Greece in hard spot as debt payment looms and European doubts grow
Some flexibility remains, as long as it does not require the German parliament to vote for more money for Greece. Many European leaders are reluctant to cut off aid to Greece — probably casting it out of the euro zone — so soon after voters chose Samaras over a fiery anti-bailout party that would have been a clear challenge to Europe’s attempts to push an economic overhaul in their country. (The anti-bailout party came in second.)
European leaders have signaled that they would be willing to offer Greece a short-term loan or find another way to give the country slightly more time to make the August debt payment, since the international team of inspectors is unlikely to recommend freeing another installment of the bailout aid by then. And there are ways to ease Greece’s debt burden without spending more money. The interest rates Greece pays on its bailout loans could be lowered, for example.
Bombing in Damascus kills top officials
Rebels planted bombs in the room where security chiefs were meeting to discuss ways to quell uprising.
As Olympics loom, so do problems
Even as athletes begin arriving in London, Olympic organizers draw criticism over bungled security staffing and other issues.
Gallery: La Confianza
“La Confianza,” which translates to the “trust,” has become a rallying point in Honduras against the ruling business and political elite.
This month, Luxembourg Prime Minister Jean-Claude Juncker, who heads euro-zone finance-minister meetings, sounded placid about Greece’s short-term prospects.
“In the month of August, we will find a solution,” he said, Reuters reported. “There will be no problems.”
Debt inspection
Formal European discussions about Greece’s longer-term path will take place only after the debt inspection team completes a report after a visit to the country next week. But German officials remain adamant that there is no political support in their country to offer much flexibility for Greece — unlike, they say, Portugal, Ireland and Spain, the other countries that have requested some form of assistance and toward which there is more goodwill.
Still, the news from Greece is not completely bleak, European officials say. Spending cuts and some labor market changes have taken place, and the government is slowly reducing its deficit. Labor is slowly becoming cheaper, making the country more competitive with its neighbors.
Even Germany may eventually be pushed toward a softened position, as it has been in the past.
“If the new government is credible, there would be a lot of pressure on Germany to accept a renegotiation of the timelines,” said Daniela Schwarzer, an expert on European Union integration at the German Institute for International and Security Affairs.
Especially since the Greeks are not only notorious but renowned for cheating tax assessments. Yes, there are some tax cheat everywhere, but the wealthy in Greece consider it their personal prerogative. Me above all, first, last, and always.