Showing posts with label Greece. Show all posts
Showing posts with label Greece. Show all posts

By Jordan Federer


The Numbers
After 2015, a year in which over one million refugees and migrants traveled to the EU, 362,376 people arrived in 2016 by crossing the Mediterranean Sea. Of the 362,376 refugees and migrants that arrived by sea in 2016, 48% entered through Greece (Eastern Mediterranean Route), 50% through Italy (Central Mediterranean Route), and 2% through Spain (Western Mediterranean Route). Once migrants and asylum-seekers entered the EU through Greece, they tried to continue their journey towards Western Europe vis-à-vis the Western Balkan Route (through Macedonia, Serbia, Hungary, and Croatia). Syrians, Iraqis and Afghanis were the predominant nationalities of those that made use of the Western Balkan Route. Overall, refugees and migrants traveled out of the following countries: Syria (23%), Afghanistan (12%), Nigeria (10%), Iraq (8%), Eritrea (6%), Guinea (4%), Côte d’Ivoire (4%), The Gambia (4%), Pakistan (3%), and Senegal (3%). In 2016, approximately 1,195,265 asylum applications were filed and the top five nationalities of asylum applications were Syria, Afghanistan, Iraq, Pakistan, and Iran. The top five destination countries for asylum seekers were Germany, Italy, France, Greece, and the UK. Approximately 56% of first instance asylum applications received a positive decision. The United Nations High Commissioner for Refugees (UNHCR) Accommodation/Relocation Program currently provides those whose applications either have not yet been reviewed or those who have received a negative decision with temporary places to stay either in “apartments, hotel buildings, host families and relocation sites with services,” which serve as alternatives to camps.

Events
In February and March of 2016, Macedonia closed its border along the northern part of Greece. The move by Macedonia was “part of a chain reaction” of border restrictions in both Slovenia and Serbia. This coordinated effort resulted in the closure of the Western Balkan Route, stranding thousands of migrants, mostly Syrian and Iraqi migrants, on the Greek side of the border. In the same month, the EU and Turkey executed a deal (The “EU-Turkey Statement”), in which “Ankara would take back all illegal migrants who cross to Greece, including Syrians, in return for the EU taking in thousands of Syrian refugees directly from Turkey and rewarding it with more money, early visa-free travel and progress in its EU membership negotiations.” The UNHCR argues that the EU-Turkey Statement’s commitment to pushing refugees back into Turkey and Syria where they face persecution is a violation of the European Convention of Human Rights. Additionally, as a result of the Balkan border closures and the implementation of the EU-Turkey Statement, migrant camps across Greece were turned into quasi-detention centers. Thousands of people fleeing war torn countries such as Syria and Iraq found themselves at the mercy of the Greek government and the EU-Turkey Statement’s directive. Organizations such as Amnesty International, Human Rights Watch, and Doctors Without Borders have publicly criticized the Greek government’s treatment of detained refugees and the conditions as “inhumane” and “fetid.”
By Brian Kesten

This summer, United Kingdom citizens will vote in a referendum to determine if the UK will leave the European Union. After EU members spent much of 2015 negotiating with Greece to restructure its debt and avoid a “Grexit,” the 2016 UK vote now poses the most significant threat to the EU’s modern governance experiment.  

Thus far, Britain’s conservative Prime Minister, David Cameron has encouraged Britons to remain in the EU, while London’s Mayor Boris Johnson, another conservative, has pushed for Britain to leave the European Union. Cameron has argued that Britain is able to earn concessions by remaining in the Union. At the same time, commentators fear that the EU could unravel if the UK leaves during the migrant crisis.  
By Brian Kesten

Back in 2010, Greece agreed to privatize about $56 billion in state owned assets as a component of the international bailout accord at the time. Five years later, Prime Minister Alexis Tsipras appears to have given the greenlight to Greece’s Hellenic Asset Development Fund (“Taiped”) to continue the privatization program, which so far has only yielded about $600 million in cash proceeds towards Greece’s public debt.

Despite opposition from Mr. Tsipras’s own Syriza party, Greece stands to sell 51% stakes in airports, utilities, and other industries. Yanis Varoufakis, the Greek finance minister who resigned during bailout negotiations, argued “[I]t’s not very clever to sell off the family jewels in the middle of deflationary crisis . . . It is wiser to develop state property and increase its value using smart financial resources to strengthen our economy.”

  
By Brian Kesten

The tumult in Greece continues, as Alexis Tsipras’s left-wing Syriza party won the plurality of votes Sunday night. Just last month, Tsipras resigned as Prime Minister and called new elections to determine Greece’s political direction in the wake of Tsipras’s 86 billion euro bailout. The election will allow Syriza to renew a coalition with another anti-austerity group, the right-wing Independent Greeks party.

Meanwhile, the agreed upon reforms were not greeted with smooth implementation. New banking rules risk wiping out corporate deposits if Greek banks are otherwise unable to meet EU bank capitalization rules. Although EU negotiators sought to preserve these deposits, the reality of implementing bank reforms clashes with EU bank capital rules and could result in further destabilization of the Greek financial system.
By Derek Hunter

On Wednesday April 8th, Greek Prime Minister, Alexis Tsipras, and Russian President, Vladimir Putin met in Moscow at a time when their interests were uniquely intertwined. Russia, of course, is still subject to broad sanctions for its role in the Ukraine civil war, while Greece faces its bailout extension deadline in June. Greece is facing the prospective of another refinancing with significant austerity measures that are politically unpopular at home. While it is unlikely, as the Financial Times reports, Greece could be courting Russia as an alternative source of financing should an EU bailout prove unpalatable. 
By Sam Willie

With €450 million of debt due to International Monetary Fund on April 9th, Greece has been forced to take drastic measure to round-up the cash needed to stay afloat. The Guardian reports that Greece’s government has postponed all payments for state supplies in an effort to stave-off default. It has also seized money from pension funds and EU subsidies destined for farmers. Greece’s former Finance Minister Stefanos Manos has told the Guardian the his country is “scraping the bottom of the barrel for everything they can find.” Adding insult to injury, Greece is simultaneously experiencing a sharp decline in tax revenues as investors are withdrawing their funds and sending them to perceived safer havens abroad.
By Sam Willie

The Wall Street Journal covers the latest chapter in the Greek debt drama. This past week Greek Finance Minister Yanis Varoufakis said he was “certain” Greece would have a problem “paying off the installments of the IMF.” The IMF has an outstanding loan of $20 billion to Greece, and $1.7 billion of that loan is due in the coming weeks. It is suspected that Greece may be angling for support to issue more short-term debt and renegotiate more favorable bailout terms with the IMF and the European Central Bank. Critics note that failing to pay the IMF would make Greece the first advanced economy in the Fund’s existence to fall into protracted arrears, and would seriously undermine any efforts by Greece to obtain financing in the future.
By Derek Hunter

A sign of how dire the Greek debt crisis has become is its most recent debt reduction measure -- tax spies. Worthy citizens and tourists alike will be recruited to engage in clandestine collection, and these masters of economic espionage will then pose as customers at suspicious stores. While Greece’s latest attempt to address its revenue shortfalls might seem humorous, the country’s financial condition is not. As the New York Times reports, a third bailout is all but a certainty if Greece is going to avoid default, and Greece will need more than amateur tax spies if it wants countries like Germany to accommodation a debt restructuring.
By Stephen Levy

After several comments hinting at discontent with the EU’s sanctions against Russia, Greece fell in line and joined a unanimous vote on January 29th to maintain and extend the sanctions, as The New York Times describes. The discontent came from the Syriza party, which nearly captured an outright majority in the Greek Parliamentary elections on January 25th. Syriza’s leaders, including the current Prime Minister, had previously sympathized with Russia on Ukraine, and the new Energy Minister announced outright opposition to sanctions. The discontent could demonstrate Syriza’s hostility towards the EU, its unwillingness to be bullied in future austerity negotiations, or simply its inexperience with diplomacy and foreign relations, as it begins its first stint in power.
By Joe Vladeck

The number of European bankers earning more than 1 million euros jumped 11 percent from 2011 to 2012, according to new data from the European Banking Authority (EBA). The report is timely in Europe, where regulators are struggling to set limits on the financial industry compensation, hoping to reduce incentives for bankers and traders to take undue risks. New caps on bonus payments are set to come into effect in 2014. 

Reuters has a detailed summary of the EBA report. British bankers account for the bulk of European high-earners, representing more than 2,700 of the 3,500 million-euro bankers. 

And, predictably, the countries hardest-hit by the ongoing financial crisis saw banker pay fall. Spain saw a 20 percent decrease in million-euro bankers, as did Ireland. Despite Greece's recent financial calamity, a single banker in the country is somehow still earning more than a million euros in compensation
By Joe Vladeck
Greeks protest austerity cuts by Piazza del Popolo | Flickr

Nations have been defaulting on debt for about as long as nations have been borrowing money. The Greeks went first. In the 4th century B.C., three quarters of Greek city-states defaulted on loans issued by a temple on the island of Delos.

Today, Greece is still struggling. Although it is not the most recent nation to default on its sovereign debt (that dubious honor belongs to Cyprus), Greece's on-going sovereign debt travails nearly led to the collapse of the Euro in 2012 and continue to fester. Granted, the question of whether Greece actually "defaulted" in December 2012 involves complicated semantics, but Greece's track record of debt repayment record is spotty. According to two renown economists, "Greece has been in a state of default about 50% of the time" since the country's independence in the 1830s. 

Modern-day Greeks have recoiled at the policies of domestic austerity that the country's creditors, notably Germany, have insisted upon as part of Greece's debt restructuring. But in historical context, austerity might not seem so bad: When Venezuela defaulted on German, British, and Italian debt at the start of the 20th century, Germany et al sent warships, set up a blockade, sank Venezuelan ships, and shelled Venezuelan military installations. Venezuela got the message, and the parties eventually agreed to U.S.-led mediation of the dispute.