Content about Greece

In an unexpected way, the issue of a bank run in the Eurozone was raised in the G8 summit at the weekend, with remarks ranging from scaremongering to 'advices', about how the new European Stability Mechanism (ESM) should act as lender of last resort for Eurozone's banks.

Fortunately Greece is the only Eurozone member that faces existential problems to stay or leave the euro area. Ireland and Portugal got last week the seal of 'good direction' by both the Ecofin and the Eurogroup. The two are meeting the programme targets to cut down deficits. As for Madrid, the Rajoy government got the approval of Brussels for its bank recapitalisation plan. Last but not least Holland even without a government manage to put together a parliamentary agreement to cut down fiscal deficits.   But lets take one thing at a time.

2012 was billed as a year of change in Europe, with elections in France, Greece and Russia eagerly anticipated: France for the potential election of a Socialist President, Greece to see how its people would vote in bitter times, and Russia, even though the result was a foregone conclusion, for the clues it might give to the way the largest country in Europe is developing. 

Losses caused by software piracy in Latvia diminished last year though the figure still remained at concerning level, findings of a study into global software piracy done by the international software makers' association Business Software Alliance (BSA) showed. According to BSA estimations, revenue lost by software piracy in Latvia reached 16m lats (€23m) in 2011, down from 15m lats in 2010.

Last Thursday, the new Greek Parliament issued by the elections of 6 May gathered for its inaugural session. Usually, such gatherings are cheerful  and full of hope; but this one wasn’t. Quite the contrary: a strange mood was in the air, partly due to the fact that this would be the shortest parliamentary season of all times—one day. In fact, the following day the parliament was dissolved and new elections were set.

With Alexis Tsipras, the young leader of Greek left wing party SYRIZA, predicted to win the next election, insisting on his electoral rhetoric that his country should stop paying its creditors if the Eurozone cuts Greece off the agreed soft loans life line, it was not a surprise that stock markets in Europe and New York keep losing ground, and the G8 Summit which meets on 18 and 19 May in Camp David has Greece as its main item on the agenda.

There are converging estimates that a potential Greece's exit from the Eurozone may cost up to one trillion. A large part of it will be born by this country itself. It will income losses over a number of years, due to an unprecedented recession and uncontrollable inflation. The largest part of it however will be born by the other weak Eurozone countries. There will be also huge losses for central countries like France, Germany and Holland due to the exposure of their lenders to the Greek banking system.

The fulfilled promise of Hollande for a gender-balanced cabinet with 17 women out of 34 ministers inspired AFP to analyse the ratio between men and women also in the governments of other European states.

Russia’s age-old ambition of securing a foothold in the Mediterranean has been achieved not only through the establishment of a naval base at Tartus in Syria but also because of its long-standing relationship with Cyprus.

Before flying out to the G8 Summit at Camp David and the NATO Sumit in Washington, D.C., European Commission President José Manuel Barroso sent out a clear message to Greece: swim together or sink alone.

An agreement on the Second Economic Adjustment Programme and the debt reduction agreement has been a consistent focus of the Commission in order to to concentrate efforts on growth and jobs througout Europe, but more specifically in the debt-ridden Greece.

This Monday and Tuesday (14 and 15 May), withdrawals from Greek banks exceeded 800 million Euros (small depositors), and if this trend continues, the Greek financial system may collapse before Friday, 18  May.