Will a breath of fresh air sweep through Greece on Sunday - and upset the EU applecart?

[Peter Lemkin]

In the EU countries, citizens actually vote for their representatives to the EU - in some countries there is some connection to the parties in power; while in others it can be little to no connection. The page on the latest election in Greece for its delegates to EU is here http://www.europarl.europa.eu/elections2...ml#table03 and hard to interpret quickly for a non-Greek and non-EU reader. The MEP representatives are not directly responsive to the political winners of the current election. By custom, they usually listen to them, but they don't have to. In each country there are different mechanisms for their election every five years. So, it is complex to interpret any vote by the Greek block of delegates in the EU. If the new government or the Greek People are unhappy with the delegates they can replace them eventually, but it may take some time and effort.

I thought that letter to the German People was very nicely done.

On a personal note, I used to at one time in my life go for a time every early summer to the Greek Islands, passing through Athens and some other Greek cities on the way. I really liked the Greeks I met, generally. Perhaps those who live on the small islands are not representative, but I rather doubt that. They were hard working, friendly, gracious, well-versed in history [very aware of how the USA and others had stabbed them in the back just after WW2], progressive politically for the most part, loving of life, and less materialistic than the US and much of Western Europe. I wish them well, and don't understand where the neo-Nazis came from [what rock they crawled out from under]. I have one favorite village on a favorite island. It gets overrun in July/August by too many Italians, but off-season it is as close to paradise as I've experienced. In the winter it is an international 'artist' community, sitting on the lip of a volcano, looking out to the all-too-blue sea. This island was the one that the myth of 'Atlantis' came from, as most of the island and its people of rich Minoan culture vanished into the sea when the volcano exploded about 2000 years ago. The volcano smolders still....an apt metaphore for what is now going on politically in Greece......

[Magda Hassan]

Ahhh that's right! Thanks for the reminder Peter. And that's why the British reps at the EU are all full of UKIP people.

[David Guyatt]

In the EU countries, citizens actually vote for their representatives to the EU - in some countries there is some connection to the parties in power; while in others it can be little to no connection. The page on the latest election in Greece for its delegates to EU is here http://www.europarl.europa.eu/elections2...ml#table03 and hard to interpret quickly for a non-Greek and non-EU reader. The representatives are not directly responsive to the political winners of the current election. By custom, they usually listen to them, but they don't have to. In each country there are different mechanisms for their election and removal. I haven't researched for Greece. So, it is more complex to interpret any vote by the Greek block of delegates in the EU. If the new government or the Greek People are unhappy with the delegates they can replace them [varies how and timing in each country], but it may take some time and effort. It is a very different system then, for example, in the USA or UK internally.

I thought that letter to the German People was very nicely done.

On a personal note, I used to at one time in my life go for a short time every summer to the Greek Islands, passing through Athens and some other Greek cities on the way. I really liked the Greeks I met, generally. Perhaps those who live on the small islands are not representative, but I rather doubt that. They were hard working, friendly, gracious, well-versed in history [very aware of how the USA and others had stabbed them in the back just after WW2], progressive politically for the most part, loving of life, and less materialistic than the US and much of Western Europe. I wish them well, and don't understand where the neo-Nazis came from [what rock they crawled out from under]. I have one favorite village on a favorite island. It gets overrun in July/August by too many Italians, but off-season it is as close to paradise as I've experienced. In the winter it is an international 'artist' community, sitting on the lip of a volcano, looking out to the all-too-blue sea. This island was the one that the myth of 'Atlantis' came from, as most of the island and its people of rich Minoan culture vanished into the sea when the volcano exploded about 2000 years ago. The volcano smolders still....an apt metaphore for what is now going on politically in Greece......

I also thought the letter to the German people was nicely done, too. "So, let me be frank: Greece's debt is currently unsustainable and will never be serviced, especially while Greece is being subjected to continuous fiscal waterboarding. "

Pete, your favourite island sounds like Crete? I've been there too. Very beautiful in parts - made less so by the US Navy facilities and airbase there (so sorry that should be "NATO" facilities and airbase :.

[Peter Lemkin]

Thera, actually.....and the town on it I'll keep as my own secret Just looking at the first photo brings back many nice memories....sigh!



Crete has its nice parts, such as Matala and the Gorge area; and some not so beautiful parts too - like Iraklion!

[Magda Hassan]

Well, Russia isn't taking any sanctions talk from Greece personally. They're thinking of bailing out Greece. I remember they offered to bail out Iceland and Crete too. Obviously self interest as well.

Russia might bailout Greece finance minister

Published time: January 30, 2015 10:15 Get short URL

Russian Finance Minister Anton Siluanov. (RIA Novosti/Vitaliy Belousov)



Tags
EU, Economy, Greece, Russia

Greece hasn't outright asked Russia for a loan, but Russian Finance Minister Anton Siluanov said Moscow wouldn't rule it out. His statement comes days after Greece openly opposed further economic sanctions against Russia.
"Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but we will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it," Siluanov told CNBC in an interview in Moscow on Thursday.
READ MORE- Russia seeks to privatize its suffering friend' Greece
The new left-wing Syriza government in Greece won a majority at last Sunday's election on the promise to renegotiate the country's €317 billion debt and end austerity.
Greece needs to negotiate with EU policymakers by February 28 in order to receive the next tranche of bailout funds. If Athens doesn't get the money it will have difficulty servicing its debt. Two bailouts were paid in 2010 and 2014 totaling €240 billion.
The new government was quick to show support for Moscow, and has openly called for an end to Russian sanctions, and may veto any future sanctions.

#Greece says #EU should change policy towards #Russiahttp://t.co/QW6M5V3G89pic.twitter.com/HLR7xQCBH5
Sputnik (@SputnikInt) January 29, 2015

Siluanov applauded Greece's stance on sanctions as "pragmatic" and "economically justified."
On Thursday the European Commission decided to extend sanctions against Russia through September 2015, but did not add any broader economic measures. A spokesperson for the new PM Alexis Tsipras said Greece didn't approve of any further restrictive measures.
[URL="http://rt.com/business/227555-eu-russia-extend-sanctions/"]READ MORE: EU foreign ministers extend sanctions against Russian officials, E. Ukraine rebels


[/URL]


Between announcing it doesn't intend to pay off its €317 billion debt in full and blocking Russia sanctions, Greece has emerged as a wild card among the 29 countries of the EU.

Russia-Greece deals

Russia gave Greece a very valuable card to play in the EU when it announced its South Stream pipeline will be re-routed through Turkey, with a gas hub expected to be built on the border between Turkey and Greece.

READ MORE: Putin: Russia forced to withdraw from South Stream project due to EU stance

Russian investors have been watching Greece closely since the economy went bust in the 2008 credit crisis, which sent it looking for financial assistance from the EU to pay its creditors.
The crisis, as well as the EU bailout policy, has sent the economy into a six-year recession, forcing the government to dismantle and privatize state assets to meet austerity targets under its EU bailout plan.
State-owned Russian Railways and Gazprom have been eyeing stakes in Greek assets. Russian Railways has held talks with TrainOSE, Greece's state-owned passenger and cargo rail operator. In 2013, Gazprom made a €900 million bid for Greece's state gas company DEPA, but backed out of negotiations at the last minute, citing concerns over the company's financial stability.
Russian investment in Greek railways is estimated at up to $3 billion per year.
Traditionally, the two countries have very strong tourist ties, with more than 1 million Russians visiting Greece each year. This number has been trimmed since the ruble crisis and slowed growth have forced many Russian to forgo foreign travel.
Greece is home to a robust Russian diaspora - nearly 300,000 Russian nationals live 1,400 miles south of Moscow, largely a result of emigration

• 308 comments
  

http://rt.com/business/227751-russia-gre...ncial-aid/

[Carsten Wiethoff]

Well, Russia isn't taking any sanctions talk from Greece personally. They're thinking of bailing out Greece. I remember they offered to bail out Iceland and Crete too. Obviously self interest as well.

Probably not Crete, which is part of Greece, but Cyprus (the greek part of it, not the turkish).

[Paul Rigby]

Here is more from the Saker website: The Limits on What Can Be Expected From the SYRIZA Government

The above analysis of the politics of SYRIZA and its government does not say anything that is untrue, but it leaves out of account a number of points that are relevant in estimating the political potential of the new Greek government.

It makes me laugh when I hear the media describe Syriza as 'extreme' left or hard left. Syriza is firmly in the capitalist camp. That is why KKE wont be in a coalition with them. The fact that media talking heads are describing them thus with a straight face only goes to show how far to the extreme right the public debate has been shifted over the years. Just that they are not of the neo-con reactionaries seems to permit them to be called extreme left. They are not going to abolish the banks and shoot the class traitors. They might make some people pay more tax and get away with less highway robbery but not much more. Apparently that is terrifying enough.

THE BROOKINGS INSTITUTION

GREECE AND THE ECONOMIC CHALLENGES AHEAD: A CONVERSATION WITH GREEK OPPOSITION LEADER ALEXIS TSIPRAS
(remarks translated)

Washington, D.C.
Tuesday, January 22, 2013
Introduction:

WILLIAM ANTHOLIS
Managing Director
The Brookings Institution

Moderators:
WILLIAM ANTHOLIS
Managing Director
The Brookings Institution
DOMENICO LOMBARDI
Senior Fellow
The Brookings Institution

Featured Speaker:
ALEXIS TSIPRAS
Leader
SYRIZA

http://www.brookings.edu/~/media/events/...script.pdf

Mr. Tsipras Comes to Washington

William J. Antholis and Domenico Lombardi | January 25, 2013 9:45am

http://www.brookings.edu/blogs/up-front/...s-lombardi

Editor's Note: Greek opposition leader Alexis Tsipras spoke at Brookings on January 22 during his first trip to Washington. While at Brookings, Tsipras discussed Greece's austerity measures, its image in the international community, the country's relationship with the Euro zone, and its potential for economic growth.

The new head of Greece's opposition party, Alexis Tsipras, came to Washington this week. Mr. Tsipras has become a key player in the Euro Crisis. His meteoric rise in the polls and close second-place finish in Greek elections last summer rattled global financial markets. His pre-election rhetoric raised the possibility of a Greek exit from the common currency, which could have led to a domino-like collapse of the Euro.

Mr. Tsipras's trip to Washington was his first, meeting with government officials, members of congress, policy analysts, Greek American groups and the public. He brought with him members of his SYRIZA party, which literally translates as the Coalition of the Radical Left. That name makes Americans nervous, since America has never had a viable socialist party. SYRIZA, for its part, outflanks the socialists to their left, so many Americans were doubly nervous.

Optimists and pessimists could both find what they were looking for in his visit. As one American with whom he met said privately, "We agreed on somewhere between 40% and 60% of what he said. So let's call it 50-50." That assessment is about right.

Mr. Tsipras delivered four core messages. He found a receptive audience for two, but less so on two others.

Tsipras Success. Tsipras has consistently argued that the austerity measures that Europe has forced on Greece will not create growth.

Many in Washington agree. If Europe had had an Obama-style stimulus plan and a Bernanke-style monetary policy, Greece would not have become the Achilles Heel of Europe. Instead, lack of fiscal and monetary support has lead to a shrinking economy, unemployment, fear and hopelessness in the Greek public.

In fact, continuing to focus on political sustainability is Mr. Tsipras's most effective argument. Economic and political reforms must be "owned by the people" of Greece, or the country will not be able to heal itself. That means that both growth and sacrifice need to be shared fairly. He cited the recent U.S. fiscal cliff agreement that led to a slightly more equitable tax system, targeting the truly wealthy. And his own recommendations are not to nullify the current agreement between Greece and its European lenders, but instead to renegotiate a more gradual approach to a balanced budget. Public employees need to feel part of the agreement.

Second, at a personal level, Mr. Tsipras sought to shed the caricatures that have shaped the international image of the Greek left. In a country where leftists have historically been incendiary, prone to violence, and aggressively anti-American, Mr. Tsipras came across as genial, courteous, pragmatic, and eager to hear American views. While he certainly has strong ideological leanings, he showed himself to be someone genuinely interested in hearing suggestions and even criticisms. He spoke warmly about President Obama's inaugural calls for social justice. And he held himself up as the last best hope of Greece falling into the hands of the neo-fascist Golden Dawn party.

In that regard, many noted his recent trip to Brazil, where he met with former President Lula da Silva. In the 1990s, Lula famously shed his militant image to become a beaming and gregarious icon for a globally integrated and competitive Brazil. Should Tsipras become prime minister some day, he seemed to say, he would be just such a leader.

Tsipras Trip-ups. Mr. Tsipras has a ways to go in convincing his skeptics on his third core argument: that the Euro zone needs Greece as much as Greece needs the Euro zone. He has repeatedly argued that Greece's last two governments have too easily caved to the pressure of northern Europeans to accept austerity measures in exchange for new bailouts.

Some are still nervous about contagion from a Greek exit. By so brazenly playing the game of chicken with northern Europeans, Tsipras still keeps them up at night.

Many others, however, now believe that the European Central Bank and other Euro zone countries have defended themselves from the impact of a Greek default and return to the Drachma. Most Greek debt is now owed to the EU, ECB, and IMF, not private bondholders. That means that the contagion is less scary, and largely under control.

Ironically, Mr. Tsipras himself seemed a bit nervous when presented with the idea that Greece could or should leave the Euro zone. If that happened, it would take away his biggest bargaining chip.

Finally, Mr. Tsipras failed to convince people on a fourth point: that he has a positive vision for growing Greece's economy. Whether Greece stays inside the Euro or reverts to the Drachma, it will still need to make major changes in its economy to attract foreign investment and boost its exports.

Tsipras avoided engaging on a concrete discussion of what would make Greece's economy more competitive. He dismissed the idea that Greece was Europe's last communist economy -- saying that privatization had not happened because there really was nothing to privatize.

He also said that the focus on deregulating certain industries (pharmacies and hair salons) was a distraction to take away from the oligarchs' own complicity in crime and corruption. There was a lot of talk from him and his party about taking aim at "robber barons" and "wealth redistribution". While many Americans would certainly support equitable taxation and real jail time for real criminals in Greece, redistribution for its own sake is likely to scare away many investors.

The small good news here is that Mr. Tsipras regularly referred to the need to attract foreign investment, and he was keen to meet with investors. He also made allusions to developing strategies for key industries such as tourism, export agriculture, or energy. Still, the details of that strategy have yet to be worked out.

In this regard, many were quite concerned about his political strategy in the coming weeks and months. The situation in Greece has just begun to calm down, and the country will soon prepare for the critical tourist season. When I asked Mr. Tsipras if SYRIZA would avoid strikes -- which have been so damaging to Greece's image in the world -- he said that each society had its own way of dealing with politics. "Politics is not tea and crumpets." There is certainly a place for expressing dissent. But allowing a minority of Greeks to regularly shut down the economy is not democracy as Aristotle envisioned: the art of ruling and being ruled in turn.

There was an echo of the dark side of public employees in Athens this week. The head of the striking Athens metro worker's union was asked if his union would follow orders to report to work or be fired. "Over my dead body." Not tea and crumpets, indeed.

Over the coming months, Mr. Tsipras and SYRIZA will have ample opportunities to demonstrate that their definition of radical means not putting all of Greece out of work simply to win power. If, on the other hand, they can find a way to paint a positive vision for the future and an equitable role in the Euro zone, then the SYRIZA glass may become more than half full.

[Magda Hassan]

Well, Russia isn't taking any sanctions talk from Greece personally. They're thinking of bailing out Greece. I remember they offered to bail out Iceland and Crete too. Obviously self interest as well.

Probably not Crete, which is part of Greece, but Cyprus (the greek part of it, not the turkish).

Ah, yes, Cyprus it was. Thanks Carsten.

[Magda Hassan]

Caught On Tape: Dijsselbloem To Varoufakis: "You Just Killed The Troika"

Submitted by Tyler Durden on 01/31/2015 11:58 -0500








Amid 'turmoiling' stock markets on Friday, CNBC's Simon Hobbs summed up the status quo's thinking on the new Greek leadership when he noted, somewhat angrily and shocked, "The Greeks are not even trying to reassure the markets," seeming to have entirely forgotten (and who can blame him in this new normal the world has been force-fed for 6 years) that political leaders are elected for the good of the people (by the people) not for the markets. Yesterday saw the clearest example yet of Europe's anger that the Greeks may choose their own path as opposed to following the EU's non-sovereign leadership's demands when the most uncomfortable moment ever caught on tape - the moment when Eurogroup chief Jeroen Dijsselbloem (he of the "template" foot in mouth disease) stood up at the end of the EU-Greece press conference, awkwardly shook hands with Greece's new finance minister, and whispered..."you have just killed the Troika," to which Varoufakis responded... "wow!"

As Keep Talking Greece reports,
The joint press conference was concluding, when Greek Finance Minister Yanis Varoufakis droped a last bombshell. "…and with this if you want and according to European Parliament flimsily-constructed committee we have no aim to cooperate. Thank you." Varoufakis was referring to the famous Troika, the country's official creditors consisting of the European Union, the International Monetary Fund and the European Central Bank..
After concluding with a "Thank you" Varoufakis gives the word to Eurogroup Chief Jeroen Dijsselbloem, who wants to hear the translation first. Then he takes off the ear phones, he stands up and sets to leave. An enforced-looking shaking of hands delays the departure of the Dutch FinMin.
Dijsselbloem quickly whispers something to Varoufakis' ear, he briefly replies back and the Eurogroup chief leaves the press conference hall as soon as it was possible.
Video: the Awkward Greek-Eurogroup Moment


The whole afternoon, Greek and international media were trying to find out "What the hell did they two men said to each other!?"


Private Mega TV reported short before 9 pm on Friday.

Eurogroup chief whispered to Greek FinMin's ear "You just killed the Troika" and that Varoufakis replied with a simple "WOW!"

Dijsselbloem: Whisper…whisper…

Varoufakis: Whisper….


Dijsselbloom slides his hand away

Back remains Varoufakis with one palm open and the left hand stuck in his pocket relaxed Greek style

The two men talk for a couple of minutes with lips hidden from the cameras.

Dijsselbloem leaves without turning back to watch his interlocutor.

I don't quite understand why Dijsselbloem is sour. I'm sure that Varoufakis told him the same things when they had their 2-hour face-to-face talks.
Unless they were talking about Gouda and Feta and the Greek FinMin surprised him when he said at the press conference, that the Greek government will not negotiate with the Troika.
And furthermore, why is he offended? He is chief of the Eurogroup, he does not represent the Troika…
Most probably he was expecting a Yes-Man behavior like in the past with HOHOHO-jocker Jean-Claude Juncker, when he was Eurogroup head.

Juncker FinMin Venizelos

Juncker Spanish FinMin

* * *
Later that evening Yanis Varoufakis gave an excellent more in depth interview with BBC's Newsnight... to explain why Greece will not accept more debt from the EU...
* * *


One final thought - how long before this chart converges?

Average:

[David Guyatt]

Yanis Varoufakis shredded Newsnight's Emily Maitlis. Nice to see a straight talking, honest politician in action. We don't seem to have any over here.