Interview with Jean-Claude Trichet, President of the ECB, to Süddeutsche Zeitung, published on 23 July 2011

SZ: Mr Trichet, at the start of the 1990s former German Chancellor Helmut Kohl, together with the then French President, François Mitterand, initiated the Maastricht Treaty and thus the euro. Now he is concerned about how Europe and its single currency are developing. Are you also concerned?

Trichet: Helmut Kohl played a pivotal role in establishing a single currency in Europe, and Europe owes him an immense debt of gratitude for that. It cannot be disputed that the euro has been a remarkable success over the last 12 years. Our currency has kept its value impressively and ensured price stability in Germany and throughout Europe since its introduction. The level of price stability has been greater than during the 50 years prior to the euro.

SZ: You are forgetting the excessive debt, for example in Greece, Portugal and Ireland. In endless new rescue packages, governments are pumping billions and billions of euro into a clearly ailing system. That is making the public nervous.

Statement by Jean-Claude Trichet on the decisions taken by the Euro Area Heads of State or Government at a press briefing on 21 July 2011 in Brussels

I welcome the reaffirmed commitment of Euro area Heads of State or Government to ensure financial stability of the euro area.

In today's decisions, the following six points are particularly noteworthy:

First, the agreement by the Heads of state of government to support a new programme for Greece. The new EU/IMF support programme for Greece is crucial to foster sustainable economic growth and stabilize public finances. Strict and rigorous implementation of the programme is key to ensure public debt sustainability in Greece. Besides fiscal consolidation, the privatisation programme and the agreed structural reforms are of the essence to revitalising the Greek economy over time.

Στα 158 δισ. ευρώ το νέο πακέτο στήριξης

Παρασκευή, 22 Ιουλίου 2011
Τα βασικά σημεία του σχεδίου
1. Νέα δάνεια 109 δισ. ευρώ
2. Επιμήκυνση δανείων του EFSF έως τα 30 έτη
3. Επιτόκιο στο 3,5%
4. Σύσταση Eυρωπαϊκού Nομισματικού Tαμείου
5. Παρέμβαση στη δευτερογενή αγορά ομολόγων
6. Χορήγηση κεφαλαίων στις τράπεζες
7. Ευρωπαϊκό σχέδιο για ανάπτυξη
8. Περιορισμός εξάρτησης από τους οίκους αξιολόγησης
9. Μηχανισμός για τις εγγυήσεις

STATEMENT BY THE HEADS OF STATE OR GOVERNMENT OF THE EURO AREA AND EU INSTITUTIONS

COUNCIL OF
THE EUROPEAN UNION

Brussels, 21 July 2011

We reaffirm our commitment to the euro and to do whatever is needed to ensure the financial
stability of the euro area as a whole and its Member States. We also reaffirm our determination to
reinforce convergence, competitiveness and governance in the euro area. Since the beginning of the
sovereign debt crisis, important measures have been taken to stabilize the euro area, reform the
rules and develop new stabilization tools. The recovery in the euro area is well on track and the euro
is based on sound economic fundamentals. But the challenges at hand have shown the need for
more far reaching measures.
Today, we agreed on the following measures:
Greece:
1. We welcome the measures undertaken by the Greek government to stabilize public finances
and reform the economy as well as the new package of measures including privatisation
recently adopted by the Greek Parliament. These are unprecedented, but necessary, efforts to

bring the Greek economy back on a sustainable growth path. We are conscious of the efforts

Statement by the Eurogroup - A new multi-annual adjustment for Greece,

Statement by the Eurogroup 11 july 2011
Ministers reaffirmed their absolute commitment to safeguard financial stability in the euro area. To this end, Ministers stand ready to adopt further measures that will improve the euro area’s systemic capacity to resist contagion risk, including enhancing the flexibility and the scope of the EFSF, lengthening the maturities of the loans and lowering the interest rates, including through a collateral arrangement where appropriate. Proposals to this effect will be presented to Ministers shortly.
Ministers discussed the main parameters of a new multi-annual adjustment
programme for Greece, which will build on strong commitments to fiscal
consolidation, ambitious growth-enhancing structural reforms and a substantial privatisation of state assets. Ministers welcomed the reinforcement of monitoring mechanisms of the programme of Greece, the nomination of the board of the privatisation agency, which comprises two observers representing euro area Member States and the European Commission, and agreed to provide extended technical assistance to Greece. They called upon the Greek government to sustain its on-going
efforts to meet these commitments in full and on time.
Ministers welcomed the decision by the IMF to disburse the latest tranche of financial assistance to Greece, as well as the proposals from the private sector to voluntarily contribute to the financing of a second programme, building on the work already underway. The ECB confirmed its position, reaffirmed by its Governing Council last Thursday, that a credit event or selective default should be avoided.
While the responsibility for resolving the crisis in Greece lies primarily with Greece, Ministers recognised the need for a broader and more forward-looking policy response to assist the government in its efforts to bolster debt sustainability and thereby safeguard financial stability in the euro area.
In this context, Ministers have tasked the Eurogroup Working Group to propose measures to reinforce the current policy response to the crisis in Greece. The Eurogroup Working Group will notably explore the modalities for financing a new multi-annual adjustment programme, steps to reduce the cost of debt-servicing and means to improve the sustainability of Greek public debt. This reinforced strategy should provide the basis for an agreement in the Eurogroup on the main elements and financing of a second adjustment programme for Greece shortly. Ministers commit to continue negotiating with the European Parliament the legislative proposals to reinforce economic governance in the European Union in order to agree on an ambitious reform as soon as possible. The reinforced governance
should be fully operational without delay.

Euro area inflation estimated at 2.7% - Flash estimate - June 2011

Euro area1 annual inflation is expected to be 2.7% in June 2011 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was 2.7% in May3

Euro area unemployment rate at 9.9% - May 2011 - EU27 at 9.3%

The euro area (EA17) seasonally-adjusted2 unemployment rate3 was 9.9% in May 2011, unchanged compared with April4. It was 10.2% in May 2010. The EU271 unemployment rate was 9.3% in May 2011, unchanged compared with April4. It was 9.7% in May 2010.
Eurostat estimates that 22.378 million men and women in the EU27, of whom 15.510 million were in the euro area, were unemployed in May 2011. Compared with April 2011, the number of persons unemployed fell by 5 000 in the EU27 and increased by 16 000 in the euro area. Compared with May 20105, unemployment decreased by 904 000 in the EU27 and by 551 000 in the euro area.

ΕΚΤ: Αύξηση των επιτοκίων στο 1,5%

Σε αύξηση των επιτοκίων της κατά 25 μονάδες βάσης στο 1,50% προχώρησε σήμερα η Ευρωπαϊκή Κεντρική Τράπεζα (ΕΚΤ), σε μια προσπάθεια να συγκρατήσει τις ισχυρές πληθωριστικές πιέσεις στην ευρωζώνη.

Statement by the Eurogroup-Ministers approve the disbursement of the fifth tranche

2 July 2011

Ministers welcomed the progress made by the Greek authorities in implementing the policy understandings reached with the European Commission, in liaison with the ECB, and the IMF. In particular, Ministers noted with satisfaction the adoption of key laws on the fiscal strategy and privatisation by the Greek Parliament. Ministers therefore endorsed the Commission's Compliance Report and the signing of the updated Memorandum of Understanding.
The Greek authorities provided a strong commitment to adhere to the agreed
fiscal adjustment path and to the growth-enhancing structural reform agenda, which are essential components of our strategy to restore fiscal sustainability and safeguard financial stability. Ministers call on all political parties in Greece to support the programme's main objectives and key policy measures in order to ensure a rigorous and swift implementation.

The Economic Adjustement for Greece - Fourth review – spring 2011

EXECUTIVE SUMMARY

A joint Commission / ECB / IMF mission met with the Greek authorities in Athens from 3 May to 2 June, and 21 to 23 June 2011. The mission assessed compliance with the terms and conditions of the Fourth Review under the Economic Adjustment Programme.
Over the last year, the programme of economic policies has shown to be appropriate to help Greece in reducing its macroeconomic and fiscal imbalances. The objectives of the programme are restoring fiscal sustainability; preserving financial stability and adequate
liquidity in the banking sector; and restoring competitiveness.
After a strong start in the summer of 2010, reform implementation has substantially decelerated in recent quarters. Insufficient political consensus on a number of reforms,

Completing Economic and Monetary Union - Speech by Jean-Claude Trichet, President of the ECB,

Speech by Jean-Claude Trichet,
at the Gala Dinner of the State of the European Union conference
“Revitalising the European Dream: A Corporate View”,
Brussels, 28 June 2011
Ladies and gentlemen,

Thank you for inviting me to this conference. The theme to which it is dedicated is especially relevant today, when we have to draw all the lessons from the worst financial crisis since World War II.

These days, “Europe” and the benefits it brings have come to be taken for granted. Thanks to the success of European integration, the threat of war has become a memory of the past for many Europeans, in particular the younger generation.

This makes it all the more urgent to develop a renewed vision of the kind of Europe we want and indeed need – a vision that is easily understood and shared amongst EU citizens.

Each generation needs to affirm its commitment to Europe.

As Pierre Werner once observed, “it is necessary that even those born well after the 1950s and 1960s realise that the European Union has not come about by chance, but that it is based on the fundamental necessities of life amongst the peoples of Europe” [1].

Thankfully, these “fundamental necessities of life” – especially in the economic sphere – still seem to be felt and understood by the people in Europe. When asked, in the Eurobarometer surveys, which issues the European institutions should focus on in the coming years, Europeans believe that priority should be given to economic and monetary policy (37% in the EU and 41% in the euro area).

Πώς έφτασε η Ελλάδα στον «γκρεμό»...

Μελέτη - καταπέλτης του Harvard για την ανικανότητα όλων των κυβερνήσεων της μεταπολίτευσης στην οικονομική πολιτική
Του Λεωνιδα Στεργιου

Οι κρατικοποιήσεις εν μια νυκτί και η αύξηση των αμυντικών δαπανών του Κωνσταντίνου Καραμανλή ακύρωσαν τα πλεονεκτήματα της αναπτυξιακής ώθησης και της ευρωπαϊκής προοπτικής που πέτυχε τότε η Ελλάδα. Ο λαϊκισμός του Ανδρέα Παπανδρέου κατέστρεψε τα οφέλη από την αναδιανομή του εισοδήματος και τη βελτίωση του βιoτικού επιπέδου, βάζοντας τα θεμέλια στον δημοσιονομικό εκτροχιασμό. Οι επόμενες κυβερνήσεις (Οικουμενική, Κ. Μητσοτάκη) προσπάθησαν να διαχειριστούν την κρίση, χωρίς επιτυχία. Εξαίρεση αποτέλεσαν οι κυβερνήσεις του Κ. Σημίτη, οι οποίες πέτυχαν νοικοκύρεμα των δημοσιονομικών, αλλά μπροστά στη βιασύνη για την ένταξη της χώρας στην ΟΝΕ, δεν έγιναν εκείνες οι δομικές μεταρρυθμίσεις που ήταν απαραίτητες. Η «Επανίδρυση του Κράτους» από τον Κώστα Καραμανλή περιορίστηκε στην «απογραφή». Η σημερινή κυβέρνηση θεώρησε σκόπιμο να ενημερώσει τις αγορές για τις ανεπάρκειες της Ελλάδας σε όλους τους τομείς και για τον δημοσιονομικό εκτροχιασμό, όμως, η ειλικρίνεια λειτούργησε ανάποδα και οι αγορές έβαλαν την Ελλάδα στη «μαύρη λίστα», εκτινάσσοντας τα spreads και τα CDS των ομολόγων.

Αυτή θα μπορούσε να ήταν η σύνοψη της 36σέλιδης μελέτης του Harvard με τίτλο «Ελληνική Κρίση: Τραγωδία ή Ευκαιρία;». Οι συγγραφείς, ο καθηγητής Dante Roscini και οι οικονομολόγοι JonathaSchlefer και Κωνσταντίνος Δημητρίου, προσπαθούν να απαντήσουν στο ερώτημα αυτό, αφού μελέτησαν την ιστορική διαδρομή της Ελλάδας από το... 324 μ.Χ.

Δείτε το αρθρο της Καθημερινής της 26-6-2011

Δείτε ολόκληρη τη μελέτη
A Financial Greek Tragedy and a European Farce: The crisis of the Eurozone in Historical Perspective

European council conclusions for Greece, following the first session. 23-24 june 2011

The European Council welcomes progress made in Ireland in the implementation of its reform programme, which is well on track. It also welcomes the strong commitment by the newly elected Portuguese government to fully implement its programme of reforms. Building on a cross-party consensus on the need to reform, strict implementation of those programmes will ensure debt sustainability and will support the return of Ireland and Portugal to the financial markets.
Euro area Heads of State or Government reiterate their commitment to do whatever is necessary to ensure the financial stability of the euro area as a whole.
The recovery in the euro area is well on track and has reached a sustainable path of solid growth.
The euro is based on sound fundamentals, and we are deeply satisfied with the track record of price stability achieved since the inception of the euro.
As regards Greece, the European Council recognises

Commission statement on the agreement between the Troika and Greek authorities on measures to close the fiscal gap for the years 2011-2014

Heads of Mission of the European Commission, the International Monetary Fund and the European Central Bank (the Troika) and the Greek authorities have reached tonight a satisfactory agreement on a set of measures to close the fiscal gap for the years 2011-2014.
The Troika and the Greek authorities have agreed on the Medium-Term Fiscal Strategy (MTFS). The Commission expects now that the MTFS is reflected in the new implementation law and translated into concrete legislative measures, also reflecting the privatisation plan.
The Commission is looking forward to the voting of both legislative bills next week in the Greek Parliament. These measures, once fully implemented, will enable Greece to meet the agreed targets and remain on track.

Merkel and Sarkozy set for Greece deal

Reuters
June 17, 2011

Germany and France will likely reach a compromise on Friday on involving private creditors in the funding of a second bailout for Greece, German Deputy Foreign Minister Werner Hoyer said.
German Chancellor Angela Merkel will meet with French President Nicolas Sarkozy on Friday morning to discuss the details of a new Greek aid package. They are due to hold a joint news conference at 1145 a.m. (5:45 a.m. EDT).
"I believe the meeting today will yield a solution," Hoyer told German public TV station ZDF. "I am sure that they will come to a compromise."
Asked what the compromise could consist of, Hoyer said he did not know but was confident that it would be reached.
Hoyer, a member of the Free Democrats (FDP) who are junior coalition partners to Merkel's conservatives, is not directly involved in the talks but has responsibility for coordinating French-German relations in the foreign ministry.
More

Statement by Commissioner Rehn on Greece

Brussels, 16 June 2011

I am confident that next Sunday, the Eurogroup will be able to decide on the disbursement of the fifth tranche of the loans for Greece in early July. And I trust that we will also be able to conclude the pending review, in agreement with the IMF.
In the same context, the Eurogroup on Sunday-Monday will discuss the contents and conditions of a successor programme for Greece, and the nature of private sector involvement in this, with a view to taking decisions at the next Eurogroup meeting of 11 July.
By doing so, we will avoid the default scenario and pave the way for an agreement on the medium-term strategy. It has been difficult, but I strongly believe that with this two-step approach, in agreement with IMF, we can avoid any accident scenario. It means that the funding of the Greek sovereign debt can now be ensured until September, while we take the decisions for the medium-term, beyond September, in July.
I call on all EU decision-makers, and more particularly the Finance Ministers of the euro area next Sunday, to overcome the remaining differences and come to a responsible agreement at this critical juncture.
Of course, a great deal of responsibility lies on the shoulders of the Greek authorities and all Greek political leaders. We expect the Greek Parliament to endorse the economic reform programme as agreed by the end of June. It is regrettable that the efforts to build national unity failed yesterday. Indeed the efforts needed to avoid a default - which would be a catastrophe for Greece - are the responsibility of all political forces.
The next days will be critical for the financial stability and economic recovery in Greece and Europe. I trust all leaders in Greece and Europe realise their responsibility and will act accordingly.

Obama presses Europe, pledges help for Greek crisis

WASHINGTON President Barack Obama on Tuesday urged European countries and bondholders to prevent a "disastrous" default by Greece and pledged U.S. support to help tackle the country's debt crisis.

Obama, whose political prospects have suffered from persistently high unemployment and ballooning U.S. debt, has pinpointed the euro zone crisis as one foreign "headwind" hitting the U.S. economy.

After a meeting with German Chancellor Angela Merkel, he stressed the importance of German "leadership" on the issue -- a hint that he expects Berlin to help -- while expressing sympathy for the political difficulties European Union countries face in helping a struggling member state.

Η Ελλάδα άντλησε από την Ευρωπαϊκή 'Ενωση, από το 1981 μέχρι σήμερα, πάνω από 100 δισ ευρώ.

H Ελλάδα, μετά το 1981, εισέπραξε από τα πλαίσια στήριξης της ΕΕ πάνω από 60 δις ευρώ. H κατανομή αυτών των χρημάτων έχει ως εξής: Την περίοδο 1985-1987 η Ελλάδα έλαβε 1,2 δις ecu για τα Μεσογειακά Ολοκληρωμένα Προγράμματα. Μετά το 1988 είχαμε το πρώτο και το δεύτερο πακέτο Ντελόρ. Το πρώτο υλοποιήθηκε την περίοδο 1988-1993, ήταν 8 δις ecu και επρόκειτο για ισχυρή ενίσχυση από τα διαρθρωτικά ταμεία της τότε ΕΟΚ. Το δεύτερο πακέτο Ντελόρ (1994-1999) πρόσφερε ακόμη μεγαλύτερη ενίσχυση: 17,5 δις ecu και αποσκοπούσε στην οικονομική και κοινωνική συνοχή, κυρίως των ασθενεστέρων οικονομικά περιφερειών. Μετά ήλθε το τρίτο πακέτο στήριξης (2000-2006), με 25 δις ευρώ. Και τώρα βρισκόμαστε στο τέταρτο (το ΕΣΠΑ για 2007-2013) με τουλάχιστον 22,5 δις ευρώ.
Στο μεταξύ, άλλα χρήματα έρχονταν για επιμέρους δράσεις, όπως η αγροτική οικονομία (με τις περίφημες επιδοτήσεις), για την ανάπτυξη της οποίας η Ελλάδα εισέπραξε πάνω από 40 δις ευρώ (τα περισσότερα από κάθε άλλη χώρα).

Δήλωση της Ευρωπαϊκής Επιτροπής, της Ευρωπαϊκής Κεντρικής Τράπεζας και του Διεθνούς Νομισματικού Ταμείου για την τέταρτη αποστολή επανεξέτασης στην Ελλάδα

Η  ουσία της δήλωσης : Αποκρατικοποιήσεις  και  σημαντική  μείωση  των  δημοσίων υπαλλήλων. 
Κλιμάκιο στελεχών της Ευρωπαϊκής Επιτροπής (ΕΕ), της Ευρωπαϊκής Κεντρικής Τράπεζας (ΕΚΤ) και του Διεθνούς Νομισματικού Ταμείου (ΔΝΤ) ολοκλήρωσε την επίσκεψή του στην Ελλάδα, που αποσκοπούσε στη συζήτηση των πρόσφατων οικονομικών εξελίξεων και των πολιτικών που απαιτούνται προκειμένου να διατηρηθεί η πορεία υλοποίησης του οικονομικού προγράμματος της χώρας. Η αποστολή κατέληξε σε συμφωνία, σε επίπεδο κλιμακίου εκπροσώπων, με τις ελληνικές αρχές επί μιας δέσμης οικονομικών και χρηματοπιστωτικών πολιτικών που απαιτούνται για να επιτευχθούν οι στόχοι του προγράμματος.

Euro area inflation estimated at 2.7% - May 2011

Euro area1 annual inflation is expected to be 2.7% in May 2011 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was 2.8% in April.