Tornado Alley (PROG)

[fuagf]

Greece Strikes a Deal With the Eurozone, Pulls Off a Small Victory

By Jordan Weissmann Feb. 20 2015 4:19 PM


That was fun guys. How about we do it again in four months?

Reuters

There was sturm. There was drang. Somewhere, a group of masked men .. http://en.wikipedia.org/wiki/Greek_chorus .. probably danced around and narrated the day-to-day action in song. But today, Greece finally reached .. http://www.bloomberg.com/news/articles/2015-02-20/germany-turns-up-pressure-on-greece-as-cash-crunch-looms .. a deal .. http://www.reuters.com/article/2015/02/20/us-eurozone-greece-idUSKBN0LO0O620150220 .. with the eurozone to extend its rescue package for the next four months, thereby staving off a potential financial crisis.

And, despite some stern posturing from Germany on Thursday, Athens even seems to have won some concessions. On the one hand, it won't get the full six-month continuation it had originally asked for. It seemingly will also have to abide by the broad outlines of the previous austerity deal that Greece's left-wing governing party, Syriza, campaigned so vehemently against. On Monday, it is scheduled to submit a list of economic reforms and budget steps—or an "action plan .. http://www.bloomberg.com/news/videos/2015-02-20/what-greece-is-getting-out-of-eu-agreement "—that the Eurogroup will have to approve before it actually hands out any additional cash. But, importantly, it appears the Greek government will finally get some wiggle room on spending.

Which is a pretty big deal. Under the previous terms of the bailout, Greece was expected to produce a surplus on its primary budget (which doesn't include debt payments) equal to 3 percent .. http://www.reuters.com/article/2014/10/04/us-greece-budget-idUSKCN0HT0OJ20141004 .. of its gross domestic product. That was an insane expectation for a country effectively still mired in a depression .. http://www.slate.com/blogs/moneybox/2015/02/18/how_bad_is_greece_s_economy_these_charts_will_tell_you.html?wpsrc=sh_all_dt_tw_top , and now it seems it won't necessarily have to live up to that commitment. In its new statement .. http://www.consilium.europa.eu/en/press/press-releases/2015/02/150220-eurogroup-statement-greece/ , the Eurogroup states that the country's monitors "will, for the 2015 primary surplus target, take the economic circumstances in 2015 into account." In other words, they may cut the country a little fiscal slack and let it spend more freely since its economy is still in disarray.

The exact terms of this accord will become clearer in the coming days. Meanwhile, the parties still need to repeat this whole process to reach a permanent bargain within the next four months. But given the utter lack of leverage Greece seemed to have had going into these negotiations, and the degree to which Germany seemed determined not to give ground, the fact that the country may walk away from this standoff with a concession is rather impressive. Greece's electorate isn't getting anywhere close to all the promises it voted for. But it got a small piece of them, which is more than many onlookers expected.

So, it's more like all the parties have agreed to agree to a deal, which could theoretically collapse again if Greece hands in a road map that doesn't satisfy the rest of Europe. But hopefully the next steps are mostly formalities.

Jordan Weissmann is Slate's senior business and economics correspondent.

http://www.slate.com/blogs/moneybox/2015/02/20/greece_and_euro_zone_reach_a_deal_more_details_to_come_on_monday.html

===

Tsipras declares victory as Greece dodges financial ruin

By George Georgiopoulos and Karolina Tagaris

ATHENS Sat Feb 21, 2015 3:13pm EST


1 of 10. Greek Prime Minister Alexis Tsipras attends a cabinet
meeting at the parliament building in Athens, February 21, 2015.
Credit: Reuters/Kostas Tsironis

(Reuters) - Greek Prime Minister Alexis Tsipras declared victory on Saturday after agreeing a conditional financial rescue deal with Europe and despite making big concessions to avert a banking collapse within days.

With his left-wing leadership pilloried by German conservatives, Tsipras insisted that Friday night's last-minute agreement canceled austerity commitments and dispensed with the "troika" - European and IMF inspectors loathed by many Greeks.

"Yesterday we took a decisive step, leaving austerity, the bailouts and the troika behind," he said in a televised statement to the Greek nation. "We won a battle, not the war. The difficulties, the real difficulties ... are ahead of us."

After often ill-tempered negotiations in Brussels, Greece secured a four-month extension to euro zone funding, which will avert bankruptcy and a euro exit, provided it comes up with promises of economic reforms by Monday.

More: http://www.reuters.com/article/2015/02/21/us-eurozone-greece-idUSKBN0LO0O620150221

No surprise. One small step for rational behavior. GO GREECE!

See also:

Greek finance minister Yanis Varoufakis: ‘If I weren’t scared, I’d be awfully dangerous’
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110902488