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4273 Mechanisms of Policy Change Inside International
Angelos Angelou LSE| European Institute Word count: 4,273 Mechanisms of policy change inside International Organizations during times of crisis: Evidence from the cooperation of the Troika institutions vis-à-vis the handling of the Greek debt Abstract This note will establish that the observed mechanisms of policy change inside the EC and the ECB vis-à-vis the handling of the Greek debt disconfirm certain central theoretical expectations of the policy change literature. By juxtaposing the most basic theoretical insights of the policy change research with a new dataset that describes the interactions of the Troika institutions regarding the handling of the Greek debt we will establish that the mode of change inside the two European institutions was unexpected and puzzling from a theoretical point of view. The study of such a failed most-likely case will provide detailed insights regarding the processes of change inside IOs during times of crisis and will allow us to modify the respective hypotheses of the policy change literature. Introduction The Eurozone bailouts have been a matter of extensive academic and political discussion. One of the less examined aspects of the crisis is the cooperation between the three organizations that undertook the drafting and the daily management of the programs. The International Monetary Fund (IMF), the European Commission (EC) and the European Central Bank (ECB), created an ad hoc body, the Troika that operated as the directorate and the meditator via which the debtors coordinated with their creditors. This note will use one of the numerous disagreements that arose during this cooperation in order to study the process of policy change inside the three Troika bodies. -
Is the Greek Crisis One of Supply Or Demand?
YANNIS M. IOANNIDES Tufts University CHRISTOPHER A. PISSARIDES London School of Economics Is the Greek Crisis One of Supply or Demand? ABSTRACT Greece’s “supply” problems have been present since its acces- sion to the European Union in 1981; the “demand” problems caused by austerity and wage cuts have compounded the structural problems. This paper discusses the severity of the demand contraction, examines product market reforms, many of which have not been implemented, and their potential impact on com- petitiveness and the economy, and labor market reforms, many of which have been implemented but due to their timing have contributed to the collapse of demand. The paper argues in favor of eurozone-wide policies that would help Greece recover and of linking reforms with debt relief. reece joined the European Union (EU) in 1981 largely on politi- Gcal grounds to protect democracy after the malfunctioning political regimes that followed the civil war in 1949 and the disastrous military dictatorship of the years 1967–74. Not much attention was paid to the economy and its ability to withstand competition from economically more advanced European nations. A similar blind eye was turned to the economy when the country applied for membership in the euro area in 1999, becom- ing a full member in 2001. It is now blatantly obvious that the country was not in a position to compete and prosper in the European Union’s single market or in the euro area. A myriad of restrictions on free trade had been introduced piecemeal after 1949, with the pretext of protecting those who fought for democracy. -
Calendar of Benoît Cœuré, November 2016 1
Calendar of Benoît Cœuré Member of the ECB's Executive Board November 2016 Meeting / Event Date (incl. topic / meeting participants, as applicable) Location Tuesday, 1 November Meeting with HSBC, on global economic and financial Frankfurt developments Wednesday, 2 November Banking Industry Dialogue ECB Meeting with high-level independent evaluator of past ECB European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM) financial assistance programmes, Ms Gertrude Tumpel-Gugerell, on ex post evaluation of EFSF and ESM programmes Governing Council ECB Thursday, 3 November Meeting with Morgan Stanley, on developments in the ECB European Union Europe on Credit Series, organised by Harvard Universityʼs Cambridge, Minda de Gunzburg Center for European Studies – keynote MA address on “Sovereign debt in the euro area: too safe or too risky?” Friday, 4 November Meeting with Harvard University, on research on monetary Cambridge, policy and financial regulation MA Sunday, 6 November Meeting with US Federal Reserve System, Ms Janet Basel Yellen, and Federal Reserve Bank of New York, Mr William C. Dudley, on global economic and financial developments Monday, 7 November Bank for International Settlements (BIS) – bi-monthly Basel meetings Eurogroup Brussels Tuesday, 8 November Executive Board ECB Meeting with Mr Vivien Lévy-Garboua, on a project for the ECB French Treasury on post-trade activities in Europe Calendar of Benoît Cœuré, November 2016 1 Meeting with media Frankfurt Wednesday, 9 November Meeting with media Lyons Les -
OECD, "Seminar on Capital Movements Agenda,"
PROGRAMME SEMINAR ON OPEN AND ORDERLY CAPITAL MOVEMENTS Does global co-operation matter? 25 October 2016, OECD, Paris Organised by the OECD in co-operation with Germany (Federal Ministry of Finance) as the upcoming G20 Presidency Open and orderly capital movements: does global co-operation matter? An open, transparent and orderly global system of capital flows underpins global growth and stability. In light of the increasingly interconnected global economy, faced with episodes of heightened capital flows volatility, significant value is attached to credible commitment mechanisms to rules-based and co-operative approaches to capital flows that send a positive signal of a predictable policy agenda. This type of framework will help countries maintain markets’ confidence and continue to attract the long-term, high-quality capital needed to support inclusive growth and sustainable development. The OECD Code of Liberalisation of Capital Movements (the Code) provides such a framework. As an instrument that encourages co-operation, it has provided a tried and tested process for global dialogue for over 50 years. The Code is used by the 35 OECD countries, including emerging economies, as well as by non-OECD countries. Four non-OECD countries have applied for adherence since it was opened to all in 2012. It is a living instrument adaptable to countries at different levels of development, through built-in flexibility clauses that allow temporary suspension of liberalisation commitments in times of economic and financial disturbance. Over time, Adherents have developed a body of well-established jurisprudence on the implementation of the Code’s rights and obligations and the conformity of individual country measures. -
Eurozone Sovereign Debt Crisis Briefing ...A Briefing on the Status, Causes and Solutions for the Eurozone Sovereign Debt Crisis
Eurozone Sovereign Debt Crisis Briefing ...a briefing on the status, causes and solutions for the Eurozone sovereign debt crisis October 22, 2012 Eurozone Sovereign Debt Crisis - Current Status The European Central Bank (ECB) at its meeting in Septem- Europe Big-Four 10-year Bond Yields ber finally came to the rescue and offered to directly partici- 7.50% Spain Spain 7.00% pate in a bailout program for struggling countries such as Italy 6.50% Spain. The ECB promised to use its unlimited balance sheet Germany 6.00% to help stabilize the Eurozone debt crisis, taking a big step France forward and succeeding in causing Spanish and Italian bond 5.50% 5.00% yields to drop sharply. There are still many obstacles to over- 4.50% Italy come, but there is finally a sense that there might be a path 4.00% forward in the Eurozone debt crisis without an implosion of 3.50% France the euro or the loss of Eurozone members. 3.00% 2.50% The markets at present are waiting for three major events. 2.00% 1.50% First, the markets are waiting for a deal that provides Greece Germany 1.00% with its next 31 billion euro tranche of bailout aid. Second, 9/10 11/10 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 the markets are waiting for Spain to formally accept the bail- out program offered by the ECB and the Eurozone through its European Stability Mechanism (ESM) permanent bailout in Spain and Greece and protect Italy from contagion. -
The Bank of Greece Proposes a National “Bad Bank” by ALEXANDER NYE
The Bank of Greece proposes a national “bad bank” BY ALEXANDER NYE On July 16, the Bank of Greece (BOG) proposed a public asset management company (AMC) to buy non-performing loans (NPLs) from banks using public funds. Yannis Stournaras, governor of the BOG, argues that an AMC could help banks clean up their balance sheets and allow them to raise capital. Unlike the AMCs that governments created during the Global Financial Crisis (GFC) of 2007-09, a Greek AMC would not be able to subsidize banks by acquiring NPLs above market prices. Europe’s Bank Recovery and Resolution Directive (BRRD), passed in 2014, now prohibits European government from providing most forms of the vast majority of state aid to banks outside of the resolution process, including through AMCs. This means the AMC’s purchase of the NPLs would likely subject participating banks to large haircuts, eating into their capital. The BOG has not put forward a detailed description of the bad bank proposal. In its July 2020 Financial Stability Report (FSR), the BOG said that a new AMC would not fundamentally change the country’s existing banking infrastructure. Third parties would be brought in to help the bad bank, though this could mean anything from contracting with private asset managers to having private-sector entities take an equity stake in the AMC (as they did in Ireland during the GFC). In its FSR, the BOG also suggested the AMC could have a loss-sharing element; participating banks would solely bear any losses. However, that does not seem to be the case. -
Signs of Revival After Years of Pain
FT SPECIAL REPORT Greece Monday July 7 2014 www.ft.com/reports | @ftreports Signs of revival after years of pain Inside » Growth worries Economy makes progress but a Then come long-awaited negotia- lasting recovery is Confidence is slowly tions with the EU and IMF on debt the big challenge relief. These are made more compli- returning but hurdles cated by differences over whether Page 2 Greece should be offered another debt still loom ahead, “haircut” on top of its 2012 sovereign debt restructuring as the Fund would Cheaper debt is writes Kerin Hope prefer, or settle for the commission’s proposal of a lower interest rate and a sign of times lengthening of maturities. Return to global he signs of economic crisis “We will be in a room with two are visible everywhere in elephants and we’ll have to tiptoe capital markets Athens, from shuttered shops between them in order to come away marks turnround and graffiti-sprayed public with an agreement,” says a senior buildings to people of all Greek official. “But what matters is to Page 2 Tages ransacking dustbins in wealthier reduce the debt burden for the next neighbourhoods of the capital. generation by one means or another.” Six years of recession, the deepest A third worry for Mr Samaras is the Stumbling on in memory, have taken a heavy toll election by parliament next February on Greece. of a new president to replace the Next few months The country’s output shrank by incumbent Karolos Papoulias, who is will be critical for almost 25 per cent, as tens of thou- retiring. -
Curriculum Vitae ------Yannis Stournaras
CURRICULUM VITAE --------------------------------------- YANNIS STOURNARAS Professor Yannis Stournaras Curriculum Vitae: New Finance Minister of Greece Yannis Stournaras, was born in Athens on December 10th, 1956. He graduated from the Department of Economics, University of Athens in 1978. He obtained his post- graduate degrees (MPhil 1980, DPhil 1982) from Oxford University, specializing in Economic Theory and Policy. He was Research Fellow and Lecturer at St. Catherine'Αs College, Oxford University, from 1982 to 1986. At the same time he worked at the Oxford Institute for Energy Studies, specializing in the petroleum market and the consequences of petroleum crises on the global economy. Following his return to Greece and the fulfillment of his military service, he worked as a Special Advisor to the Ministry of Economy and Finance (1986-1989) on Public Enterprises and Incomes Policy issues and to the Bank of Greece (1989-1994) on Monetary Policy issues. During that period he represented the Bank of Greece as an alternate member in the Meetings of the Governors of European Union'Αs Central Banks. He is Professor of Economics at the Department of Economics, University of Athens, which he joined in 1989. He teaches Macroeconomics and Economic Policy. He has published articles in academic journals on Macroeconomics, Optimum Taxation Theory, Public Debt Dynamics, Economic and Monetary Union, Energy Economics, Monetary Policy, Distortions of Financial Systems. His academic and professional interests focus on the following fields: economic theory, economic policy, international economics, monetary economics, energy economics, public finance, banking, project evaluation and the effects of Economic and Monetary Union on the Greek economy. From 1994 to July 2000 he was Chairman of the Council of Economic Advisors at the Ministry of Economy and Finance. -
Hellenic Observatory
HELLENIC OBSERVATORY 2020-2021 NEWSLETTER Photo: © LSE/Nigel Stead Issue 19 2020-21 Newsletter EDITORIAL This last year has been extraordinary and As part of our events programme, we disturbing in so many ways. We hope that launched a separate YouTube channel for our readers and supporters are well and the Hellenic Observatory in 2020 and this that we can all look forward to a better year now hosts recordings of all our past events. ahead. The number and range of events constitutes a remarkable archive. Despite the difficult circumstances of this last year, the Hellenic Observatory has risen On the research front, the pandemic to the challenge and has managed both lockdown meant, of course, that our to sustain its activities and to innovate in researchers and visitors could not meet on various ways. I am very grateful for the campus and interact in person. We did so exceptional efforts of my colleagues in online, though, and we were pleased to host meeting these challenges – the Observatory several new visiting fellows. Our research has an amazing team. calls on Greece and on Cyprus continued to enable high quality projects on important In March 2020 we moved our public events policy challenges to be undertaken. We online. In doing so, we have been able to are grateful for the funding support offered attract larger and wider audiences. Our from the A. C. Laskarides Foundation, first online event – assessing the economic Vassilis Apostolopoulos and the Leventis impact of COVID-19 – attracted a live Foundation for these Calls. In addition, our audience of over 900. -
Kazarian, Paul-Japonica
TRUST & CONFIDENCE Εμπιστοσύνη & Αξιοπιστία The Most Important Reform is Winning the Trust & Confidence (Εμπιστοσύνη & Αξιοπιστία) of Taxpayers and the Global Capital Markets Paul B. Kazarian JAPONICA PARTNERS THE CHARLES & AGNES KAZARIAN FOUNDATION American-Hellenic Chamber of Commerce 27th Annual The Greek Economy Conference Athens, 28 November 2016 Draft v.6.1 TRUST & CONFIDENCE Εμπιστοσύνη & Αξιοπιστία • Section A. Five Minutes of Background Information • Section B. Best Practices for Governments Winning Trust & Confidence (Εμπιστοσύνη & Αξιοπιστία) • Section C. Worst Practices for Governments Winning Trust & Confidence (Εμπιστοσύνη & Αξιοπιστία) • Section D. Necessary First Step to Winning Trust & Confidence (Εμπιστοσύνη & Αξιοπιστία) 2 Quick Facts on Japonica and Kazarian • Japonica Partners: Founded 1988. Our core competency is investing in and then rejuvenating (turning around) multinational conglomerates. • Core Competency: Our core competencies include improving our employee performance and providing our stakeholders with best-in-class disclosure of our financial performance • Investor in Greece: Since summer of 2012, a large (one of largest) private investor in Greek government bonds. • Four Years of Team Building: Over past four years we have built a team of over 100 professionals focused on improving government balance sheet management. • 2016 Professional Recognition on Government Balance Sheet Management and Disclosure: • Awarded the 2016 William Pitt the Younger Award for our work in strengthening democracy through government -
THI Gala Raises More Than $2 Mil for Greece Its Longtime Law Prof
S O C V ΓΡΑΦΕΙ ΤΗΝ ΙΣΤΟΡΙΑ Bringing the news W ΤΟΥ ΕΛΛΗΝΙΣΜΟΥ to generations of E ΑΠΟ ΤΟ 1915 The National Herald Greek- Americans N c v A wEEKly GREEK-AmERIcAN PUblIcAtION www.thenationalherald.com VOL. 18, ISSUE 887 October 11-17 , 2014 $1.50 Fordham Univ. Honors THI Gala Raises More than $2 Mil for Greece Its Longtime Law Prof. Org. Honors Behrakis Papajohn & Peterson Constantine Katsoris For Accomplishments TNH Staff that of a practitioner to acade - By Constantine S. Sirigos mia.” TNH Staff Writer NEW YORK – Professor Con - He has taught more than stantine Katsoris – Gus, as he is 15,000 students. NEW YORK – A veritable who’s known to all – was presented The event was held in the re - who of the Greek-American the George J. Mitchell Lifetime ception hall at Mutual of Amer - business community filled the Public Service Award by Ford - ica headquarters high above Anie Gund Garden Lobby of the ham University’s Feerick Center Manhattan. Guests enjoyed the Museum of Modern Art for the for Social Justice on October 6. spectacular views of the City second annual banquet of the Among the luminaries pre - though the window walls. Hellenic Initiative (THI). The sent were former U.S. Senator Several Center officials wel - gala, whose theme was “Invest - Mitchell himself, who served as comed the guests and thanked ing in the Future of Greece” was Senate Majority Leader and is donors for the contributions that also the occasion to honor the best known for taking leading helped establish and sustain the life and achievements of George roles in negotiations for peace Center and its work, which Behrakis, Pete Peterson, and in the Middle East and in North - Michael M. -
PRESS RELEASE Mr. Yannis Stournaras Governor
PRESS RELEASE Mr. Yannis Stournaras Governor - Bank of Greece Member of the Governing Council - European Central Bank KEYNOTE SPEAKER AT THE “22nd ANNUAL CAPITAL LINK INVEST IN GREECE FORUM” “GREECE - Looking Ahead with Confidence” An International Summit about the Greek Economy & Investment Opportunities Featuring top US and International Investors, Government & Business Leaders, Global Investment Banks & Institutions & the Greek Government Tuesday & Wednesday, December 15 & 16, 2020 Digital Forum 2 Days – 33 Sessions – 112 Top Level Speakers December 15, 2020 The “22nd Capital Link Invest in Greece” Forum: “Greece – Looking Ahead With Confidence” took place, in digital form, on Tuesday & Wednesday, December 15 & 16, 2020 in co-operation with the New York Stock Exchange and major Global Investment Banks and Organizations. Also with the overwhelming support of the Greek business & financial community. Over the years, Capital Link Invest in Greece Forum has developed to become an International Summit about Greece, recognized as the main platform for updating US investors on developments in Greece, business and investment opportunities and the attractiveness of Greece as an investment destination. It gathers the elite of the financial and investment communities, as well business and government leaders from the United States and Greece. This year, as a Virtual Forum, the event was available to a global audience. Foreign investments are of critical significance for the re-launching of the economy. The Capital Link Invest in Greece Forum provided