion polls in the past month's campaigning suggest that a majority will vote for the tougher budget discipline, but similar polls were proved wrong when Ireland voted to reject the EU's last two treaties in 2001 and 2008. Ireland is the only nation among the 25 requiring a national vote for ratification, although the treaty does not require Irish approval to proceed elsewhere. Results come Friday.
A "yes" verdict would have no immediate impact on Irish austerity policies, because Ireland already is committed to a severe program of cuts, tax hikes and asset sell-offs as part of its 2010 EU-International Monetary Fund bailout.

A "no" could do most damage to Ireland itself, because its existing loans will run dry by the end of 2013—and the treaty restricts future access to the EU's rescue fund to those nations that accept the new budget rules. But analysts agree it also would send political shock waves across a eurozone already doubtful that it can confine its debt crisis to the three bailed-out countries of Ireland, Greece and Portugal. 


Read more: Ireland votes on Europe's deficit-fighting treaty - San Jose Mercury News

The Netherlands: Negotiations restart on austerity programs as Dutch government hangs by a thread

Talks in Dutch PM Rutte's residence the "Catshuis" in the Hague restarted today after having broken off yesterday.

The Dutch Government Information service reported that the conservative coalition parties including the VVD, CDA en PVV had decided that they would resume their negotiations today given the possibilities they see to eventually come to an agreement. Parties also noted that as long as these negotiations were ongoing they would maintain complete media silence on its progress.

EU-Digest