Category: Aggregated

Greek Finance Minister Yanis Varoufakis said that Greece will be able to pay its public sector workers but not the debts. He told Alpha Radio:

“We will not have liquidity problems for the public sector. But we will definitely have problems in making debt payments to the IMF now and to the ECB in July.”

While Varoufakis gave no figures, Reuters reports that there are interest payments this month of about EU2 billion, an IMF loan of around EU1.6 billion that matures in March, and about EU7.5 billion for maturing bonds held by the ECB in July and August.

From Varoufakis’s statement, he seems to have made clear where his priorities are when it comes to payments. He also said today that he wants discussion of debt restructuring to begin immediately, and to encompass bond swaps that would “significantly reduce the debt” to official creditors.

Of course, this has caused great consternation among the euro sharks, led by German Finance Minister Wolfgang Schäuble. Commenting on the Eurogroup “agreement” and the list of Greek reforms, he told SWR2 radio:

“The question now is whether one can believe the Greek government’s assurances or not. There’s a lot of doubt in Germany, that has to be understood.”

Earlier in the day, Varoufakis was interviewed by Charlie Hebdo, and compared the European promoters of the bailout to medieval doctors:

“In the Middle Ages doctors prescribed blood-letting to patients that often resulted in a worsening of their condition. Nonetheless, they did it again after that. This is a perfect illustration of the current attitude of the EU—the more austerity policies fail, the more they are implemented.”

“Syriza has been cast to play a role in the upheavals of history with the sad honor of having to repair damage left by the parties and institution of the system.”

He continued by saying that if pro-European governments such as the previous ones of Greece continue to “suffocate the people who elected them and lead them to despair, then the only ones who benefit are the fanatics, racists, nationalists and those who live with hatred.”

In an obvious attack by those who really are making the policy, two of Greece’s four main lenders, Eurobank and Bank of Piraeus, are being dropped from the pan-European STOXX 600 benchmark index, potentially depriving them of investments.
 

Speaking on Latvian television yesterday, Latvian Prime Minister Laimdota Straujuma said that no one is ready to start the Third World War. Western countries are refraining “from too sharp a reaction” by not disconnecting Russia from the SWIFT international interbank system and avoiding military intervention in the Donbas conflict, since they fear that their actions can further contribute to escalation of the conflict.

As cited by Mirror of Ukraine from (Latvian) Delfi.lv, she said:

“No one is ready to start the Third World War. Germany is especially cautious in this regard. Because there is nothing more important than to engage in a dialogue and come to a consensus.”

The foreign ministers of the Normany Four — France, Germany, Russia and Ukraine — met in Paris yesterday, and the French Foreign Ministry issued the communique, calling for strict implementation of all provisions of the Minsk agreements, earliest possible withdrawal of heavy weapons, access of OSCE monitors to all areas, Ukrainian working groups to achieve progress, among other things, on the political process in Ukraine, and unhindered humanitarian access.

“Lastly, we confirm that France, Germany, Russia and Ukraine remain determined to continue taking action in this format and to do their utmost to ensure that the commitments are upheld and the crisis is resolved.”

Once outside the meeting, the French and German Foreign Ministers warned of the impact of ceasefire violations near Mariupol, without, however, mentioning the possibility that those violations were committed by Nazi-linked militias from Kiev, as has been reported.

In follow-up comments in Moscow today, Russian Foreign Minister Lavrov said:

“A lot now depends on an honest, objective, unbiased approach by the observers who must record what is happening on the ground, so that we can all resist the attempts to present the Minsk agreements as having already failed. There are many people outside Ukraine and in Kiev who want them derailed.”

Tass reported that he also said that all other provisions of the Minsk agreement must also be complied with, not just the withdrawal of heavy weapons.

“This applies to the political process and the constitutional reform, with decentralization being its main thrust.”

Russian Deputy Foreign Minister Ryabkov warned yesterday that the whole process would blow up if the US started supplying weapons to Kiev. He said:

“It would be a major blow to the Minsk agreements and would explode the whole situation.”

Moscow would not be able to remain indifferent “to such provocative actions,” he added.

“We’ll have to respond appropriately. Is that necessary for those who are allegedly calling for the normalization of the situation in Ukraine? I have serious doubts. People may be irresponsible in their actions, but there must be an end to this madness [of] indulging Kiev’s warmongering.”