The leader of the party winning Greece’s elections Sunday is urgently trying to form what he calls a “national consensus.”
The New Democracy party, narrow victors in the vote, are one of a number of parties who favor Greece staying within the euro. Continue reading
Rumors a radical leftist party which favors a return to the drachma is running neck and neck for the lead in the elections scheduled for Sunday is driving a run on Greek banks. Bankers are reporting that up to 800 million euros, or around $1 billion US dollars, is being pulled from major banks every day.
Retailers are reporting that people are using the money to stock up on pasta and canned goods. Continue reading
Shortages in chemotherapy drugs and other expensive treatments have risen after pharmaceutical companies cut credit to Greece’s largest state-backed health insurance fund. The fund provides subsidized medicine to lower-income Greek citizens.
Some pharmacies have been overrun with hysterical people attempting to get life-saving medicine for themselves or relatives. People reported to SKAI TV waits of hours to get necessary medication and patients have been heard screaming from inside pharmacies. Continue reading
The possible departure of Greece from the euro zone combined with the worsening economic conditions in Spain and record high unemployment in the euro zone are threatening to cause a disintegration of the continent wide currency.
Olli Rehn, Brussels’ most senior economic official, says unless the nations that use the Euro are bound closer together the euro zone could collapse.
Italy’s leaders called for using euro bonds to create a path to “common debt” for Europe. Spain’s government is proposing a common fiscal authority for Europe to sync budgets of the member nations and manage overall debts. Continue reading
The contraction rate of manufacturing in Spain ranked higher than Greece’s rate in the month of May. Spain’s rate declined at the highest rate since May 2009.
Spain’s figure of 42.0 was the worst in the eurozone below Greece’s level of 43.1.
The manufacturing decline in many of the endangered eurozone nations is beginning to impact the stronger nations like France and Germany. Continue reading
The National Bank of Greece has issued a report ahead of the country’s June 17th elections that says if those elected choose to remove Greece from the euro it could have catastrophic impact upon the nation’s economy.
The bank stated the risk of the country exiting the euro has become more than a theoretical possibility. Continue reading
The Greek government gave 18 billion euros to its four biggest banks in an attempt to allow the banks access to European Central Bank funds.
Two government officials told Reuters that the government is trying to revive the country’s falling tax revenue but that it has a 3 billion euro fund remaining from the country’s first bailout to pay bills should the tax revenue not recover. Continue reading
Secrecy is surrounding an estimated 100 billion euro addition of emergency liquidity provided by the country’s central bank. The move was approved in secret by the European Central Bank.
The use of “Emergency Liquidity Assistance” to help weak economies has been a behind the scenes activity during the euro zone crisis. The ELA helped save the financial system in Ireland and is being used more extensively in Greece. Continue reading
Greece, in the midst of a rash of suicides related to the country’s economic crisis, had their debt rating raised from “selective default” to “CCC”. After two bailouts, the Greek government has been described by Standard and Poor’s as having “alleviated near-term funding pressures.” Continue reading
