Economic slump in Russia to wield telling impact on Germany companies

Economic slump in Russia poses an increasingly serious threat to the German companies operating in that country, the President of the Association of German Chambers of Commerce and Industry (DIHK), Dr. Volker Treier said in an interview published by Bild am Sonntag newspaper.

The crisis in the Russian economy is putting an increasingly bigger brake on the business operations of German companies in Russia, Dr. Treier said, adding their activities were suffering in the first place from the falling exchange rate of the ruble.
A poll taken among the 300 or German companies in Russia showed that one company in three would have to cut their staffs if the situation did not improve shortly.

Executives of as many as 36% companies believed they would have to cancel the previously planned projects, Dr. Treier said.

In addition, he indicated that 10% companies reported their time-tested Russian partners were reorienting to the Asiatic markets.

To round out the rather discouraging picture, one company in eight was pondering withdrawal of its business from Russia, Dr. Treier said. [itar-tass.com]
21/12/14
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Pope Francis urges G20 leaders not to forget the poor

Pope Francis has called on G20 leaders not to forget the poor, saying to do so would be "regrettable" as the heads of the world's most powerful economies prepare to meet in Australia.

The Group of 20 leaders are expected to sign off in Brisbane this weekend on a pledge to boost the level of their combined economic output by at least two percent above the currently projected level in the next five years, creating millions of jobs.
In a letter to Australian Prime Minister Tony Abbott, who holds the G20's rotating presidency, the pope said world powers "must not forget that many lives are at stake behind these political and technical discussions".

"And it would indeed be regrettable if such discussions were to remain purely on the level of declarations of principle," he said in the letter, sent on November 6 but only made public on Wednesday.

"There are far too many women and men suffering from severe malnutrition, a rise in the number of the unemployed, an extremely high percentage of young people without work and an increase in social exclusion which can lead to criminal activity and even the recruitment of terrorists."
He said he hoped the talks would mark a step towards "eliminating the root causes of terrorism, which has reached proportions hitherto unimaginable; these include poverty, underdevelopment and exclusion."
"It has become more and more evident that the solution to this grave problem cannot be a purely military one, but must also focus on those who in one way or another encourage terrorist groups through political support."
The pontiff said he hoped to see "a substantial and productive consensus" on boosting growth and jobs that took into account "real improvements in the living conditions of poorer families and the reduction of all forms of unacceptable inequality". Each country is expected to submit its detailed reform plans to achieve the growth goal in Brisbane, with an emphasis on private sector financing to spur infrastructure investment.

In his letter, the pope also warned about the impact on the environment of "unbridled consumerism" while speaking of the "unbearable humanitarian situations around the world", pointing to the Middle East.
"I take this opportunity to ask the G20 member states to be examples of generosity and solidarity in meeting the many needs of the victims of these conflicts, and especially of refugees," he said.
"The situation in the Middle East has revived debate about the responsibility of the international community to protect individuals and peoples from extreme attacks on human rights and a total disregard for humanitarian law."
Pope Francis emphasised the need to protect people from abuses in the financial system, referring to the transactions that led to the global recession in 2008 as a "less evident but equally real and serious" form of aggression against human rights.
"Responsibility for the poor and the marginalised must therefore be an essential element of any political decision, whether on the national or the international level," he said.
 http://indian.ruvr.ru
12/11/14
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Job rich recovery and undeclared work, the focus of the Employment Ministers Meeting in Athens

Ministers for Employment and Social Policy of the European Union had the opportunity to exchange views and best practices on Europe 2020 Strategy core issues, issues that concern each European citizen. The contribution of these issues to the goal of economic recovery with more jobs and quality jobs and stronger social cohesion is crucial.
On 30 April, at the morning plenary session, the President of the Council, Minister of Labour, Social Security and Welfare of Greece, Ioannis Vroutsis, highlighted that Europe has entered a path to recovery. However, the goal is to lay strong foundations for enhancing the recovery, with special attention to those mostly hit by the crisis.

Afterwards, the key findings from the meetings held on 29.04.2014 were presented. The first meeting with the Social Platform focused on the role of minimum income schemes in economic recovery. The issue of labour market reforms on the way to job rich recovery was discussed at the second meeting with the Social Partners.

• Two parallel workshops took place under the general title: “The Employment and Social Dimension of the Europe 2020 Strategy: Lessons Learnt and Future Orientations”.

The Italian Minister of Labour and Welfare, Giuliano Poletti, chaired the first Workshop with the theme: “Labour Market Reforms on the Way to Job Rich Recovery. Combatting the long-term unemployment and increasing the participation in the labour market. The role of wage setting systems and reforms on Employment Protection Legislation”. The Greek Minister of Labour, Social Security and Welfare, Ioannis Vroutsis, chaired Workshop II, the theme of which is “Economic recovery and social policies: the role of minimum income schemes”.
The afternoon plenary session, chaired by Mr. Vroutsis, focused on the issue of undeclared work. Ministers exchanged views and experiences on the topic: “Towards quality jobs: measures to prevent undeclared work”.
Ministers for Employment and Social Policy of the European Union, participating at the meeting, welcomed the initiative of the Greek Presidency to include this issue in the agenda of the Informal EPSCO meeting. Combating undeclared work is one of the Priorities of the Greek Presidency in the field of employment and social policy. 
The Greek Minister underlined that the issues of quality jobs and tackling undeclared work are crucial, for achieving both sustainable recovery and the main objectives of Europe 2020 strategy. He added that facing up to the challenge of undeclared work demands both preventive and repressive actions. 
During the closing session, the President made the following remarks:
Minimum Income Schemes should be designed in a way to provide adequate protection, broad coverage and be characterised by administrative simplicity. Furthermore, schemes should be accompanied by proper activation and training measures as well as the provision of services. While these systems provide for a social shield, we cannot forget that they should operate temporarily as a mechanism to tackle poverty and that the focus of all relevant policies remains the successful labour market integration. The aim is to prevent beneficiaries from being trapped by these schemes and to help re integrate them into the labour market.
It is necessary to remain on the path of reforms so that labour market performances be improved. These reforms must balance the need for improvement in the labour market functioning and quality of work. In order to achieve that, cooperation with the social partners is essential as well as responsible social dialogue, thus contributing to the enhancing of the social dimension of the EMU. 
[gr2014.eu]
30/4/14

EU is aware that Ukrainian economy is in really terrible shape. - analyst

The European Commission has proposed another 1 billion euro for Kiev, which will come as a part of the 11 billion euro package agreed earlier in March. A rapidly worsening balance-of-payments and weak fiscal situation in the wake of the latest developments in Ukraine pushed the EU to consider a new perk. The Voice of Russia talked to Lilit Gevorgyan is a Russia/CIS country analyst with IHS Global Insight and Jane's Information Group.

How can this financial aid change the situation in Ukraine? In your opinion, will it somehow help to stabilize the country’s economy?

If we look at what the Ukrainian economy is really suffering from and what it needs at the moment, it basically needs to finance its current account deficit and its budget deficit. And indeed, with the IMF and the EU bailout these goals can be achieved.

But there is another side to this story and that is the impact on the economic performance of the bailout program. And that in the short-term could be negative because what we are really looking into is a range of austerity measures that Ukraine would have to implement.

And that means that private consumption that has been the major contributor to the Ukrainian economic performance in the past quarters, it will weaken and, possibly, contract having an overall negative impact on the GDP.

• Does it mean that Ukraine will be more dependent on the EU? Because any additional aid to Ukraine from the European leaders automatically increases the country’s debt. And does that mean that Ukraine will have to follow the EU’s line of policy on the international stage?

• I don’t think that the EU bailout money will come with political strings attached. I believe that the European block is aware that the Ukrainian economy is in a really terrible shape and is facing serious problems with its external financing need.

And what the EU and the IMF are trying to do is to pull together their resources to help. To first of all stabilize the economic situation, help Ukraine to meet its debt obligations so that the country avoids a default and also help them to rebalance the economy, which is the most painful part that Ukraine has to go through, unfortunately.

When it comes to expecting Ukraine to behave in a certain way in foreign policy, I don’t think that that is necessarily the case.

How can the alliance between EU and Ukraine affect the Russian-Ukrainian economic ties?

I think from Russia’s economic and commercial perspective, it is quite interested in seeing the Ukrainian economy stabilizing. Russia is the major trading partner for Ukraine. It is the major investor in the country. There are vast business interests of the Russian businesses in Ukraine.

So, obviously, when the Ukrainian economy is underperforming or failing, it is having an impact on Russia as well. If the EU is helping the Ukrainian economy to stabilize, I don’t see why it will have a negative impact on the Ukrainian-Russian relations.

What are your forecasts for the further development of the economic situation in Ukraine?

As I said earlier, I think what we are currently seeing is the IMF continuing the negotiations. Clearly, these are difficult negotiations, because the Ukrainian Government is aware that the austerity measures that they have to implement will have a significant impact on their popularity and overall stability of the Government.

The IMF and the EU have made it clear that they will start seriously implementing the aid and rolling out a bailout only after the May’s presidential elections. They need some political stability and, secondly, they need seriously commitments by the new Ukrainian authorities that they will stick to these austerity measures, because, effectively, what they are asking for is increasing gas prices, cutting the public spending, trimming pension payouts and also maintaining flexible exchange rate for hryvnia.

All of these are going to take toll on households. And once the Ukrainians are going to experience a serious drop in their disposable income, this will naturally feed into an already tense situation in the country, particularly in the eastern regions of the country, where people could say that they didn’t even agree to a Government change.

So, it is a really toxic combination of austerity measures that have to be implemented to really rebalance the economy and keep Ukraine away from default and political instability. I think Ukraine is quite unfortunate in the sense that while this is a pill that they have to swallow because it is important for them, it is a very bitter pill and it could turn poisonous politically.

So, we are looking into a protracted period of political instability and economic instability in Ukraine for the next year or year and a half, at least. And also, depending on how they will build their relations with Russia, it will also have an impact on their economy. If there is a continued antagonism in Ukrainian-Russian relations, this could only lead to further difficulties with trade with Russia – potential trade restrictions, potential increasing gas prices and so forth. All of this could make Ukraine even worse-performing than we’ve seen before.

So, there are lots of challenges that the Ukrainian Government and the new authorities have to deal with. And another drawback for them is that it is a coalition Government that has a strong nationalist element, who are populists and quite possibly in the future they could turn their back the Government that is implementing austerity measures, and lead to more political instability with Ukraine experiencing the fate of many countries that have governments that are grouped with instability.

So, the picture doesn’t really look that great, to be honest. But the Ukrainian Government has face up to the mismanagement of the previous Government in the economy. And they really have to be brave to face these challenges and push ahead with them no matter what political cost is for their careers.
Read more: http://voiceofrussia.com/news/2014_03_21/EU-is-aware-that-Ukrainian-economy-is-in-really-terrible-shape-analyst-9389/
21/3/14
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• Ukraine: ce que prépare pour les travailleurs le régime soutenu par l’Occident

Ukraine Calls Up Reservists, as PM Warns of Looming 'Disaster'

Ukraine's interim government ordered a full military mobilization Sunday, in an effort to to counter what its new prime minister says is a Russian act of war.

Prime Minister Arseniy Yatsenyuk, in an address to parliament, warned lawmakers "we are on the brink of disaster." He spoke as Russian troops continued to take up positions on Ukraine's Crimean peninsula, and Western governments issued repeated condemnations of the Russian deployments.


NATO convened an emergency session Sunday to discuss the crisis, which Secretary-General Anders Fogh Rasmussen said is threatening peace and stability across Europe. He urged Moscow to "de-escalate" the tension in the region.

Russian news agencies say Russian President Vladimir Putin told U.S. President Barack Obama late Saturday that Moscow reserves the right to protect ethnic Russians in Crimea and eastern Ukraine.

In Washington Sunday, U.S. Secretary of State John Kerry blasted the Russian deployments, calling them "an incredible act of aggression." He also warned of potential economic sanctions against Moscow for military action he likened to "19th century" behavior on a "completely trumped-up pretext." He also told CBS television that Moscow still has "a right set of choices" that can still be made to defuse the crisis.

Ukraine's top security official, Andriy Paruby, says military reservists were mobilized to "ensure the security and territorial integrity of Ukraine." But many Western analysts are questioning the effectiveness of the call up, saying Ukraine's limited military capabilities are no match for Russian military might.

• At the United Nations, Ukrainian Ambassador Yuriy Sergeyev said 15,000 Russian troops are already in Crimea under the pretense of protecting Russian citizens.

• Russian Ambassador Vitaly Churkin blamed the West for ratcheting up tensions in Ukraine and backing protests that ousted President Viktor Yanukovych last month.

Crimea is a Black Sea peninsula placed under Ukrainian control in 1954 by then-Soviet leader Nikita Khrushchev. It became part of Ukraine when the Soviet Union collapsed in 1991. Crimea has a tiny border with Russia on its far eastern point. Most of the people living in Crimea are ethnic Russians, but the region also is home to ethnic Muslim Tartars who generally show disdain for Russia.

Ukraine's troubles began in November when President Yanukovych backed out of a trade deal with the European Union in favor of closer ties and economic aid from Russia. The move triggered weeks of pro-Western demonstrations in Kyiv and elsewhere in Ukraine, and forced the pro-Russian Yanukovych to flee the capital in late February. 
 http://www.voanews.com/content/ukraine-calls-up-reservists-as-pm-warns-of-looming-disaster/1862496.html
2/3/14
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Related:

• Ομόφωνο δεκτό το αίτημα Πούτιν για στρατιωτική επέμβαση στην Κριμαία από τη ρωσική Ανω Βουλή. - FC deputy speaker: Obama’s statement ‘insults Russian people’

• Kiev has no money to pay off debts, financial crisis to follow - Ukraine's ex-minister

• UN chief calls on Ukrainians to find peaceful way forward amid current turmoil

Kiev has no money to pay off debts, financial crisis to follow - Ukraine's ex-minister

Ukraine’s new government is saying that it would try to do its best to stabilize the situation in the country. We have got in touch with Victor Suslov, once Ukraine’s Minister of Economy and now Ukraine’s representative in the Eurasian Economic Commission.
Ukraine’s new Prime Minister Arseny Yatsenyuk says that now, Ukrainians would have to toughly economize for some time. Meanwhile, the head of Ukraine’s National Bank Stepan Kubiv has said that Ukraine has enough money to pay back its foreign debts.
News has also appeared that European creditors have agreed to help Ukraine with money for it to restore its gas transport system. What is the real financial situation in Ukraine?

I don’t think that Ukraine really has money to pay back its foreign debts. Today, Ukraine’s National Bank ordered the country’s banks not to give currency deposits to individuals. Yesterday, the rate of Ukraine’s national currency, the grivna, to the dollar reached the point of 11.4 grivnas for 1 dollar, although only a few days ago, it was 8 grivnas for 1 dollar. All these facts are evidence of a serious financial crisis in Ukraine. The US and the EU have promised some financial aid to Ukraine, but in fact a very small one. However, the International Monetary Fund says it may give Ukraine a loan of up to $ 15 bln, but for this, Ukraine should fulfill some demands of the IMF, such as increasing the population’s pay for communal services and the like. At present, there are only from 3 to 4 mln grivnas in the Ukraine’s treasury, which is practically no money. The National Bank has already started emissions of big sums, but this is done for refinancing commercial banks. This will most likely lead to devaluation of the grivna and high inflation.

The new government of Ukraine was formed only yesterday but has already dubbed itself "a government of self-killers" for its unpopular measures. It is expected that this government would exist till the presidential elections, which are due to be held on May 25.

To stabilize the financial situation, the government should, first of all, stabilize the political situation, which is currently very aggravated, especially in the Crimea and some other regions.

Russia’s authorities have not recognized the new Ukrainian government. Russia has already withdrawn its ambassador from Ukraine.

• Many residents of the Crimean Peninsula want their region to become independent from the rest of Ukraine. Do you think that the new Ukrainian government may agree to that?

• I find it very unlikely that the new government may allow the residents of Crimea even to hold a referendum on whether their region should get at least a little more autonomy from the rest of Ukraine, to say nothing of a total separation. The government has already clearly said that in several official statements.

 http://voiceofrussia.com/2014_02_28/Kiev-has-no-money-to-pay-off-debts-financial-crisis-to-follow-Ukraines-ex-minister-1999/
28/2/14
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Related:

• UN chief calls on Ukrainians to find peaceful way forward amid current turmoil

Cyprus to build gas plant with or without Israel.....

Cyprus energy officials estimate that Cypriot waters are estimated to hold at least 60 trillion cubic feet of gas, enough to cover domestic needs for decades and supply Europe's growing demand for the fossil fuel.

NICOSIA, Cyprus — Cyprus' offshore natural gas deposits are enough to warrant the construction of a gas processing plant to export excess supply, regardless of whether Israel decides to be a partner in the project, the island nation's foreign minister said Wednesday.
Ioannis Kasoulides said Cyprus is continuing talks with Israel, which has also discovered its own offshore gas deposits, on ways the countries can best exploit their mineral reserves. Cyprus is particularly keen, hoping its future gas wealth will help pull it out of a crushing economic crisis that has forced it to ask for an international bailout.

One option is to pipe the gas to Cyprus, where it could be processed for export to Europe and beyond. The pipelines and processing facility, which would liquefy the gas for easier transport, are expected to be in place by 2019-20 and cost as much as 10 billion euros ($13.33 billion). 

"We must show understanding that Israel is deciding about all these matters in the coming months," Kasoulides told The Associated Press in an interview. Kasoulides said it remains to be seen whether Israel wants to be part of Cyprus' energy plans, but that the construction of the plant "will take place anyhow."
Another unpredictable factor is Turkey, which doesn't recognize Cyprus as a sovereign country and strongly objects to its gas search, and which has had troubled relations with Israel.
Cyprus was split into an internationally recognized Greek Cypriot south and a breakaway Turkish Cypriot north in 1974, when Turkey invaded after a coup by supporters of union with Greece. Turkish Cypriots declared an independent state in 1983, but is only recognized by Turkey which maintains 35,000 troops there.
Israel recently apologized to Turkey for a botched raid on a Gaza-bound flotilla that killed eight Turks and a Turkish-American in 2010 and agreed to compensate the injured and the relatives of the dead. The raid had badly ruptured Turkish-Israeli relations, but Kasoulides said he doesn't see the recent attempts to patch things up as standing in the way of potential Cypriot-Israeli energy cooperation.
Israel's apology over the incident "doesn't mean Israel is obliged to follow what Turkey is dictating in this region," the Cyprus foreign minister said.
Kasoulides and Cyprus' Commerce and Energy Minister George Lakkotrypis will travel to Israel next week for energy cooperation talks. Cyprus President Nicos Anastasiades is to visit Israel later this month.
The foreign minister said the oil and gas companies that are licensed to search for mineral deposits off the island nation's southern coast will spearhead the infrastructure construction. One recently discovered field that U.S. firm Noble Energy and Israeli Partner Delek are developing is estimated to hold 5-8 trillion cubic feet (140-230 billion cubic meters) of gas.
Cyprus energy officials estimate that Cypriot waters are estimated to hold at least 60 trillion cubic feet (1.7 trillion cubic meters) of gas, enough to cover domestic needs for decades and supply Europe's growing demand for the fossil fuel.
Kasoulides challenged suggestions that Cyprus should ferry the gas to Turkey for further distribution to Europe, saying that such an option may be too limiting and that liquefied natural gas "can sell east and west, north and south."
Kasoulides insisted that it is Cyprus' sovereign right to exploit its own mineral deposits, despite fierce opposition from Turkey, which says the rights of Turkish Cypriot are being ignored, has claimed some of Cyprus' offshore blocks as its own and has warned that it would react strongly to further gas exploration by Cyprus.
The potential gas revenue belongs to all citizens of Cyprus, but will be shared with the north after a reunification agreement is reached, Kasoulides said.
"You cannot imagine taking money and giving (it) to a self-proclaimed, non-recognized entity with the island," he said. "How come? Are we going to give them a reward also? (The gas) belongs to both communities, but it belongs to both communities constituting ... a united Cyprus."
However, Kasoulides added that some of the future gas revenue may be used to fund scholarships and research grants that would be available to both communities even before a peace deal is hammered out. 
 .haaretz.com
5/4/13 
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Related:

• Λυγερός: Ξεκάθαρα τυπική η συγνώμη του Ισραήλ στην Τουρκία 

• Λακκοτρύπης: Ελπίδες στα ενεργειακά και τον τουρισμό

Cyprus to face savage cuts and economic dictatorship....

By Jordan Shilton and Chris Marsden(wsws.org)
23 March 2013

Cyprus’ fate illustrates how the European Union imposes the dictatorship of the global speculators, banks and corporations on the working class. The EU yesterday continued to demand massive austerity in Cyprus to raise €6 billion ($7.8 billion) in return for a €10 billion bank bailout.
The island country has been the centre of an escalating financial crisis, with its parliament voting Wednesday to reject proposals to raise the necessary funds by taking money from anyone with deposits in Cypriot banks. 

A new vote on whether to impose a “haircut” on depositors was delayed until today. The EU and European Central Bank (ECB) dismissed proposals by Cypriot politicians—themselves wholly reactionary—to create a “solidarity fund” to raise the six billion demanded.

Cyprus’s aim was to preserve its financial relations with Russia and force workers to pay the price by nationalising pension funds to pay the debts of the super-rich. Other proposals included seeking contributions from the church and selling gold reserves—all in order to avoid levying a significant one-off levy on major depositors.
However, the EU bluntly dismissed these measures as insufficient. German Chancellor Angela Merkel declared baldly after a parliamentary meeting of the Christian Democratic Union (CDU), “We want Cyprus to remain in the euro zone”, but insisted that its “current business model is dead.”
The ECB has insisted that the levy on investors should be re-imposed—this time with a widely-anticipated penalty of 15 percent on depositors with balances over €100,000, as initially rejected by Nicosia. If not, it was made clear that proposals had been discussed to prepare for and limit the impact of a Cypriot exit from the euro zone.
With Cyprus unable to offer Moscow any guarantees in return for an appeal for additional funds towards the bailout shortfall, the island’s ruling elite has been thrown back on the tender mercies of the EU. After travelling to Moscow Tuesday, Finance Minister Michalis Sarris left on Thursday without any further funding from Russia and only an agreement to extend terms on the €2.5 billion loan first agreed in 2011 and due for repayment in 2016.
Russian Prime Minister Dmitri Medvedev said “the door had not been closed” to possible future support, after the EU and Cyprus had concluded an agreement. But the EU has done all it can to slam the door on Russia. In the process it intends to seal the fate of Cyprus’s inflated banking sector to the benefit of Europe’s major banks.
The troika—the EU, ECB and the International Monetary Fund—are determined to put Cyprus on rations, demanding savage cuts. On Thursday, reports had already begun to emerge of the crippling impact of the shutdown of the country’s financial sector. Medication was beginning to run out in hospitals, and many businesses were demanding payment in cash for fear that credit cards would never be charged, should the banks fail to re-open.
To enforce what amounts to social warfare against the island’s inhabitants, the Cypriot government is to impose draconian powers over the running of the economy.
Primarily, the Central Bank of Cyprus will be granted powers to determine whether or not transfers outside of Cyprus will be allowed. This measure is necessary from the point of view of Europe’s ruling class to protect against contagion from the crisis in Cyprus, which could trigger massive losses on the markets globally and the outflow of capital from other crisis-ridden countries of the euro zone.
While power over the flow of money in and out of the island is formally held by Cyprus, Germany’s leading financial publication Handelsblatt noted that, in reality, the ECB will exercise control. This will include controlling the payment of pensions and other state benefits. Handelsblatt remarked chillingly that Cypriot citizens would “receive the necessary funds to live.”
Other proposals for Cyprus’ banks are targeted against the country’s own citizens. They include restrictions on daily withdrawals, a ban on premature termination and compulsory renewal of all time savings deposits upon maturity, the conversion of current accounts to time deposits and restrictions on use of debit, credit or prepaid debit cards and on cashing in checks.
In addition, the legislation provides for the implementation of any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary “for reasons of public order and safety.”
This is a recipe for a de facto financial dictatorship. And this must find its corollary in repressive police measures to quell social and political opposition in the working class.
The focus may now be on Cyprus, but working people across Europe confront similar prospects: an ever escalating and devastating decline in living standards, attacks on basic services, and the creation of mass poverty. In threatening the nuclear option of provoking state bankruptcy and being thrown out of the euro zone, the EU and ECB are putting Greece, Spain, Portugal, Italy and Ireland on notice that their economies, too, will face destruction if there is any let up in the imposition of austerity.
On Thursday, Dutch Finance Minister Jeroen Dijsselbloem warned the European Parliament that the Cyprus debt crisis posed a “systemic risk” to the euro zone. Even the strongest economy, Germany, is not immune. A poll published by Der Spiegel on Friday showed that one in two Germans feared for their bank savings and a survey of business confidence showed an unexpected fall after four months of growth, with industrial orders to German firms declining in January by 1.9 percent, mainly due to a drop in orders from Europe’s crisis-hit periphery.
The spur for the downfall of Cyprus came initially from the collapse of Greece. The Greek-Cypriot-controlled south lost more than €4 billion when President Demetris Christofias agreed to a “haircut” of Greek sovereign bondholders without exempting Cyprus—increasing debts by 25 percent at a stroke.
No compromise is possible with the dictates of either the EU or the governments in its member states that act as nothing more than glorified enforcers of the rapacious demands of the super-rich. Whatever promises are made that austerity will restore the economy are lies.
The working class must instead strike out on an independent course. It must counter the offensive of the national and European bourgeoisie with its own offensive, based on a continent-wide struggle for workers’ governments and the United Socialist States of Europe.

http://www.wsws.org/en/articles/2013/03/23/cypr-m23.html
23/3/13
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Related:
"Die Troika hinterlässt in Irland nur Ruinen"

Journalists targeted in Greece bombings

Homemade bombs have exploded at the homes of five journalists from major media outlets in Athens. Police are linking the attacks to the current economic crisis in the country and the way the mainstream media have reported it.
The devices, made of gas canisters, exploded outside residences in different areas of Athens. The explosions caused minor damage to the buildings’ entrances, but no one was injured.
Among the bomb targets, the editor of the state-run Athens News Agency, two journalists employed by state broadcaster NET and two presenters from the private Mega television channel.

The outlets singled out- either state-run or controlled by some of the country's leading business groups- have traditionally been seen by leftist groups as closely tied to Greece's political establishment.
"We believe the attacks are related to the latest economic developments and the way the journalists present the facts," a police official, who preferred to be unnamed, told Reuters.
No group has so far claimed responsibility for the explosions.
The blasts were the first coordinated attack against media workers since the debt crisis in Greece erupted in 2009.

Dogs stand at the burnt entrance of a building following a series of arson attacks against journalists in Athens January 11, 2013. (Reuters/John Kolesidis)

 

“As we can understand, it was a message to them, because there were minor damages in front of their houses. It was a message to media and also some journalists to change the way they show the news about the economy crisis,” contributor for the Eleftheros Typos newspaper, Manolis Kostidis, told RT.
The Greek government has already condemned the attacks.
"This is an attempt to openly terrorize the media, a vital part of our democracy," said the coalition government's spokesman Simos Kedikoglou.
Greece is struggling through a sixth year of recession, with unemployment recently hitting the highest rate in the EU. It’s believed to have fuelled anger against foreign lenders, the wealthy elite and mainstream media – viewed by many Greeks as close to the political classes.
“Of course, as a media worker I don’t like these attacks and also I am afraid, because you never know what could happen one day in front of your home. From one way you have the government, from the other way you have the anarchist groups. And the third way is people in the streets. So, we have to be careful about the way we are presenting the news. It’s not really easy to be a journalist in Greece at this period,” added Kostidis.
Late last year some Greek state television staff were seen confronting government figures, as journalists began work stoppages to protest what they called increasing government censorship. Several media workers were fired.
 http://rt.com/news
11/1/13

Time for climate action, 'to build the world we like' | EurActiv

It is time to empower citizens to lower their carbon footprint, writes EU Climate Commissioner Connie Hedegaard, who has launched a new educational campaign: A world you like. With a climate you like.

"With daily media reports about record CO₂ emissions, record ice melts, record droughts, record rainfalls, record food prices, it is no wonder that people get frustrated and concerned about climate change.
When the Commission polled 27,000 Europeans last year, people across the continent responded that they were more worried about the climate challenge than they were before the big climate summit in Copenhagen in 2009. No surprise, in fact.
Of course most people realise that the climate problem wasn't kind enough to disappear, just because we got busy handling the economic crisis.........Time for climate action, 'to build the world we like' | EurActiv

Bulgarian Govt: Greece Delays Launch of Makaza Border Pass

The road between Kardzhali (A) and Podkova (marked in orange) completed the Kardzhali-Makaza Pass (B) road, the Danube-Aegean through Bulgarian territory. The road on the Greek side is still to be completed. Map from bgmaps
The vastly delayed opening of the crossing point at the Makaza mountain pass on the Bulgarian-Greek border is the fault of Greece, Bulgarian Regional Development Minister Lilyana Pavlova.
"Bulgaria has fulfilled its commitment in time, while Greece is delaying the launching of the Makaza Pass border crossing. Bulgaria has been ready to launch the Makaza crossing since November 2011," Pavlova declared Monday, as cited by the press service of the Bulgarian Regional Development Ministry.

"The only obstacle to the opening of the Makaza border crossing is the lack of a 1.5-km-long road on the Greek side of the border, which needs to be completed. Unfortunately, that isn't happening yet," she added.
Pavlova reminded that last week Bulgarian PM Boyko Borisov even offered Greece to fund the 1.5 km road section with Bulgarian state budget money – a statement that was regarded as insulting by Greek officials, according to the Greek media [1].
"It is just a sin not to be able to launch this extremely important border crossing that would create an opportunity for transit traffic because of a 1.5 km road section. Perhaps it is tough for our counterparts in Greece," the Bulgarian Regional Development Minister added.

The Ruse-Makaza road linking Romania and Greece through Central Bulgaria is supposed to be part of the Pan-European Transport Corridor No. 9 leading from Helsinki, the Baltic States, Moscow, Kiev, and Bucharest to the Greek port of Alexandroupolis on the Aegean.
However, the international transport corridor, which harbors the potential to stimulate the development of much of Bulgaria's central regions, does not function at present because the Makaza Pass in the Rhodope Mountains on the Bulgarian-Greek border remains closed.

This is in spite of numerous promises in the past five years by senior Bulgarian and Greek politicians that a border crossing point there will be opened "next year."
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The road from Ruse (A) to the Makaza Pass (B), a section of the still unexisting Pan-European Transport Corridor No. 9, has been granted a priority status by the Bulgarian government. Map from bgmaps***
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The delay in the opening of the Makaza Pass, which is some 20 km north of Greece's Aegean coastline, has been attributed to the slow construction of the road on the Greek side of the border. If it becomes fully operational, the Ruse-Makaza Pass road will provide the shortest route from Romania's capital Bucharest (and much of Central and Eastern Europe, for that matter) to the Aegean / Mediterranean.
On Bulgaria's territory the Ruse-Makaza Pass road (section of Pan-European Transport Corridor No. 9) goes through Ruse, Byala, Veliko Tarnovo, Dryanovo, Gabrovo, the Shipka Pass (Balkan Mountain), Kazanlak, Stara Zagora, Dimitrovgrad, Haskovo, Kardzhali, and Momchilgrad to reach Makaza. It is dubbed Road I-5 (E-85) for Bulgarian government purposes.
Last year a long-anticipated decision of the Bulgarian government to make the Ruse-Makaza road a "priority project" was justified with the need to absorb EU funds under Operational Program "Transport", which would allow faster administrative procedures for investments, land expropriation, and construction. The Bulgarian government plans to turn the road in question into a "high-speed way" (with four lanes).
he road between Kardzhali (A) and Podkova (marked in orange) completed the Kardzhali-Makaza Pass (B) road, the Danube-Aegean through Bulgarian territory.

The actual realization on European Transport Corridor No. 9, however, also depends on the realization of one of the most-talked about infrastructure projects in Bulgaria in the past 20 years – the construction of a tunnel under the Shipka Pass in the Stara Planina Mountain (Balkan Mountain), which is supposed to improve greatly the transport links between Northern and Southern Bulgaria along the Ruse-Makaza route.

At present, Bulgaria and Greece share four border crossing points: 

• Kulata-Promachonas, 
• Ilinden-Exochi, 
• Svilengrad-Ormenion, 
• and Zlatograd-Thermes (Xanti).

novinite.com

***(After the necessary corrections with the name "FYROM".  

GREECE recognised this country with the name "FYROM")

24/9
-------------------------------------

ΣΧΕΤΙΚΑ:

  

• [1] Greece Insulted by Bulgarian PM's Makaza Remark

  • [2] Η Βουλγαρία αναλαμβάνει να τελειώσει τον κάθετο άξονα επί ...ελληνικού εδάφους

• Επιτάχυνση του οδικού δικτύου διασυνοριακά με τη Βουλγαρία

• «ΑΝΟΙΓΜΑ ΤΩΝ ΣΥΝΟΡΩΝ ΣΤΗ «ΜΑΚΑΖΑ» Ο ΤΙΤΛΟΣ ΤΟΥ ΑΡΘΡΟΥ Βουλγαρική εφημερίδα αναγγέλλει άνοιγμα του κάθετου άξονα στις 30 Ιουνίου

• Μεταξύ Κομοτηνής και Μακάζα (Маказа) οι νέοι διασυνοριακοί σταθμοί ΕΛΛΑΔΟΣ ΒΟΥΛΓΑΡΙΑΣ

  

   
  

Greece Insulted by Bulgarian PM's Makaza Remark

Bulgarian Prime Minister Boyko Borisov has allegedly insulted Greece authorities by saying that his country is ready to pave with asphalt 1.5 km on Greek territory on the road through the Makaza mountain pass.

Last week, Borisov noted that the economic crisis has rendered Greece unable to finish its construction thus the road between Bulgaria's Kardzhali and Greece's Komotini remains closed. He pointed out that Bulgaria has been ready for quite a while with its section.

According to Greek media, Greek officials have been insulted by Borisov's comments, the Bulgarian Focus News Agency reported on Friday.

The news agency says that a Greek company is expected to launch the construction of the 1.5 km section on Friday.

The Ruse-Makaza road linking Romania and Greece through Central Bulgaria is supposed to be part of the Pan-European Transport Corridor No. 9 leading from Helsinki, the Baltic States, Moscow, Kiev, and Bucharest to the Greek port of Alexandroupolis on the Aegean.

However, the international transport corridor, which harbors the potential to stimulate the development of much of Bulgaria's central regions, does not function at present because the Makaza Pass in the Rhodope Mountains on the Bulgarian-Greek border remains closed.

Novinite.com (Sofia News Agency)

21/9/12

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***Η Βουλγαρία αναλαμβάνει να τελειώσει τον κάθετο άξονα επί ...ελληνικού εδάφους

Ευρεία δημοσιότητα έλαβαν στα βουλγαρικά μέσα ενημέρωσης οι δηλώσεις του Βούλγαρου πρωθυπουργού Μπόικο Μπορίσοφ αναφορικά με την πολιτική βούληση της κυβέρνησής του για την ταχύτερη δυνατή ολοκλήρωση της οδικής σύνδεσης Κίρτζαλι-Κομοτηνή και της νέας σχετικής διάβασης στα ελληνοβουλγαρικά σύνορα, όπως αναφέρει σε δημοσίευμά του το Αθηναϊκό – Μακεδονικό Πρακτορείο Ειδήσεων. 

Στο πλαίσιο αυτό, όπως είπε ο κ. Μπορίσοφ, η βουλγαρική πλευρά είναι έτοιμη να αναλάβει την κατασκευή του εναπομείναντος τμήματος, περίπου δύο χιλιομέτρων, στο ελληνικό τμήμα της νέας αυτής οδικής αρτηρίας. Ο κ. Μπορίσοφ, σε δηλώσεις του από το Κίρτζαλι, ανέφερε μάλιστα πως προτίθεται να απευθύνει σχετική πρόταση στον Έλληνα ομόλογό του Αντώνη Σαμαρά. «Για τη (διάβαση της) Μακάζα έχω συνεννοηθεί με τον Έλληνα πρωθυπουργό, με τον οποίο είμαστε φίλοι ακόμα από τα αντιπολιτευτικά χρόνια........ETHNOS KRATOS EL  18/9/12

----

ΣΧΕΤΙΚΑ:

 

• Επιτάχυνση του οδικού δικτύου διασυνοριακά με τη Βουλγαρία

• «ΑΝΟΙΓΜΑ ΤΩΝ ΣΥΝΟΡΩΝ ΣΤΗ «ΜΑΚΑΖΑ» Ο ΤΙΤΛΟΣ ΤΟΥ ΑΡΘΡΟΥ Βουλγαρική εφημερίδα αναγγέλλει άνοιγμα του κάθετου άξονα στις 30 Ιουνίου

• Μεταξύ Κομοτηνής και Μακάζα (Маказа) οι νέοι διασυνοριακοί σταθμοί ΕΛΛΑΔΟΣ ΒΟΥΛΓΑΡΙΑΣ

The geopolitical fallout of a Greek euro exit

By Tom Ellis & Achilleas Patsoukas
Geece’s debt crisis has captured international headlines over the past couple of years. Virtually all analysts have focused on Greece’s deficit and mammoth debt, which pose a threat to the entire European economy.

However, focusing on this one-dimensional interpretation of the Greek crisis means we run the risk of missing the crucial question of whether Europe, and the West in general, can afford to have a politically unstable and economically fragile country at the political, cultural and religious crossroads of the Eastern Mediterranean at a time when the broader region is in turmoil, as demonstrated by continuous clashes in Syria and speculation over an Israeli attack on Iran.


Meanwhile, a weaker Greece vis-a-vis Turkey is bound to tempt the extremists across the Aegean Sea.
“Just look at the map and see where Greece is located... I believe we have to open up the debate beyond the purely financial and economic dimensions,” Michael Meister, vice chairman of Angela Merkel’s Christian Democrats (CDU), said recently.

His comments echoed those of another prominent CDU politician, Armin Laschet, who said that a Greek exit could trigger undesirable upheaval in Southern Europe.

“[An exit] could lead to instability in a NATO member state. Russia is standing ready with billions to help Greece in such a scenario,” Laschet said recently. “Much more is at stake here than just the question of whether Greece meets the criteria [of its bailout],” he said.

Reinhard Goehner, director general of the Confederation of German Employers’ Associations, said that “assistance to Greece is necessary because of the country’s geopolitical significance for SE Europe and the Mediterranean,” while an article in Germany’s Handelsblatt newspaper described Greece as a “bulwark” against terrorists and a proliferation of conflict risks, warning that “if we lose Greece as a geopolitical ally because of the euro, we may have to pay a hefty price for it.”

Meanwhile, the rapprochement between Greece and Israel has increased the interest of the Jewish state in retaining Greece as a pillar of stability in the region. For their part, Western governments, always thirsty for energy, could not possibly ignore Greece’s potential transformation into an energy hub for the transfer of oil and gas, while the recent decision to carry out seismic surveys south of Crete and in the Ionian Sea could lead to the discovery of resources also in the Greek exclusive economic zone (EEZ).

European and US analysts deem that Greece’s Western orientation is not under question, but key powers such as Russia and China are keeping a close eye on developments in a country that lies in a delicate geographical location.

The conclusion is that a Greek exit from the euro area would be considerably damaging for Europe as it would signal a failure to deal with a major crisis and at the same time undermine the bloc’s role in the region.


‘Greece will always be part of the Western club’

US analyst Ian Lesser, who is also executive director of the German Marshall Fund’s Transatlantic Center in Brussels, is critical of the tendency among Western governments to focus exclusively on the financial aspect of the Greek crisis “at a time when Greece’s neighborhood, from the Balkans to the Levant, is entering a highly unstable period.” Doing so, he warns, risks missing out on key geopolitical implications.

Nevertheless, Lesser points out in this interview with Kathimerini, even if Greece were forced to leave the euro area, its Western orientation would not be threatened.

Does the policy of European governments toward Greece overemphasize the financial dimension at the neglect of the geopolitical one?

Many American observers would say yes -- there has been too much emphasis on finance in isolation from geopolitical concerns. The Western tendency to focus overwhelmingly on finance and political dynamics inside Greece risks neglecting potentially critical geopolitical aspects of the crisis. And this is happening at a time when Greece’s neighborhood, from the Balkans to the Levant, is entering a highly unstable period. I think the balance is already shifting on this, in part because the solutions to the eurozone crisis as a whole are inherently political.

The late Constantine Karamanlis had pronounced that “Greece belongs to the West.” Would that still be Greece’s clear choice if it were forced to exit the eurozone?

Absolutely. I do not see how the crisis would or should reshape Greece’s longstanding attachment to the “West.” Greece will always be part of this club.

Given the internal social stress in Greece, should the West be concerned about the country moving closer to Russia and China?

No, this is not a realistic concern. We should be concerned about the stresses in Greece, but I do not see how Russia and China can really take advantage of this, even if there is a bit more investment from these quarters over time. It is easy to exaggerate this.

Is there a difference in the way US President Barack Obama and Republican presidential candidate Mitt Romney approach the Greek crisis, and what could Greeks expect from the election winner after November 6?

The issue has not figured prominently in the election debate. Beyond the question of Greece, both have been critical of EU policy, but in different ways. Romney sees the European crisis as evidence of the perils of the European social model. Obama has been critical of the preference for austerity over growth. But Greece, per se, has not been discussed very much.

What does the crisis mean for Greek-Turkish relations?

It makes it even more important that the Greek-Turkish detente of the last 10-15 years is extended and strengthened.

How does the Syrian crisis (as well as the possibility of an Israeli attack on Iran) influence the strategic equation in the Eastern Mediterranean?

These flashpoints make it even more vital that Greece remains able to play an active diplomatic and security role in the region, alongside its European partners, and the US. Further, looming instability also means that Greece will need strategic reassurance from NATO, on missile defense and other fronts.


‘There will be changes, but they won’t be disastrous’

In an interview with Kathimerini, Georgy Muradov, deputy director of the Organization for International Cooperation at the Russian Ministry of Foreign Affairs, spoke to Kathimerini about his concern regarding developments in Greece and the broader Mediterranean region. Nevertheless, the former Russian ambassador to Cyprus remains optimistic that better days lie ahead for Greece.

Apart from any repercussions for other eurozone states, do you think that a Greek bankruptcy could mean dangerous geopolitical implications for the Mediterranean and the broader region?

I don’t even want to think of that. I believe that a way will be found to prevent bankruptcy. Sure, the chance of a currency devaluation or an exit from the currency is still there, but that does not mean bankruptcy. It rather means the beginning of a new policy hammered out by the Greek government.

To be sure, any development regarding the crisis or any similar development that could change the shape of an economy would obviously affect the Mediterranean and the economies of Europe.
That said, I do not think that anything too bad would happen. As a friend of Greece, I believe a way will be found [out of this predicament].

What about relations with Russia?

I believe that expanding ties with Russia will be one of the things involved. At the same time there are good prospects for discovering energy sources on Greek territory. In any case, Greece needs a reboot on all levels, political, economic and social.

It has often been observed in the past that when a state is in a weak position, this could create other sorts of problems for it. Do you think that an aggravation of the crisis in Greece could allow for terrorist acts in Greece or tempt neighboring countries, like Turkey, to try and challenge its sovereign rights?

There is no easy answer to that question as there is in fact evidence that when a country’s strength is one the wane, its competitors do try to exploit its decline.

In my opinion, Greece’s strength has not declined to such an extent as to tempt other countries to try to challenge its borders or sovereign rights. Greece is certainly having a tough time right now, but not as tough as to run the risk of experiencing a situation like the ones suggested in your question.
Moreover, Greece is not alone in the area. Like a family in which one brother stands by his ill brother, I believe that the same will happen with Greece. Greece’s allies will stand by the country. Your country is not alone in this world.

History has shown that both world wars were preceded by economic crises. Could the continuing global economic crisis combined with the unexpected -- one-and-a-half years ago -- wave of revolutions in the Arab world lead to broader conflicts in the region?

Unfortunately, history shows that major crises like the one that has hit the global economy can lead to conflict, even all-out war. I cannot exclude this possibility. However, I deem that humanity is growing more and more mature. By studying its history, it can protect itself against these developments. For this reason Russia is trying to tackle the crises in Syria, the Middle East and elsewhere with peaceful means and without resorting to outside intervention. Everyone has to be very cautious when it comes to keeping the peace.
ekathimerini.com
18/9/12