Greece admits €2bn gas pipeline deal with Russia while Germany finally bows to huge global pressure - Polidicks

[IMG]http://i.imgur.com/JCSR3bK.jpg[/IMG] These are actually 2 articles, so here goes the first one: [QUOTE]Greece has admitted for the first time it is planning a €2bn gas pipeline with Russia. The move is likely to worry the US, which has stepped up its involvement in Greece's debt talks with international creditors over fears the cash-strapped country could drop out of the single currency and come under the influence of its Cold War rival. Panayotis Lafazanis, Greece's energy minister, said the move would be a key part of the country's "multi-faceted" foreign policy and would create 20,000 jobs, the Financial Times reported. Figures released by Greece’s National Statistics Service on Thursday showed unemployment at 25.6pc in April. Reports in April suggested Moscow was ready to provide advanced payment to Greece for the "Turkish Stream" pipeline project, which will transport 47bn cubic metres of Gazprom's gas annualy from 2018.[/QUOTE] 2nd one: [QUOTE]Germany is at last bowing to pressure as a chorus of countries and key institutions demand debt relief for Greece, a shift that could break the five-month stalemate and avert a potentially disastrous rupture of monetary union at this Sunday’s last-ditch summit. In a highly significant move, the European Council has called on both sides to make major concessions, insisting that the creditor powers must do their part as the radical Syriza government puts forward a new raft of proposals on economic reforms before a deadline expires tonight. “The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors,” said Donald Tusk, the European Council president.[/QUOTE] Source [URL="http://www.telegraph.co.uk/finance/economics/11729433/Greece-finally-admits-2bn-gas-pipeline-deal-with-Russia.html"]1[/URL] & [URL="http://www.telegraph.co.uk/finance/economics/11730086/Greek-deal-in-sight-as-Germany-bows-to-huge-global-pressure-for-debt-relief.html"]2[/URL]

Greek debt paid for by the backs of Germans. The german government is certainly taking it on the chin. That [URL=https://www.youtube.com/watch?v=C8xAXJx9WJ8]Bloomberg[/URL] video someone posted yesterday certainly open my eyes to how countries control spending euro.

As usual nobody thought ahead.

This should be a good thing? Hopefully now Greece has a few spare hundred million to pay Germany with and it means at the very least a few thousand temporary jobs.

[QUOTE=cccritical;48162871]This should be a good thing? Hopefully now Greece has a few spare hundred million to pay Germany with and it means at the very least a few thousand temporary jobs.[/QUOTE] Assuming they use money to pay debt, they will just spend themselves back into the hole.

Germany shouldn't have left Greece join Eurozone in the first place, their economy was shit, and they falsified report about their stability and debt to join Eurozone.

[QUOTE=Aide;48162766]Greek debt paid for by the backs of Germans. The german government is certainly taking it on the chin. That [URL=https://www.youtube.com/watch?v=C8xAXJx9WJ8]Bloomberg[/URL] video someone posted yesterday certainly open my eyes to how countries control spending euro.[/QUOTE] "by the backs of Germans." Just as an example... Do you really think that the 10 Billion that Germany lent to Greece a while back was money that Germany saved over the years? Germany took a loan back then with an interest of 2% and gave that money to Greece with an interest of 5%. We literally made 300 Million Euro each year with that.

[QUOTE=Aide;48162766]Greek debt paid for by the backs of Germans. The german government is certainly taking it on the chin. That [URL=https://www.youtube.com/watch?v=C8xAXJx9WJ8]Bloomberg[/URL] video someone posted yesterday certainly open my eyes to how countries control spending euro.[/QUOTE] Awesome video. Thanks.

[QUOTE=uber.;48163221]"by the backs of Germans." Just as an example... Do you really think that the 10 Billion that Germany lent to Greece a while back was money that Germany saved over the years? Germany took a loan back then with an interest of 2% and gave that money to Greece with an interest of 5%. We literally made 300 Million Euro each year with that.[/QUOTE] Exactly. I always find it funny about how foreigners talk about the way we behave in the EU, as if Germany is suddenly so righteous. Well, we're not.

[QUOTE=Aide;48162766]Greek debt paid for by the backs of Germans. The german government is certainly taking it on the chin. That [URL=https://www.youtube.com/watch?v=C8xAXJx9WJ8]Bloomberg[/URL] video someone posted yesterday certainly open my eyes to how countries control spending euro.[/QUOTE] Yes but the money isn't even leaving Germany, its going straight back to German banks. The oil pipeline deal doesn't mean THEY PAID for it yet, it means in the future they want to build a pipeline, a country still has infrastructure to build, deferring that for decades of austarity will make the place crumble The only way, the one that's always worked and proven that Germany's way of no default never works, is debt restructuring including modest write offs, without that greece will be in a permanent cycle of paying on interest, no other way has ever worked in economic history

[QUOTE=uber.;48163221]"by the backs of Germans." Just as an example... Do you really think that the 10 Billion that Germany lent to Greece a while back was money that Germany saved over the years? Germany took a loan back then with an interest of 2% and gave that money to Greece with an interest of 5%. We literally made 300 Million Euro each year with that.[/QUOTE] Maybe I am missing something, but why could Greece not have gotten the loan with 2% interest? Has their credit rating been that bad that long?

Russia securing its foothold in the Balkans once more.

[QUOTE=Vasili;48164701]Russia securing its foothold in the Balkans once more.[/QUOTE] But it already has Serbia, and already said it won't give any financial assistance to Greece. Also, I'm sure not even Syriza will leave nato, as symbolic as it is of the victory of anti communists in the civil war and the following junta.

[QUOTE=Jsm;48164618]Maybe I am missing something, but why could Greece not have gotten the loan with 2% interest? Has their credit rating been that bad that long?[/QUOTE] Pretty much. Other EU members also have a relatively high interest, at least compared to Germany.

[QUOTE=ryokenshin;48162889]Assuming they use money to pay debt, they will just spend themselves back into the hole.[/QUOTE] It was the retarded privatisation of Greece's public sector IMPOSED BY THE AUSTERITY MEASURES that fucked them up

The proposed plan, likely to be agreed upon, does nothing to rectify any of the structural problems at hand in both Greece and the EU. Greece has been utterly raped by EU mandated austerity, which has failed spectacularly at delivering any kind of debt relief or growth. In fact the crippling loss of GDP (25%) since 2010, and the 26% unemployment have a compounding effect on Greece's ability to grow out of their debt. Now they'll get stuck with a debt they still can't afford, taxes that will further harm their economy, pension cuts that will effect the most vulnerable in their society, sell off of public assets for next to nothing, no sign of a return to growth and the demand that Greece still service the interest on their debt. How this will be accomplished when the realities on the ground simply wont allow for it leaves me scratching my head. But it looks like Europe is hell bent on proving you can draw blood from stones.