IMF-pengar till Euron
For those of us who have been following the Greek economic tragedy for many years,
The grudging short-term compromise between the IMF and Europe comes after months of sometimes acrimonious discussions. For the sake of Greece, and for the credibility of their own future interactions, they should view it as a stepping-stone to the (long-delayed) definitive resolution of Greece’s economic and financial malaise.
“extend and pretend”
Euro-zone finance ministers have unlocked a payment of 8.5 billion euros.
But there’s still no agreement on how to get Greece’s debt burden under control.
This protracted game of “extend and pretend” serves nobody’s long-term interests: not those of the Greek government, the International Monetary Fund or, most of all, the people of Greece.
The blow to the credibility of the IMF could prove to be lasting damage. The fund points to its refusal to disburse money at this point as proof it’s serious about debt relief. Yet it remains a partner in a project that, by its own analysis, is bound to fail.
Under the compromise deal, the IMF is set to formally join the rescue programme,
Ms Lagarde said that while ministers at Thursday’s meeting had further fleshed out debt relief options for Greece,
The debt relief “needs to be better clarified”, she said. “This is something that will need to happen.”
The European Financial Stability Facility and
ECB’s Coeure calls for clarity on Greece debt relief before QE inclusion
Greece and its European creditors failed on Monday to agree on the next batch of bailout loans
After more than eight hours of talks in Brussels, finance ministers from the single currency bloc and the International Monetary Fund (IMF) were unable to secure an agreement on the sort of debt relief measures the Athens government can expect when its current bailout program ends next year.
Greece could default on its debts in July if it can't repay some 7.3 billion euros
The Eurogroup is asking Greece to do something unprecedented
Christine Lagarde said that eurozone creditors must provide considerably more detail on debt relief for Greece
Ms Lagarde insisted there could be no special treatment of Greece when it comes to any fund decision on joining the bailout.
IMF under pressure in Washington over Greek bailout
“The IMF isn’t a fund to rescue political parties in creditor nations, nor should it be a junior partner to outside organisations that lack the commitment to do their work,” he said.
“For seven years now, the IMF has been used to shield eurozone officials from their voters, which has tarnished the Fund’s reputation,
A failure to tell the truth imperils Greece and Europe
IMF board split over bailout terms for Greece
IMF and EU policymakers take Greece bailout spat online
The Eurogroup is the real villain in Greece today, not the IMF
Greece cannot be condemned to austerity for ever
Eurozone and IMF splits remain over Greece rescue
Short-term debt relief deal falls shy of fund joining €86bn bailout
FT 5 December 2016
A fiscal surplus too far for the Greek economy
By the end of this year, if those lenders cannot agree a deal,
EU har funnit sig i att Grekland aldrig kommer att kunna (eller vilja) betala tillbaka sina skulder.
IMF has argued stridently that /Greece/ needs relief on the fiscal and debt front in order to generate growth.
The IMF paper said the slow recovery had been made worse by the fact that
To escape sluggish growth and boost countries’ economies,
The IMF and the Crises in Greece, Ireland, and Portugal
Ambrose knows how to turn a phrase.
With currencies now effectively free-floating, the IMF found itself with little reason to exist. Did it go off quietly into the night? Of course not.
My real purpose here is not to point the finger at the IMF but to point out where its problems are part and parcel of a greater problem in global institutions.
The bias developed because, as Ambrose says, the European elites in the IMF have waged a massive love affair with the euro. And like many in love, they simply could not see the flaws in the object of their affection, the common currency of the eurozone. It was at the very foundation of the whole European project in their eyes.
The IMF-EMU love affair led the agency to accept reports and reassurances from eurozone officials at face value, without the same kind of verification they routinely demand from less-developed countries.
Long before the deluge, people within the agency had argued that the euro system was fundamentally flawed and would eventually fall apart. Those who said so found themselves overruled and even punished.
Calamitous: causing great harm or suffering, Webster
In 2013 economists at the IMF rendered their verdict on these austerity programmes:
IMF’s top staff misled their own board, made a series of calamitous misjudgments in Greece
The Myth of Austerity and Growth
The principles of Keynesian fiscal policy -- which have slowly been coming back into vogue -- say that tightening spending is the worst thing you can do in the middle of a recession. More generally, it isn’t clear just how austerity is supposed to work its positive magic. The main claim seems to be the rather vague idea that lower budget deficits increase business confidence.
Blanchard has shifted his stance. In a 2013 paper with Daniel Leigh, he showed that the IMF had been consistently wrong in its forecasts of the effects of austerity. The more beneficial the IMF predicted that austerity would be, the more incorrect its predictions were!
In 2010, the IMF admitted that its demands exacerbated the pain of South Korea’s financial crisis in the 1990s.
The /IMF-EU/deal requires finance ministers to come clean before the end of this year
Europe's Pointless 'Breakthrough' on Greece
The leader of Europe’s finance ministers called Wednesday’s agreement on Greek debt a “major breakthrough.”
The next financing crunch, which would otherwise have come this summer, has been staved off:
To make this possible and maintain a show of comity, its official creditors have ventured various semi-commitments and vague understandings. But they left basic disagreements -- mainly between Germany and the International Monetary Fund -- unresolved.
This epic of mismanagement is set to drag on.
It has been three years since Greece debt stopped growing
Domestically, it has been making ends meet for years.
In contrast, the debt burden — the amount of debt in proportion to the economy’s size and hence ability to pay —
As the chart below shows, the bulk of the increase in Greece’s debt-to-GDP ratio since the crisis is caused by falling GDP and not mounting debt.
“We on the part of the IMF have made a major concession - we had argued that these debt-relief measures should be approved up front
Some euro-area nations including Germany and the Netherlands, which have elections next year,
IMF insists on debt relief, but Germany resists.
Germany trapped in the lie that Greece is solvent,
The IMF and calling Berlin’s bluff over Greece
The International Monetary Fund’s latest recommendations on Greek debt relief have leaked.
Without any debt relief measures at all, the IMF’s analysis calculates Greece’s debt pile will soar to 294 per cent of GDP in 2060.
Christine Lagarde letter to Eurozone finance ministers demands:
Vice President Biden underscored the need for Europe to follow through on its commitment
The good news is that the recovery continues; we have growth; we are not in a crisis.
Certainly, we have made much progress since the great financial crisis. But because growth has been too low for too long, too many people are simply not feeling it.
This persistent low growth can be self-reinforcing through negative effects on potential output that can be hard to reverse.
By adopting structural reforms at the same time as slashing spending,
“It’s not a demand of the federal government to have no debt haircut
Greece faces more than 10 billion euros of debt repayments in June and July
IMF officials raised questions in a private discussion
The IMF declined to comment on the WikiLeaks transcript,
Germany wants IMF-style conditionality imposed on Greece more or less indefinitely.
IMF could now see its involvement when its Greek programme ends in March 2016.
The reports came after a former IMF watchdog urged the world's "lender of last resort" to be more critical of its involvement in many bail-out countries for the sake of the institution's credibility.
"Few reports probe more fundamental questions - either about alternative policy strategies or the broader rationale for IMF engagement," said a report from David Goldsbrough, a former deputy director of IMF's Independent Evaluation Office (IEO).
The International Monetary Fund has come under fire for failing in its duty of care towards Greece by pushing self-defeating austerity measures on the battered economy.
Speaking after a six-hour meeting of eurozone finance ministers in Brussels, Christine Lagarde, the IMF managing director, said:
Wolfgang Schäuble, the German finance minister, put a brave face on the lack of a guarantee from the IMF. He said the eurogroup ministers were “assuming” that the fund would decide in October to make “a financial contribution” — something the fund has previously said it would consider.
In an effort to win over the IMF, the finance ministers agreed to consider debt relief at a later date “if necessary”. Such relief would potentially include a longer grace period and longer maturities, although would not involve a nominal reduction in the level of Greek debt. “We stand ready if necessary to consider more debt-related measures,” said Jeroen Dijsselbloem, the president of the eurogroup. “We will have that debate, whether more needs to be done now or later, in October.”
Greece Extend and Pretend
IMF: Lagarde Greece
Eager not to repeat what many see as one of myriad mistakes it and others made in Greece,
Greece could struggle to win German support for its third bailout programme after
Debt relief from its European creditors
An IMF official said the fund would withhold financial support unless it has guarantees Greece can carry out a "comprehensive" set of reforms and will be the beneficiary of debt relief from its European creditors.
"One should not be under the illusion that one side of it can fix the problem."
The delay could last well into next year, forcing the other two-thirds of the Troika - the European Central Bank and European Commission - to bear the full costs of keeping Greece afloat.
Lagarde Push for Greece Debt Relief Challenges Merkel
Now that Greece is eligible again for loans from the IMF, getting any more money from the fund may hinge on a test of wills between Christine Lagarde and Angela Merkel.
The bailout of as much as 86 billion euros ($95 billion) proposed by European leaders this month assumes financing from the International Monetary Fund and is conditional on Greece seeking a new loan program from the IMF once the current one expires in March. The Washington-based IMF, which requires borrowers to have sustainable debt, has made clear it won’t ask its 187 other member nations to approve a deal until euro-area states significantly ease terms on existing loans.
The most recent example of the IMF’s interventionism with regard to nations and their debts came with last week’s provocatively-timed conclusion that Greece’s sovereign debts were unsustainable.
Yet nowhere in that paper was there more than a glancing mention of what at least in the short term remains one significant bit of Greece’s debt burden:
IMF admits: we failed to realise the damage austerity would do to Greece
Greece needs €60bn in new aid, says IMF
Greece needs more than €60bn in new financial help over the next three years and faces decades under a daunting mountain of debt that will make it vulnerable to future crises, the International Monetary Fund has warned.
In a new analysis that lays out Greece’s economic dilemma in stark terms, the IMF on Thursday called for Europe to grant the country “comprehensive” debt relief, arguing for the doubling of the maturities on its debts from 20 to 40 years.
The International Monetary Fund’s chief economist, Olivier Blanchard, recently asked a simple and important question:
The IMF and Greece’s other creditors have assumed that massive fiscal contraction has only a temporary effect on economic activity, employment, and taxes, and that slashing wages, pensions, and public jobs has a magical effect on growth.
It is Europe, as much as Greece, which is opposing a settlement
The compromise capable of resolving this crisis hasn't changed:
IMF is also frustrated that the European side has been unwilling to address the issue of Greece’s debt pile seriously.
IMF åker hem därför att de är missnöjda med EU?
IMF has betrayed its mission in Greece, captive to EMU creditors
The International Monetary Fund is in very serious trouble.
Syriza’s leaders are letting it be known that they are so angry, and so driven by a sense of injustice, that they may indeed default to the IMF on June 30 and in doing so place the institution in the invidious position of explaining to its 188 member countries why it has lost their money so carelessly, and why it has made such a colossal hash of its affairs.
The Greeks accuse the IMF of colluding in an EMU-imposed austerity regime that breaches the Fund’s own rules and is in open contradiction with five years of analysis by its own excellent research department and chief economist, Olivier Blanchard.
Greece’s public debt is 180pc of GDP. The loans are in a currency that the country does not control. It is therefore foreign currency debt.
The Fund’s mission is to save countries, not currencies or banks, and it certainly should not be doing dirty work for a rich currency union that is fully capable of sorting out its own affairs, but refuses to do so for political reasons.
Är IMFs Lagarde för EU-lydig?
The IMF remains sceptical about Greece’s ability to meet the ambitious budget surplus targets
However, the IMF relented after Christine Lagarde, the fund’s chief, and leaders of Greece’s two other bailout monitors
“[There was] at least a meeting of the texts; minds are probably further apart,” said one senior eurozone official.
Rather than call upon the combined authority of Euro governance to manage a deep Euro Area-wide sovereign debt workout,
Voters in Europe are rising up against all this. They do not leave much time for an alternative course to be charted.
The euro is engaged in two dances of death.
A senior International Monetary Fund economist is resigning from the Fund, writing a scathing letter to the board blaming management
An amazing mea culpa from the IMF’s chief economist
The nickname for the IMF in the markets is “It’s mostly fiscal”
But there was a difference. In most cases, the traditional IMF medicine counter-balances fiscal tightening with a devaluation of the exchange rate.
But this was not possible in the Greek case because the country does not have its own currency – because it joined the euro.
What a laugh! We learned in the 1930s that this does not work.
Why don’t the Germans understand the logic of this argument?
Rolf Englund: The Germans should remember that Brüning was the finance minister who tried fiscal tightening in the 30s and paved the way for Hitler.
The immediate cause of his dismissal was his project to partition
several bankrupt East Elbian estates.
Members of a European Parliament committee investigating the role of the troika
IMF boss Christine Lagarde calls for speedy EU bank union
The banking union project is designed to prevent a repeat of the global banking crisis. It could include a single banking supervisor, and pool national resources to rescue banks.
While the language of the IMF report is polite,
The IMF admitted in its famous mea culpa earlier this year that the Troika bail-outs had been scandalously botched, that the growth forecasts had been delusional, that loans been disbursed (the biggest in IMF history as the share of any country’s quota), in violation of three of the IMF’s four key guidelines on rescue packages, and that the whole policy was designed to save the euro, not to save Greece.
Brazil supports Greece aid programme after all
In Brazil Mantega’s rush to support the IMF’s decision is met with some disbelief, as Mantega used to be one of the starkest critics of the IMF. One analyst says it is a sign of his own political weakness. Batista had released a second, shorter statement on Wednesday, in what some saw as an attempt to mollify the public reaction to his first, in which he said although he represented other countries in the region, his decision to abstain from the latest vote on Greek aid should not be attributed to them.
Lagarde confident that Europeans stand behind their commitment to Greece
Elva latinamerikanska länder, med Brasilien i täten, sågar IMF:s fortsatta stöd till det konkursmässiga eurolandet Grekland.
"Implementeringen av Greklands reformprogram har varit otillräckligt på nästan alla områden", säger Paulo Nogueira Batista, Brasiliens represenant i IMF:s styrelse.
Han beskriver utsikterna för både tillväxt och skulder som ohållbara för Grekland.
IMF godkände trots invändningarna en ny omgång nödlån på 1,7 miljarder euro i måndags, vilket innebär att Grekland sedan 2010 fått 28,4 miljarder euro i nödlån från fonden.
Is Germany Repeating American Errors at Bretton Woods?
The architect of the conference, Harry Dexter White of the U.S. Treasury Department, gave the American delegates a warning: the other countries would want the IMF to prod the U.S. “to adopt a policy which will put less pressure on their exchange and enable them to sell more goods here.”
The U.S. wouldn’t tolerate such interference. “We have been perfectly adamant on that point,” White said. “We have taken the position of absolutely no on that.”
The reason, White explained, was that the IMF was “designed for a special purpose, and that purpose is to prevent competitive depreciation of currencies.”
Fixed exchange rates should therefore be at the center of the postwar monetary architecture, to stop countries devaluing their way out of trade deficits. The IMF should only lend money for short periods to countries that had difficulty financing deficits.
Why was the U.S. in a position to impose such a system? Because it controlled almost 80 percent of the world’s monetary gold stock at the time.
Gold in Fort Knox, White explained, was “why we dominate practically the financial world, because we have the where-with-all to buy any currency we want.”
Today, Germany is persisting with the same creditor-centric plan for reviving the euro area -- new loans to finance old loans while the debtors cut spending and wages to accommodate fixed exchange rates.
Lippmann, if he were alive, would no doubt warn that the seemingly endless austerity being imposed on southern Europe will ultimately lead to a political backlash that will make it unsustainable.
Germany will soon have to choose: a Marshall Plan for the south, or an economic and political breakdown of the euro zone.
(Benn Steil is director of international economics at the Council on Foreign Relations and
The most honest and clear-headed analysis by an official body on the eurozone crisis yet.
My own expectation is that Greece will remain stuck in a vicious circle of recession and debt deflation
The first would be a redefinition of debt sustainability.
Sub-sovereign entities, such as US states or German Länder, cannot sustain the same debt-to-GDP ratios as sovereign countries
If you thought that the IMF’s Mea Culpa on Greece has any practical significance, you could not be more wrong.
Streit über Griechenland-Hilfe: Das falsche Spiel des IWF
ABBA: I should do the same again
The International Monetary Fund has published a scathing report about how it and the European Union handled Greece’s first €110bn bailout,
The study says that the rescue went ahead even though Greece did not meet one of the IMF’s four criteria for such a huge programme – a good chance of debt sustainability in the medium term – and may have failed two of the others as well.
IMF admits mistakes on Greece bailout
The bailout of Greece was bungled because it was an attempt to save the single currency
The IMF has released a fairly remarkable piece of self-criticism over policy in Greece.
For Hard-Hit Greeks, IMF Mea Culpa Comes Too Late
Anger was palpable on the streets of Athens, where the European Union-IMF austerity recipe that the Washington-based fund says it sharply misjudged has left rows of shuttered stores and many scrounging for scraps of food in trash cans.
"Really? Thanks for letting us know but we can't forgive you," said Apostolos Trikalinos, a 59-year old garbage collector and a father of two.
Nobody has taken responsibility for the disastrous errors made by the EU-IMF Troika in Greece, where youth unemployment has just reached 58.3pc.
European Commission denies IMF Greece 'mistakes' claim
The EU's bailout of Cyprus has elicited unusually frank and vehement criticism from the finance experts grouped in the IMF's Executive Board.
Prior to the financial and euro crisis, it was usually the West that faulted the developing nations and emerging economies for incurring excessive debt and constantly begging for money from the IMF.
The situation is reversed today. The former petitioners now find themselves having to fend off constant requests for assistance from Europe. And they note with growing indignation how promises are being broken in Paris, Brussels and Berlin, figures are being massaged and many of the principles that the West once established for the IMF's activities are being violated.
French and German banks reduced their exposures to these markets by some 30-40 percent
I have been asked to speak today to the topic of “Saving the Euro.”
The reality is that Europe still faces severe vulnerabilities that — if unaddressed — could degenerate into a stagnation scenario.
There is a deep ongoing recession in some periphery countries and weakness in the core.
Reform fatigue is setting in.
In our preoccupation with sovereign debt, we tend to overlook the huge overhang of private debt in some countries that could be a deadweight on demand and bank balance sheets for a long time.
French and German banks reduced their exposures to these markets by some 30-40 percent between mid-2011 and the third quarter of last year.
ECB has taken extraordinary action to protect monetary union with the LTRO and conditional OMT. Unfortunately, fragmentation continues and remains debilitating.
A common safety net is another essential element. It is needed to weaken bank-sovereign links by reassuring depositors.
The other union Europe needs to contemplate is fiscal union. That will surely take time, and further discussion by members to choose the precise end point.
In its twice-yearly World Economic Outlook, IMF said the euro zone remains the weakest part of the global economy,
IMF said that in the near-term, the euro zone still poses the greatest threat to a recovery in the global economy, citing "the fallout from events in Cyprus" and political stalemate in Italy, as well as "vulnerabilities" among the weaker members of the currency area.
The Fund warned that the prospect of a long period without significant economic growth could spook investors, leading to a renewed threat to bond market access for governments in southern Europe.
World Economic Outlook, Hopes, Realities, and Risks, April 2013Top of page
Protecting the eurozone at all costs is undermining IMF’s validity
With the advent of the credit crunch, the IMF briefly rediscovered its raison d’etre.
In becoming part of the hated “troika” which imposes apparently counter-productive austerity on weaker members of the euro, the IMF has badly discredited itself and by doing so is steadily undermining its validity on the wider international stage.
The IMF’s starting point is that the euro is too systemically important to be allowed to break up. Like the larger banks, it has become too big to fail, and must therefore be propped up for fear of the wider economic damage if it went down in flames.
So along with the European Commission and the European Central Bank, it has become part of the hated “troika”, imposing fiscal austerity and structural reform on weaker eurozone nations in return for handoutsFull text
The IMF was formed in 1944 to avert another Great Depression by lending money to troubled countries,
but after decades of dealing mainly with the third world, the
Some economists even seem nostalgic for the days of Lagarde's predecessor, Dominique Strauss-Kahn, who resigned in disgrace after he was hauled into a New York City jail in May 2011 on charges of sexually assaulting a hotel maid. (The charges were eventually dropped.)
At a conference of German bankers in Frankfurt on March 19, she /Lagarde/ zeroed in on one message: Europe needs a strict, E.U.-wide banking union, and quickly.
“substantially below” 110 per cent in 2022
The IMF had been holding out for a deal to get Greece’s debt levels to 120 per cent of gross domestic product by 2020, a target that would have likely forced eurozone governments to make substantial writedowns on their bailout loans – something deemed politically explosive in creditor countries like Germany and the Netherlands.
In exchange for allowing a loosening in the target to 124 per cent, Ms Lagarde secured a commitment to get debt levels to “substantially below” 110 per cent in 2022
A visibly angered Mrs Lagarde, the managing director of the IMF, shook her head and rolled her eyes at the announcement that breaches the Washington-based fund’s condition that Greek debt must become sustainable by 2020.
Euro-zone finance ministers meeting in Brussels this week have been unable to reach an agreement with IMF
On Greece, Europe should listen to the IMF
"You know, it's not over until the fat lady sings, as the saying goes," Ms Lagarde told reporters
Några exempel. Spaniens budgetunderskott skulle enligt order från övriga EU-länder minskas från 6,3 procent av BNP i år till 2,8 procent 2014.
I Portugal ska budgeten kapas med motsvarande över 3 procent av BNP bara under 2013 och i Grekland är besparingarna 7 procent av BNP under 2013 och 2014 varav det mesta ska tas nästa år.
Detta trots att budgetunderskotten alltså är större i USA.
Bland de som varit med och ställt upp dessa krav finns bland andra IMF.Läs mer här
Jean-Claude Juncker, president of the Eurogroup of finance ministers, announced Greece would be given an extra two years to meet its debt reduction target of 120pc of GDP by 2022 instead of 2020.
“The target, as far as the time-frame is concerned, has been postponed to 2022,” he said.
A visibly angered Mrs Lagarde, the managing director of the IMF, shook her head and rolled her eyes at the announcement that breaches the Washington-based fund’s condition that Greek debt must become sustainable by 2020.
“We clearly have different views,” she said. “In our view the appropriate target is 120pc by 2020. It is critical that the Greek debt be sustainable."
IMF wants Greece's creditors to forgive a portion of the country's debt,
IMF's mea culpa is the "biggest financial story of the year"
In its relations with its most powerful clients, the International Monetary Fund possesses “the right to be consulted, the right to encourage and the right to warn”. Walter Bagehot, the great Victorian economic journalist, gave this description of the role of the British monarch in the 19th century.
I applied this phrase to the role of the fund in a paper I submitted to its 2011 triennial surveillance review.
At the annual meetings in Tokyo, the fund fulfilled precisely this role. What matters, however, is that its members, above all, the US and Germany, act upon the warnings and encouragement they have received.
Armageddon i Grekland den 18-19 Oktober:
We face a conjunction of three large events - the implosion of the debt-based finance-capitalism that developed over the past twenty years or so, a fracturing of the euro resulting from fatal faults in its design, and the ongoing shift of economic power from the west to the fast-developing countries of the east and south.
Ingen eurokris i Almedalen?
Mr Cameron said: "I can understand why eurozone countries may want to look at elements of banking union.
Sverige är inledningsvis berett att ställa upp med 10 miljarder dollar, nära 70 miljarder kronor, till IMF,
IMF still won't admit truth about the euro
In fact, the underlying cause of the Europe's travails is much more fundamental – it is the euro itself, which is ripping the Continent apart in an uncorrected balance of payments and consequent debt crisis. European leaders have yet properly to face up to this inconvenient truth. Their project won't and cannot work in its present guise.
The US, knowing it could never get enhanced IMF support through Congress, has already said it won't contribute any additional funding, while even the UK is beginning to get cold feet. A previously compliant George Osborne does not believe the conditions he listed a little while back, not least a much bigger European rescue fund, have been met.
Despite the punishing mix of austerity and structural reform being imposed on the South, the idea that Europe's periphery can in time be made as competitive as Germany is just fantasy.
Europe can’t accept that the economics of the single currency condemn it to failure
The survival of the eurozone now depends on Italy and Spain.
Is the IMF already assuming Greek failure?
On Friday, after much of Europe shut down for the week, the International Monetary Fund issued its 231-page report on Greece’s new €174bn bailout
The fund notes that more austerity measures totalling 5.5 per cent of economic output – or about €12bn – must be found in the next three months to close gaps in Greece’s budget for next year and 2014. Without those cuts, the IMF warns, it’s ready to withhold its very first quarterly aid payment in three months’ time
The report also makes clear that if Greece falls off the wagon in any way, the IMF is not going to pick up the tab any more. Instead, it will either be up to Athens to restructure its debt yet again or for eurozone lenders to put up even more money.
U.S. Treasury Secretary Timothy Geithner:
"A durable solution requires both a sustained period of economic reform and a substantial financial firewall to support those reforms," he told a press conference at the conclusion of a Group of 20 finance ministers' and central bankers' meeting.
Injecting Cash - Europe's Banks Are Addicted to ECB's Cheap Money
G20-länderna kommer inte att skjuta till mer pengar förrän eurozonen själv gjort mer
Det är framför allt Tyskland som hittills vägrat att sätta in mer pengar i eurozonens räddningsfond. Även i går framhärdade den tyske finansministern med att det inte behövs. Han tycktes dock lämna en liten öppning för att Tyskland skulle kunna ändra sig innan nästa G20-möte i april.
Schäuble’s duplicity on ESM enlargement: He says Yes in private, No in public
This is how Wolfgang Schäuble has been running the eurozone crisis all along. He proceeds with conflicting messages.
The dangerous subversion of Germany's democracy
Germany Isolated over Resistance to Expanding Euro Bailout
The European Commission, the European Union's executive in Brussels, is also arguing for an expansion of the ESM. "There is a clear need to further strengthen the euro area financial firewalls in order to equip Europe to contain the contagion and counter speculative pressures," Currency and Monetary Affairs Commissioner Olli Rehn said on Thursday.
Both the International Monetary Fund (IMF) and the Netherlands have increased pressure for the EFSF money to be carried over into the new fund -- a particular blow for Germany given that the Dutch have been among the most conservative of the euro-zone member states when it comes to providing bailout funds for Greece. Finland, another critic of Greek aid, has also signalled its support according to media reports.
Germany's ruling parties are to introduce a resolution in parliament blocking any further boost to the EU’s bail-out machinery,
G20 must protect the IMF from Europe
At this weekend’s G20 meeting, European countries are likely to press for an increase in the International Monetary Fund’s resources as a means to bolster the firewalls against the eurozone debt crisis. The other G20 members must resist such pressure until Europe starts showing more signs that it’s getting its act together.
It should come as no surprise that over the last couple of years Europe has pressed the IMF very hard to make exception after exception - and it has succeeded. This has resulted in a number of firsts by an organisation that prided itself on the “uniformity of treatment” for member countries.
Preserve and Protect
Each president recites the following oath, in accordance with Article II, Section I of the U.S. Constitution:
Germany has said that it sees no need to increase the size of Europe's
Spokesman Steffen Seibert told reporters:
Lagarde repeated her calls for an increase in the size of the permanent euro backstop fund,
The IMF had provided 30 percent of the first €110 billion bailout for Greece, agreed upon in May 2010, but reportedly wants to reduce the size of its contribution this time around.
IMF is considering contributing just 13 billion euro to the latest Greek bailout package
The IMF is no longer serving its purpose
The IMF’s purpose is to instill the “right” economic policies in countries so that they can become competitive, and when things go awry, to provide the stop-gap finance and policies that get them back on their feet.
In a recent analysis of developments in Greece, the IMF virtually admitted as much, describing with eloquence how fiscal austerity had become self-defeating by undermining all hope of economic growth.
Euroländernas genidrag att deponera 200 miljarder euro i IMFs kassaskåp för att kunna begära nödlån ur det,
Med IMF-lösningen tänkte man också ta sig runt politiska och lagtekniska hinder i länder som Tyskland, vars författningsdomstol gjort klart att det nu öppet betalningströtta parlamentet i Berlin måste ge klartecken till varje nytt lån.
Den brittiske premiärministern David Cameron sade i parlamentet i London att IMF var till för att rädda länder, och inte valutor.
Why should the members of the IMF finance Italy when German savers pull out and the German government
This leaves the emerging markets as the only remaining source of funds. They, meaning China
I senaste numret av Nyliberalen skriver jag om ekonomerna som förutspådde eurokrisen.
Italien har lovat att låna ut 22,5 miljarder euro till IMF så att IMF ska kunna rädda ... Italien.
"at least €1 trillion is necessary to stabilize the euro"
The agreement on the €200 billion IMF fund is essentially an admission that the current euro bailout fund, the European Financial Security Facility (EFSF), is likely not large enough to handle Italy's -- or even Spain's -- refinancing needs should they run into trouble.
Plans are afoot to leverage the EFSF, but the fund's spending power is likely to max out at €750 billion.
The current consensus, voiced most recently by European Central Bank governing council member Klaas Knot, holds however that
Kommentar av Rolf Englund:
Ms Lagarde was always the wrong choice as managing director of the IMF, if only because she is neither impartial nor particularly well qualified for the job.
She's a European cuckoo in the nest, and therefore as incapable of seeing what needs to be done as the rest of the eurozone policy elite. Indeed, I've yet to see any evidence that she properly comprehends the economics of the eurozone sovereign debt crisis.
To Ms Lagarde, saving the euro and saving the world economy are one and the same thing. They are not.
Sverige är berett att bidra med upp till 100 miljarder kronor till krishanteringen i EU via IMF.
EU-länderna ska skjuta till 200 miljarder euro till IMF.
The long shadow of the 1930s
If I had to give a snap judgment on the embryonic plan to “save the euro”,