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Rome – The dreaded Black Monday market has arrived. The specter of a Greek bankruptcy sinks European stock exchanges, which burn 287 billion of euro in one sitting. Milan is the worst nightmare of the summer session 2011: -5.17%.
Here Athens
In Greece it was a day of total austerity. In Athens, the banks are closed, you can not pick the board, ask for money at the counters, make payments for companies. Also closed the bag, to avoid speculation. They were established special controls at airports, to prevent someone running away with money in your suitcase. Unable to get more than 60 euro per day. The only limitations are not subject to credit cards and ATMs abroad.
Here Europe
On the markets the tension is sky high. The FTSE MIB index of the Milan Stock Exchange was the worst in Europe closing at -5.2%. In red even Frankfurt (-3.3%), Paris (-3.6%), London (-1.8%) and Madrid (-4.4%). Meanwhile, the spread between Italian BTPs and German Bunds has reached 159 points with a yield of 2.39%. The effect Grexit sank even Asian markets: Tokyo has extended losses to close at -2.83%.
Europe in pressing
In Brussels the day is hectic and frictions emerge even within the EU Commission. “We must find a compromise. The door to negotiations is open. I am for a reformed Greece in the eurozone, without austerity, “said the EU Commissioner for Economic Affairs, Pierre Moscovici, who then announces that Juncker,” will make some proposals at midday “for groped to avoid the exit of Greece from euro zone. But by return a European Commission spokesman denies “President Juncker will not present any new proposal for Greece.” Juncker warns however the Greeks: “Voting no would like the referendum would mean that Athens says no to Europe.”
Juncker hard Tsipras
The President of the EU Commission is bitter: “I am saddened by the spectacle that is given in the EU, the good will has evaporated , selfishness and tactical games or populists prevailed after all the efforts made, I feel betrayed because they do not take into account the personal efforts and the others. ” And again: “I feel betrayed, I did my best. I do not deserve all this criticism. ” The judgment of Tsipras and Varoufakis is clear: “It’s not about playing a game of poker: here or you lose or win together.” From Berlin, speaking on the occasion of the 70th anniversary of the CDU, Merkel warned: “If the euro fails, Europe fails. We must be able to find a compromise in the face of any challenge. ”
The reaction of the stock
In the markets the tension is skyrocketing, with start of sitting down sharply on the Milan Stock Exchange. The FTSE Mib yields almost 4%. Flurry of suspensions on bank stocks. They travel in red also Frankfurt, Paris, London and Zurich. Madrid is worse than Milan . Meanwhile, the spread between Italian BTPs and German Bunds, after a start that has touched almost share 200 points, fell below 160 points. However, several more than the 123 of the previous Friday. The effect Grexit sank the Asian markets: Tokyo has extended losses to close at -2.83%. Down also quotes the euro.
The Merkel: “If the euro fails, it fails the EU ‘
” If the euro fails, Europe fails, “she commented Chancellor Angela Merkl instead. “Europe must be able to find a compromise in the face of any challenge.” Greece “is a special case” and the German Government top priority is to ensure the strength of the eurozone, said a spokesman for the German chancellor. “The aim is an eurozone strong,” he said, adding he does not expect “drastic changes” before the end of the second bailout program that expires tomorrow.
The appeals of the Greek parties
Tsipras called on the population for calm stressing that “the Greeks deposits are safe,” and that It was the Bank of Greece to suggest the closure of banks and stock exchanges. If partners want Eurozone, Tsipras continues, “can give the ECB the freedom to restore the liquidity of banks also very night.”
The Greek premier then tweeted: “In these critical hours, the only thing to fear is fear itself.” And then: “The recent decisions of the ECB and the Eurogroup have one goal: groped to thwart the will of the people greek . They will not succeed: the exact opposite will happen. The greek people will resist with even more tenacity. ”
Meanwhile, former Prime Minister Antonis Samaras, leader of New Democracy , the main opposition party called on the prime minister to withdraw the referendum on reforms proposed by creditors es try to form a national unity government: “Our country – said Samaras – who need to stay in the heart of Europe and the euro. Tsipras has to continue negotiations. ”
The moves
Europe Yesterday the ECB, contrary to the rumors circulating in the day, decided to keep the extra cash allocated to institutions Hellenic . But the Council said it was ready to reconsider its decision. “We continue to work closely with the Bank of Greece and strongly support the efforts of Member States to take action to address the fragility of the economies of the euro area”, he explained the president of the ECB, Mario Dragons , in a statement released by the Institute of Frankfurt at the end of the Board of Governors.
comes from the markets of Asia and Oceania the first reaction of the euro to the breakdown of negotiations between Greece and its creditors. The single currency, immediately after the start of trading in our prime time, has sold nearly 2 cents against the dollar, falling to around 1.0985 from 1.1165 on Friday. The euro also gives against the Swiss franc, a traditional safe haven in times of uncertainty, at an altitude of 1.0251, the lowest level since April.
The default greek remains a specter likely. The only certainty now is that the referendum will be asked by Tsipras. Saturday night the Parliament approved the convening of a referendum called by the government for July 5, that next Sunday , when Greek citizens will then be asked to choose whether to accept or reject the conditions imposed by international creditors the debt agreement. In the courtroom, where they sit 300 deputies, the yes in the referendum had the support not only of the two ruling parties, namely Syriza (left) and Independent Greeks (right) but also the far-right party Golden Dawn. After a debate of more than 14 hours, the vote ended with 178 yes, 129 no and no abstention.
The referendum will also open a political issue within Greece: among the options put forward more and more frequently is that the government Tsipras will resign in case of a vote in favor of the rescue in the referendum. Many Greeks are divided between the fears of economic collapse and the challenge to the demands of international creditors but, according to some polls published today on Greek newspapers, the majority would vote in favor of the bailout conditions. In particular, the 57% in favor of accepting the latest offer of creditors, while 29% are opposed.
The debate took place in Parliament greek own while the Eurogroup meeting in Brussels decided not to grant the extension of Greece bailout later than 30 June, which had been requested by Tsipras to allow citizens to vote without pressures. Basically the bailout program for Greece and consequently aid, without the agreement, will stop on June 30. The agreement with the creditors was required to release the last tranche of rescue aid from 7.2 billion , which would allow Athens to repay the IMF for a loan of 1.6 billion euro that must be returned by June 30 and avoid default.
Eurogroup on Saturday has consumed the rift with the Minister of Finance Yanis Varoufakis, who did not attend the second part of the meeting. The final communication after the meeting was in fact issued without Varoufakis and finance ministers of the euro area have accused Athens of having broken the negotiations unilaterally. “It’s a sad day for Europe,” said Varoufakis left the headquarters of the European Council.
“I’m sure that the greek people will rise up in front of these historical circumstances and say a resounding” no “ultimatum”, said the Prime Minister Alexis Tsipras before the vote in Parliament. The announcement shocked the referendum had come from Tsipras on Friday evening, after the last round of talks with creditors had not yielded the expected results. The proposed agreement by the institutions, according to Tsipras, is an offer “barbaric and humiliating.” The government does not accept the conditions, but decided to choose will be the citizens: Tsipras asked the Greeks to rule for no, but at the same time promised that leaves the door open to an agreement.
At this point, without an extension of the Save and without any compromise, Greece runs the risk of default. Yesterday long queues have formed at the ATM to withdraw money while today there are no signs of panic in the streets of Athens. In telephone contacts had yesterday with European leaders, according to Greek sources Tsipras has said that Greece will survive regardless of the decisions of the partners.
The offer creditors require Athens to cut pensions and increase taxes in a way that according to Tsipras would aggravate the already serious economic crisis in the country, where about a quarter of the the working population is unemployed.
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