EU: Portugal's FM to become next Eurogroup president

The Eurogroup meeting on Monday elected Portuguese finance minister Mario Centeno as president of the Eurogroup.

The new president will take office as of Jan 13, 2018 and will serve a two and a half year term.

He is the first minister from a southern eurozone economy to hold the elected role and first Eurogroup meeting under the presidency of Mario Centeno will take place on Jan 22, 2018.

Mario Centeno has been the finance minister of Portugal since November 2015.

Read more: Portugal's FM to become next Eurogroup president - World - Chinadaily.com.cn

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 Economy: Deluded EU boss blames European nations for economic MELTDOWN NOT Euro in shock outburst - Zoie O'Brien

Nobel Prize winner Professor Joseph Stiglitz has insisted the EU will collapse if the Union makes no significant changes to the common currency policy.

According to the economist, the euro has “failed to bring prosperity, led to economic stagnation and to the erosion of solidarity between member states”.

Professor Stiglitz has been touring the EU with his new book which explains his belief the only way to save the Union would be dropping out of the single currency.

The book caught the world’s attention and red-faced Union bosses have spent months in silence.

Now, they have decided to retaliate - in the form of a letter by Eurogroup President Jeroen Dijsselbloem.

The EU chief insisted Brussels cannot possibly be to blame, despite admitting there are issues to be addressed.

He said: “I would certainly not claim that everything is going smoothly in Europe, but the solution is not to abolish the euro to preserve the EU.

“Rather, the solution is to deal with Europe’s economic problems so our countries continue their recovery.”

Jeroen Dijsselbloem argued the loss of an exchange rate mechanism is not the main risk for the euro - because studies have shown “economic cycles of the eurozone countries are broadly aligned”.

In fact, he sees the issue as belonging entirely to separate member states.

He said: “If we return to the introduction of the euro, we can see that the problem did not stem from the loss of exchange rate levers.

“The problem was that financial markets made no distinction between the member states with regard to risk, even though there were enormous differences in growth potential from country to country.”

Mr Dijsselbloem used examples in Ireland, Spain, Greece and Portugal where he claims “wages rose faster than productivity”.

Read moreL Deluded EU boss blames European nations for economic MELTDOWN NOT Euro in shock outburst | World | News | Daily Express

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: Tsipras summoned to Brussels for emergency talks over Greek bailout deal - by I Traynor, J. Rankin , H.Smith

Greece’s prime minister, Alexis Tsipras, arrives in Brussels on Wednesday for critical talks with the country’s creditors as the outlines of the latest proposed deal to avoid bankruptcy threatens to unravel, worsening the crisis.

In advance of the third meeting of eurozone finance ministers in less than a week, Tsipras was summoned to the office of Jean-Claude Juncker, the president of the European commission, to try to thrash out remaining differences.

Christine Lagarde, the head of the International Monetary Fund, Mario Draghi, the president of the European Central Bank, and Jeroen Dijsselbloem, the Dutch finance minister who runs the Eurogroup committee of finance ministers, are to confront Tsipras about the tax rises and spending cuts he tabled on Monday in the hope of securing more bailout funds for Greece and avoiding a default next week.

The Eurogroup meeting on Wednesday is aimed at preparing an agreement that would be rubber-stamped by an EU summit on Thursday, averting the eurozone’s first default and keeping the currency bloc intact.

Read more: Tsipras summoned to Brussels for emergency talks over Greek bailout deal | World news | The Guardian

EU: Jyrki Katainen says reform is as vital as economic stimulus

Greece dominates the headlines when it comes to the European economy. But the story is bigger than that. It is also about growth and getting people back into work. Maithreyi Seetharaman from Euronews caught up with Jyrki Katainen, the Vice President of the European Commission, in charge of Growth, Employment, Competition and Investment.

Maithreyi Seetharaman: “How flexible is Europe actually in terms of policies? And is Greece a prime example of that question?”

Jyrki Katainen: “There are only a few countries who can afford to stimulate their economies. But the best stimulus which all Member States can do now is to carry out reforms. To really change or reform the country in a way that makes it more flexible, when it comes to the labour market or when talking about how easy their business environment is. So flexibility and stimulus mean they have to be ready to reform our societies, and many governments are doing this.”

Maithreyi Seetharaman: “Would you say that Greece is not? Or would you say that maybe Europe is very slow to react, and the Eurogroup meetings, the Troika meetings end up going nowhere?”

Jyrki Katainen says reform is as vital as economic stimulus | euronews, interview

Greece: Eurogroup leaves door open for Syriza to partially renegotiate ‘if necessary’

Monday’s Eurogroup meeting in Brussels had to deal with a potential crisis triggered by a victory in Greece for Syriza. This has led the group’s leading lights to predict a tough round of talks ahead, especially if the Greeks push agressively for debt forgiveness.

“We have common goals; ensuring that Greece as a nation can stand on its own two feet, clean up its finances, and become a jobs generator again. A Greece that is growing, and can pay its debts,” said the EU’s Economic Commissioner Pierre Moscovici.

However all the initial reactions have sounded conciliatory with the Eurogroup’s president leaving a door open to easier debt terms for Athens.

“We have already done a lot to lift the debt burden for Greece over the last couple of years, in terms of interest, maturity and the length of the loans.

“If the Greeks commit to what we have agreed with, then, and if necessary – now, these words ‘if necessary’ refer to the debt sustainability, it’s too early to say – we’ve always said we would come back to debt sustainability issues after the completion of the fifth [bailout] review and that is still pending,” said Jeroen Dijsselbloem.

Read more: Eurogroup leaves door open for Syriza to partially renegotiate ‘if necessary’ | euronews, economy

"The euro is safe" - Eurogroup OKs more funds for Greece, Spain

The Eurogroup finance ministers have been generous. After handing out additional money to Greece, they're also looking to bail out banks in Spain and Cyprus. 

Private holders of Greek government bonds will have until Friday afternoon (07.12.2012) to decide whether they will sell their certificates back to Athens – albeit with a hefty cut in the value.

The debt buyback program is part of a whole package of measures with which the Eurogroup hopes to help Greece, a plan announced by eurozone finance ministers on Monday (03.12.2012). The money would come from a rescue fund of international donors. If the plan works out, Greece could offload some 30 billion euros ($39.1 billion) of its debt.

The plan must be successful if Greece is to get more credit; lender the International Monetary Fund (IMF) has built up the pressure. "I'm not too worried," said French Finance Minister Pierre Moscovici on Monday. His Irish colleague Michael Noonan even went so far to say that the worst of the euro crisis was over.

"All the talk of a fraction of the eurozone is now over - there is complete agreement in the assessment that the euro is safe," he said.

Read more: Eurogroup OKs more funds for Greece, Spain | Europe | DW.DE | 04.12.2012