Greece

The future was looking bleak for a poor little Greek Boy who had turned 30, but then I met Arnaud de Borchgrave

I hate to start with a cliché, but Count Arnaud de Borchgrave d’Altena, who died in Washington DC last week, aged 88, was the last of the great foreign correspondents — trench coat, suntan, title and 17 wars under his belt included. One accomplishment none of his obituaries mentioned (perfectly understandably, mind you) was his role in introducing to journalism, and subsequently mentoring, the greatest Greek writer since Homer, yours truly — something Arnaud kept quiet about throughout our close 48-year friendship. Here’s how it began: it was May 1967, the Greek junta had taken over the government the previous April, and Arnaud had flown in to interview the Greek

James Forsyth

If Greece leaves the euro could others follow?

Germany wants nothing less than an unconditional surrender from the new Greek government. It is hard to draw any other conclusion from Berlin’s decision to reject Greece’s proposal for a six month extension of the current bailout, which counted as an almost total climb-down by the Syriza-led government. But it seems that the Germans—with an eye on the Spanish elections later this year —want to show that voting for radical, anti-austerity parties gets you absolutely nothing. However, the Germans may well have miscalculated. The Greek Finance Minister wants Greece to leave the euro but, because the vast majority of Greeks wants to stay in the single currency, he has had

Greece isn’t the only country that wants to leave the euro

With EU budget talks breaking down on Monday night, there was, for a time, an outside chance that Greece would leave the euro. Worryingly for EU leaders, there are plenty of people across the rest of the continent who would like to do the same. As research by ComRes for New Direction Foundation across nine European countries shows, significant minorities would like to return to domestic currencies, although the majority of people in major Eurozone countries would like to retain the euro. While the German Finance Minister, Wolfgang Schäuble, has been doling out the conditions to Greece about what it will have to do to stay in the euro, one

Martin Vander Weyer

Bet on a swift Grexit | 19 February 2015

‘Will Greece exit the eurozone in 2015?’ Paddy Power was pricing ‘yes’ at 3-to-1 on Tuesday, with 5-to-2 on another Greek general election within the year and 6-to-4 on the more cautious ‘Greece to adopt an official currency other than the euro by the end of 2017.’ I’m no betting man — as I reminded myself after backing a parade of point-to-point losers on Sunday — and I defer to our in-house speculator Freddy Gray, who will offer a wider guide to political bets worth having in the forthcoming Spectator Money (7 March). But on the Greek card I’m tempted by the longer odds on the shorter timeframe, because this has the

Martin Vander Weyer

Bet on a swift Grexit

‘Will Greece exit the eurozone in 2015?’ Paddy Power was pricing ‘yes’ at 3-to-1 on Tuesday, with 5-to-2 on another Greek general election within the year and 6-to-4 on the more cautious ‘Greece to adopt an official currency other than the euro by the end of 2017.’ I’m no betting man — as I reminded myself after backing a parade of point-to-point losers on Sunday — and I defer to our in-house speculator Freddy Gray, who will offer a wider guide to political bets worth having in the forthcoming Spectator Money (7 March). But on the Greek card I’m tempted by the longer odds on the shorter timeframe, because this

The Eurozone crisis is as much a political problem as it is an economic one

Veterans of Eurozone crisis summits, hoping for another nail-biting drama, had queued to get ringside seats. But yesterday’s meeting over Greece with Eurozone Finance Ministers ended without result. And you shouldn’t be surprised. We’ve been here many times before – Eurozone committees keep minutes but lose hours – and this was not a meeting during which decisions were to be taken. While some Eurozone watchers have convinced themselves that there is now a new script for Greece’s relation with its Eurozone creditors, no Eurozone government but the Greek share that view. It’s not just that other capitals are hostile to Greece’s own game plan of forcing other governments to make a new

Greek debt talks break up – can the eurozone hold together?

Are we now closer to Grexit? Tonight’s talks between eurozone finance ministers broke up after a few hours with Greece slamming the draft statement prepared by the group as ‘unacceptable’ and ‘unreasonable’. That statement was leaked by the Greek camp while the talks were happening, which can’t have helped the atmosphere in the room. The talks broke up acrimoniously. Finance ministers have told Athens it has until Friday to agree to maintain the current bailout under the troika, but Varoufakis said in a press conference this evening that ‘we are going to meet halfway during the next couple of days. Europe will do the usual trick, it will pull a

Taki’s recipe for the survival of the Greek nation

The good news is that a Greek suppository is about to relieve the EU’s economic constipation. The bad is that there’s a Castro in our midst posing — just as Fidel did 56 years ago — as a democratically elected populist. Back then it was Uncle Sam who was the bogyman. Now it’s the EU. Back then the Soviet Bear came to Fidel’s rescue. Now it’s Putin. Personally, I’d take Vlad over the faceless unelected Brussels gang anytime. The problem is Tsipras, a vulgar-sounding name if ever there was one. Add to it the fact that he has two sons, one named after Che Guevara, the other after Carlos, the

This time next year Greece will be out of the euro or Syriza will be out of power

There has been much interest in the European Central Bank making a new call on Greek government bonds, saying that ‘it is currently not possible to assume’ the bonds to be safe assets once the bailout programme expires. This is as you might expect: after all Yanis Varoufakis, the new Greek Finance Minister, has been touring European capitals this week to remind creditors that Greece is bankrupt. Yet markets and Twitter – our two modern messengers of truth – ‘spooked’, along, of course, with the poor souls who thought Greece’s Attica or Piraeus banks to be worthy an embrace by their savings. Loans to the Greek government fetch a 9.7

Osborne uses meeting with Greek finance minister to tell people to vote Tory

Even though he wasn’t quite prepared in the sartorial stakes for the visit of Greek finance minister Yanis Varoufakis, George Osborne was ready to use the meeting between the two as another messaging moment. Following their discussions, the Chancellor has released this quote: ‘It’s clear that the standoff between Greece and the Eurozone is fast becoming the biggest risk to the global economy, and it’s a rising threat to our economy at home. In Europe as in Britain now is the time to choose competence over chaos. I urged the Greek finance minister to act responsibly, but it’s also important that the Eurozone has a better plan for jobs and

Why France so worries European policy makers

Today’s huge Podemos rally in Madrid is a reminder that Syriza’s victory in Greece has emboldened the anti-austerity left across the Eurozone. What worries Angela Merkel and other northern European leaders is, as I say in the magazine this week, that any concessions to the new government in Athens, will lead to Podemos—a party which was founded less than 12 months ago—wining the Spanish elections later this year. But the country that most worries European policymakers isn’t Greece or Spain but France. Its economy is showing no signs of recovering and its politics are threatening to become very ugly indeed. A new poll published this week shows the Front National’s

Syriza could have learned from Aristophanes. Instead it’s headed for Greek tragedy

The German chancellor Angela Merkel has expressed her desire for Greece to remain part of the European ‘story’. Since Greeks — together with the Romans and Jews — actually created that story over the past 2,500 years, it is hard to see how they could not. With help from the Romans, they laid the foundations of western history, philosophy, politics, education, architecture and literature, this last including epic, tragedy, lyric, pastoral and, especially, comedy. In facing up to Europe, Syriza has the potential to keep that comic tradition alive. Aristophanes’ comedies envisage the little man or woman heroically taking on the big boys and winning through against all the odds, celebrating victory

Nigel Farage’s diary: How I survived Dry January

Dry January is tougher than it sounds. Well, for me anyway. It’s now been some 28 days since I’ve had a drink, and you should see what that means for my campaigning strategy. ‘Ginger beer? Lemonade?’ Pub-goers around the country can’t believe it when I walk in and whisper my order over the bar. The fact is they don’t believe I’m really doing it. ‘I’m not all spin and bluster like those other lads,’ I usually reply. ‘If I promise I’m going to do something, I’ll bloody well do it.’ Still, I can’t say it’s never going to tempt me again. Especially not given the week I’ve had. It all

James Forsyth

Europe’s crisis is Cameron’s opportunity

Napoleon notoriously preferred his generals to be lucky — and on that score at least, he would have approved of David Cameron. The triumph of the Syriza party in Greece presents him with a glorious opportunity to solve the European question that has bedevilled the Tories for so long. Europe’s difficulty is Cameron’s opportunity. The European elite has been shaken by the scale of Syriza’s victory. Just a few weeks ago, Cameron was arguing in private that Greek voters, who remain overwhelmingly pro-EU, would ultimately not back a party that was intent on a confrontation with the eurozone authorities. European diplomats stressed that even if Syriza won it wouldn’t get

Martin Vander Weyer

What’s good about austerity (whatever the Greeks think)

The only question I remember from my Oxford moral philosophy paper was ‘What is integrity and is it a virtue?’ In the margins of all the politicking that follows the victory of Syriza in the Greek election, I hope someone asks: ‘What is austerity, is it a virtue, and why has it worked in the UK and Ireland but failed in Greece?’ My own definition of austerity in the context of financial crisis, when I debated it with former Greek finance minister George Papaconstantinou, was ‘a synonym for frugal, uncorrupt government supported by willing taxpayers of the sort that has been largely absent in southern Europe’, at which George got

Berlin’s nightmare is coming to pass

In recent weeks, European diplomatic sources have regularly argued that Syriza would have to moderate its demand in office. They argued that Syriza wouldn’t win a majority and that to form a coalition it would have to compromise. But this morning, Syriza has formed a coalition with a party that takes just a robust view as it on the need to renegotiate the terms of the Greek bailout, The Independent Greece party. Independent Greece and Syriza have little in common other than their view on the bailout, Independent Greece sits in the same group as the Tories in the European Parliament. That Alexis Tsipras has chosen to do a deal

Isabel Hardman

UK politicians squabble over whose point the Greek elections prove

What are the lessons for British politicians from Syriza’s victory in the European elections? They’re certainly very keen to tell voters what lessons we should be drawing. Last night Nigel Farage focused on the failure of Europe, while David Cameron pointed to the importance of a strong – you guessed it – long term economic plan. This morning George Osborne underlined that point on the Today programme, saying: ‘I certainly understand that if you have unemployment at 25%, if your economy has shrunk by 20%, as the Greek economy has over recent years, you are looking for other answers, alternatives – because ultimately this is just the latest chapter in

Greece lightning: six things you need to know about Syriza’s victory

It’s official: Syriza, the Greek anti-austerity leftist party, has won the general election. With 98pc of the votes counted it is looks to have taken 149 out of 300 seats, just two short of an overall majority but still in a very strong position. Syriza is pro-EU but anti-austerity – so will soon face a confrontation with the Troika (the European Commission, the European Central Bank and the International Monetary Fund). Germany has indicated that it’s less worried about Greece leaving the EU, so won’t bend over backwards to accommodate demands. The brinkmanship will now begin. 1. Background – the Greek economy Over the last four years Greece has suffered from a depression comparable to 1930s America, resulting in