BRUSSELS – The European Union reached a landmark deal on Thursday to make the European Central Bank the bloc’s top banking supervisor, giving EU leaders greater confidence that they are gaining the upper hand over the eurozone’s debt crisis.
EU finance ministers forged a deal on the single supervisor in the early hours of Thursday after marathon talks. Leaders will give their stamp of approval at a summit starting later in the day, their last of 2012, and also discuss closer fiscal ties for their troubled currency area.
IMF to the Rescue?In the final minutes of the gunpoint "negotiation" between Greece and its creditors, the last two sticking points were IMF involvement and €50 billion in pledged Greek assets in return for another "bailout".Prime minister Alexis Tsipras said he could not give in on those demand. In the end, Tsipras bowed down and kissed the feet of German chancellor Angela Merkel and her finance minister Wolfgang Schäuble on those issues, and everything else they demanded as well.
Brussels (AFP) - Greece's new proposals offered to European leaders ahead of a crunch summit Monday offered a ray of hope that a deal to end the country's debt crisis can be struck after five months of deadlock.
ATHENS: Greece said Friday it is still hopeful for an 11th-hour deal with its creditors before it defaults on its debt, as the ECB threw Greek banks another lifeline and depositors withdraw their savings. "Those who invest in crisis and terror scenarios will be proven wrong," Prime Minister Alexis Tsipras's office said, amid reports that Greeks banks were facing an increase in withdrawals.
By Eric Parnell:In our third week since the end of QE2, a fleeting feeling of euphoria returned to the stock market. Today’s crisis is dead, and stocks celebrated, but the crisis unfortunately lives on in many forms that remain far from resolved.
BRUSSELS: Suicide, blackmail and lies EU leaders have accused Greece of a litany of sins since months of fruitless talks on a debt deal hit the wall, often in surprisingly undiplomatic language. While this criticism reflects frustration with the negotiating tactics of Greek Prime Minister Alexis Tsipras and his radical leftist Syriza government, it may also be part of a strategy to manage public opinion before the endgame of the crisis, experts say. Outspoken European Commission head Jean-Claude Juncker is the most senior figure to lay his emotions bare.
Not even during the 2012 European debt crisis has Greece’s place in the Eurozone been more tenuous. Greece will seek about 10 billion euros (US$11.3 billion) in short-term financing as it tries to stave off a funding crunch.
Its bailout program – worth about US$272.5 billion in international loans in exchange for structural reforms – expires on February 28.