Turkey Faces Threat of Financial Crisis after Lira Plunges against Dollar

THE GUARDIAN: Central bank forced to defend currency as traders respond to interest rate cut with sharp selloff

A customer at a bureau de change in Istanbul over the weekend. The lira was trading at almost 15 to the dollar at one point on Monday. Photograph: Serkan Senturk/Zuma Press Wire/Rex/Shutterstock
Fears that Turkey is on course for a full-scale financial crisis have intensified after the lira plunged to fresh lows against the US dollar.

Turkey’s central bank was forced to step in to defend the ailing currency – selling US dollars for lira – after the latest sharp selloff.

The lira was at one stage trading at almost 15 to the dollar as currency dealers contemplated the prospect of the latest in a series of interest rates cuts demanded of the central bank by the country’s president, Recep Tayyip Erdoğan.

Erdoğan’s insistence that the central bank should keep reducing the cost of borrowing despite annual inflation running at 20% has led to the value of the lira halving during 2021. » | Larry Elliott, Economics editor | Monday, December 13, 2021

Turkey’s Lira in Free Fall – Erdogan Calls Snap Election

Erdogan invites foreign direct investment and the Turkish diaspora population in Europe to vote for him in the upcoming snap election. We speak with co-editor of Rapture Magazine

Overdose: The Next Financial Crisis

'We Chose Democracy & Human Rights over Banks' – Iceland President to RT

As Iceland's banking system went into meltdown at the start of the global financial crisis, it came under enormous pressure from the rest of Europe to accept crippling austerity measures that would have burdened its people for generations to come. And yet the tiny island nation stood up to the European Goliath, defiantly opting for democracy even as it stood on the brink of bankruptcy. What can Iceland teach the world about the power of the people and the rule of law? To discuss these issues, Oksana is joined by the President of Iceland, Olafur Grimsson.

Return of the Far Right: Greece's Financial Crisis Has Led to a Rise in Violent Attacks on Refugees
THE INDEPENDENT: John Carlin reports from Athens on the return of the far right.

An Afghan who fled his country, fearing a lynching, after converting from Islam to Christianity. A Syrian who bolted across the border after a bomb destroyed his home. A Sudanese man who ran for his life after soldiers murdered his father and raped his sisters.

All three have joined the rivers of refugees that flow, now as ever, from the most wretched corners of the earth, converging today on Athens, the most wretched capital in Western Europe. Pursuing the European dream, they have run aground in the swamp of Greek's economic crisis: undocumented, unwanted, despised, hungry and under constant threat of the sort of violence they imagined they had left behind at home.

The bad guys of this story are not hard to identify. The far-right Golden Dawn party (Chrysi Avgi in Greek) captures votes by using foreign migrants in the same way the Nazis used the Jews: as scapegoats for the frustrations, insecurities and hardships of today's Greek population. They blame Arabs, Asians and Africans (or 'subhumans' as they call them) for their country's dire lot. Accusing them of infecting Greeks with diseases and of turning the centre of Athens into a criminal jungle, young Golden Dawn militants hunt down foreigners in the streets, markets, parks and buses.

The good guys of this story are the NGO workers and Greek volunteers who endeavour to help the refugees. Their altruism is especially impressive: they are also suffering the consequences of the economic crisis, they all know fellow Greeks who are competing with the refugees for food in the bins of Athens. Workers at Médecins Sans Frontières, for example, report Greek people coming to them and asking: "Why don't you help us instead of them? Who invited them, anyway?".

Golden Dawn are the bad guys, but it is not hard to grasp why they are now the third biggest party in the country, well on their way to becoming the second. At a time of awful confusion and uncertainty, they offer simple solutions to complex problems. Linked to neo-Nazi groups in Germany, they have learnt the populist lessons of the Hitler era. They magnify the danger posed by refugees and present themselves as the only true defenders of the people. » | John Carlin | Saturday, March 30, 2013

Overdose: The Next Financial Crisis

Queen Talks of 'Lax' Bankers and 'Toothless' Regulators behind Financial Crisis

THE DAILY TELEGRAPH: The Queen has spoken about "lax" City workers and a banking regulator which "didn't have the teeth" to intervene as she discussed the causes of the financial crisis during a visit to the Bank of England

With her face on every banknote and coin in circulation, it is only natural that the Queen takes a sharp interest in the nation's finances, as she showed on a visit to the Bank of England today.

Her Majesty suggested the financial crisis of 2008 had happened because the Financial Services Authority “didn’t have the teeth” to rein in the biggest risk-takers.

The Duke of Edinburgh, meanwhile, had a typically blunt piece of advice for the Bank’s executives: “Don’t do it again!”

The Queen and the Duke grilled Bank of England staff during a visit which included a tour of a vault stacked with £27 billion worth of bullion.

Suit Kapadia, one of the Bank’s financial policy experts, said he wanted to answer a question the Queen asked academics at the London School of Economics in 2008 about why no one saw the financial crisis coming.

“Oh!” said the Queen, looking slightly taken aback.

Mr Kapadia said the City had got “complacent” because it thought risk was being managed better than it was, and the financial system had become too interconnected.

The Queen agreed: “People got a bit lax … perhaps it was difficult to foresee.”

She asked if the financial system was less interconnected now and concurred with a suggestion that part of the problem had been the lack of powers given to the Financial Services Authority. “They didn't have the teeth,” she said. » | Gordon Rayner, Chief Reporter | Thursday, December 13, 2012

Greek Leftist Leader Alexis Tsipras: 'It's in Europe's Interest to Lift the Austerity Diktat'

SPIEGEL ONLINE INTERNATIONAL: Alexis Tsipras, head of the leftist Syriza party, wants an end to austerity in Greece. Ahead of Greek general elections in mid-June, he speaks with SPIEGEL about the dangers his country poses to the euro, the failure of economization measures thus far and why Chancellor Angela Merkel would be to blame if the Greek economy collapses.

Tsipras, the 37-year-old rising star in Greek politics, lays his Ray-Ban sunglasses on the table. It's Tuesday afternoon, and he looks exhausted. Indeed, he has a packed schedule: first Paris and then Berlin, where he met with Gregor Gysi and then with Jürgen Trittin and Sigmar Gabriel, senior officials in Germany's Left Party, Green Party and Social Democratic Party, respectively. Tsipras was the surprise victor when his Radical Left (Syriza) party took second place in May 6 general elections in Greece. Because leaders were unable to form a coalition government, a new election will be held on June 17. Most believe that Tsipras will attract even more votes in this second election.

Tsipras' tour through "Europe's two most important capital cities," as he put it, was primarily about cultivating his image. The civil engineer, already politically active in high school as a member of the Communist Youth of Greece, numbers among the strongest critics of the EU-International Monetary Fund (IMF) strategy for Greece, which calls for radical budget cuts and austerity in return for international aid. Should he win the June 17 election, Tsipras plans to ditch the terms of the bailout agreements struck with its creditors. On the campaign trail, one of his slogans has been that Greece is in danger of becoming a "German colony." But he toned things down in Berlin, saying: "We want to persuade, not blackmail." » | Interview conducted by Julia Amalia Heyer and Manfred Ertel | Translated from the German by Josh Ward | Monday, May 28, 2012

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Visit to Germany: Tsipras Says Berlin Must Back Down on Austerity

SPIEGEL ONLINE INTERNATIONAL: Charismatic, eloquent and defiant, the leader of Greece's Radical Left party, Alexis Tsipras, visited Berlin on Tuesday to ram home the message that he will scrap austerity if he wins the June election, and that no one, not even mighty Germany, has the right to evict Greece from the currency.

Alexis Tsipras, the leftist leader who could hold the whole of Europe to ransom if he wins the Greek election on June 17, breezed into Berlin on Tuesday to tell Germans they don't own the euro zone, and that they will endanger the whole currency block if they insist on stringent austerity for his recession-hit country.

The 37-year-old leader of the Radical Left party (Syriza), which came second in the May 6 election and is expected to emerge as the strongest political force in the repeat vote, reiterated his determination to abandon the radical budget cuts that were imposed on Greece in return for international aid -- a move EU leaders and German politicians in particular have warned could force Greece out of the euro.

The charismatic leader had visited Paris on Monday as part of a tour to convince a skeptical European public that he is not bent on wrecking the euro. In Berlin, he was hosted by Germany's opposition Left Party, which agreed a six-point program with Syriza calling for an end to austerity, taxes on banks and the rich and economic stimulus measures.

He didn't get an audience with Chancellor Angela Merkel. But his message to her, conveyed via more than 200 journalists packed into a building just a few hundred meters from her chancellery building, was loud and clear. He had no intention of "blackmailing" the German people, he said. But then he appeared to do just that, saying the bailout terms would have to be renegotiated, or else. » | David Crossland | Tuesday, May 22, 2012

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THE DAILY TELEGRAPH: Angela Merkel 'astonished' by austerity debate as Germany left increasingly isolated on Eurobonds: The German Chancellor Angela Merkel said she finds it “astonishing” that her pro-austerity stance is the cause of controversy, as Germany found itself increasingly isolated on the issue of eurobonds ahead of Wednesday’s European Union leaders summit. ¶ The German Chancellor said that the current debate in Europe and beyond “gives the impression that, for us, saving, as such, is pleasurable”. ¶ “It’s just about not spending more than you collect. It’s astonishing that this simple fact leads to such debates,” she said in a speech in Berlin. » | Angela Monaghan, and Philip Aldrick | Tuesday, May 22, 2012

'Sick Conditions': Why Greeks Will Vote for Tsipras

SPIEGEL ONLINE INTERNATIONAL: Greeks have spurned the politicians who represent the country's broken system, and many are now following rising star Alexis Tsipras. The radical left-wing politician has pledged to free Greece from painful austerity measures while keeping the euro, but no one knows how he plans to fulfill his promises.

Alexis Tsipras, the man who will very likely emerge again as the winner of the upcoming Greek parliamentary election, is campaigning throughout the country primarily under one slogan: "We won't pay any more."

He doesn't say what would replace the "barbarism of the austerity dictates," which he maintains that the European Union partners, above all German Chancellor Angela Merkel, have forced upon his country. He argues that the Europeans are only bluffing -- and he promises that they will continue to help, even if the Greeks no longer service their debts. He says: Elect me and all this misery will come to an end.

Stavros Lygeros, 59, is sitting in a café in the posh Athens neighborhood Neo Psychiko. Lygeros is a political commentator and a bourgeois intellectual. He's endeavoring to explain why the Greeks are following Tsipras in droves, although this young politician is clearly a seductive new star and his successful radical left-wing Radical Left Coalition (Syriza) cannot explain who will pay the future salaries of civil servants, doctors and nurses. Lygeros says that many Syriza voters don't even believe that this party has a solution.

The tragedy is that Greeks don't really have a choice when they return to the polls on June 17 -- their only option is refusal and protest. Suddenly all of Europe is demanding that they vote once again for, of all people, the very politicians who brought them all this misery in the first place, namely the socialists under Evangelos Venizelos and the conservatives under Antonis Samaras.

Because the discredited parties stand for the loan agreement and the conditions laid down by the lenders, many Greeks see Tsipras as their only alternative. At 37, he is young compared to the usual gerontocrats who dominate Greek politics. With an annual income last year of €48,000 ($61,000), a motorcycle and a modest apartment, he's fairly poor for a politician, which is yet another factor that fuels his popularity among voters. And he's the only one who promises to free Greece from the yoke of the austerity measures -- yet retain the euro. » | Julia Amalia Heyer | Monday, May 21, 2012

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Alexis Tsipras Warns Greek Crisis Is Also Europe's

THE GUARDIAN: Greece's leftwing leader tells Paris audience that other EU countries will be next if they fail to oppose radical austerity drive

The rising star of Europe Alexis Tsipras, the radical left Greek leader, has arrived in Paris to warn EU countries that their turn would come if they failed to oppose the radical austerity that is driving Greece to the brink of "collective suicide".

Tsipras, who is leading an austerity-backlash, said the future of Europe and the euro depended on the outcome of the Greece debt crisis. And he said he could feel a "wind of change" blowing across the continent that he hoped would lead to the "complete re-founding of Europe based on social cohesion and solidarity".

To continue down the path of austerity, he warned, would turn the Greek tragedy into an European catastrophe.

"Greece is a link in a chain. If it breaks it is not just the link that is broken but the whole chain. What people have to understand is that the Greek crisis concerns not just Greece but all European people so a common European solution has to be found," he told a press conference in Paris.

"The public debt crisis is hitting the south of Europe but it will soon hit central Europe. People have to realise that their own country could be threatened.

"We are here to explain to people in Europe that we have nothing against them. We are fighting the battle in Greece not just for the Greek people but for people in France, Germany and all European countries."

"I am not here to blackmail, I am here to mobilise," he said.

"Greece gave humanity democracy and today the Greek people will bring democracy back to Europe." » | Kim Willsher in Paris | Monday, May 21, 2012

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Greek Leftist Leader Alexis Tsipras: 'It's a War between People and Capitalism'

THE GUARDIAN: Greece's eurozone fate may now be in the hands of the 37-year-old political firebrand and his Syriza party

"I don't believe in heroes or saviours," says Alexis Tsipras, "but I do believe in fighting for rights … no one has the right to reduce a proud people to such a state of wretchedness and indignity."

The man who holds the fate of the euro in his hands – as the leader of the Greek party willing to tear up the country's €130bn (£100bn) bailout agreement – says Greece is on the frontline of a war that is engulfing Europe.

A long bombardment of "neo-liberal shock" – draconian tax rises and remorseless spending cuts – has left immense collateral damage. "We have never been in such a bad place," he says, sleeves rolled up, staring hard into the middle distance, from behind the desk that he shares in his small parliamentary office. "After two and a half years of catastrophe Greeks, are on their knees. The social state has collapsed, one in two youngsters is out of work, there are people leaving en masse, the climate psychologically is one of pessimism, depression, mass suicides."

But while exhausted and battle weary, the nation at the forefront of Europe's escalating debt crisis and teetering on the edge of bankruptcy is also hardened. And, increasingly, they are looking towards Tsipras to lead their fight.

"Defeat is the battle that isn't waged," says the young politician who almost overnight has seen his radical left coalition party, Syriza, jump from representing fewer than 5% of Greeks to enjoying ratings of more than 25% in polls.

"You ask me if I am afraid. I'd be afraid if we continued on this path, a path to social hell … when someone fights there is a big chance that he will win and we are fighting this to win."

Before Greeks went to the polls on 6 May, neither Tsipras nor his party were a name to be reckoned with. If anything both were the butt of vague mockery: a former pony-tailed student communist leading a rag-tag band of ex-Trotskyists, Maoists, champagne socialists and greens. Tsipras's assistants – wielding Louis Vuitton bags and fashionable sunglasses – readily admit they are signed up "militants" mostly of the anti-globalisation cause. » | Helena Smith in Athens | Friday, May 18, 2012

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Greece to Hold New Elections
Greek politicians have failed to form a government and will now head towards holding a new election. Polls show the vote could favour the country's leftists who want to renege on the terms of bailout agreed on by the government earlier in the year. This will see the country push closer towards an exit from the eurozone, a situation which IMF chief Christine Lagarde says could get "quite messy". Al Jazeera's Paul Brennan reports from Athens.

Related material here and here

Greece On Brink of Collapse
THE DAILY TELEGRAPH: Europe’s financial crisis lurched into a perilous new phase as dire predictions emerged of a collapse in Greece’s economy, with a run on its banks bringing an inevitable end to its membership of the euro.

As leaders in Athens accepted the need for a new general election to end a national stalemate, the International Monetary Fund said Europe’s leaders should prepare for the possibility of a Greek departure from the single currency.

Christine Lagarde, head of the IMF, warned she was “technically prepared for anything” and said the utmost effort must be made to ensure any Greek exit was orderly. The effect was likely to be “quite messy” with risks to growth, trade and financial markets. “It is something that would be extremely expensive and would pose great risks but it is part of options that we must technically consider,” she said.

Raising tensions still further, Germany warned Greek voters that the wrong result in next month’s election will force their country out of the single currency.

Greece’s president warned, perhaps most alarmingly, that its banks risk running out of money, posing a “threat to our national existence”.

The escalating turmoil sharpened fears in financial markets, with European shares and the euro itself falling again. On the stock markets, the Eurostoxx 600 fell 0.7 per cent to a year-low; Germany’s Dax dropped 0.8 per cent and Spain’s Ibex was down 1.6 per cent. In London the FTSE100 slid 0.5 per cent. Following this month’s inconclusive election, Greek parties yesterday failed again to agree a new government. A new election, most likely to be held in mid-June, could see more gains for parties that want to reject the austerity measures that are a condition of international efforts to bail out the debt-crippled state. » | Bruno Waterfield, Brussels and James Kirkup | Tuesday, May 15, 2012

WIRTSCHAFTSWOCHE: Fliegt Griechenland nun aus dem Euro? : Die Regierungsbildung ist gescheitert. Griechenland taumelt Neuwahlen entgegen – und dem Euro-Aus. Fliegt Griechenland nun aus dem Euro und warum hoffen die Griechen nun ausgerechnet auf Frankreichs neuen Präsidenten François Hollande? Die wichtigsten Fragen und Antworten. » | Von Tim Rahmann | Dienstag, 15. Mai 2012

Greece Calls New Election After Coalition Talks Fail

REUTERS.COM: Greece abandoned a nine-day hunt for a government on Tuesday and called a new election that threatens to hasten the nation's slide towards bankruptcy and a future outside the euro zone.

An inconclusive election on May 6 left parliament split between supporters and opponents of a 130 billion euro bailout deal which is reviled by Greeks for imposing deep wage, pension and public spending cuts.

A second election is expected to produce a similarly divided parliament, with opponents of the EU/IMF rescue consolidating their gains and raising the likelihood of an anti-bailout coalition that reneges on the deal keeping Greece afloat.

"For God's sake, let's move towards something better and not something worse," Socialist leader Evangelos Venizelos told reporters after a meeting of party leaders failed to agree on a government of technocrats. "Our motherland can find its way, we will fight for it to find its way."

European leaders have said they will halt the aid if promises given in return for the bailout are not kept. If so, Greece could go bankrupt as early as next month. Analysts say that this will almost certainly herald a Greek return to its drachma national currency. » | Lefteris Papadimas and Dina Kyriakidou | ATHENS | Tuesday, May 15, 2012

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Mothers Forced to Sell Their Children: Mail Reveals the Distressing Human Toll of Greece's Euro Meltdown
MAIL ONLINE: The economic crisis across Europe has perhaps been most keenly felt in Greece, where people have taken to the streets in violent and emotional protests against the austeri[t]y measures imposed on the nation. / In this heartbreaking dispatch from the streets of Athens, SUE REID finds mothers who have been forced to sell their own children in the battle for survival.

Once a month, usually on a Saturday, Kasiani Papadopoulou packs a bag with children’s presents and takes the bus from her one-bedroom flat in a dusty suburb of Athens up into the cool hills outside the Greek capital that overlook the sea.

The 20-mile journey is an emotional one for her, but she would not stop making it for anything in the world.

A young widow of 30, she travels to see her two daughters and son — aged 14, 13 and 12. Kasiani was forced to give them away a year ago when her money ran out and she was unable to pay for their food, her rent or send them to school with shoes or books.

At the charity home where the three are now cared for, the children excitedly shout ‘Mama’ as they run down the steps to greet her. Her eldest daughter, Ianthe, hugs her tightly and gives her a kiss.

When, a few hours later, it is time to say goodbye, Kasiani is always close to tears. The youngest, Melissa and Markos, cling to her before she leaves to go home alone.

‘It is not easy for a mother to leave her kids,’ she says to me, her voice cracking with emotion when I spoke to her this week in Athens.

‘At Christmas, at Easter, on their birthdays, I am always so sad because I do not see them. Some people judge me over what I’ve done — even my own family and neighbours — but they do not understand the truth. I’ve done what is best for my children.

‘I cannot count the number of doorbells I have rung of government departments, asking officials to help me and my family. They make promises but do nothing. They have no money either. Our country is in crisis.’

Kasiani’s children were born in a country which has been brought to its knees by crushing debt. This was built up by Greece’s huge profligacy after joining the European Union and then milking the system for everything it could get.

The public sector wage bill doubled in the past decade as perks and fiddles reminiscent of Britain in the union controlled 1970s flourished. Paying taxes became optional for the middle and upper classes and corruption was rife.

Until two years ago, the big fat Greek gravy train carried on racing towards the buffers. Even pastry chefs and hairdressers were listed among the 600 ‘professions’ allowed to retire at 50 (with a state pension of 95 per cent of their final year’s earnings) on account of the ‘arduous and perilous’ nature of their work.

Now drastic austerity measures imposed by Eurozone finance leaders mean that benefits, state pensions and pay rates have been pared to the bone as taxes are hiked heavenwards in a last ditch attempt to balance the books and stop the country going bankrupt. Read on and comment » | Sue Reid | Friday, May 11, 2012

Greece Sinks to Its Knees
THE SUNDAY TELEGRAPH: The recent bail-out, which imposes strict new austerity measures on the Greeks, will deepen a crisis that has already driven up the suicide rate by 40 per cent. David Blair reports from Athens on a nation that eyes the future without hope.

If popular protest in the graffiti-stained heart of Athens is the most obvious sign of Greece’s burgeoning crisis, a handful of volunteers gathered inside a suburban office provides a quieter, but no less painful, symbol of the country’s agony. These restrained, dedicated people meet in the modest headquarters of Klimaka, a mental health and social integration charity serving as Greece’s version of the Samaritans.

In a country where suicide is so vehemently stigmatised that it amounts to the social problem that dare not speak its name, a specialised telephone service offering counselling to those in despair began as recently as 2007. Today, the psychiatrists and psychologists who answer whenever someone dials “1018” are busier than ever. As the national economic crisis has worsened, so the volume of calls has grown.

In 2010, the service spoke to 2,500 people judged to be contemplating suicide. Last year, Greece’s first euro bail-out failed and the country’s unemployment rate rose by half in the space of 12 months, climbing from 13.9 to 20.9 per cent. As more and more people confronted redundancy and destitution, the plaintive calls to Klimaka more than doubled: 5,500 people thought to be at serious risk rang in 2011.

Today , the German parliament will vote on whether to endorse a second bail-out that was agreed by eurozone finance ministers last week on condition that Greece implements some of the harshest austerity measures ever imposed on a Western democracy. After five years of recession, Greece must now endure almost a decade of further economic self-flagellation in order to reduce its national debt from 160 per cent of gross domestic product to 120.5 per cent in 2020. That is the language of Brussels communiqués and central bankers; but the true voice of economic crisis is heard by Klimaka’s volunteers every day. » | David Blair | Sunday, February 26, 2012

Papandreou Out as Greek Leaders Agree Unity Government Deal

THE GUARDIAN: PM and opposition leaders agree formation of new coalition government in bid to break political deadlock

The Greek prime minister and opposition have agreed on the formation of a new coalition government in a bid to break the political deadlock and pave the way for an EU bailout for the debt-stricken country.

Prime minister George Papandreou and opposition leader Antonis Samaras battled over the weekend to strike the deal – which will see a new leader appointed to take over from Papandreou – ahead of the opening of the global financial markets this morning.

A statement from the Greek presidency said the leaders will meet again on Monday to discuss who would head the coalition government, but made no mention of how long the interim government would last.

Officials from the two parties were continuing with talks late on Sunday to try to set the time needed to implement the bailout.

Under the auspices of the nation's president, Karolos Papoulias, Papandreou and Samaras struck the deal to form an interim administration to agree on how to enact a bailout agreement, and so steer Greece through its worst crisis in modern times. » | Helena Smith in Athens and Tom Kington in Rome | Sunday, November 06, 2011

Greek Government Teeters On Brink of Collapse in Wake of Referendum plan

THE GUARDIAN: France and Germany battle to save the single currency as Europe is plunged back into turmoil days after rescue deal

The French president Nicolas Sarkozy and German chancellor Angela Merkel will hold emergency talks on Wednesday in a desperate attempt to hold the eurozone together and formulate a response to the Greek prime minister's plan for a referendum on the austerity measures imposed by his European partners.

George Papandreou's socialist government is on the brink of collapse after his referendum plan sparked an angry reaction within his own party and plunged Europe back into turmoil, just days after a complex rescue deal had been agreed – requiring Greece to embark on tough cost-cutting measures.

While Papandreou's cabinet approved unanimously his decision to hold a referendum, it threatens to split the prime minister's Pasok party. One MP, Milena Apostolaki, has quit in disgust at the idea of a referendum and several colleagues have said that if it is not abandoned they will join her. Papandreou faces a vote of confidence on Friday. A split in the Pasok party would almost certainly bring down the Greek government, which now has a majority of just two MPs in parliament.

The Greek finance minister, Evangelos Venizelos, who was rushed to hospital before the referendum announcement, said Papandreou had kept him in the dark over his plan to announce a vote. » | Phillip Inman and Helena Smith in Athens | Wednesday, November 02, 2011

Nicolas Sarkozy réagit au référendum en Grèce
Suite à l’annonce d’un référendum sur l’accord européen, Nicolas Sarkozy a rappelé que ce plan est “la seule voie possible pour résoudre le problème de la dette grecque”.

Eurozone Crisis: Sarkozy Says Greece Was Not Ready to Join Euro

THE GUARDIAN: French president's remarks highlight the challege European leaders have in trying to hold the currency together

Nicolas Sarkozy threatened to take the shine off a day of jubilation in financial markets at a deal to rescue the eurozone, when he said it had been an "error" to allow Greece to join the euro a decade ago.

Amid more protest on the streets in Athens, the French president tried to convince the public to back reforms intended to maintain Greece's membership of the single currency. "It was an error because Greece entered with false [economic] figures … it was not ready," he said.

Sarkozy told French TV: "We had to face up to all this. If the euro had exploded on Wednesday night, all of Europe would have exploded. If Greece had defaulted, there would have been a domino effect carrying everyone away ... we took important decisions that avoided catastrophe."

His remarks underline the continuing frailities of the eurozone, and illustrates the task Europe's leaders have in trying to hold the currency together. » | Larry Elliott, Jill Treanor and Helena Smith | Thursday, October 27, 2011