Greece Erupts as Men from IMF Prepare to Wield Axe
THE SUNDAY TIMES: Anger is intensifying over cuts to be made as part of the EU deal to save the economy

MAY DAY protests in Greece turned violent yesterday as youths in gas masks and hoods set fire to vehicles, smashed shop fronts and threw molotov cocktails and rocks at police in an explosion of fury over austerity measures they claim will hurt only the poor.

Tourists were cut off from their hotels as thousands of communists, civil servants and private-sector workers converged on a main square in Athens to vent their rage at the European Union and the International Monetary Fund (IMF).

“No to the IMF’s junta,” they chanted as a youth in a black hood produced a hammer to try to smash windows of the luxury Grande Bretagne hotel.

Another painted anti-capitalist slogans on the facade, and demonstrators intervened to prevent him from spraying an Australian woman with paint as she tried to get back into the hotel. Japanese tourists stood taking photographs of the mayhem with mobile phones before being forced to retreat, coughing and sneezing, under a cloud of tear gas.

The violence came as negotiations were concluding between the socialist government of George Papandreou, the IMF and the EU over a multi-billion-euro rescue package for Greece. >>> Matthew Campbell in Athens | Sunday, May 02, 2010

Euro Bounces Back on Greece Bailout Plan
TIMES ONLINE: The euro bounced back from a ten-month low today, after eurozone leaders agreed on a joint bailout package for Greece with the International Monetary Fund (IMF).

The European single currency was up against the dollar by 0.45 per cent to $1.3335 after earlier lows of below $1.3280. The euro has fallen by almost 7 per cent so far this quarter on concerns about the Greek debt crisis.

Yesterday, in a deal driven by Germany and France, EU leaders agreed on sweeping new powers to co-ordinate all EU economies as part of the landmark €30 billion (£27 million) bailout package for Greece.

However, analysts warned that the euro was still at risk of further declines as the Greece plan had not alleviated long-term worries about Portugal and Spain. On Wednesday, Fitch Ratings lowered Portugal's sovereign credit rating to AA-minus from AA.

The Greece bailout plan plan will put Herman Van Rompuy, of Belgium, the new permanent European Council President, in charge of “the economic governance of Europe”.

It will be seen as a direct challenge to Gordon Brown, who will want to make sure that Britain does not surrender any control over its own economy to Brussels. The next government in London may also face a tough fight in Europe because Angela Merkel, the German Chancellor, suggested yesterday that a new treaty would be needed to give the EU extra economic powers — despite the pledge from EU leaders last year that the Lisbon treaty would be good for a decade. >>> David Charter, Rory Watson, Francesca Steele | Friday, March 26, 2010

Union Européenne : «La zone euro ne laissera jamais tomber la Grèce»
LE TEMPS: Un accord a finalement été trouvé tard dans la nuit à Bruxelles. Les pays de la zone euro entérinent la constitution d’un filet de sécurité pour empêcher que la crise grecque ne dégénère. Ils sont prêts à accorder des prêts bilatéraux aux côtés du FMI dans une proportion qui pourrait être de deux tiers, un tiers. L’euro est repassé au-dessus de 1,33 dollar ce matin

L’accord sur un mécanisme d’aide financière à la Grèce sur lequel étaient tombés d’accord jeudi après-midi le président Nicolas Sarkozy et la chancelière Angela Merkel a finalement été entériné jeudi, tard dans la soirée, par les chefs d’Etat et de gouvernement de la zone euro. «La zone euro prend son destin en main et s’est mise d’accord pour gérer les crises [en son sein]» s’est réjoui peu après le président français. Même Jean-Claude Trichet, le responsable de la BCE opposé à tout soutien, s’est dit «très heureux» d’un plan «préservant la responsabilité des pays de la zone». «Ce mécanisme ne se substitue pas à la discipline financière, c’est un filet de sécurité», a précisé plus tard dans la nuit José Manuel Barroso, président de la Commission européenne. Filet de sécurité >>> Pierre-Alexandre Sallier Bruxelles | Vendredi 26 Mars 2010

Bailed-out Royal Bank of Scotland Bankers Set for Millions in Bonuses
TIMES ONLINE: RBS to reward staff in spite of losses

The troubled Royal Bank of Scotland, rescued with £20 billion of public money, is planning large bonuses for thousands of its City traders and senior bankers, The Times has learnt.

The proposed payments are expected to reach tens of millions of pounds — possibly hundreds of millions — with some star bankers in line for six-figure payouts.

UK Financial Investments (UKFI), the Treasury-run body that holds the Government’s RBS stake, is understood to have given its blessing in principle to limited payments, although it has yet to see the details. “There’s no blanket objection to bonuses, but they are subjecting them to intense scrutiny,” said one well-placed source. “The [bonus] numbers will be very large and very difficult for the general public to understand.” >>> Patrick Hosking, Banking and Finance Editor, and Philip Webster, Political Editor | Thursday, February 5, 2009

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