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Europe's Original Sin
Keywords:
Under the rules for the European currency and the European Union there is no mechanism or process of fines or other sanctions to promote compliance to debt and deficit rules. In the case of Greece, an examination of budget reports shows that Greece never met the deficit rule of 3% for any year except 2006 and it has never been within 30 percentage points of the debt ceiling. Greece's statistics are faulty and deficit figures are continually being revised upwards. Several times the figures were quadruple what was initially reported in late 2009, for instance the deficit figure was 3.7% of GDP, then revised to 13% of GDP, setting off the current crisis for the Euro and the European Union. In 2001 Greece failed to reflect $2.2 billon in military expenses. According to Eurostat, the EU statistics authority this was 10 times what was saved from the derivatives swap arranged by Goldman Sachs to trim Greece's deficit. That transaction trimmed the deficit by one tenth of a percentage point.
The faulty accounting at the heart of the Greece debt crisis and the lack of effective eurozone financial supervision
03/03/2010
Grouped Articles
Wall Street Journal 03/03/2010
IMF in the Eurozone financial crisis of 2010-2012
03/03/2010
Aid package to Greece and funds for other eurozone countries. The IMF's involvement in protecting the eurozone.
Grouped Articles
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
EU Dismisses IMF's Criticism On Greek Bailout
Wall Street Journal 06/07/2013
Policy âTroikaâ for Europe Financial Woes at Odds
New York Times 06/07/2013
Wall Street Journal 03/03/2010
Greece Can Learn IMF Austerity from Turkey
BusinessWeek 05/27/2010
Past Rifts Over Greece Cloud Talks on Rescue
Wall Street Journal 10/07/2013
German reaction to the debt crisis in Greece, Portugal, Spain and Italy.
04/09/2009
Germany said to be turning nationalistic in this crisis, seeing Germany's economic successes as its own, and not accepting the advantage of export markets in Europe in strengthening Germany's economic position.
Grouped Articles
Wall Street Journal 03/03/2010
New York Times 11/03/2013
Germany's Surplus Isn't the Problem
Wall Street Journal 11/11/2013
How Italy's ENI Vastly Boosted Oil Output
BusinessWeek 04/09/2009
Greek Crisis Shows How Germany’s Power Polarizes Europe
Wall Street Journal 07/07/2015
New York Times 05/26/2010
ECB study in April 2013 using 2009-2010 data showing the median household wealth in Germany at 50,000 euros, lowest in the eurozone
03/03/2010
The median for household wealth in Greece is 102,000 euros.
Grouped Articles
Elites Flock to Anti-Euro Party, Alternative for Germany
New York Times 04/14/2013
Germany reaps rewards of entitlement cuts - The Washington Post
Washington Post 09/20/2011
Wall Street Journal 03/03/2010
New York Times 05/26/2010
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
Greece's shipping industry, taxes and investment inside Greece
03/03/2010
Grouped Articles
Wall Street Journal 03/03/2010
Greek Ship Owners Fear Syriza Tax Plan
Wall Street Journal 01/28/2015
Baltic Dry Freight Index Plummets Amid Commodities Slump
Wall Street Journal 02/06/2015
In Greece, Bailout May Hinge on Pursuing Tycoons
New York Times 02/26/2015
Greek Shipping Industry Frets Over Higher Taxes
Wall Street Journal 07/13/2015
The ECB and banking supervision in the eurozone
03/03/2010
Grouped Articles
ECB Hits the Road for Star Supervisors
Wall Street Journal 06/26/2013
European Union Offers Berlin Compromise on Bank Proposal
New York Times 07/12/2013
Wall Street Journal 03/03/2010
Slow Path to Policing Europe Banks
Wall Street Journal 09/17/2012
Wall Street Journal 09/12/2012
Merkel Backs Bond-Buying Program
Wall Street Journal 09/18/2012
The European Banking Agenda in 2012-2014- deposit insurance and powers of banking supervision transferred to a European supervisory authority
03/03/2010
On the agenda during discussions in June between the EC, ECB and the German government, is deposit insurance for eurozone banks, and a supervisory financial authority for eurozone banks (Single Resolution Mechanism) within the EC with powers transferred from sovereign states to the the supervisory banking authority. These issues take priority because of fears of bank runs on banks in Greece, Spain and other countries. France is pushing for a new Eurozone Architecture that will form the basis of the euro currency.
Grouped Articles
ECB Hits the Road for Star Supervisors
Wall Street Journal 06/26/2013
European Union Offers Berlin Compromise on Bank Proposal
New York Times 07/12/2013
Wall Street Journal 03/03/2010
The Man Whoâll Do Triage on Europeâs Banks
New York Times 10/20/2013
ECB Nominates French Regulator for Euro-Zone Post
Wall Street Journal 11/23/2013
ECB Nominates New Banking Regulator
New York Times 11/20/2013
What does Germany want from the Euro and the European Union? The Euro issue facing Germany in 2011-2015
03/03/2010
German political leaders do not want a "transfer union." At the same time they want to keep the European Union, just as much as Chancellor Kohl and Chancellor Adenauer. Merkel, Schroeder, Schauble and other leaders agree on the need for the European Union. The question is how to bring fiscal discipline to the EU, even if this means redesigning the structure of the EU. The vision of a united Europe persists.
Grouped Articles
Wall Street Journal 03/03/2010
Germany's Surplus Isn't the Problem
Wall Street Journal 11/11/2013
New York Times 05/22/2014
Greek Crisis Shows How Germany’s Power Polarizes Europe
Wall Street Journal 07/07/2015
Economist 08/08/2015
Charlemagne: Germany’s euro question
Economist 09/10/2011
Why government fiscal discipline alone will not establish a sound financial framework for the Euro currency- the example of Spain
03/03/2010
Spain kept its deficits below the 3% mandated under EU treaties, till recently. Asset bubbles sustained because of bad lending by a country's banks and easy acess to credit from outside the country, are two problems not addressed by tighter budget controls in the revised rules being set after the Dec. 9 EU Summit. Spain's debt problem is to recapitalize these failing banks and debt of regional governments. Spain relied too much on a construction boom for growth, with productivity stalled. Ireland improved competitiveness and attracted foreign investment. This too unraveled in the face of an asset bubble from speculative lending by its banks.
Grouped Articles
New York Times 09/25/2011
Wall Street Journal 03/03/2010
German Optimism Depends On Spanish Deficits
Wall Street Journal 09/25/2013
Euro Zone Deficit Hits Target for First Time Since 2008
New York Times 04/23/2014
Spain's Example Shows Limits of EU Targets
Wall Street Journal 12/09/2011
The Euro Zone's Double Failure
Wall Street Journal 12/15/2011
Greece, debt and the new austerity budgets 2011-2013
12/10/2009
Grouped Articles
Greek Draft Budget Sees Primary Surplus, Return to Growth
Wall Street Journal 10/14/2013
Greek Patience With Austerity Nears Its Limit
New York Times 12/29/2014
Greece’s new prime minister wants Germany to pay for Nazi war crimes - The Washington Post
Washington Post 01/26/2015
Greece Wanted to Reframe Europe’s Austerity Debate. It Failed.
New York Times 07/01/2015
Mirage of Economic Turnaround Masked New Greek Crisis in the Making
Wall Street Journal 07/05/2015
Greece: Austerity Budget Passed
New York Times 12/25/2009
Wall Street and the debt crisis in Greece.
02/10/2010
Grouped Articles
Wall St. Helped to Mask Debt Fueling Europe’s Crisis
New York Times 02/14/2010
Greece: How the Bond Vigilantes Left It in Ruins
BusinessWeek 02/10/2010
Wall Street Journal 03/03/2010
Strange Encounter: The IMF and Athens
BusinessWeek 04/22/2010
Euro Rises After I.M.F. Increases Aid Pledge to Greece
New York Times 04/29/2010
Wall Street Journal 05/22/2010
Dutchman Bob Traa's mid-2009 IMF report on Greece and the warning light on Greece
03/03/2010
Analysts point to the lack of immediate action as the main reason the crisis is spiralling out of control. The IMF report in mid 2009 raised the alarm on Greece's financial situation. One estimate is for bondholders needing to take 85% haircut on loans to Greece, instead of the 50% agreed to under the EU plan in November 2011. The situation has worsened as ECB president Trichet and others in the EU pushed austerity plans on Greece without working out needed serious debt reduction of over half the debt in 2009. The idea of a default in the eurozone was considered unthinkable, leading to errors in judgement by decisionmakers.
Grouped Articles
Greek Debt Crisis: The Back Story
New York Times 08/13/2011
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
EU Dismisses IMF's Criticism On Greek Bailout
Wall Street Journal 06/07/2013
Policy âTroikaâ for Europe Financial Woes at Odds
New York Times 06/07/2013
Wall Street Journal 03/03/2010
Past Rifts Over Greece Cloud Talks on Rescue
Wall Street Journal 10/07/2013
Causes of the debt crisis in Greece and the failure to come to terms with the problem inside Greece
03/03/2010
A estimated one third of the workforce is in the public sector in Greece placing a large burden on the government budget. Nominal private sector labor costs went up by 62% in Greece compared to 15% in Germany for the period 2000-2008. Much of this was done through the government spending of borrowed money. The smaller private sector with only small productivity gains and the weak tax collection was never going to be able to support the large number of civil servants. Carney says the 30,000 reduction in the number of civil servants agreed to for 2010 has not been done, raising questions about implementation of the 150,000 in reductions required by the EU.
Grouped Articles
Greek Debt Crisis: The Back Story
New York Times 08/13/2011
Wall Street Journal 03/03/2010
Athens's Love Affair With the Euro Persists
Wall Street Journal 11/04/2013
BusinessWeek 06/24/2010
The Submarine Deals That Helped Sink Greece
Wall Street Journal 07/10/2010
In Greece, Bailout May Hinge on Pursuing Tycoons
New York Times 02/26/2015
The view of the debt crisis from inside Greece- June 2011
03/03/2010
Grouped Articles
Greek Debt Crisis: The Back Story
New York Times 08/13/2011
Wall Street Journal 03/03/2010
New York Times 06/21/2011
Some Greeks Fear Government Is Selling Nation
New York Times 06/22/2011
Matthew Winkler Talks to George Papandreou
BusinessWeek 07/21/2011
Anger and Humiliation on Streets of Athens
Wall Street Journal 11/05/2011
Failure of the ratings agencies to assess country risk for Greece
03/03/2010
Grouped Articles
Wall Street Journal 03/03/2010
BusinessWeek 06/24/2010
S&P Cuts Greek Bank Ratings to Selective Default
Wall Street Journal 07/01/2015
Ratings Firms Misread Signs of Greek Woes
New York Times 11/29/2011
Europe Walks Line on Ratings Firms
Wall Street Journal 01/14/2012
The failure in credit ratings set for Greece
03/03/2010
Grouped Articles
Ratings Firms Misread Signs of Greek Woes
New York Times 11/29/2011
Wall Street Journal 03/03/2010
S&P Cuts Greek Bank Ratings to Selective Default
Wall Street Journal 07/01/2015
What Crisis? Big Ratings Firms Stronger Than Ever
Wall Street Journal 03/10/2016
The EU proposal for the ECB as banking regulator for all European banks
03/03/2010
EU proposals that would put the banking supervisory authority for European banks under the ECB for the Single Resolution Mechanism.
Grouped Articles
Wall Street Journal 03/03/2010
ECB Nominates French Regulator for Euro-Zone Post
Wall Street Journal 11/23/2013
ECB Nominates New Banking Regulator
New York Times 11/20/2013
Shadow of Noose Speeds Up Banking Union
Wall Street Journal 12/16/2013
Doubts Greet Plan for Euro Zone Bank Regulator
New York Times 07/01/2012
Wall Street Journal 09/12/2012
France's Finance Minister Lagarde on the discipline and coordination needed for the euro to work.
03/03/2010
This discipline and tight fiscal coordination would be imposed on eurozone countries as part of the effort to make the euro experiment work. Lagarde is interviewed by Carney and Jolis of the WSJ.
Grouped Articles
Wall Street Journal 03/03/2010
Charlie Rose Talks to Christine Lagarde
BusinessWeek 04/28/2010
Toward a United States of Europe
Wall Street Journal 12/18/2010
Wall Street Journal 12/20/2010
Wall Street Journal 01/14/2011
Europeâs Odd Couple: Sarkozy and Merkel
New York Times 01/13/2011
New fiscal and budget controls in the Eurozone - 2012-2013
03/03/2010
Budget discipline measures for the eurozone taken at the Jan 30, 2012 summit and at other EU meetings.
Grouped Articles
Wall Street Journal 03/03/2010
Economist 05/13/2010
Euro-Zone Budget Controls Proposed
Wall Street Journal 11/22/2011
In euro zone crisis, Germany is the reluctant savior - The Washington Post
Washington Post 12/04/2011
European Leaders Agree to New Budget Discipline Measures
New York Times 01/30/2012
Europe Needs the Bond Vigilantes
Wall Street Journal 04/05/2012
Hedge Funds that hope to make money off the "piigs" countries.
01/19/2009
These "piigs" countries are Portugal, Italy, Greece, Ireland and Spain that have huge debt for which default protection costs are rising amid the debt crisis in Dubai. See the link to Ireland and the austerity budget just announced and 12.5% unemployment.
Grouped Articles
Hedge Funders Are All a Little Nuts
Wall Street Journal 08/27/2013
Hedge Funds Make Some 'Piigs' Pay
Wall Street Journal 12/10/2009
Countries' Debt Woes Pose Risk to Upturn
Wall Street Journal 12/09/2009
Wall Street Journal 11/20/2009
Wall Street Journal 03/03/2010
Italy Agrees on $65 Billion in Austerity Measures
New York Times 08/12/2011
Greece and the European Union.
02/12/2010
The difficult economic situation in Greece and risks it poses for the Euro and the EU.
Grouped Articles
Athens's Love Affair With the Euro Persists
Wall Street Journal 11/04/2013
Greece’s Woes May Give Pause to Euro Zone Candidates
New York Times 02/12/2010
Wall Street Journal 02/12/2010
Debt Load Hobbles Euro Zone's Prospects
Wall Street Journal 02/12/2010
New York Times 02/15/2010
Contemplating the Future of the European Union
New York Times 02/12/2010
Greece's Path Back (8) - How things went wrong: Lessons
03/03/2010
Linked Articles
Ratings Firms Misread Signs of Greek Woes
New York Times 11/29/2011
Wall Street Journal 03/03/2010
Greece and EU in 2015 - (5) What went wrong? What errors were made by Greece 2003-2009?
03/03/2010
Linked Articles
Europeâs Two Years of Denials Trapped Greece
New York Times 11/05/2011
Wall Street Journal 03/03/2010
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