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Memo From Greece: Muffling of a Voice Provokes an Outcry in Greece

June 19, 2013 by Leave a Comment

A bit melodramatic, lagging in parts, but full of feeling, the performance of “Nimrod” from Elgar’s “Enigma Variations” captured something in Greece. It became the soundtrack to a country falling apart, a dirge for a social order dissolving with each new quarter of recession, the sound of a loss of faith in the ability of Greece’s leaders, and Europe’s, to set things right.

The video — and the live-streaming of programming online, produced by employees still showing up to work, unpaid and occupying headquarters illegally — has elicited immense solidarity with a broadcaster that Greeks have traditionally seen as mismanaged and overstuffed with patronage hires.

For a government intent on projecting an image that it is in control, shutting down the Hellenic Broadcasting Corporation, known as ERT, was a bold gamble. Mr. Samaras wanted to show Greece’s troika of international lenders that he was able to meet their demands to fire public-sector workers — something that in four years of financial crisis and rapidly shrinking budgets Greece had not managed to do.

But in a crisis based in large part on perception, turning off the public broadcaster — one of the only broadcast news sources not owned by Greek business magnates — revealed another side of the prime minister, one his critics say is increasingly autocratic and stubborn, willing to infringe on press freedom and risk a political crisis to meet the demands of Greece’s creditors.

The decision to close the broadcaster rattled Greece’s weak governing coalition, and talks Wednesday evening to avert a collapse were inconclusive. But it was widely believed that the parties would patch up their differences on Thursday, particularly given an order by the Council of State, one of the country’s highest courts, to reopen ERT in some form and the coalition partners’ fear of the leftist opposition party, Syriza.

Yet, the debate over ERT has become “Rashomon”-like with perceptions strongly influenced by the observer’s perspective.

Over the years, successive governments have brought in waves of the party faithful to staff ERT. No one was fired, so no one is denying that the ranks were filled with patronage and political hires — earning the ire of most Greeks.

While the ERT staff can be seen as lean compared with other state broadcasters in Europe, it is widely regarded in Greece as a spendthrift. Before the financial crisis hit in 2009, it had about 100 on-air presenters earning around $650,000 a year, according to a former ERT manager. The violinist in the video plays in one of the network’s three orchestras.

Mr. Samaras has called ERT a costly bastion of favoritism, yet his critics note that much of the patronage came from his own New Democracy Party and the other members of the governing coalition.

Giorgos Kogiannis, a former head of news at ERT, accused the government of hypocrisy for closing ERT down to cut costs, claiming that the three-party government formed last June immediately appointed its own people to key posts there and tripled the number of advisers to the new chief executive.

“As soon as they came to government, they started the political appointments at ERT,” Mr. Kogiannis said. “They put 20 advisers in the C.E.O.’s office, compared to six before.” He added that several positions were given to people with close ties to the government spokesman, Simos Kedikoglou, and other top government officials.

Mr. Kedikoglou did not respond to a request for comment.

ERT’s 2,600 employees, meanwhile, are fighting to save their jobs and, understandably, feel like pawns in some larger battle.

On Tuesday afternoon, Greek folk music blared from 10-foot speakers and banners rippled across the building’s facade, railing against what workers called the “sudden death” of the decades-old institution. “Not for sale!” read one. “Unemployment, poverty and now the loss of culture — this is the price for the euro,” read another.

Liz Alderman reported from Athens, and Rachel Donadio from Rome. Niki Kitsantonis contributed reporting from Athens.

Article source: http://www.nytimes.com/2013/06/20/world/europe/muffling-of-a-voice-provokes-an-outcry-in-greece.html?partner=rss&emc=rss

Filed Under: Media Business Tagged With: , ,

Slovakia Rejects Euro Bailout

October 11, 2011 by Leave a Comment

But the country’s leading opposition party said it would be willing to discuss support for the fund after the government fell, pointing to eventual approval of the deal. Officials in Brussels were counting on a political solution, but weighing the possibility of some kind of messy workaround if Slovakia failed to pass the measure.

If nothing else, the unwieldy process underscored how the entire $590 billion euro stability fund, approved by the 16 other members of the euro currency zone, could be held hostage to the domestic politics of one tiny country, in this case Slovakia.

In a vote of 55 for the measure, nine against and 60 abstaining, the Slovak governing coalition failed to muster the necessary votes to pass the plan that would have required them to contribute roughly $10 billion in debt guarantees to the fund.

The vote on expanding the size and powers of the fund, known as the European Financial Stability Facility, followed a day of speeches, recesses and hastily organized meetings to find consensus. The free-market Freedom and Solidarity Party, one of the four parties in the coalition, had refused to back it, a crucial factor in the expected fall of the government of the prime minister, Iveta Radicova.

Politicians in capitals across Europe watched the developments in Bratislava closely. An agreement to expand the fund was reached in July by the leaders of the 17 countries that use the euro. Malta approved the plan on Monday, leaving Slovakia as the last to take up the accord for formal consideration. The possibility that Slovakia, a former communist country with a population of just 5.5 million, could scuttle an agreement endorsed and passed by European powers like Germany, France and Italy had seemed inconceivable.

One European official speaking on condition of anonymity due to the delicacy of the issue said that, ultimately, it would probably be possible to go ahead with the bailout without Slovakia if necessary.

The rules of the E.F.S.F. were laid down in a “framework agreement,” rather than being written into the bloc’s governing treaty. As an inter-governmental agreement this benefits from “a certain flexibility,” said the official, adding that “in these sorts of cases, where there’s a will, there’s a way.”

Carving Slovakia out of the E.F.S.F. fund would be technically messy and would send a terrible signal about the readiness of all 17 nations to participate in the permanent bailout fund the E.U. wants to set up for the period after 2013.

Officials in Brussels believe thatthe vote could be reversed with Mr. Fico’s support as early as by the end of the week. But “the political damage of a repeated ‘no’ would be horrendous,” said the official speaking.

That means that negotiations are likely to be political ones, seeking to persuade politicians in Slovakia that it is in their interests to ratify the deal, and pointing out that self-exclusion could be harmful in the future if the Slovaks themselves need aid. The approval process, which has already lasted over two months, has been excruciatingly complex. At times it has seemed like a strange hybrid of a geography class and a civics lesson, wending its way from Helsinki in the north to the tiny Mediterranean island of Malta, from Germany’s Federal Constitutional Court in Karlsruhe to a Spanish Parliament in Madrid surrounded by police barricades to keep protesters at bay.

At each step the union has found a way to muddle through for the sake of unity and fear of the unknown. Specifically those fears center around the repercussions on financial markets and the risk that doubts, and with them speculative attacks, will increasingly spread to large economies like Spain and Italy should they fail to contain problems in Greece, Portugal and Ireland.

In Slovakia, it has been the leader of Freedom and Solidarity, Richard Sulik, who is also speaker of the Parliament, who has steadfastly refused to support the financial stability fund. Mr. Sulik contends that it is unfair to ask Slovakia, the second-poorest country in the euro zone, to guarantee loans for richer countries like Greece and Portugal. If the measure is approved, Slovakia will contribute roughly $10 billion in debt guarantees to the $590 billion euro zone stability fund.

“If Greece had gone bankrupt right and straight at the beginning of last year it would have been the sincere and honest solution,” Mr. Sulik said on the floor of Parliament Tuesday, and would be in better shape than it was today. With regard to concerns over undercapitalized banks, Mr. Sulik said, “We are not against rescuing banks, but against Slovakia rescuing foreign banks.”

Mr. Sulik called Ms. Radikova’s decision to hold a confidence vote along with the vote on the bailout fund “blackmail.” If the government loses the confidence vote, it would be up to Slovakia’s president, Ivan Gasparovic, to name an interim government until a new coalition can be agreed upon or a date chosen for early elections, said Marek Trubac, a spokesman for the president. In the meantime Ms. Radicova would continue in the position. Elections could not take place before “early spring,” Mr. Trubac said.

Few Slovaks want to foot the bill for other countries’ overspending. But surveys show that the European Union is popular in Slovakia, and people are very proud of having adopted the currency while neighbors like Poland and their former countrymen, the Czechs, have not.

“The image of Slovakia has already been damaged,” said Ivan Miklos, Slovakia’s finance minister. “Slovakia shouldn’t be viewed as the unreliable member of the euro club.”

Nicholas Kulish reported from Warsaw and Stephen Castle from Brussels. Adriana Lajdova contributed reporting from Bratislava, Slovakia.

Article source: http://www.nytimes.com/2011/10/12/world/europe/slovak-leader-vows-to-resign-if-bailout-vote-fails.html?partner=rss&emc=rss

Filed Under: Global Business Tagged With: , ,

Greek Parliament Approves Implementation of Austerity Plan

June 30, 2011 by Leave a Comment

The vote followed a momentous day on Wednesday, when members of Parliament narrowly approved the package of spending cuts, tax increases and the sale of government assets, as riots erupted in the streets surrounding Parliament.

The complex implementation bill passed, with all 154 of the ruling Socialists plus one conservative deputy voting yes, 136 against, and five blank ballots and four abstentions. The center-right New Democracy opposition party opposed the bill in principle, as it had the measures themselves, saying they included too much austerity and would not help Greece return to growth.

With Thursday’s vote, the spotlight shifts to Greece’s foreign lenders — the European Union, European Central Bank and International Monetary Fund — which are now expected to unlock $17 billion in aid that the country needs to meet its debt obligations through August.

Central Athens was calm on Thursday, a day after violent riots swept through the city, with police clashing with protesters who three firebombs and rocks through clouds of tear gas. Shops were open again after a two-day general strike and shopkeepers swept up broken glass.

The new measures include cuts in spending on health and defense, tax increases on heating oil and the self-employed and the privatization of about $70 billion in state assets.

Addressing Parliament ahead of Thursday’s vote, Finance Minister Evangelos Venizelos accused the main opposition New Democracy of “being scared of assuming their responsibility and lacking a counterproposal” to the government’s austerity plan. But he appealed again for cross-party consensus. “Will you join us and show that you’ve grasped the seriousness of the situation as they have in Portugal and Ireland,” Mr. Venizelos asked.

But his pleas fell on deaf ears. New Democracy leader, Antonis Samaras, who has rebuffed overtures by Prime Minister George Papandreou several times in the past month, stood firm, saying his party would vote against the implementation bill in principle — but would vote for provisions calling for privatizations and public spending cuts. Analysts have said the party’s populist stance has allowed it to score political points knowing the government would have to take the political risk of pushing the measures through.

At the last minute, the bill was altered to freeze the salaries of civil servants effective July 1, and to lower the ceiling below which income for individuals is tax-free to $11,600 annually from $17,400, with more lenient treatment for people with children.

Niki Kitsantonis contributed reporting from Athens, and Liz Alderman from Paris.

Article source: http://www.nytimes.com/2011/07/01/world/europe/01greece.html?partner=rss&emc=rss

Filed Under: Global Business Tagged With: , ,

Greek Leaders Fail to Reach Consensus on Austerity

May 28, 2011 by Leave a Comment

“Essentially, there are many points on which we can agree,” he said, speaking to the nation in a televised speech. “But there is a need for political will from all sides.”

“Over the next few days we will continue efforts to reach a consensus,” he continued, adding that “the government has assumed the responsibility to extract the country from the crisis and will do this with or without consensus.”

But leaders of the opposition parties have refused to fall in behind the president, Karolos Papoulias, who had called the meeting. The measures have been proposed by Mr. Papandreou’s Socialist government.

The aim of Friday’s meeting was to convince officials of the European Union and International Monetary Fund that Greece is serious about repairing its finances, and has the political will to impose more tax increases and spending cuts on a public already weary after a year of belt-tightening. The effort came amid mounting speculation about the Greek government’s ability to avert a default, which would very likely lead to a new financial crisis across the euro zone.

Olli Rehn, Europe’s commissioner for economic and monetary affairs, said in a statement that the commission “regrets the failure of Greek party leaders to reach consensus on economic adjustment to overcome the current debt crisis.”

“An agreement has to be found soon,” Mr. Rehn said. “Time is running out.”

Earlier in the day, Antonis Samaras, the leader of the country’s main conservative opposition party, New Democracy, said he would not back a program that would “raze Greece’s economy and destroy its society.”

He called for the renegotiation of the terms of an agreement with the union and the I.M.F., which last May pledged 110 billion euros in loans to Greece in exchange for the country’s getting its fiscal house in order.

Mr. Samaras also reiterated calls for an alternative approach to Greece’s finances, one that favored the lowering of taxes and faster privatization of state assets.

Other leaders also criticized the Socialists’ plan. Among them was the leader of the Communist Party, Aleka Papariga, who said Greeks were being subjected to “ideological terrorism” and should not give in to “coercive dilemmas.”

On Thursday, the head of the group of euro zone finance ministers, Jean-Claude Juncker, said again that the European Union would be unlikely to step in if the I.M.F. withheld its portion of a fifth installment of emergency funding to Greece — 12 billion euros ($17 billion) scheduled to be disbursed next month.

Greece’s lenders are demanding additional measures after the country missed its deficit-reduction target for 2010, putting the goals for this year and beyond further out of reach. A mission from the European Commission, the I.M.F. and the European Central Bank is currently compiling a much-anticipated report on the Greek government’s progress, after which European ministers will have to decide how to react.

The situation is difficult because public opinion in creditor countries is hardening and some euro zone governments, including that of the Netherlands, have made it clear that they will not step in and fill the funding gap if the I.M.F. does not believe that it can justify releasing its portion. That has increased pressure on the Greek government to agree to revenue-raising measures, including privatization, that will be sufficient to win over the I.M.F.

At the Group of 8 meeting in Deauville, France, on Friday, the United States expressed support for European efforts to prevent a renewed debt crisis in Greece from mushrooming into a larger problem for the euro monetary union, said two European diplomats who were present during the discussions but did not want to be named.

The Americans said that Europe’s ability to manage these problems was important to the United States, but that President Obama did not specify what kind of help the United States would be willing to extend, other than statements of support, the diplomats said.

The European leaders said during the discussions that Europe’s problems were limited to Greece and that they did not believe Greece risked infecting the rest of the euro zone, which covers 17 countries. They pointed to the continued strength of the euro vis-à-vis the dollar as proof that the situation was still under control.

The leaders agreed, however, that Greece needed to be more aggressive in adjusting its own finances, and said they believed that the country would ultimately be able to avoid defaulting on or restructuring its debts.

Greek media has speculated in the last week that the country will hold snap elections or possibly return to the drachma. The European marine affairs commissioner, Maria Damanaki, who is a Greek Socialist, added fuel to the fire when she suggested on Wednesday that talks were already taking place about Greece’s possible exit from the euro zone.

Apart from tax increases and public spending cuts, the Greek government’s proposed austerity program also includes a privatization drive that foresees sales in stakes of state utilities and assets including the state telecommunications company OTE.

On Friday, Deutsche Telekom, which already has a 30 percent stake in OTE, confirmed the receipt of a letter from the Greek finance ministry asking to arrange talks to discuss increasing its stake.

But a few dozen employees of the phone company protested a further sell-off by blocking one of Athens’s busiest roads, in front of the company’s headquarters, during the morning rush hour Friday.

Larger protests have been held over the last three days as Greeks, facing a deepening recession and mounting unemployment, seek to air their grievances.

Article source: http://feeds.nytimes.com/click.phdo?i=36344ecf29ead27f1da7568ad164bd25

Filed Under: Business News Tagged With: , ,

Stocks Turn Higher as Oil Prices Rise

May 25, 2011 by Leave a Comment

Europe’s worsening debt crisis and weak Japanese exports raised concerns that the world’s major economies were flagging. Oil jumped above $100 per barrel, helping to turn energy stocks higher.

Energy companies in the the Standard Poor 500-stock index rose 1.4 percent. Cabot Oil and Gas Corp. led the index higher, rising 6 percent. Higher prices for other commodities including copper and silver helped send material company stocks higher. Freeport-McMoRan Copper Gold rose 2 percent.

The Dow Jones industrial average rose 62.40 points, or 0.51 percent, in midday trading. The Standard Poor index rose 7 points, or 0.53 percent. The Nasdaq composite rose 21.03 points, or 0.77 percent, to 2,761.

On Wednesday, Japan’s government reported that the country’s exports fell by 12.5 percent in April after the March 11 earthquake and tsunami caused factories to close, and forced manufacturers to stop production. Japan’s auto shipments were particularly hurt, falling by 67 percent.

The report added to concerns that the global economy is a long way from health

At the same time, the drop in Japanese exports affected demand for durable goods in the United States. The Commerce Department said Wednesday that companies ordered fewer computers, heavy machinery, cars, airplanes and other durable good from factories in April. The 3.8 percent drop was the biggest in six months, reflecting a decline in business investment in the United States. The weakness was probably made worse by businesses ordering fewer vehicles and car parts from Japan.

Meanwhile, Greece’s government and opposition party failed late Tuesday to reach consensus on how to control the country’s debt problem, adding to the uncertainty around Greece’s financial future. Many analysts believe Greece will eventually have to restructure its debt, but what form that will take is unclear.

A Greek debt default could have a domino effect, denting the credit-worthiness of larger European economies and hampering the world economy.

Stocks had been on a steady climb since last August before dropping steeply in March after the Japanese catastrophe shocked global financial markets. Encouraging corporate earnings sent stocks back up in April, but markets have stalled in the past three weeks. The SP 500 closed at 1,363 on April 29, its highest level of the year, and has drifted lower ever since.

The price of safe haven assets like gold and 10-year United States Treasurys has risen as traders avoid a stock market they see as volatile. The SP 500 index has closed higher on only three of the last 10 days.

Some analysts say the market may have been rising too far, too fast since the beginning of the year, making stocks seem expensive. The Dow is still up 7 percent for the year. The SP 500 is up 5 percent.

“A pullback in the market is probably healthy,” said Michael Sansoterra, portfolio manager at Silvant Capital Management.

The fertilizer company CF Industries rose 4 percent a day after JPMorgan upgraded the stock, citing the company’s good cash flow and positive predictions for the agriculture industry.

Martha Stewart Living Omnimedia jumped 25.46 percent after announcing that it had hired the Blackstone Group to explore a sale of the company.

Retail stocks are struggling. Polo Ralph Lauren sank 7 percent after reporting its profit fell 36 percent because of higher costs. Costco Wholesale slipped 1 percent after reporting earnings that missed analysts’ estimates.

American International Group fell 4 percent to $28.39 as the United States Treasury Department sold some of its stake in the company. Treasury said it would sell 300 million AIG shares for $29 each, hoping to eke out a small profit. The price was set late Tuesday at the low end of the government’s projected range.The report added to concerns that the global economy is a long way from health.

In Europe, markets closed higher. London’s FTSE gained 0.2 percent, and the DAX in Frankfurt and the CAC 40 in Paris both closed the day up 0.3 percent.

Article source: http://feeds.nytimes.com/click.phdo?i=c8c15dbbdb91311bed2b5f180a44e447

Filed Under: Economy News Tagged With: , ,