EU summit: Talks entering 'crucial phase' as leaders meet for fourth day

Leaders left the marathon summit early Monday morning without an agreement and are set to resume talks at 16:00 CET. The summit was originally planned to end on Saturday.

Von der Leyen told reportershat "after three days and three nights of negotiation marathon, we're entering now in the crucial phase but I have the impression that European leaders really want an agreement."

"I'm positive for today, we're not there yet but things are moving in the right direction," she added.

Talks have focussed on a proposed €1.68 trillion package, a seven-year budget and a coronavirus recovery fund.

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EU summit: Talks entering 'crucial phase' as leaders meet for fourth day | Euronews

EU 2020 = US in 1913? - by Nicolas Raymond

The EU has begun to contemplate how its perhaps €500 billion new joint debt to help the economies of its member states recover from the pandemic will eventually be repaid.

In this context, a profound fiscal question arises: Will new sources of direct EU revenues be agreed to repay the debts, or will member states be asked to contribute more funds to do so?

Read more at:
EU 2020 = US in 1913? - The Globalist

US Airlines after using up 95 % of their cashffow gave $45bn to shareholders in five years now pushing for massive Govt. bailout

The United States’ five largest airlines – which are pushing for a $50bn-plus bailout to help them survive the Covid-19 crisis – have handed out more than $45bn to shareholders and executives over the last five years, research by the Guardian has found.

Delta, American Airlines, United, Southwest and Alaska have spent $44.9bn on share repurchases and dividends in the last five years, according to Guardian research. In addition, nearly $750m has been paid out to executives over the same time period.

According to separate data compiled by Bloomberg, these five airlines have spent 96% of their free cashflow on buying back their own shares over the last decade.

According to the Guardian’s data, from public filings made to the Securities and Exchange Commission, Delta spent $13.6bn on share buybacks and dividends between 2015 and 2019. The firm paid out a further $208m to executives between 2014 and 2018, according to data released in proxy statements sent to investors. Pay figures for 2019 should be released ahead of Delta’s 2020 annual meeting.

Read more https://www.theguardian.com/business/2020/mar/18/america-airlines-bailout-shareholders-coronavirus

British Economy: UK records biggest July budget surplus since 2000 - as it happened

t’s been a good day for UK chancellor Philip Hammond as far as the country’s public finances go, with the best July budget surplus for 18 years.

But factory growth was less impressive in August, according to the CBI.

Meanwhile the dollar has weakened after President Trump took the Federal Reserve to task for continuing to raise interest rates.

And in Greece, prime minister Alexis Tsipras has said Greece is at the beginning of a new era following its exit from its longstanding bailout programme.

Read more: UK records biggest July budget surplus since 2000 - as it happened | Business | The Guardian

Italy readies 17 billion euro package to save two failing banks

Italy’s government has said it will spend up to 17 billion euros to rescue the debt-stricken Veneto Banca and Banca Popolare di Vicenza (BPVI). The European Commission quickly approved the plan.

Italian Finance Minister Pier Carlo Padoan said the government could pay as much as 17 billion euros ($19 billion), although the immediate cost would be a little over 5 billion euros.

Some 4.8 billion euros will be immediately earmarked to "maintain capitalization” of the retail bank Intesa Sanpaolo, which will take on the banks' "good" assets. A further 400 million euros will be set aside as a "guarantee" to Intesa.

The European Commission (EC) quickly approved the plan:  "The European Commission has approved, under EU rules, Italian measures to facilitate the liquidation of BPVI and Veneto Banca under national insolvency law," the EU's executive arm said in a statement on Sunday.

Read more: Italy readies 17 billion euro package to save two failing banks | News | DW | 25.06.2017

Greece Economy: A positive agreement for Greece

On 15 June, Greece’s creditors, Eurogroup, acknowledged the achievements of the Greek government on the implementation and outcome of fiscal policy measures.

The release of the next bailout tranche was agreed; more clarity was provided on the debt relief roadmap as well as next steps towards boosting growth.

These developments have delivered a positive signal to the markets and the Greek people, indicating that the Greek economy is steadily exiting the final stages of a longstanding and harrowing financial crisis.

For the first time since 2010, Greece’s creditors have pledged to prioritize a growth-oriented model that entails the participation of the European Investment Bank in medium- and large-scale investment projects, as well as the creation of a Greek Development Bank – a proposal that the Greek government has made since 2015.

The reluctance of the German finance minister, Wolfgang Schaeuble, to accelerate the conclusion of the bailout review was significantly addressed after the Greek government, the European Commission, the French government and the progressive forces in the European institutions pressured the Eurogroup to agree to Greece’s bailout review.

The French played a mediating role for the need to develop growth policies, so that the Greek economy can start warming its engines.

Read more: A positive agreement for Greece

EU: Spain MPs to probe €60bn bank bailouts- by Sarah Morris

Spanish MPs have voted unanimously to set up a commission to examine mistakes that led to a €60 billion bank bailout in 2012.

In a rare display of unity in Spain's fragmented parliament, all parties signed up to a deal on Wednesday (22 February) to “create a commission to investigate the financial and banking crisis, the listing of savings bank Bankia and its later rescue, the action taken by regulators and the weaknesses, needs and challenges of the financial system”.

In 2012, a government led by current centre-right prime minister Mariano Rajoy sought a bailout from the EU and International Monetary Fund (IMF) after Bankia requested €22.5 billion in aid just a year after its flotation under the previous Socialist government. Dozens of other savings banks also needed state cash.

The cross-party deal this week came after the opposition Socialists, anti-austerity group Unidos Podemos and Catalan party Republican Left all lodged separate petitions for commissions.

Expected to hear evidence from April for about six months, the parliamentary commission will in particular look at the controversial listing of Bankia, the largest bank bailout still in public control.

In recent years, Spain's courts have looked into hundreds of corruption allegations linked to the property boom. Between July 2015 and September 2016, 399 people were convicted of corruption-related offences like embezzling public money, the General Board of Judicial Power (CGPJ), which oversees Spain’s judiciary, said in a report last month.

The creation of the parliamentary commission comes after the high court said last week it would question the former governor of the Bank of Spain, Miguel Angel Fernandez Ordonez, over Bankia's regulation.

Five other officials at the central bank and two former senior managers of stock market regulator, the CNMV, will also be questioned.

Read more: Spain MPs to probe €60bn bank bailouts

EU Economy: Greece and creditors break bailout deadlock- by Eric Maurice

The Greek government agreed on Monday (20 February) to make new reforms to cut up to 2 percent of GDP in spending in the coming years.

Greece accepted budget cuts worth up to €3.6 billion that it had previously refused as the only way to break the deadlock with its creditors in talks to unblock a new tranche of the €86 billion bailout programme agreed in 2015.

Experts from the creditor institutions - the European Commission, the European Central Bank, the European Stability Mechanism and the International Monetary Fund (IMF) - will be able to go back to Athens and prepare reforms on tax, pensions and the labour market with the Greek government.

Read more: Greece and creditors break bailout deadlock

Brexit: Europe’s top negotiator wants to offer Brits EU citizenship as individuals after Brexit — RT UK

Brexit negotiators want to offer Brits the chance to remain as individual EU citizens, the European Parliament’s chief negotiator, Guy Verhofstadt, has confirmed.

The proposal revealed by The Independent would see Brits offered “associate citizenship,” leaving them free to move, live, and work throughout the EU, as well as vote in European Parliament elections.

Verhofstadt, who has been appointed by the EU to lead negotiations with the British government, said that the “very important” proposal would be in his negotiating mandate, as it has “captured the imagination and hopes” of many Brits who want to retain their rights as EU citizens.

Depending on how EU negotiators approach the issue, the idea will likely need to be approved by the British government.

Verhofstadt and the European Parliament’s Committee on constitutional affairs are drawing up a report that will propose long-term changes to the EU’s structure.

Liberal MP Charles Goerens proposed that a measure allowing Brits to keep their EU citizenship as individuals be included in the report, but it will now bypass that process and be fast-tracked to move forward on its own.

In its original form, the provision would offer: “European associate citizenship for those who feel and wish to be part of the European project but are nationals of a former Member State; offers these associate citizens the rights of freedom of movement and to reside on its territory as well as being represented in the Parliament through a vote in the European elections on the European lists.”

Read more: Europe’s top negotiator wants to offer Brits EU citizenship as individuals after Brexit — RT UK

Greece: Eurogroup approves third bailout for debt-ridden Greece

Eurozone finance ministers agreed on Friday to approve a third bailout programme for Greece, with the first tranche of aid to be worth €26 billion. Eurogroup chairman Jeroen Djisselbloem said that "of course there were differences, but we have managed to solve the last issues."

To recapitalise Greek banks €10 billion will be made available, while a second tranche of €16 billion will be paid out in several installments, starting with a €13 billion installment by August 20 when Greece must make a new debt payment to the European Central Bank (ECB).

"On this basis, Greece is and will irreversibly remain a member of the Euro area," said European Commission President Jean-Claude Juncker after the deal was sealed.

Read more: france 24 - Eurogroup approves third bailout for debt-ridden Greece - France 24

Greece faces recession warning as bailout talks set to open

Greece's most influential think tank warned on Thursday of a sharp drop back into recession in a report that came hours after parliament approved a second package of reform measures aimed at securing a new bailout from international lenders.

In its quarterly report, the IOBE institute said that capital controls imposed last month to stop a bank run pushing the financial system into collapse would exact a heavy toll across the economy.

Reversing a forecast for growth this year of 1 percent made as recently as April, it said the economy would contract by as much as 2.0-2.5 percent after growing 0.7 percent in 2014 and would remain in recession next year as well.

Read more: Greece faces recession warning as bailout talks set to open

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

Curtain Time for Greece? Hope in short supply as Greece, EU seek bailout deal

Optimism was in short supply Thursday over the prospects of a deal that might prevent Greece’s bankruptcy as eurozone finance ministers gathered for a keenly awaited meeting in Luxembourg, with both sides refusing to budge on their demands.

With Greece fast approaching a potential default on June 30 and amid signs that Greeks are withdrawing money from their banks, officials acknowledged that a Greek exit from the euro was now being discussed.

Pierre Moscovici, the European Union’s top economy official, said the eurozone meeting will be “very difficult” but that he hoped everyone turns up “with cool heads and the political will to succeed”.

Read more: france 24 - Hope in short supply as Greece, EU seek bailout deal - France 24

EU officials say Greece not close to debt deal

A Greek government official was quoted by news agencies Reuters and AFP as saying on Wednesday that his country and its creditors had started drafting a technical-level agreement, pointing to progress in long-running talks to unlock more financial aid for the cash-strapped southern eurozone nation.

"At the Brussels Group of credit negotiators, procedures to draw up a staff-level agreement are beginning," the government source said.

This is the closest that Greece and its creditors have come to a deal to unlock 7.2 billion euros ($7.8 billion) of bailout loan money in roughly four months of talks.

Read more: EU officials say Greece not close to debt deal | Business | DW.DE | 27.05.2015

Greece close to minimum agreement deal with creditors, says deputy PM - by Nick Fletcher and Helena Smith

Greece could seal a deal with its creditors in early May, its deputy prime minister said on Wednesday, as the country prepared a new list of reforms and the European Central Bank provided more support to its beleaguered banks.

But Yannis Dragasakis warned it was likely to be only a “minimum agreement” to unlock the delayed funds Greece needed to avoid default. He said: “Now we are going to a minimum agreement with actions that can be taken immediately. But [in the long-term] not just any solution will suffice. The solution has to be viable. After the interim agreement a long discussion about the debt, primary surpluses, investment and growth will follow.”

A eurozone official told Reuters time was running out to reach a deal about releasing the emergency funds, which amount to €7.2bn (£5.2bn), since the country needed to begin negotiating a third bailout agreement before the current programme runs out at the end of June. Otherwise it faced the prospect of default or having to leave the eurozone. He said: “We are not talking about weeks any more, we are talking about days.”

If the latest Greek proposals were approved, eurozone finance ministers could endorse the deal at their next meeting on 11 May. Greece’s creditors – the European Union, ECB and the International Monetary Fund – are demanding economic reforms in exchange for more bailout cash.

Read more: Greece close to minimum agreement deal with creditors, says deputy PM | World news | The Guardian

Greece - Power Play: Tsipras ready for reforms, to replace Varoufakis in bailout talks

As Greece moved closer toward bankruptcy, Prime Minister Alexis Tsipras seemed more eager to strike a deal with his international creditors.

Tsipras was finally ready to cut pensions, speed up privatizations and increase Value Added Tax (VAT) in luxury islands like Mykonos and Santorin. These proposals would be soon presented to the European Union (EU) and the International Monetary Fund (IMF), media reports said on Monday.

"We need to find a solution by mid-May," Nikos Filis, parliamentary representative of Tsipras' party Syriza said on Greek radio.

Tsipras was finally ready to negotiate after he spoke with German Chancellor Angela Merkel and Eurogroup chief Jeroen Dijsselbloem in separate phone calls on Sunday. He then met Finance Minister Yanis Varoufakis, causing the media in Greece to speculate that Varoufakis might eventually be removed from the position of chief negotiator in Greece's talks with its creditors.

Tsipras' decision could be traced back to a Eurogroup meeting in Riga last week, where eurozone finance ministers accused Varoufakis of being a "gambler" and leading his country in the wrong direction. "They want his head," said a headline in the Greek daily Ta Nea.

Euclid Tsakalotos, the deputy foreign minister, would henceforth lead all bailout talks for Greece, Tsipras said. However, Varoufakis would still remain finance minister, although his close confidante was being replaced with Nikos Chouliarakis, who has worked with the IMF, the EU and the European Central Bank before.

Read more: Tsipras ready for reforms, to replace Varoufakis in bailout talks | News | DW.DE | 27.04.2015

Greece: Reading The Greek Deal Correctly - by K. Galbraith

On Friday as news of the Brussels deal came through, Germany claimed victory and it is no surprise that most of the working press bought the claim. They have high authorities to quote and to rely on. Thus from London The Independent reported:

several analysts agreed that the results of the talks amounted to a humiliating defeat for Greece.

No details followed, the analysts were unnamed, and their affiliations went unstated – although further down two were quoted and both work for banks. Many similar examples could be given, from both sides of the Atlantic.

The New Yorker is another matter. It is an independent magazine, with a high reputation, written for a detached audience. And John Cassidy is an analytical reporter. Readers are inclined to take him seriously and when he gets something wrong, it matters. Cassidy’s analysis appeared under the headline, “How Greece Got Outmaneuvered” and his lead paragraph contains this sentence:

Greece’s new left-wing Syriza government had been telling everyone for weeks that it wouldn’t agree to extend the bailout, and that it wanted a new loan agreement that freed its hands, which marks the deal as a capitulation by Syriza and a victory for Germany and the rest of the E.U. establishment.

In fact, there was never any chance for a loan agreement that would have wholly freed Greece’s hands. Loan agreements come with conditions. The only choices were an agreement with conditions, or no agreement and no conditions. The choice had to be made by February 28, beyond which date ECB support for the Greek banks would end. No agreement would have meant capital controls, or else bank failures, debt default, and early exit from the Euro. SYRIZA was not elected to take Greece out of Europe. Hence, in order to meet electoral commitments, the relationship between Athens and Europe had to be “extended” in some way acceptable to both.

Read more: Reading The Greek Deal Correctly

Greece: "up the creek without a paddle" - Ultimatum to Greece: request bailout extension by Friday

Talks between Greece and eurozone finance ministers over the country’s debt have broken down.

The talks had been expected to last late into the night but they collapsed in less than four hours. Athens rejected calls to request for a six-month extension of its current bailout package.

Greece wants to scrap that existing package and instead agree on a “bridging program” to support its finances.
 
The Dutch finance minister, who chaired Monday’s meeting, said Athens had until Friday to request an extension to the current bailout or it will expire as planned at the end of this month.
 
The eurozone creditors would likely support an extension because it would buy more time for Greece to agree a lasting solution.

Note EU-Digest: Basically Greece is up the creek without a paddle and have far more to lose than the EU if they drop out of the Eurozone.

Read more: Ultimatum to Greece: request bailout extension by Friday | euronews, world news

Greece: Yes, Europe will give in to Greece—but it won’t admit it

The coming face-off between Greece’s European creditors and the country’s new left-wing government is painted as an epic struggle between intractable foes, but it’s better to think of them as sharing a common goal: Reducing Greece’s daunting debt without admitting it to the rest of Europe.

Greece doesn’t want to be cut loose from the euro zone, but Germany and the rest of the EU will find it hard to keep it in without offering politically unpopular debt relief. As Greece’s new finance minister, Yanis Varoufakis of the Syriza party, put it, “we must offer Mrs. Merkel a way of packaging the new deal that she can then sell to her parliamentarians.”

The key thing to realize is that Greece’s problems date back far before Syriza came to spook the markets. The IMF’s most recent projection for Greece’s debt path is that it will decline from a horrendous 174% of GDP in 2013 to a hideous 128% by the end of the decade—but even that’s only if the country generates consistently high economic growth and runs a huge government surplus of around 4% of GDP for several years. Neither seems particularly likely, as private sector economists will tell you and even government ministers concede in private.

Read more: Yes, Europe will give in to Greece—but it won’t admit it – Quartz

Portugal: Buoyed by Exports, Portugal Chooses Clean Exit From Bailout - by Raphael Minder

Portugal on Sunday announced its exit from a three-year bailout program that has forced deep spending cuts and set off mass protests — but has also helped the country clean up its public finances and return to the bond markets after halving its budget deficit.

Prime Minister Pedro Passos Coelho said that Portugal had built up sufficient financial reserves to end the program on schedule and without requesting any additional line of credit from its European counterparts. Such a line of credit would have acted as a safety net if the country again struggled to meet its debt financing obligations.

The decision to fully exit the program comes after Portugal’s international lenders — the International Monetary Fund, the European Commission and the European Central Bank — on Friday issued a positive assessment of the country’s progress. Portugal, which was particularly scarred by the European debt crisis, received a bailout of 78 billion euros, or about $108 billion, three years ago.

“With the recovery of our autonomy, Portugal will be on an equal footing with the other member states” of the European Union, Mr. Passos Coelho said in a televised address on Sunday evening, flanked by his ministers.

Read more: Buoyed by Exports, Portugal Chooses Clean Exit From Bailout - NYTimes.com