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Updated 2025-04-02 03:00
What now, Merkel? asks Germany after Greek voters reject further austerity
German reaction to referendum result points to a hardening approach that envisages the eurozone without GreeceWaiting at Berlin’s Zoo station for an S-Bahn train to take her home from a night shift, Diana Well took a glance at the daily papers being sold on the platform. “What now, chancellor?” she said, reading out the headline in the tabloid Bild. “Yes, that’s just what I’d like to know,” the 54-year-old said.
Three-minute update: the Greeks have spoken. What now for the rest of Europe? – video analysis
Now that Greece have returned an overwhelming no vote in the referendum, columnist Jonathan Freedland and economics editor Larry Elliott discuss the possible next moves for the European leaders. Alexis Tsipras has thrown the ball into Angela Merkel's court, but she is constrained on how far she can concede. And if there are no concessions, must Greece exit the eurozone? Continue reading...
With a return to the drachma unwanted, could Greece just print its own euros?
Greek central bank has a currency press outside Athens, but actually going ahead and printing unauthorised notes would be an extreme stepFaced with shuttered banks and ATMs all but drained of cash, but with most of its citizens saying they would rather stay in the eurozone than revert to the drachma, could Greece simply decide to print its own euro notes?It is certainly physically capable of doing so: the Greek central bank owns a press in Holargos, a suburb of Athens, that once printed drachma and is currently one of 14 high-security currency printing works across the eurozone producing euro banknotes. Continue reading...
No 10 hopes Greece will stay in EU but refuses to discuss its eurozone future
David Cameron chairs meeting to discuss implications of Greek referendum result and calls on eurozone to reach ‘sustainable solution’ with AthensDowning Street has expressed hope that Greece will remain a member of the European Union but refused to discuss the country’s future in the eurozone.Related: Greek referendum: optimism fades as eurozone says gulf has widened Continue reading...
What was good for Germany in 1953 is good for Greece in 2015
Economic assistance under the Marshall plan was important to both countries, but it was the granting of debt relief that made a difference to the Germans
Greek referendum: optimism fades as eurozone says gulf has widened
Eurozone commissioner says referendum no vote has further complicated talks despite resignation of Greek finance minister Yanis VaroufakisHopes of a truce between Athens and its creditors after the Greek referendum’s resounding rejection of the terms of the bailout were fading fast, as European leaders said the gap between the two sides had widened.The surprise resignation of the Greek finance minister Yanis Varoufakis earlier on Monday had initially boosted hopes of a breakthrough, but the optimism proved shortlived.Related: Greek referendum: what happens now after the no vote?Related: Yanis Varoufakis: why bold, brash Greek finance minister had to go Continue reading...
'The Greek bloke’s resigned. He’s run rings round ‘em'
UK analyst predicts Yanis Varoufakis’s departure may help in Greek crisis talks but, as the City will admit, no one really knows what will occur nextYanis Varoufakis: some of his best quotes‘The Greek bloke’s resigned. He’s run rings round ‘em’.Those words were how one City trader was overheard explaining the resignation of Greek finance minister, Yanis Varoufakis, as he chatted on the phone in early trading, following the Greek referendum.Related: Greek referendum: what happens now after the no vote? Continue reading...
Greece’s fight is for democracy in Europe. That’s why we must support it | Owen Jones
The EU powers told Greeks their world would cave in unless they acquiesced by voting yes. The no vote has raised the political stakes even higherFrom the cradle of democracy, a lion has roared. It is difficult to overstate the pressure the Greek people have both endured and defied. A country that has already experienced an austerity-induced economic disaster with few precedents among developed nations in peacetime has suffered a sustained campaign of economic and political warfare. The European Central Bank – which has only recently deigned to publish some of the minutes of its meetings – capped liquidity for Greek banks, driving them to the verge of collapse. There were stringent capital controls, and desperate queues outside banks followed. A country desperate to stay within the euro was told it would be ejected, and with calamitous results.That’s what the EU pulled off in Italy and Berlusconi – it should have been his people who removed himRelated: Yanis Varoufakis's resignation statement: 'I wear the creditors' loathing with pride' Continue reading...
Yanis Varoufakis: why bold, brash Greek finance minister had to go
Vindicated by no vote in Sunday’s referendum, the self-appointed king of anti-austerians recognised he was impediment to prospective dealWhen historians look back at the great Greek debt crisis, the figure of Yanis Varoufakis will feature large. Bold and brash, the self-appointed king of anti-austerians did more to internationalise the folly of austerity politics than any other member of the radical left government of Athens.Related: Greek debt crisis: markets fall and bond yields rise after no vote – liveRelated: Greek crisis: European leaders scramble for response to referendum no vote Continue reading...
Greeks want a no to austerity but a yes to Europe | Natalie Nougayrède
On a European scale the collateral damage of Sunday’s vote risks being tremendous – with xenophobic populists emerging as the winnersThere can be no winners in Europe when anti-EU populists such as Marine Le Pen and Nigel Farage think they can claim a victory, as they did when the results of the Greek referendum came out. That kind of extremist support for the no vote will probably be described as a negligible side-show by those who decided the referendum, but that view may be short-sighted. Of course, xenophobic populism wasn’t what Greeks voted in favour of – they want a break from austerity – but the reality is that, on a European scale, the collateral damage of Sunday’s vote risks being tremendous. When the EU project is seen as a failure because it is unable to produce a compromise, those who scoop up the benefit are those who would like the project to disappear altogether.Europe must now brace itself for more turmoil, and more geopolitical weaknesses, unless cool heads can prevail in Brussels and Athens. It is very uncertain that that will happen. The referendum has strengthened the hand of the Greek prime minister, Alexis Tsipras, but it has by no means erased realities, which are that Greece has become bankrupt, that its government remains isolated in Europe (and not only in dealing with northern countries), and that a breakup of the eurozone, as well as a full-on Greek exit from the EU, have become more of a possibility now than ever before. Continue reading...
As Yanis Varoufakis revs off into the sunset, it’s his substance I’ll remember | Suzanne Moore
The media was mesmerised by his motorbike, but Greece’s former finance minister inspired ordinary people by the way he faced down EuropeBack in January, when I was half-awake while listening to the interminable euro discussion, a man for whom English is a second language started speaking poetry. He was talking of his fellow Greeks, who he said chose, “to quote your own Dylan Thomas, to stop going gently into the night and to rage against the dying of the light”. I perked up, and I wasn’t the only one. This was Yanis Varoufakis, an economist, blogger and academic, who was soon to become Syriza’s finance minister.Eloquently, he put into words the suffering and resilience of his fellow Greeks, but this alone did not fascinate the media. It was his “flamboyance” they focused on. Clearly, in the world of Eurocracy, to not wear a tie is radical. Or rude. Or both. Sometimes he wore a leather jacket. Or a Barbour, or a shirt that was perhaps a little bit too tight. He signalled simply that he was not another “suit”, and made the rest of them look stuffy, uptight and clonish. He continued to ride his motorbike instead of being driven by a chauffeur. In this upside-down world, this level of normality meant he was dubbed everything from a rock star to a sex god.He showed how financial issues had become politicised, how old paradigms were broken. He spoke to Eurocrats as equals. Continue reading...
Greek referendum: what happens now after the no vote?
All you need to know about the next move for the markets, the eurozone, Athens and the main players in the Greek debt crisisGreece’s financial system is on the brink of meltdown: banks are reported to have only around €500m left in cash – equal to just €45 (£32) per head of the 11 million-strong population.Related: Greek crisis: European leaders scramble for response to referendum no vote Continue reading...
Why Greece’s yes campaign failed | David Patrikarakos
For Greeks many compelling reasons – practical, historical, existential – to vote no jostled each other for priority. In truth the yes campaign never stood a chanceYes. It’s such a simple word: so easy to say, so pleasing to hear. And, of course, it was the logical choice. At least according to EU officials, who spent much of last week pleading with Greeks to vote yes to the latest proposals put forward to them by their country’s creditors. The EU’s president, Jean-Claude Juncker, was almost disconcertingly emotional when last week he declared (somewhat elliptically, it must be said): “I will tell the Greeks, whom I love deeply, that you shouldn’t choose suicide just because you are afraid of death … A no would mean, regardless of the question posed, that Greece had said no to Europe,” he added, perhaps to clarify things.But now, as I write this in the early hours of Monday morning, as the final votes in Greece’s referendum come in, it’s clear that the no campaign – with over 60% of the vote – has triumphed. Athenians are reacting to a critical political event with characteristic exuberance: in Syntagma Square outside the parliament, they wave Greek flags and cheer; nearby, in the anarchist stronghold of Exarchia, they set things on fire and fight the police.Nothing is more emotive, and more pregnant with historical and political meaning for Greeks, than one simple word: no Continue reading...
Greek finance minister Yanis Varoufakis resigns despite referendum no vote
The controversial minister says he is standing down after pressure from Greece’s ‘assorted partners’The Greek finance minister Yanis Varoufakis has quit, despite the country’s decisive rejection of the eurozone’s terms for the country remaining in the single currency.Varoufakis, who infuriated eurozone leaders and recently compared Greece’s creditors to terrorists, said the Greek prime minister, Alexis Tsipras, thought it would be better if he stood down, after pressure from European leaders.Related: Greek referendum: finance minister Yanis Varoufakis resigns – liveRelated: Greek referendum result: what happens next? Continue reading...
Greek crisis: European leaders scramble for response to referendum no vote
Merkel and Hollande will meet for crisis talks and the ECB faces a crucial decision over its funding lifeline after Greece rejected austerity by 61% to 39%European leaders were scrambling for a response on Monday after a resounding no from Greek voters in a momentous referendum on austerity which could send the country crashing out of the eurozone.
Backing down on Greece's debt is the safest, most rational option | John Quiggin
If Greece leaves the EU, the European project is over. If it leaves the euro and recovers, austerity is done for. The best option is a backdown on Greek debtLots of people have raised the suggestion of applying game theory to the the Greek debt crisis. I haven’t attempted this, reflecting my general scepticism about game theory in the absence of a well-defined strategy space.But now the Greek government and public have made what is, in effect, a final move.Related: Greek referendum: we are back to wild markets of the 2008 banking crisis Continue reading...
Greek crisis: financial markets buffeted after no vote
Many stock markets in Asia fall sharply – but losses are limited as investors wait to see how European leaders will react to the referendum voteShare prices were sent tumbling across the Asia-Pacific on Monday after Greece’s resounding no vote in the weekend’s bailout referendum raised fears it could be forced to exit the eurozone.While significant losses had not descended into regional turmoil as Asian markets prepared to close, analysts warned of more trouble ahead depending on the outcome of crisis meetings of European leaders later today and on Tuesday.
The one graph that explains the (worrying) end of the mining boom | Greg Jericho
Mining investment has shrunk rapidly and the transition from the boom relies heavily on housing investment – that’s a rather large concernThe biggest issue in the Australian economy remains the transition from the mining boom. Figures out late last week showed how quickly mining investment has shrunk, and how greatly the transition is dependent upon investment in dwellings. That’s a rather large concern, given worries about a housing bubble.One graph can often convey what is going on with amazing clarity. This is the one that demonstrates why the end of the mining boom is a problem for Australia’s economy: Continue reading...
Greek referendum: we are back to wild markets of the 2008 banking crisis
If Greece could be on the way out of the eurozone, will investors be less willing to hold the debt of other states carrying heavy debt loads?How far will financial markets fall on Monday morning? Expect to see the leading European share index plunge 10% initially in the event of a no vote, Goldman Sachs predicted at the end of last week.A 10% decline would be enormous, but almost any prediction is credible in the current climate. We’re back to the wild markets seen at the height of the banking crisis in 2008. Many fund managers, even last week, were expecting a strong yes vote in Greece. It’s hard to know how severely they will be shocked by the scale of the no victory. Share prices in London are bound to be affected – a 2% fall, or about 130 points off the FTSE 100 index, was Sunday night’s indication in futures markets. Continue reading...
Germany reacts to Greek referendum with anger, puzzlement and solidarity
Angela Merkel ‘respects’ the result in Greece but heads to meet François Hollande as Europe’s leaders and their advisers plan next movesThe German chancellor, Angela Merkel, is to head to Paris on Monday for urgent talks with French president François Hollande over how to avert a growing eurozone debt crisis after Greek voters sent EU leaders their clearest message yet that they are in favour of a radical change of policy.An email statement from the Berlin chancellery, sent out shortly after polls closed in Greece and which mirrored one sent out by the Élysée Palace, said the aim of the meeting, arranged after a telephone call between the two leaders, was to “jointly assess the situation after the Greek referendum and to address the continuation of Franco-German close cooperation in this matter.” Continue reading...
Greece stands defiant as no vote rails against wrenching austerity
Thousands take to Athens streets to celebrate referendum result, many citing personal devastation brought on by spiralling economy as reason for voting noDemocracy in Greece spoke on Sunday and the response was a resounding “no” to demands for more of the excoriating austerity that over five long years has been the price of keeping Europe’s weakest economy afloat.
Greek referendum no vote signals huge challenge to eurozone leaders
Victory by Syriza party of 60% to 40% in polarising referendum presents nightmare for eurozone elites, particularly German chancellor Angela MerkelGreece delivered a landslide no vote to the eurozone’s terms for the country remaining in the single currency on Sunday night, unleashing a seismic political shift that could derail the European project. The verdict confronts the EU’s leadership with one of its most severe ­crises of confidence and leaves Greece facing potential financial collapse and exit from the euro.In a polarising referendum called by the radical leftist government of Alexis Tsipras at only eight days’ notice, Greeks voted by more than 60% to 40% in support of the prime minister, spurning the extra austerity demanded – mainly by Germany and the International Monetary Fund – in return for an extension of bailout funds.Related: IMF: austerity measures would still leave Greece with unsustainable debt Continue reading...
Greek referendum result: what happens next?
A flurry of eurozone meetings are set to go ahead in Athens, Brussels, Paris and Frankfurt, but Greek exit contingency plans will also be discussed in the UK
The Guardian view on Greece’s no vote: eight days that shook a continent | Editorial
The last week has seen many extraordinary things, from stiff limits at cashpoints to cross-border meddling in national democracy. Europe has not handled it well. It urgently needs to do better in picking up the piecesKicking the can down the road has been the cliche of choice over a slow euro crisis that has steadily strangled the life out of the Greek economy. But at some point Europe was bound to run out of road. That happened on Sunday night, when it emerged that the Greek people had said no to continuing to engage with their creditors on the same suffocating terms.Just over a week ago, Alexis Tsipras staked his future on forcing this denouement. The eight days that followed his midnight declaration of a plebiscite, to accept or reject the creditors’ terms for the latest slug of overdraft, have witnessed many extraordinary things. The Greek parliament licensed a hasty referendum on a question that had already been overtaken by events. A ballot paper written in jargon posed a ludicrously technical question, opening up a void for emotion to fill. Mixing talk of “terror” from their partners with haze about what would happen after a no, Mr Tsipras and his finance minister, Yanis Varoufakis, aimed squarely for the heart rather than the head. Meanwhile, Greeks faced the fiercest financial controls ever seen in modern Europe: bank doors were shut, supplies disrupted, and citizens queued at every cashpoint for their ration of notes. In countries such as Germany, where history engenders suspicion of referendums, it may have looked like a paradigm case of how not to do democracy. Continue reading...
The Greeks said No – but to what exactly? | Mary Dejevsky
This was a national vote but the issue is Europe-wide. We’ve yet to discover whether Greece can remain in the eurozone, or even in the EUYou can ignore what a government says, but you can’t ignore the voice of the nation. So said Alexis Tsipras when he went to cast his referendum vote today. It was a comment worthy of the prime minister of the country that gave the world democracy. What exactly the voters have said, however, might not be quite as clear as he would have liked.Through the evening, as the evidence mounted for a No vote – which, in the confusing world of current Greek politics, was essentially a Yes for the stance taken by Tsipras in the talks with EU and international institutions so far – it was possible to sense the trepidation that has gripped the rest of Europe for the past week mounting too. Within an hour of the polls closing, the French president and German chancellor announced they would be meeting in Paris on Monday , the choice of venue being the more diplomatic option, given Greek sensitivities. George Osborne had earlier sown concern where there had seemed to be none, by telling the BBC that no country was immune to the Greek debt crisis, including the UK. Continue reading...
Greece's vote edges it towards euro exit, but the odyssey is far from over
Creditors may now be tempted to let Greece sweat it out a bit in a cashless economy, but to avoid a Grexit tragedy they should try less stick and more carrot
Greece heads towards historic no vote against austerity measures
With more than 60% of the results counted, official projection from Greece’s interior ministry shows no vote set to win with an overwhelming 61% shareGreece is on the brink of a historic victory for the no vote against the austerity measures demanded by its international creditors, according to the first results.Three hours after the polls closed, and with more than 60% of the results counted, the official opinion polls showed the no camp on 61% and the yes camp with about 39%. An official projection from Greece’s interior ministry showed the no votes are set to win with an overwhelming 61% share of the vote.
Greek turmoil crisis George Osborne justification for austerity budget
Holding up the threat of financial meltdown is a gift for chancellor whose budget on Wednesday will contain significant spending cutsIt is almost 20 years since Ken Clarke delivered the last purely Conservative budget in the dog days of John Major’s government. A lot has happened since the Cool Britannia year of 1996: the economy has boomed and gone bust; the euro has arrived; an independent Bank of England sets interest rates; and the gap between the super rich and the rest has widened.All these developments will shape the package of measures George Osborne is to announce on Wednesday. In 1996, Clarke realised his party was going down to defeat. Knowing it was his swansong, he included spending cuts in his last budget, little thinking that Gordon Brown would stick to them. Osborne, by contrast, has the assurance of the victor, of a chancellor who knows that he can plan for a whole parliament and is already thinking about how to win again in 2020. Continue reading...
Global markets braced as polling closes in Greece referendum
Around the world bankers and investors prepare to discuss implications of the outcome, which remains uncertain as the first results are awaitedPolling stations across Greece have closed after a momentous referendum for the euro and a crucial one for global financial markets.Around the world, bankers and investors were preparing to meet to discuss the implications of the outcome, which was expected to be close. First results are expected around 9pm (7pm UK time).Related: The streets are calm but Greece is haunted by fear of civil strife Continue reading...
Greek referendum: six questions about what happens next
The referendum on whether to accept the terms of Greece’s creditors is under way. What happens in the event of a yes, no or ‘light no’ vote?
Greeks begin voting in referendum as the euro faces its biggest challenge
Alexis Tsipras calls referendum ‘day of celebration’, in which almost 10 million Greeks have right to vote on whether nation should accept its creditors’ termsGreeks have begun voting in a referendum that presents the biggest challenge to the euro since its adoption, and risks sending shockwaves through the world’s financial markets.Related: Our Greek referendum offers catastrophe or absolute catastrophe. Some choice | Aggeliki SpanouRelated: Greek referendum: share your photos and experiences Continue reading...
Greece's eurozone future in the balance as referendum gets under way – live
10 million Greeks go to the polls to vote on bailout package that EU leaders have framed as a referendum on membership of the EuroGood morning.About 10 million Greeks are going to the polls on Sunday, to vote in a referendum that poses the biggest challenge to the euro since its adoption in 1999. We will bring you the latest news and developments throughout the day."I am optimistic" PM Tsipras says after voting #Greece pic.twitter.com/SEV6uF4exi Continue reading...
Gleneagles’ promise to make poverty history has yet to be delivered
The G8 has fractured, but a global meeting of ministers in Addis Ababa this month must show willingness to ensure overseas aid is done betterMake Poverty History: even the phrase seems reminiscent of more innocent days when campaigners buoyed by idealism hoped they could change the world with a rubber wristband, and rock musicians believed the strains of We Will Rock You, floating on the summer air, could force the rich world’s politicians to fix Africa.This week marks the 10th anniversary of the Gleneagles summit, when Tony Blair convened his G8 colleagues, plus a smattering of African leaders, at the swish golf hotel in Perthshire, to sign up for what they called “a new vision for the continent’s future”.Brown and Blair's relationship was often fraught, but Gleneagles was the pair’s partnership at its best Continue reading...
George Osborne’s £13bn ‘northern powerhouse’ fund includes routine council spending on potholes
Embarrassment for government as it confirms only £5bn of announced £13bn funding is allocated for major road schemes and £3bn for railGeorge Osborne’s pledge to build a “northern powerhouse” has been condemned as “cynical pre-election spin” as it emerged that the £13bn committed to build it includes routine spending on potholes and maintenance for the A1, which comes out of London.In further embarrassment, a communities minister was also accused of misleading parliament over the money after he claimed to MPs in the Commons last week that the government was “investing £13bn in rail in the north” for “more trains, newer trains and more regular journeys”. A spokesman for the Department for Communities and Local Government (DCLG) has now confirmed that the money is not just for rail. Continue reading...
Greek referendum: Germany says it won’t leave Greece in the lurch
German finance minister, Wolfgang Schäuble, appears to bolster No vote in last-minute intervention on SaturdayInvestors around the world held their breath on Saturday as 10 million Greeks prepared to vote in a referendum that presents the biggest challenge to the euro since its adoption.After more than five months of eyeball-to-eyeball confrontation between Alexis Tsipras’s radical left-led government and Greece’s creditors, and with only hours to go before voting began, one of the most hawkish of the lenders appeared to blink. Germany’s finance minister, Wolfgang Schäuble, until now even more of a hardliner than his chancellor Angela Merkel, suddenly turned a more conciliatory face towards Athens.Related: The streets are calm but Greece is haunted by fear of civil strifeRelated: In an Athens market, the talk is of paying bills, pensions, job cuts … and a better life Continue reading...
Protesters in Britain urge cancellation of Greece's debts on eve of referendum
Rallies held in Bristol, Edinburgh, Leeds, Liverpool and London in support of Greek people who are preparing to vote on whether to accept austerity package
Greek crisis: Yanis Varoufakis accuses Europe of terrorism - as it happened
Powerhouse or poorhouse? Why the north-east fears devolution won’t help
In Tyneside and Co Durham, braced for news of more cuts in Wednesday’s budget, there is doubt the ‘Devo Manc’ model will make it across the PenninesPeterlee, near Sunderland, was once a mining town. Now, it’s home to a vast, hi-tech manufacturing plant for US truck-maker Caterpillar. In every direction, blue-overalled workers clamber over the massive yellow vehicles, whose tyres are taller than a man, brandishing drills or lowering giant parts meticulously into place from ceiling-mounted hoists.Chris Fairs, the human resources manager, explains that his staff manufacture almost every part of the vehicles here: rolled steel comes in, giant trucks roll out, in what they call a “plate to gate” process. Many of the workers are former miners, or welders from the defunct Sunderland shipyards. “This is a world-class manufacturing facility,” he says. Continue reading...
Greek debt relief was not on table during bailout negotiations, says EU official
Official also believes Sunday’s referendum is escalation of a Greek negotiating strategy that has gone wrongDebt relief was not on the table during negotiations to extend Greece’s existing bailout programme and agree a package of reforms needed to unlock its remaining funds, according to a senior EU official.The official told the Guardian that debt relief was “politically highly toxic for many eurozone member states”.Things happened too fast for game theorist [Varoufakis] to adapt, and not only is he destroying his economy, but has made a huge tactical mistake. Continue reading...
Yanis Varoufakis accuses creditors of terrorism ahead of Greek referendum
Finance minister’s rhetoric, arguing that troika is instilling fear in people, comes as Greece prepares to vote on country’s future in eurozoneYanis Varoufakis, the Greek finance minister, has accused the country’s creditors of terrorism, in an interview published on Saturday.“What they’re doing with Greece has a name: terrorism,” Varoufakis told Spain’s El Mundo. “What Brussels and the troika want today is for the yes [vote] to win so they could humiliate the Greeks. Why did they force us to close the banks? To instil fear in people. And spreading fear is called terrorism.”Related: Greek debt crisis: Yanis Varoufakis accuses Europe of terrorism - liveRelated: Greek economy close to collapse as food and medicine run short Continue reading...
Europe has tried to financially carpet-bomb Greece into submission. Yet it offers no vision of a better future | Paul Mason
Sunday’s referendum is taking place against the background of a kind of financial warfare. If the idea is to terrorise the population, it has only half worked
Get him to the Greek referendum: fearful expats book out flights home
The million Greeks living abroad had to return home at short notice if they wanted to have a say in the country’s economic future. Many are doing soSpurred by patriotism and fear, Greeks are flying home from across the world to take part in Sunday’s bailout referendum.Due to referendum rules stating that ballots must be cast in person, the estimated 1 million Greeks living abroad will be disenfranchised unless they fly back to vote. Alexis Tsipras’s announcement last weekend gave them just one week to scramble on to flights. Continue reading...
UK exporters feeling the heat from eurozone crisis
Leaders need to move quickly towards to solve the Greek debt crisis, CBI warnsThe CBI has issued a call on eurozone leaders to quickly resolve the Greek debt crisis, whatever the outcome of Sunday’s referendum, after the British business group’s latest poll highlighted mounting pressure on exporters.The lobby group said its surveys of more than 750 companies across the manufacturing, retail and service sectors suggested UK economic growth lost momentum last month.We expect the economy to sustain a solid pace of growth over the remainder of the year Continue reading...
Inheritance tax giveaway to feature in first Tory budget alongside welfare cuts
Chancellor George Osborne set to unveil policy most likely to benefit higher earners on same day as setting out £12bn benefit reductionsGeorge Osborne is planning to use his first Conservative budget to lift all but the very richest households out of inheritance tax on the same day he sets out billions of pounds in welfare cuts.The move will allow a couple to pass a house worth up to £1m to their children or grandchildren. The chancellor will create a £175,000, tax-free allowance per person for their main property on top of their existing £325,000 allowance that can be applied to all assets. Continue reading...
This euro is destroying theEuropean dream | Jonathan Freedland
The deficit fetishists of Brussels and Berlin must cut Greece some fiscal slack and work to promote growthOn Sunday the Greeks vote while the rest of Europe holds its breath. No matter how clunky the wording on the ballot paper, everyone knows what’s at stake. This is a moment of great peril, not only for the euro but for the European project itself.If Greece votes no, it’s hard to see how it can stay in the euro, which will represent the most grievous blow in the 16-year history of a currency whose momentum was always meant to be irreversible.Related: Greek referendum: how voters interpret unclear question will decide outcomeI’m told plenty of European leaders are ready to do it – but not for Alexis Tsipras. That relationship is too broken Continue reading...
Greek economy close to collapse as food and medicine run short
Alexis Tsipras urges people to vote no in Sunday’s referendum as capital controls bite and vital tourism industry sees tens of thousands cancel holidays in GreeceRelated: This euro is destroying the European dream | Jonathan FreedlandGreece’s economy is on the brink of collapse after the capital controls imposed ahead of Sunday’s referendum left the country with shortages of food and drugs, the tourist industry facing a wave of cancellations and banks with barely enough money to survive the weekend.Related: A decade of overspending: how Greece plunged into economic crisisRelated: Greek referendum: what the experts sayRelated: The Guardian view on the Greek referendum: hard to imagine a more dismal choice | Editorial Continue reading...
Greek debt crisis: referendum to go ahead as court rejects appeal – live updates
Latest polls show country split down the middle
Greek referendum: how would top economists vote?
The Greek government is urging a no vote in Sunday’s bailout referendum. Eurozone leaders say vote yesGreeks go to the polls on Sunday to vote on whether to accept the bailout programme proposed by international lenders that would restart financial aid in exchange for further austerity and economic reform.The government is urging people to vote no, with the finance minister, Yanis Varoufakis, saying it is time to end years of rolling over Greece’s bailouts and “pretending” its debts can be repaid.A no vote would at least open the possibility that Greece, with its strong democratic tradition, might grasp its destiny in its own hands. Greeks might gain the opportunity to shape a future that, though perhaps not as prosperous as the past, is far more hopeful than the unconscionable torture of the present.The troika clearly did a reverse Corleone – they made Tsipras an offer he can’t accept, and presumably did this knowingly. So the ultimatum was, in effect, a move to replace the Greek government. And even if you don’t like Syriza, that has to be disturbing for anyone who believes in European ideals.It’s a complicated choice. The question being asked is whether the plan from the creditors is good or not. If that is the question being asked, the answer for me is clear: it is a bad plan.I recommend that the Greek people give a resounding “No” to the creditors in the referendum on their demands this weekend.The way forward is to reform from within, not by running away from the problem. There are already signs that sentiments are changing ... With patience other changes will follow. It is clear to most politicians in Europe that austerity is dividing the continent and damaging the European project. Reforms will follow. Greece has a role to play in this agenda but only if it stays within the eurozone.There has been too much austerity but a no vote would make things worse. It would almost certainly mean banks becoming insolvent, an exit from the euro and a much faster decline in economic activity, with hyperinflation following as the drachma that is introduced instantly devalues.A yes vote would keep banks open and give mandate for a deal to be struck that recognises the new Greek realities and includes, as the IMF now says, restructuring of the debt which every economist knows is unsustainable.Taking into account that the proposals of our creditors and the Greek government were converging until last Friday, we believe that what is really at stake in the coming referendum, irrespective of the precise formulation of the question, is whether Greece will remain, or not, in the eurozone and, possibly, whether it will remain in the EU itself...Leaving the eurozone, especially in this chaotic and superficial way, would likely lead to a process of leaving the EU too, with unpredictable and disastrous consequences for the national security and the democratic stability of our country. Continue reading...
A decade of overspending: how Greece plunged into economic crisis
Athens was poorly prepared for the 2008 crash - living off easy credit, while spending on wages and defence soared, and taxes began to fall awayHow did Greece get into this state?Greece was badly prepared for the 2008 financial crisis after a decade of overspending. In many ways, the weakness of its economy and public finances was akin to that of Spain, Ireland and Portugal, which also found themselves brutally exposed after 10 years of living beyond their means. Greece, though, was a special case, which was why in 2010 it became the first EU country to send a distress signal. Since then, Athens has struggled to piece together a deal with its lenders that allows the economy to recover. Continue reading...
The Guardian view on the Greek referendum: hard to imagine a more dismal choice | Editorial
The Greek crisis has led Brussels into the business of regime changeBrussels should not be in the business of making or breaking governments. But that is nevertheless the dangerous point to which the European Union’s mishandling of the Greek crisis has brought it. The union “made” the present Syriza government in January this year by refusing to offer its predecessor, New Democracy, the softer terms on debt which would have allowed it to stay in office. But that could be put down to happenstance. The situation now is different, with European leaders openly campaigning for a yes vote in the Greek referendum due to be held on Sunday. A yes vote would almost certainly lead to the fall of the Syriza government. If this is not regime change, it comes perilously close to it, and it is a profoundly damaging development for the European project.It is worth asking again at this critical stage who is most to blame, because that question is so often asked in the wrong way. Alexis Tsipras and his colleagues are amateur politicians who in normal circumstances would have been fulminating from the opposition benches without worrying about what to do if they achieved power. It is hardly surprising therefore that, cocky and erratic, they have made mistake after mistake. Continue reading...
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