IMF-EU debt deal is what stands between Athens and new loans

Euro zone finance ministers may agree on Monday to release new loans to Greece but are likely to struggle to convince the International Monetary Fund to join the bailout by keeping the prospect of debt relief for Athens highly conditional. Greece needs new cash from the euro zone to avoid a default in July when it has to repay some 7.3 billion euros worth of maturing loans. To get the money, the Greek parliament approved pension cuts and tax hikes last Thursday…

ECB rejects Greece’s request for €6 billion of extra emergency funds

The European Central Bank rejected Greece’s request for 6 billion euros of extra emergency funds on Sunday, but is expected to continue limited support for Greek banks until the July 5 referendum, people with knowledge of the matter said. The size of the request underscores the scale of the panic gripping Greek savers, and would have left the ECB in little doubt about the dramatic consequences of rejecting it…

Greece’s time is running out and consequences would be dramatic: EU’s Schulz

European Parliament President Martin Schulz urged Greece in a newspaper interview to accept a proposal by its international lenders for a cash-for-reforms deal, warning Athens that failing to reach an agreement would have “dramatic” consequences. The European Union is willing to compromise with the Greek government, Schulz told German newspaper Welt am Sonntag in an interview published on Sunday…

Eurozone unemployment falls to 11.1% in April, hits 3-year low

Good news! Europe is getting back to work. Unemployment in the eurozone fell to 11.1% in April, the lowest it has been in three years, according to official data.
The number of unemployed in the euro area has been falling by 100,000 a month on average so far this year. “That is double the pace of decline previously estimated, cutting the time it would take to reduce unemployment back to pre-crisis levels…

ECB’s Draghi admits growth prospects dimmed, cuts 2017 GDP forecast

Europe has lost some growth momentum and bond market volatility is here to stay, the European Central Bank said on Wednesday, pledging to see through its money printing scheme until its job of lifting the economy is done. In remarks after the bank left rates on hold at record lows, ECB president Mario Draghi also urged a deal with Greece, which is facing default without aid, in order to keep it in the currency bloc…

Euro zone price discounting in March drove growth, business activity to fastest rate in nearly a year

(Reuters) – Price discounting drove growth in all of the euro zone’s major economies in March, helping business activity increase at its fastest rate for nearly a year, a survey showed on Tuesday. New orders came in at their fastest rate since May 2011 and the survey found that companies have now been cutting prices for three years, although not as sharply in March as before…

Greece confident in reaching reforms deal with EU early next week

(Reuters) – Greece is optimistic about reaching a deal on economic reforms with its euro zone peers early next week, unblocking urgently needed funding, its economy minister said on Thursday. After talks with EU leaders including German Chancellor Angela Merkel in the past week, Athens said it would present a package of reforms to its euro zone partners by Monday in the hope of unlocking aid and avoiding bankruptcy…

Euro zone finance ministers agree to extend Greek bailout

(Reuters) – Euro zone finance ministers agreed in principle on Friday to extend heavily indebted Greece’s financial rescue by four months, averting a potential cash crunch in March that could have forced the country out of the currency area. The deal, to be ratified once Greece’s creditors are satisfied with a list of reforms it will submit next week, ended weeks of uncertainty since the election of a radical leftist-led government in Athens pledged to reverse austerity measures…

EU-Greece debt talks break down as Greece rejects bailout extension

(Reuters) – Talks between Greece and euro zone finance ministers over the country’s debt broke down on Monday when Athens rejected a proposal to request a six-month extension of its international bailout as “unacceptable”. The unexpectedly rapid collapse raised doubts about Greece’s future in the single currency area after a new leftist-led government vowed to scrap the 240 billion euro bailout, reverse austerity policies and end cooperation with EU/IMF inspectors…

Confrontation between Greece and Eurozone spooks financial markets

(Reuters) – Greece and its euro zone partners engaged in brinkmanship on Monday, with leftist Prime Minister Alexis Tsipras insisting his country would not extend its reform-linked bailout and Germany saying it would get no more money without such a program. European Commission President Jean-Claude Juncker warned Greeks not to expect the euro zone to bow to Tsipras’ demands in a growing confrontation which spooked financial markets and prompted U.S. and Canadian pleas for calm and compromise.

Germany to raise 2015 growth forecast amid record-high employment, strong consumer spending

BERLIN—Germany raised its forecast for economic growth for this year on the back of record high employment levels and strong consumption, which gets a lift from lower oil prices. The economics ministry increased its forecast for economic growth this year to 1.5% from an earlier forecast of 1.3%, according to its annual report. The economy grew by 1.5% last year…

‘Grexit’ testing euro zone to the limit

Since the eurozone’s inception, its survival has rested on a paradox. On the one hand, the stability of the single currency hinges on the market’s faith in its irreversibility. It was to restore this faith that European Central Bank President Mario Draghi promised in 2012 to do “whatever it takes” to keep the bloc together….

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