Greece says NO to austerity demands by Wall Street dominated financial sector and their IMF brainchild

The Greek No Vote has shown the rest of the EU that democracy is what counts and not the dictatorial rule of the Wall Street dominated global financial markets and its brainchild the IMF.

It will hopefully only hasten Europe's need to take a more independent route on a variety of issues, presently controlled by Trans-Atlantic financial and political forces.

Europe must choose for Greece, after all, aren't they one of us?
EU-Digest

Greek Drama: Après nous, le déluge. "Italy, Spain to follow if Greece exits eurozone", says Greek defense minister

How to glue this old Vase again?

Greece's Defense Minister Panos Kammenos has said his country's exit from the eurozone could be followed by Italy, Spain and even Germany. Kammenos' interview comes amid lack of progress in Greece's bailout plan.

"If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay," Kammenos told Bild.

Instead of a bailout, Greece needed a debt "haircut" like the one Germany's creditors had to accept in 1953, Kammenos proposed. He also argued that Berlin should pay World War II reparations to Athens. "All European countries have been compensated for crimes committed by Nazis, except for Greece," Kammenos said, referring to the gold Nazi soldiers brought back from Athens during the war.

The defense minister also accused Germany of "interfering" in its domestic affairs. His criticism was aimed at German Finance Minister Schäuble, who earlier warned of a "Grexident" which could push Athens out of the euro.

"I don't understand why he turns against Greece every day in new statements. It's like a psychological war and Schäuble is poisoning the relationship between the two countries through that," he said.

Note EU-Digest: Instead of blaming everyone else Greek officials should realize and admit that the reason they are in trouble is because of their own mismanagement of the country:They lied about their financial figures in order to join the euro-zone, they have out of control corruption, their civil servants are over payed and receive more perks than those in any other EU nation, the Greek tax system does not work and some of the richest people in Greece never pay any taxes, and last but not least, work ethic certainly is not one of the greatest assets of the Greek labor force. .

Read more: Italy, Spain to follow if Greece exits eurozone, says Greek defense minister | News | DW.DE | 14.03.2015

Hungary takes lead in EU with "People Power" street protests - "Power that needs to be copied around Europe"

They say they are demonstrating for democracy and against poverty. Thousands of Hungarians have staged an anti-government rally in Budapest, piling further pressure on Prime Minister Viktor Orban.

His conservative Fidesz party won a new term with a two-thirds majority last year.

But its support has waned amid protests by civic groups. “Everyone is in a difficult situation,” one demonstrator told euronews.

“They could be fired from work, with no contracts for their company and no chance to bid for public contracts.”
Perceived political corruption was denounced by many taking part.“The civil organisations say they don’t want to establish a political party because the parties have discredited themselves,” a woman told us.
“The people do not trust them.”

Accused of authoritarianism and getting too close to Russia, the premier has already been forced to back down from plans to tax Internet use.

 Read more: People power in Hungary as protesters stage huge anti-government rally | euronews, world news

Belgium: Wage Cuts And Austerity Have Come To Belgium

Today, trade unions in Belgium are organising a general national strike. This will come on top of 3 days of regional strikes as well as a national manifestation, all of which have been massively followed up by workers over the past month. Moreover, the trade union leadership is considering to continue with such actions in the new year. For Belgium, with its tradition of social dialogue, this is rather unheard of and to see similar intense trade union action one has to go 20 years back.

Belgian workers have however every reason to be upset. The conservative government, having taken up power recently, is applying an austerity program of such depth that it reminds one of the brutal austerity policies that have been pursued in in many other European member states. Policies that have triggered the long European recession of 2011-2012. The total austerity package proposed amounts to some 11 billion euro or close to 3% of GDP.

Looking at the measures that are in the pipeline, both workers and unemployed people will face austerity from the cradle to the grave. There are cuts in childcare benefits, substantially increased childcare costs and (higher) education fees as well as swinging cuts in the educational budget and public services in general. Next year, workers will be forced to undergo a real wage cut of 2% while collective bargaining on wage increases is outlawed for the coming two years. Unemployment benefit systems are being hollowed out in many different ways and at the end of their active life, workers will have to work longer (to the age of 67) before being entitled to (reduced) pensions.

In all of these measures, the pressure is on wages while income from capital is not touched at all. On the contrary! On top of the 2% imposed cut in real wages comes a huge reduction in employer social security contributions. Business will enjoy a transfer of 4 billion euro or more than 1% of GDP.

Read more: Wage Cuts And Austerity Have Come To Belgium

EU - Economy: Greece prepares to wave goodbye to troika

Greece has had many judgement days over the last year but the latest meeting of the troika could be one of the last.

Inspectors from the EU, ECB and the International Monetary Fund have been gathering to review the country’s progress on economic reforms, and our correspondent says it could be the final gathering if Greece ends its loan dependence.

“The International Monetary Fund is the big thorn in the side of the Greek government that wishes this to be the last time they visit Athens for an audit. With the primary surplus steadily above target, Greece will try to stay away from needing further IMF help. But there’s a long way to go before a definitive decision is made,” said Symela Touchtidou.

Athens has had its successes; besides a primary budget surplus, unemployment has dipped slightly from its record high of 28 percent in June, although it remains among Europe’s highest. Crucially, its economy is set to grow in 2014 after a six-year recession.

The Greek government also remains hopeful after announcing a series of tax relief measures this month for the first time after four years of austerity. The troika will looking to see if the government can compensate for those cuts.

Read more: Greece prepares to wave goodbye to troika | euronews, economy

Europe Is Sick - Changing Course Towards A Social Europe - by Reiner Hoffmann:

Joseph Stiglitz, who won the Nobel Prize in 2001 for his work on how markets work inefficiently was once asked about his opinion on austerity measures. “It reminds me of medieval medicine,” he said. “It is like blood-letting, where you took blood out of a patient because the theory was that there were bad tumours. And very often, when you took the blood out, the patient got sicker. The response then was more blood-letting until the patient very nearly died.” He drew the conclusion: “What is happening in Europe is a mutual suicide pact!”

Jospeh Stiglitz is right. The manner in which the crisis is dealt with is likely to be of far-reaching significance to Europe and to the rest of the world. Therefore, it’s about the correct decision on the future direction: On the one hand a Europe based on the logic of commerce and competition or on the other hand a Social Europe that tackles the crisis in solidarity and does not leave the young out in the rain when the going gets tough!

I believe that even the Germans do not live on an isolated island of the blessed. We cannot remain indifferent to how the people in those countries who are affected the most by the crisis are suffering. In the long term, things will only go well for us if they are going well for our neighbours too.

Undoubtedly, we do not need an over-regulated EU which wants to ban the serving of olive oil in dipping bowls or wants to regulate the physical appearance of fruit and vegetables. 

What we need are better regulated financial markets and we need banks which serve the real economy and are useful for industry. We do not need banks rewarding managers with substantial cash-bonuses for short-term gains, filling up balloons with air and then letting it out again – and getting the European taxpayer to pick up the bill.

Ten Eurozone countries have committed to introducing the proposed European Union financial transaction tax (FTT) by 2016. The FTT and the step towards the creation of a European banking union are major developments for dealing with the current problems. However, it’s not enough! We need further EU action on combating tax avoidance and tax evasion. A competitive approach to cutting company taxes we cannot and will no longer afford in Europe.

What worries me is that little discussion appears to focus explicitly on the costs of economic crises in terms of human lives. The crisis management strategy adopted by politicians, comprising austerity mandates and cuts in wages, pensions and welfare payments, has not only led to a downward spiral in economic terms, but is also having a devastating impact on citizens. Social risks are increasing and individuals and families are under constant worry. 

Unemployment – particularly among the young – is sky-high, living standards are falling and signs of the crisis range from soup kitchens in Athens to Portugal’s crowds protesting in the streets against austerity.

If unemployment was a country it would be, with 19,2 million inhabitants, the fifth biggest in the EU. In the US, Greece, Italy, Spain, the UK and elsewhere in Europe there were more than 10,000 additional suicides from 2007-2010, a figure that is over and above historical trends, with the largest rises concentrated in the worst performing economies. 

Greece is in the middle of a public health disaster: HIV, TB, and malaria epidemics will now cost more to control than they would have been to prevent. An increase in infant and child mortality was observed in Portugal. In Italy, the education system is falling down. In about half of Italian school buildings, including universities, pieces of plaster are falling off the ceiling, water penetrates walls and floors are giving way. And the youth unemployment rate in Spain has increased to over 50 percent.

The European election results clearly reveal that Europe is ill (to steal the title of an essay by Perry Anderson in the London Review of Books). The symptoms of this illness are apparent – but what can we do to bring Europe out of intensive care? To relief Europe from the consequences of the neoliberal arbitrariness and lack of commitment?

Special weight must be given to German politics. The coordinates in the new grand coalition have shifted from centre-right to centre-left. This is an important change of direction. The grand coalition is marginally more pro-European and less keen on forcing austerity onto the Eurozone.

There is a big difference between therapeutic fasting and strangulation of the patient. The one contributes to recovery the other leads in the best case to a coma. Andreas Fischer-Lescano, Professor at the Centre of European Law and Politics (ZERP) at Bremen University presented a legal opinion on the EU’s austerity policy. According to him, the EU’s austerity policy is unlawful.

Read more: Reiner Hoffmann: Changing Course Towards A Social Europe

Greece reaches long-delayed deal on bailout loans - by Elena Becatoros and Nicholas Paphitis

Greece concluded seven months of tortuous negotiations with its international debt inspectors Tuesday, reaching a deal that will allow it to access a long-delayed rescue loan installment.

The deal does not require Greece to impose any new austerity policies, Prime Minister Antonis Samaras insisted, as he outlined a series of relief measures for the most needy. "Today a long period of tribulations has ended, and a new beginning is being made," Samaras said. 

Greece has depended on its bailout from other European countries and the International Monetary Fund since mid-2010. Payment of the rescue loans depend on the country meeting criteria in spending cuts, tax increases and reforms. Greece's progress in meeting the targets is reviewed regularly by the debt inspectors, collectively known as the 'troika'.

Greece began this latest round of negotiations in September. Talks had snagged on several issues, including public sector firings and market reforms.

"These were seven very, very difficult months," said Finance Minister Yannis Stournaras, adding that the text of the agreement was being written up.

Read more: Greece reaches long-delayed deal on bailout loans - Yahoo News

European Economy: Red Cross study slams Europe's response to the economic crisis over the past five years

Homeless Europeans

A Red Cross study slams Europe's response to the economic crisis over the past five years, saying the continent is in for a long period of unemployment, a widening poverty gap and a growing risk of social unrest. 

Annitta Underlin is the Director for Europe with IFRC (the International Federation of Red Cross and Red Crescent societies). Her section combines 52 national Red Cross and Red Crescent societies. In a report called 'Think differently,' published on Thursday (10.10.2013), they warn that Europe's response to the economic crisis will push the continent into social and economic decline.

Read more of the interview: 'The crisis has taken root at every level' | Europe | DW.DE | 10.10.2013

Dutch government averts budget crisis with support of small parties - by Anthony Deutsch

The Dutch government on Friday won the support of several small opposition parties needed to push through a fresh round of austerity cuts, averting a budget crisis.

The centre-right coalition of Liberal Prime Minister Mark Rutte concluded several days of negotiations with an agreement to trim away an additional 6 billion euros ($ 8.12 billion)  in government spending in 2014.

Dutch news agency ANP said a deal was reached between the government, which lacks a majority in the Senate, and two small Christian parties - the Christian Union and the conservative SGP - as well as the right-of-centre Democrats 66.

The cuts are needed to bring the Netherlands in line with the European Union's 3 percent budget deficit target.

Dutch finance minister and Eurogroup head Jeroen Dijsselbloem cancelled a trip to the annual IMF meetings in Washington this week to focus on the negotiations.

Read more: Dutch government averts budget crisis with support of small parties - World | The Star Online

Almere cuts budget by another 7 million euro's

Almere

After cutting Almere's budget by 17 million euro's in the spring, councilman Mark Pol of the Conservative VVD announcing the proposed budget for 2014 said the City budget would be cut by another 7 million euro's.

It was also announced that the Dutch Government  had cut Almere's subsidy from the National City Council Fund by 6 million euro's and that the City would receive euro 900.000 less for school housing purposes.

All these budget cuts for Almere come in addition to budget cuts which now total 48 million since 2010.

Presently Almere has 195,000 inhabitants and 14,500 businesses. . It is also considered one of  Europe's fastest growing cities and is well on the way to become the fifth largest city in the Netherlands over the next twenty years.

These budget cuts are seen as potential dangers to Almere's future development and growth. The city is only 38 years old and is seen by many architects around the world as Europe's most modern and environmentally advanced cities

Almere-Digest

Netherlands: Dutch to buy JSF fighter jets in 4.5-bn-euro deal - question is - can Holland afford or need the JSF?

Global Post reports the Netherlands wants to buy 37 new F-35 Joint Strike Fighters (JSF) from US-based Lockheed Martin in a deal worth 4.5 billion euros ($6 billion) to replace its ageing fleet of F-16s by 2019, the country's defense minister said Tuesday.

Jeanine Hennis-Plasschaert announced the long-debated purchase in a letter to parliament at the presentation of the government's 2014 budget at the Lower House's official opening in The Hague. afford

"In view of our current planning, the F-35 (also known as the Joint Strike Fighter) will go into service by 2019," operating from two Dutch air force bases, the minister said.

"After evaluating competitors in 2001 and 2008 and with updated relevant data in 2013, the cabinet has decided, based on operational and financial considerations, to choose the F-35 as the new fighter plane for the Dutch armed forces," she said.

The choice had been widely expected, with the Netherlands closely involved as one of the contributing countries to the JSF's development.

As early as 1997, the JSF has been flagged as the preferential candidate to replace the Dutch fleet of F-16s because of its stealth features, which make it almost invisible to radar.

In 2002, the Netherlands and eight other countries joined the fighter's development phase.
But a finalized Dutch purchase had been rejected in parliament, mainly by the centre-left Labour Party (PvdA) while in opposition.

However, that decision changed after Labour formed a majority coalition in the Lower House with Prime Minister Mark Rutte's Liberal party (VVD) after last September's elections.

The bottom line however is: can the Netherlands afford an expense of   4.5 billion euro's for this airplane while the Dutch taxpayer is asked to make all kinds of sacrifices to meet Government austerity measures. In addition the Government is buying into an airplane which has been plagued by problems.

An other problem is that the Martin F-35 Joint Strike Fighter program continues to trigger new controversies. Latest comments allege flawed estimates of the jet's weight and, as before, questions about the timeline for the plane's delivery and final cost.

The F-35 was spotlighted in technical troubles in addition to debates over its costs. In February the U.S. Department of Defense suspended flights of all 51 F-35 planes after a routine inspection revealed a crack on a turbine blade in the jet engine of an F-35 test aircraft.

Outgoing Executive Vice President and JSF General Manager Tom Burbage was quoted in the news media as saying the manufacturer miscalculated on the aircraft's weight during its early development.

The question remains: should the Netherlands cut their losses on the JSF and pull out of the project or go deeply into debt with a project which is extremely questionable? 

EU-Digest