Tuesday, July 7, 2015

Merkel Warns Greece Time Running Out to Save Place in Euro



Merkel Warns Greece Time Running Out to Save Place in Euro
Monday, 06 Jul 2015 10:06 PM
Greek Prime Minister Alexis Tsipras was given hours to come up with a plan to keep his country in the euro as citizens endure a second week of capital controls.

German Chancellor Angela Merkel said "time is running out" as she and French President Francois Hollande, leaders of the two biggest countries in the euro bloc, responded to Sunday’s referendum. The European Central Bank piled on the pressure by making it tougher for Greek banks to access emergency loans. Finance ministers and leaders from the 19- member region gather Tuesday.

After promising Greek voters a "no" outcome against austerity would strengthen his negotiating hand, the onus is on Tsipras to prove he can get a deal with creditors insistent on tax hikes and spending cuts as the price for a new bailout of Europe’s most indebted nation.

"The last offer that we made was a very generous one," Merkel said Monday at the Elysee Palace in Paris. "On the other hand, Europe can only stand together, if each nation takes on its own responsibility."

Heading into the Brussels talks -- 1 p.m. for the finance chiefs, and 6 p.m. for the summit -- Greece made a pre-emptive concession to its trio of creditors with the resignation of outspoken Finance Minister Yanis Varoufakis who clashed with his counterparts from other countries, especially Germany’s Wolfgang Schaeuble.

Draghi Appeal

U.S. President Barack Obama spoke by phone with Hollande and the two agreed on the need for a way forward that’ll allow Greece to resume reforms and return to growth within the euro area, according to a White House statement. Treasury Secretary Jack Lew spoke with Tsipras and new finance chief Euclid Tsakalotos and urged a constructive outcome.

With bank closures extended through Wednesday to stem deposit withdrawals, Greek lenders are being kept on the equivalent of a drip feed by the ECB.

In a phone call with ECB President Mario Draghi, Tsipras raised the issue of lifting capital controls, providing more Emergency Liquidity Assistance to Greek lenders, according to a Greek government official speaking on condition of anonymity in line with policy.

Earlier, the ECB kept its lifeline at a prior level, rather than raise it as Tsipras wanted. Yet it increased the haircuts on collateral pledged against emergency liquidity, raising the discount applied to reflect the dire situation.

Bridging Gap

Financial market reaction to the latest stage in the crisis was muted, suggesting its effects can be contained. The euro was little changed at $1.1049 in Asia and U.S. Treasuries pared back some of last session’s gains. The MSCI Asia Pacific Index rose 0.7 percent from its lowest level since March.

Euro region finance officials on a Monday conference call made little progress towards bridging the gap between Greece and its creditors, two people involved in the talks said. The call took place in preparation for Tuesday’s round of talks.

Tsipras can claim a strong domestic mandate to negotiate after 61 percent voted "no" to the latest creditor proposals. The endorsement came even after banks had been closed for a week, causing widespread lines at ATM machines as Greeks waited to withdraw a daily maximum of 60 euros ($66) each.

"No question about it in the short term. Tsipras won," said Hans Humes, founder of Greylock Capital Management, on Bloomberg Television. "There’s latitude for the Greeks to go back to the Europeans and present them with something that’s a little bit more palatable."

Narrowing Window

Unless it finds a solution to its cash crunch, Greece could drift toward a euro exit. Without funds to pay salaries and goods, the government could eventually be forced to issue IOUs or some other medium of exchange, which might gradually evolve into a parallel currency.

"You can’t understate the importance of today’s meeting," Laura Fitzsimmons, Sydney-based vice president for futures and options at JPMorgan Chase & Co. said on Bloomberg Television. "The ball is in Greece’s court to come to the party. Unless they bring something that is workable to the Eurogroup it will be difficult to go much further from here."

European Central Bank
European Central Bank is the central bank for European Union, and sets the monetary policy for the Eurozone.

Note: Mario Draghi is the president of the European Central Bank, and was an honorary trustee at the Brookings Institution (think tank).
Foundation to Promote Open Society was a funder for the Brookings Institution (think tank), the Aspen Institute (think tank), and the International Rescue Committee.
George Soros was the chairman for the Foundation to Promote Open Society, and married in 2013.      
Christine Lagarde attended George Soros’s 2013 wedding reception, and is a managing director at the International Monetary Fund.
Dominique Strauss-Kahn was a managing director at the International Monetary Fund, and the minister of economy for France.
Francois Hollande is the president of France.
C. Douglas Dillon was a U.S. ambassador for France, and a chairman for the Brookings Institution (think tank).
Crandall C. Bowles is trustee at the Brookings Institution (think tank), and a director at JPMorgan Chase & Co.
Ellen V. Futter is trustee at the Brookings Institution (think tank), and a director at JPMorgan Chase & Co.
Cyrus F. Freidheim Jr. is an honorary trustee at the Brookings Institution (think tank), and a member of the Commercial Club of Chicago.
R. Eden Martin is the president of the Commercial Club of Chicago, and counsel at Sidley Austin LLP.
Michelle Obama was a lawyer at Sidley Austin LLP.                    
Barack Obama was an intern at Sidley Austin LLP.           
Newton N. Minow is a senior counsel at Sidley Austin LLP, and a member of the Commercial Club of Chicago.
William M. Daley is a member of the Commercial Club of Chicago, a trustee at the Third Way, Richard M. Daley’s brother, was the chairman Midwest region for JPMorgan Chase & Co., and the chief of staff for the Barack Obama administration.
Andrew Feldstein is a trustee at the Third Way, and was a managing director at the JPMorgan Chase & Co.
Richard M. Daley is a senior adviser for JPMorgan Chase & Co, William M. Daley’s brother, and a member of the Commercial Club of Chicago.
Commercial Club of Chicago, Members Directory A-Z (Past Research)
Tuesday, December 17, 2013       
James S. Crown is a member of the Commercial Club of Chicago, a director at the JPMorgan Chase & Co, and a trustee at the Aspen Institute (think tank).
Lester Crown is a member of the Commercial Club of Chicago, and was a lifetime trustee at the Aspen Institute (think tank).
Phillips Talbot was a lifetime trustee at the Aspen Institute (think tank), and a
U.S. ambassador for Greece.
Jacob A. Frenkel was the chairman, international for JPMorgan Chase & Co, and was a governor for the International Monetary Fund.
William T. Winters was a co-CEO JP Morgan Investment Bank for JPMorgan Chase & Co., and is a director at the International Rescue Committee.
Gordon A. Smith is the CEO, consumer & community banking for JPMorgan Chase & Co., and is a director at the International Rescue Committee.
Timothy F. Geithner is a director at the International Rescue Committee, was an overseer at the International Rescue Committee, was the secretary at the U.S. Department of the Treasury for the Barack Obama administration, and a director of policy development & review for the International Monetary Fund.
Jacob J. Lew was the Treasury secretary; former chief of staff for the Barack Obama administration, is the secretary for the U.S. Department of the Treasury, and a U.S. governor for the International Monetary Fund.
Christine Lagarde is a managing director at the International Monetary Fund, and attended George Soros’s 2013 wedding reception.
George Soros was married in 2013, and the chairman for the Foundation to Promote Open Society.
Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).
Mario Draghi was an honorary trustee at the Brookings Institution (think tank), and is the president of the European Central Bank.
European Central Bank is the central bank for European Union, and sets the monetary policy for the Eurozone.




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