European Banks Unprepared For Greek Exit From Euro (Bloomberg)
@1 year ago with 1 note
“Europe’s banks, sitting on $1.19 trillion of debt to Spain, Portugal, Italy and Ireland, are facing a wave of losses if Greece abandons the euro.
The prospect of Greece leaving the 17-nation euro region increased after parties opposed to the terms of the nation’s second bailout by the European Union and the International Monetary Fund won most of the votes in May 6 elections. A fresh round of voting will be held June 17 after politicians failed to form a government. For the first time since the crisis began in November 2009, European leaders and central bankers are speaking openly of Greece abandoning the currency union.
Should Greece go, its new currency probably would suffer an immediate devaluation of as much as 75 percent against the euro, forcing individuals and companies to default on foreign loans, economists at UBS AG (UBSN) said. Unless European leaders could make a credible case that a Greek exit was an exceptional and isolated incident, depositors in other nations might decide to withdraw euros from banks or shift them to countries seen as safer.”
#Greece #EU #Euro Zone #banks #Europe #PIGS #debt #news
Dagestan Russia blasts: At least 12 dead in Makhachkala (BBC)
@1 year ago with 3 notes
“At least 12 people have been reported killed in two explosions on the outskirts of Makhachkala, capital of Russia’s restive Dagestan region.
The attack began when police stopped a vehicle on the road to the city of Astrakhan to check the driver’s identity papers. The car exploded.
Less than 20 minutes later, a second blast went off, this time in a van packed with explosives. It caused further casualties.
Dagestan, a predominantly Muslim, multi-ethnic republic which borders Chechnya, has seen some of the worst militant violence in the North Caucasus in recent years.”
#Russia #Gagestan #Makhachkala #car bomb #europe #news
Too Big to Save? (FP)
@1 year ago with 3 notes
“Unfortunately, no tinkering with the European Financial Stability Facility (EFSF) and its bailout terms can save Italy, which has estimated financing needs over the next three years that are more than double the size of the current fund’s lending capacity. The cost of bailing out Italy and Spain may be $1.4 trillion and $700 billion, respectively, which would amount to some 25 percent of the eurozone core’s GDP. This sum is not only politically inconceivable, but it would also undermine the debt-carrying capacity of the core. Greece’s failed bailout has not encouraged policymakers to travel down this path, either.”
#Italy #EU #euro #ECB #debt #Germany #France #europe #IMF #G20
Silvio Berlusconi: 'I will step down at 2013 election' (Telegraph)
@1 year ago with 5 notes
“Mr Berlusconi, 74, who is half-way into his third stint in office, said that he had even considered resigning before his mandate expires in two years’ time.
Repeating remarks that he has made over the last few months, Mr Berlusconi named his political successor as Angelino Alfano, 40, a Sicilian lawyer who currently serves as the justice minister and is regarded as an ultra-loyalist. The prime minister said he would act as a ‘father figure’ to Mr Alfano.
He dismissed reports that his coalition ally, the Northern League, a party that champions northern Italy over what it sees as the corrupt and inefficient south, would struggle to accept Mr Alfano as the new head of the centre-Right.”
#Italy #Berlusconi #elections #europe
Libya: Muammar Gaddafi threatens Europe (BBC)
@1 year ago with 7 notes
”’These people [the Libyans] are able to one day take this battle […] to Europe, to target your homes, offices, families, which would become legitimate military targets, like you have targeted our homes,’ [Gaddafi] said.”
#Libya #Europe #NATO