2015-02-06 15_12_12-Financial assistance to Greece - European Commission

In 2010 Greece signed the MNIMONIO. Actually it was the “Economic Adjustment Programme for Greece”, a memorandum of understanding on financial assistance to the Hellenic Republic in order to cope with the Greek government-debt crisis.

MNIMONIO is the Greek word for MEMORANDUM. In most Greeks conscience , it is the source of all problems that have caused austerity and a degradation of the quality of life in Greece. In reality it is a Contract defining the Economic Adjustment Programme which was signed between the Greek Government on one hand, and on the other hand by the European Commission on behalf of the Eurogroup, the European Central Bank (ECB) and the International Monetary Fund (IMF).

Source: http://ec.europa.eu/economy_finance/assistance_eu_ms/greek_loan_facility/index_en.htm

Since 2010 Greece has had five different Prime Ministers, three of them elected by the Greek people and two of them acting as temporary PMs between George Papandreou resignation in 2011 and Antonis Samaras election in 2012.

The current PM, Alexis Tsipras, has invested his political ambition and mandate into a very harsh anti-MNIMONIO agenda, eventually receiving a 35% electorate vote in January 2015. Mr. Tsipras and his party SYRIZA has labeled the MNIMONIO as “disgraceful“, “onerous“, “reason for suicides“, “reason for loss of sovereignty“, etc. Mr. Tsipras has promised that he will “tear apart” the MNIMONIO on “the very first day” that he would assume his responsibilities as the Prime Minister of Greece.

Outcome: Well this is a very long journey of KOLOTOUMBAs to come. It will take many posts to describe how the MNIMONIO will be torn or not (or renamed or transformed or what-have-you). What was a very first glimpse of the colossal KOLOTOUMBA to come, is the statement made on February 5 by Greece’s Minister of Finance, Yanis Varoufakis, during a joint press conference with his German counter-part Wolfgang Schäuble.

When asked by a journalist which parts of Greece’s programme is the new government not prepared to meet Mr Varoufakis said:

It is not that the current reform program is to be discarded altogether.

I would say that 67% of what’s in that list consists of moves and measures that we should want to take ourselves

Source: 46:00 in the following video

Interesting approach considering that SYRIZA, not even once, voted for a measure, law or regulation that was brought to the Hellenic Parliament between 2010 and 2014.

TAIPED is here to stay

February 5, 2015February 5, 2015 kolotoumbaSYRIZA, TAIPED, VALAVANILeave a comment

The Hellenic Republic Asset Development Fund, also known as TAIPED, its Greek acronym, is the Agency responsible for finding investors for Greece’s public property and assets.

TAIPED has been the subject of many criticisms by the SYRIZA party while in opposition. An indicative article from SYRIZA’s official newspaper, claimed that one of the new government’s top priorities should be the abolition of TAIPED on the grounds that it is a “tool for stealing public assets and property”

Source (in Greek): http://www.avgi.gr/article/5234497/na-katargithei-to-taiped-ergaleio-ufarpagis-tis-dimosias-periousias

In line with SYRIZA’s pre-election mandate, the newly appointed Alternate Finance Minister Nadia Valavani asked on 31 January for the resignation of all of TAIPED’s board members. Ms. Valavani met with TAIPED chairman Emmanouil Kondylis and CEO Paschalis Bouchoris, asking them to leave their posts. Kondylis and Bouchoris were appointed last summer.

Source (in English): http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_30/01/2015_546726

Outcome: On February 5, Ms. Valavani asked TAIPED’s management to stay put until further notice hinting that TAIPED may not be dismantled after all.

Source (in Greek): http://www.kathimerini.gr/802291/article/oikonomia/epixeirhseis/kamia-allagh-sto-taiped-gia-tis-epomenes-20-hmeres

IMF said what?

February 4, 2015February 4, 2015 kolotoumbaIMF, VAROUFAKISLeave a comment

The Greek Minister of Finance, Yanis Varoufakis, stated in an interview with the La Repubblica newspaper of Italy, that Greece has started negotiations with the International Monetary Fund (IMF) over a plan to swap its sovereign debt for growth-linked bonds.

Source: http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_04/02/2015_546868

Outcome: This is a first for KOLOTOUMBA.com. The reverse of course was imposed to Mr. Varoufakis not on his own accord but from Greece’s counterpart in the alleged negotiations. The IMF denied that the two sides were discussing a debt renegotiation, as Varoufakis suggested in comments to the Italian newspaper.

An IMF spokeswoman said in a statement:

“There is an agreed framework for dealing with debt in the current (bailout) program. There has been no discussion with the authorities on a change in this framework”

Sources: http://www.reuters.com/article/2015/02/04/eurozone-greece-imf-discussion-idUSL1N0VE0WX20150204

The name is Bond, Perpetual Bond

February 3, 2015February 11, 2015 kolotoumbaDEBT, SYRIZA, VAROUFAKISLeave a comment

One of the cornerstones of SYRIZA’s election campaign was that they would demand that Greece lenders (the infamous TROIKA comprising the EU, International Monetary Fund and European Central Bank) would write-off Greece’s debt (or perform a “hair-cut” depending on which party representative you ask) . Upon being asked for a PLAN B regarding the unlikelihood that the creditors declined to write-off, SYRIZA declared that they would “insist” on PLAN A.

SYRIZA now is the prime member of the Greek coalition government, and the newly appointed Minister of Finance, Yanis Varoufakis, has started a round of one-on-one meetings with decision makers such as the EUROGROUP’s president Jeroen Dijsselbloem and Ministers of Finance of France and the United Kingdom.

Outcome: On February 2, following his meeting with UK’s Chancellor of the Exchequer George Osborne, Mr. Varoufakis told the Financial Times that the government would no longer call for a headline write-off of Greece’s €315bn foreign debt. Rather it would request a “menu of debt swaps” to ease the burden, including two types of new bonds. The first type, indexed to nominal economic growth, would replace European rescue loans, and the second, which he termed “perpetual bonds”, would replace European Central Bank-owned Greek bonds.

Source: http://www.ft.com/intl/cms/s/0/7af4252c-ab03-11e4-91d2-00144feab7de.html#axzz3Qg8PIBum

Whether this turn of course qualifies for a KOLOTOUMBA remains to be seen. The Greek Government’s Press Secretary Sakelaridis stated, only hours after Mr. Varoufakis’ interview, the following:

“There is no turn of course nor a kolotoumba. Are you concerned with the words used to describe the write-off or the actual result? We stay focused on the fact that our debt must remain sustainable”

Sources: http://www.skai.gr/news/politics/article/274610/sakellaridis-ston-skai-kamia-kolotouba-gia-to-hreos/, http://www.protothema.gr/politics/article/448168/sakellaridis-kamia-kolotouba-gia-to-hreos/

To Lazard or not to Lazard

February 2, 2015February 2, 2015 kolotoumbaANEL, SYRIZALeave a comment

The financial advisory and asset management firm Lazard in early 2012 had assisted Athens in brokering a 50-percent writedown on the country’s short and medium-term debt, better known as PSI.

Both members of today’s Greek Government coalition, left-wing radical SYRIZA and right-wing Independent Greeks (ANEL), had criticized the selection process of Lazard and particularly opposed to the 0,015% “extravagant” fee on the PSI writedown, claiming that Lazard would eventually receive EUR 25 million in fees.

Sources:
1. http://www.syriza.gr/article/Erwthsh-toy-Proedroy-ths-K.O.-toy-SYRIZA-Al.Tsipra-pros-ton-Ypoyrgo-Oikonomikwn:-Ypoyrgikes-apofaseis-gia-amoibes-dekadwn-ekatommyriwn-eyrw-se-etaireies-parochhs-nomikwn-yphresiwn-kai-chrhmatooikonomikwn-symboylwn-thn-wra-poy-epsachnan-gia-prwthypoyrgo.html#.VM86W2iUcWL
2. http://anexarthtoiellhnes.blogspot.gr/2012/03/blog-post_4925.html?m=1

Outcome: The collation Government’s Ministry of Finance on Saturday, 30 January 2015, said it had hired Lazard “to advise on issues of public debt and fiscal management”. Lazard CEO Matthieu Pigasse had said ahead of Saturday’s announcement that it was “absolutely necessary” to reduce half the Greek debt held by public institutions, effectively a cut of around 100 billion euros.

Source: http://www.ft.com/intl/cms/s/0/e61c32d4-a984-11e4-a28e-00144feab7de.html#axzz3QZnTArsT

As of today, the contract scope, selection process and relevant fees have not been disclosed.

The Fence of Wrath

January 30, 2015January 30, 2015 kolotoumbaFENCE, SYRIZALeave a comment

In 2012, a 10.5 km fence was built on the Greek-Turkish border in order to prevent waves of unregistered immigrants from flowing into Greece.

Since then, SYRIZA has opposed to this fence numerous times and during its recent campaign, Ms Tasia Christodoulopoulou, the new Minister for Immigration Policy, claimed that “borders, including Evros (the Greek-Turkey river/border) should be open so that immigrants can apply for a political asylum”.

http://youtu.be/jxzlh-u20Nc

Outcome: On 29 January 2015, Mr. Yannis Panousis, Minister for Public Order, stated that “The Evros Fence should not be removed”. However there is no final decision yet so we rank this as a semi-kolotoumba sitting on the fence between kolotoumbism and consistency.

Source: http://www.tovima.gr/society/article/?aid=672063

Kolotoumba is featured in HUFF POST (sort of…)

January 29, 2015January 29, 2015 kolotoumbaHUFF POSTLeave a comment

We would prefer an honorable mention to our new site but nonetheless, it is nice to see that the term KOLOTOUMBA is here to stay….

Kolotoumba’: The New Greek Word for Hope, by Justine Frangouli-Argyris

The Greek word “kolotoumba,” or somersault, indicative of a complete reversal in one’s thinking or policies, has become the new catchphrase of the Greek political scene, repeatedly trumpeted in the local media as well as the foreign press.

Greece’s newly elected, radical-left Prime Minister, Alexis Tsipras, has already performed his first kolotoumba by opting for a coalition with Panos Kammenos of the right-wing Independent Greeks, a party, like Tsipras’s, that is staunchly anti-austerity but that derives from the complete opposite end of the political spectrum.

Read the article at http://www.huffingtonpost.com/justine-frangouliargyris/kolotoumba-the-new-greek-_b_6562452.html

All exclusive but inclusive too

January 29, 2015January 29, 2015 kolotoumbaKountoura, TourismLeave a comment

As the leader of the opposition, Alexis Tsipras had declared last December that he was against the “all inclusive” type of charging adopted by many resorts in Greece. The reason stated was that “this type of charging is based on the “memorandum (mnimoniako) model of tourism which is backed-up by large tourist resort chains”.

source: http://www.skai.gr/news/finance/article/271001/tsipras-idiotikopoiiseis-telos-katargisi-all-inclusive-nea-kratiki-olubiaki-/

Outcome: On January 29, the new Minister for Tourism, Elena Kountoura, stated:

“There will be no action against the all-inclusive products. On the contrary, through the qualitative improvement of such products, benefits will be disseminated towards the local markets and society.”

source: http://www.kathimerini.gr/801437/article/oikonomia/ellhnikh-oikonomia/el-koyntoyra-kamia-energeia-eis-varos-twn-proiontwn-all-inclusive

It is insulting to even mention that…

January 27, 2015January 28, 2015 kolotoumbaANEL, QUICK, SYRIZA2 Comments

Terence Quick, a second-term parliament member with the right-wing Independent Greeks Party (ANEL), had mentioned last September, during a TV interview, that he was “personally offended” when journalists even hinted that ANEL would cooperate with the radical left-wing SYRIZA party.

Outcome: Terence Quick is the new Deputy Minister of the “Ministry for the Fight Against Corruption” of the new SYRIZA-led coalition government.

Welcome

January 27, 2015January 27, 2015 kolotoumbaANEL, Papadimoulis, SYRIZA1 Comment

This is our first post of the new site KOLOTOUMBA.com dedicated to promises made by politicians that have gone the other way, hence kolotoumba (somersault in Greek).

Here is what Mr. Papadimoulis, member of the European Parliament for SYRIZA, had declared in 2012 regarding SYRIZA’s possible cooperation with the right-wing party of the Independent Greeks (ANEL).

There is not a chance in a million to collaborate with Kamenos’ Party in a Government scheme, because the Independent Greeks Party (ANEL) belong to the right-wing “apartment building”.

Outcome: SYRIZA forms its first government with members of ANEL in the Cabinet. ANEL chief, Panos Kammenos, is sworn as Minister of Defence.

KOLOTOUMBA.com

Words of honesty (NOT)

67% sounds about right!