Main focus of Wednesday, June 15, 2011

No new bailout for Greece

The Eurozone finance ministers failed to agree on a second rescue package for Greece on Tuesday in Brussels. The major bone of contention is Germany's demand that private investors share the costs. The press weighs up the pros and cons but overall sees little hope for beleaguered Greece.

Cinco Días - Spain

Germany's demand that private investors contribute to the bailout package must be softened, notes the business paper Cinco Días: "Even if yesterday was just a preparatory meeting it seems clear that Germany won't be able to push through its position without adjustments at the EU summit on June 23-24. It would of course be desirable that the private sector participate in the bailout, but not at the price of provoking an exodus of investors that would leave the public deficit bigger than ever. ... If Berlin, as seems likely, goes along with the idea of extending the repayment period, which would situate the private contribution at around 30 billion euros, the Eurozone and the ECB have the resources to bring that up to a total of roughly 120 billion euros for the second bailout package through incentives, without the need to impose a damaging debt restructuring." (15/06/2011)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Germany, » Greece, » Europe

Trouw - Netherlands

The Dutch parliament has approved further help for Greece on condition that the private sector also contribute to the package. The Christian-social daily Trouw considers this just: "We need to be realistic if we want to avoid deceiving the Dutch people. Stopping the bailout is not an option, nor is getting away without a certain amount of financial damage. ... It's a matter of being patient and providing a basis for Greece to overcome its plight. So far this has mainly been done with tax money. Finance Minister De Jager now emphatically wants the banks and pension funds to help back the bailout. This is progress. After all, they're the ones who invested in Greece's national debt. The risk can be borne by the state for a while, but not forever. The financial partners must be included if we want to discuss a markdown of Greek debt." (15/06/2011)

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More from the press review on the subject » Fiscal Policy, » Greece, » Europe

Hospodářské noviny - Czech Republic

At their meeting on Tuesday the Eurozone finance ministers failed to agree on a second bailout for Greece. That once more goes to show how helpless the club is, writes the business paper Hospodářské noviny: "Yet another special meeting. The reaction of the Greeks? It, too, is no surprise: public employees go on strike against planned privatisations. There has been no change at all to the Greek problem since January 2010, not even with the billions provided by the Eurozone. But there has been a change regarding the European taxpayers' money: there's not the slightest chance of it ever being paid back. Greece makes promises it doesn't keep. Its deficit grows and its rating plummets. ... Europe is currently powerless, Greece is going bankrupt. The question is no longer if, but when - and how much it will cost. Until then, however, there will no doubt be meeting after meeting and strike after strike." (15/06/2011)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Financial Markets, » Greece, » Europe
All available articles from » Julie Hrstková

Die Presse - Austria

More than anything else Greece lacks healthy economic structures, writes the liberal conservative daily Die Presse: "The country on the southern tip of Europe lacks not only a restructured budget but also a functioning economy. The result is that aid money and investments bear no fruit and require endless additional rescue packages. Apart from the efficient shipping companies (which run under Greek ownership, it's true, but with foreign tax registration numbers), the country has an enormous number of tax evaders and closed sectors. Whether it be pharmacies, taxi drivers, law offices, transport companies or architects, competition has been eliminated practically everywhere, greatly reducing the already low productivity. Only when these sectors are opened to competition (as is stipulated in EU agreements in any event), will fresh capital once more pour into the country." (15/06/2011)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economy, » Greece
All available articles from » Franz Schellhorn

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