Prime Minister Alexis Tsipras says a deal with international lenders is coming, but world press reports aren’t optimistic about Greece.
Tourists Warned to Bring Cash to Greece
Mail Online- Chris Pleasance
Holidaymakers jetting off to Greece this summer have been warned to take emergency cash with them in case the country’s ATMs are suddenly switched off amid a mounting debt crisis.
The Greek tourist board and the Foreign and Commonwealth Office have advised travellers against relying solely on credit cards and cash machines to pay for items in the Mediterranean country.
Greece is faced with running out of money within a month if its leaders cannot secure more bailout cash from the Eurozone, as talks on the issue stalled last week.
If Greece cannot convince ministers to hand over the money, then it will almost certainly default on its debts, which could in turn trigger a run on the banks, leading to cash machines being turned off.
During the Cyprus bailout in 2013, in part caused by the Greek financial crisis, ATMs could only dispense limited amounts, and shops and restaurants were unable to take card payments.
As a result experts are warning visitors to take around three to five days’ worth of Euro notes and coins with them to pay for vital expenses, according to The Telegraph.
The number of sunseekers making their way to Greece fell sharply following the financial crisis in 2008, dropping from just over 16 million in 2007, to 14.9 million in 2008.
Numbers have recovered since then, surpassing 2007 levels in 2011 with 16.4 million, rising to 16.9 million in 2012, and then a record-breaking 17.9 million in 2013, according to data from the Association of Greek Tourism Enterprises.
We Should Let Greece Go Bankrupt
CNBC – Holly Ellyatt
Europe needs to allow for bankruptcy within its borders and keeping Greece in the euro zone could be riskier than letting it go, the president of the influential Ifo Institute for Economic Research in Germany told CNBC Monday.
Greece, the recipient of two international bailouts worth 240 billion euros ($260 billion), is currently facing a funding crisis which has raised expectations that the country could be heading towards bankruptcy, default and a possible exit from the euro zone.
But, according to the Ifo’s Hans Werner-Sinn, that could be the best possible outcome for the country, following yet another round of inconclusive talks over reforms between Greece and its lenders this weekend.
“I would say, in the end, a (Greek exit) is also desirable, because if one accompanies this exit with the help of the European community, with the promise to keep the gate open for Greece to return at a later point in time, this may well be a chance to regain the competitiveness of the country by devaluation,” he told CNBC Europe’s “Squawk Box”.
Sinn, who has consistently spoken in favor of a Greek exit from the 19 single-currency union, said that while a “Grexit” was not “inevitable,” it could offer the country a chance to improve its competitiveness and boost employment – a moot point for a country where a half of young people, and a quarter of adults, are jobless.
Greece Still Precarious Says Bundesbank’s Weidmann
Dow Jones Business News
The situation in debt-ridden Greece remains precarious, the head of Germany’s Bundesbank said Tuesday in a stinging rebuke to the stance taken by Athens.
In prepared remarks here, bank President Jens Weidmann gave a passionate defense of the program of fiscal prudence that his country has promoted throughout Europe, even against heavy opposition.
“In Greece, the situation is indeed precarious,” he said, adding that Greece’s debt “was high before the crisis” and is now more than 170% of the country’s economic output. The haircut that creditors took on Greek debt in 2012 “only interrupted the upward trend for a short time,” said Mr. Weidmann.
Taking audience questions, Mr. Weidmann suggested that the eurozone is better armed to fight off contagion from a Greek exit from the eurozone than in previous years. “This type of contagion danger is lower than in the past,” he said.
Still he warned against underestimating the risks of such a scenario and said he was surprised at how some observers casually discuss the consequences of a Greek exit.
He said it is crucial that Greece develop a functional administration “that swings the economy and public finances onto a sustainable path in the future.” Mr. Weidmann also said that it was “most important” that there be confidence in a reliable reform path in Greece.
But “the new Greek government has again dashed initial hopes here,” said Mr. Weidmann. He noted that last year Greece’s gross domestic product rose for the first time since the start of the crisis and that international institutions had been confident it would perform well again this year.
“It is, however, increasingly apparent that the economy is going clearly worse than expected,” he said.
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