Work programme ‘to miss targets’













Government figures assessing the success of its welfare-to-work programme are expected to show a crucial target has been missed.












Firms and charities are paid to help find jobs for the long-term unemployed in the hope of helping 2.4m people.


But the first set of official figures, due out at shortly, are expected to show they are getting less than 5% of jobseekers into “sustainable” work.


Ministers argue the programme will help cut welfare payments and change lives.


But critics say only those in already economically successful areas will benefit.


The figures will show how many people are still in employment six months after joining the Work Programme, which was launched by the coalition in June last year.


BBC political editor Nick Robinson says the figures are expected to show that only around 3% of jobseekers meet this criteria.


Continue reading the main story

The work programme was part of what ministers called a revolution in welfare ”



End Quote



And failing to hit the 5% target will mean “as many unemployed are getting sustainable jobs as if the work programme had never existed”, he said.


He added that the government will not accept the scheme is a failure and will claim the work programme is taking longer than expected to succeed and the next set of figures will be better.


Under the scheme – replacing the New Deal, Employment Zones and Pathways to Work – approved providers in England, Scotland and Wales, mostly private companies, try to find work for claimants on a payment-by-results basis.


‘Still early days’


People aged over 25 become eligible when they have been out of work for a year and under-25s after nine months. Some younger people in certain circumstances, like young offenders, are eligible after a shorter period of time.


Ahead of the release of the government’s figures, the Employment Related Services Association, the trade body for the welfare-to-work industry, said 20,000 jobseekers were being helped each month. More than 200,000 have found employment since the scheme’s launch, it added.


But these figures do not show how many have remained in a job for six months after being helped off long-term unemployment, unlike the official ONS figures.


Employment minister Mark Hoban said: “The Work Programme has already helped more than 200,000 of the hardest-to-help unemployed people into jobs. This is great news.


He added: “It’s still early days, but it’s a welcome sign that one year in providers are getting more and more people into sustained jobs.”


The Centre for Economic and Social Inclusion think-tank predicted that the official data would show performance targets missed as a result of the poor state of the UK’s economy.


Under the programme, providers can earn between £3,700 and £13,700 per person helped into work, depending how hard it is to give support to an individual, with an initial payment of between £400 and £600.


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UN climate talks open in Qatar












DOHA, Qatar (AP) — U.N. talks on a new climate pact resumed Monday in oil and gas-rich Qatar, where negotiators from nearly 200 countries will discuss fighting global warming and helping poor nations adapt to it.


The two-decade-old talks have not fulfilled their main purpose: reducing the greenhouse gas emissions that scientists say are warming the planet.












Attempts to create a new climate treaty failed in Copenhagen three years ago but countries agreed last year to try again, giving themselves a deadline of 2015 to adopt a new treaty.


A host of issues need to be resolved by then, including how to spread the burden of emissions cuts between rich and poor countries. That’s unlikely to be decided in the Qatari capital of Doha, where negotiators will focus on extending the Kyoto Protocol, an emissions deal for industrialized countries, and trying to raise billions of dollars to help developing countries adapt to a shifting climate.


“We all realize why we are here, why we keep coming back year and after year,” said South Africa Foreign Minister Maite Nkoana-Mashabane, who led last year’s talks in Durban, South Africa. “We owe it to our people, the global citizenry. We owe it to our children to give them a safer future than what they are currently facing.”


The U.N. process is often criticized, even ridiculed, both by climate activists who say the talks are too slow, and by those who challenge the scientific near-consensus that the global temperature rise is at least partly caused by human activity, primarily the burning of fossil fuels like coal and oil.


The concentration of greenhouse gases such as carbon dioxide has jumped 20 percent since 2000, according to a U.N. report released last week.


A recent projection by the World Bank showed temperatures are on track to increase by up to 4 degrees C (7.2 F) this century, compared with pre-industrial times, overshooting the 2-degree target that has been the goal of the U.N. talks.


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Betfair pulls out of Greece over permits row












LONDON (Reuters) – Online gambling exchange Betfair said it would withdraw from the Greek market until there was greater clarity on gaming regulation in the country.


Betfair, which has not yet applied for a permit to operate in Greece, questioned the cost and conditions attached to permits required by gaming firms to trade in the country.












“According to legal advice received, the value of these permits is unclear and we consider the gambling legislation in the country to be inconsistent with European law,” Betfair said on Monday.


“The associated fiscal conditions attached to these permits, which may include payment of taxes on historical revenues, make the market economically unattractive.”


Earlier this month the Greek Gaming Commission said gambling firms operating in Greece without a permit would face financial penalties and criminal sanctions.


Betfair said it believes there are “significant issues with the legality of this decision” by the Greek Gaming Commission.


It added that it was disappointed the European Commission had not moved to prevent what Betfair calls “protectionist behavior.”


Earlier this month Betfair, which launched 12 years ago and operates an exchange system that allows gamblers to bet against each other rather than the bookmaker, withdrew its online sports betting exchange in Germany because of a tax levied on stakes on sports events from July 2012.


The European Commission last month said it was not proposing EU-wide legislation to regulate online gambling.


Prior to Betfair’s decision to withdraw from the market, it had been expected to generate 13 million pounds ($ 20.81 million) of revenue from the Greek market in the current financial year.


($ 1 = 0.6246 British pounds)


(Reporting by Rhys Jones; editing by James Davey)


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Dog bite sidelines ‘Dirty Dozen’ trumpeter Towns












NEW ORLEANS (AP) — Dirty Dozen Brass Band trumpeter Efrem Towns is recovering at home in New Orleans from a vicious attack by a Rottweiler at an Atlanta motel.


He missed performances in Colorado and New Orleans after the attack on Nov. 18, and doesn’t know if he’ll make the band’s next scheduled gig on Dec. 28, The Times-Picayune (http://bit.ly/XOJoNr) reported.












He and baritone sax player Roger Lewis said the dog surged from an open motel room door after Towns knocked on the door of Lewis’ room.


“I didn’t know if it was a dog, wolverine, bear, mongoose or what. I just knew something had me,” Towns said.


He said the dog‘s owner came out of the next room, and they were able to subdue it.


At Atlanta’s Grady Hospital, he received 30 stitches in his groin. Towns, who has health insurance through his wife, Tracie, said he will be seeing a urologist this week.


The Dirty Dozen Brass Band formed in 1977, and is credited with creating the contemporary, funk-infused brass band sound. It’s been featured on albums with David Bowie, Elvis Costello and the Black Crowes.


Towns said he probably could practice while convalescing. “But I’m very uncomfortable right now,” he said Friday evening. “I’m basically immobilized — it’s hard getting around. I’m kind of miserable.”


The experience hasn’t soured Towns on dogs. He and his wife own three miniature schnauzers, a standard schnauzer and a mixed breed. On Friday, his daughter’s dachshund was visiting.


“I’m a dog person,” he said. “And even though I got bit, I hope they don’t put that dog to sleep.”


___


Information from: The Times-Picayune, http://www.nola.com


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Body of Turkish ex-leader shows signs of poisoning: paper












ISTANBUL (Reuters) – An autopsy on the exhumed body late President Turgut Ozal, who led Turkey out of military rule in the 1980s, has revealed evidence of poisoning, a newspaper reported on Monday.


There had long been rumors Ozal, who died of heart failure in 1993 aged 65, was murdered by militants of the “deep state” – a shadowy nationalist strain within the Turkish establishment of the day. He had angered some with his efforts to end the Kurdish conflict and survived on assassination bid in 1988.












His body, dug up last month on the orders of prosecutors investigating suspicions of foul play in his death, contained the banned insecticide DDT and the related compound DDE at ten times the normal level, Today’s Zaman cited sources from the state Forensic Medicine Institute (ATK) as saying.


“Ozal was most likely poisoned with four separate substances,” the paper reported the sources as saying, also naming the toxic metal cadmium and the radioactive elements americium and polonium as substances found in Ozal’s remains.


Forensic institute officials declined to comment.


Ozal, whose economic reforms easing the grip of the state on business helped shape modern Turkey, was in poor health. After undergoing a triple heart bypass operation in the United States in 1987, he kept up a grueling schedule and remained overweight until he died.


His moves to end a Kurdish insurgency and create a Turkic union with central Asian states have been cited as motives for would-be enemies in “deep state“, in which security establishment figures and criminal elements colluded.


It was Turkey’s military leaders who appointed him as a minister after a period of military rule following a 1980 coup.


He went on to dominate Turkish politics as prime minister from 1983 to 1989. Parliament then elected him president, but those close to him believe his reform efforts displeased some in the security establishment.


While prime minister, Ozal survived an assassination attempt by a right-wing gunman in 1988 when he was shot at a party congress, injuring a finger.


Turkish political history has been littered with military coups, alleged anti-government plots and extra-judicial killings. A court is currently trying hundreds of people suspected of links to a nationalist underground network known as “Ergenekon” accused of plotting to overthrow the government.


A media report at the start of November said Ozal’s autopsy had revealed high levels of the pesticide strychnine, but the ATK subsequently denied the report.


The head of the ATK has said the institute aims to complete its work in December and that its report would be handed over to prosecutors.


(Reporting by Seda Sezer; Writing by Daren Butler; Editing by Nick Tattersall)


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UBS fined £29.7m for Adoboli case













The Financial Services Authority (FSA) has fined UBS £29.7m ($ 47.6m) for failings that led to trader Kweku Adoboli losing £1.4bn.












The fine, the third largest imposed by the FSA, was for “system and control failings” that allowed him to trade in London well beyond authorised limits.


The trader was last week convicted of two counts of fraud and sentenced to seven years in prison.


UBS said it was “pleased that the chapter has been concluded”.


The FSA, which conducted the investigation into failings at the bank with its Swiss counterpart, Finma, said there were serious weaknesses at the Swiss bank.


It said in a statement: “UBS failed to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems, and failed to conduct its business from the London Branch with due skill, care and diligence.”


The FSA’s director of enforcement and financial crime, Tracey McDermott, said faulty controls had allowed the losses to mount to what was the largest trading loss in the country.


“UBS’s systems and controls were seriously defective,” she said.


“As a result, Adoboli, a relatively junior trader, was allowed to take vast and risky market positions, and UBS failed to manage the risks around that properly.”


‘Gambler’


Adoboli, the 32-year-old Ghana-born son of a diplomat, joined UBS in 2003, becoming a trader in 2006.


He worked in UBS’s global synthetic equities division (GSE), buying and selling exchange traded funds (ETFs), which track stocks, bonds and commodities.


He was arrested in September last year.


Southwark Crown Court was told that he was “a gamble or two away from destroying Switzerland’s largest bank”.


The judge said there was “a strong streak of the gambler” in him.


But, during evidence, Adoboli said everything he had done was aimed at benefiting the bank, where he viewed his colleagues as “family”.


He said he had “lost control in the maelstrom of the financial crisis”, but had been doing well until he changed from a conservative “bearish” position to an aggressive “bullish” stance under pressure from senior managers.


He told the jury that staff were encouraged to take risks until they got “a slap on the back of the wrist”.


The fine was set at 15% of the revenue of the division where Adoboli worked and takes account of the revenue generated by the business area where the weak controls occurred.


‘Serious deficiencies’


UBS said it had made a number of substantial changes since discovering the losses, including fixing the weakness in its financial reporting.


The bank added it was retraining staff on the importance of risk management and had changed the way it evaluated and compensated employees.


UBS is changing its own structure to make itself a simpler organisation.


The bank’s chief executive, Oswald Gruebel, left the company in the aftermath of the scandal.


His successor, Sergio Ermotti, announced a major restructuring last month to run down the large, risky parts of the investment banking division.


UBS said it had fully co-operated with the regulators’ investigations and that it accepted their findings and the penalties incurred.


UBS’s fine was discounted from the original level of £42.4m for early settlement.


Switzerland’s financial regulator Finma said in a statement that it would also check whether UBS had adequate capital backing for its operational risks.


Finma said it had identified “serious deficiencies in risk management controls” and that it would appoint a third party to make sure proper measures were introduced.


UBS has been banned by regulators from making new acquisitions and it also needs to get prior approval from Finma for any new business initiatives.


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Egypt’s Mursi faces judicial revolt over decree












CAIRO (Reuters) – Egyptian President Mohamed Mursi faced a rebellion from judges who accused him on Saturday of expanding his powers at their expense, deepening a crisis that has triggered violence in the street and exposed the country’s deep divisions.


The Judges’ Club, a body representing judges across Egypt, called for a strike during a meeting interrupted with chants demanding the “downfall of the regime” – the rallying cry in the uprising that toppled Hosni Mubarak last year.












Mursi’s political opponents and supporters, representing the divide between newly empowered Islamists and their critics, called for rival demonstrations on Tuesday over a decree that has triggered concern in the West.


Issued late on Thursday, it marks an effort by Mursi to consolidate his influence after he successfully sidelined Mubarak-era generals in August. The decree defends from judicial review decisions taken by Mursi until a new parliament is elected in a vote expected early next year.


It also shields the Islamist-dominated assembly writing Egypt’s new constitution from a raft of legal challenges that have threatened the body with dissolution, and offers the same protection to the Islamist-controlled upper house of parliament.


Egypt’s highest judicial authority, the Supreme Judicial Council, said the decree was an “unprecedented attack” on the independence of the judiciary. The Judges’ Club, meeting in Cairo, called on Mursi to rescind it.


That demand was echoed by prominent opposition leader Mohamed ElBaradei. “There is no room for dialogue when a dictator imposes the most oppressive, abhorrent measures and then says ‘let us split the difference’,” he said.


“I am waiting to see, I hope soon, a very strong statement of condemnation by the U.S., by Europe and by everybody who really cares about human dignity,” he said in an interview with Reuters and the Associated Press.


More than 300 people were injured on Friday as protests against the decree turned violent. There were attacks on at least three offices belonging to the Muslim Brotherhood, the movement that propelled Mursi to power.


POLARISATION


Liberal, leftist and socialist parties called a big protest for Tuesday to force Mursi to row back on a move they say has exposed the autocratic impulses of a man once jailed by Mubarak.


In a sign of the polarization in the country, the Muslim Brotherhood called its own protests that day to support the president’s decree.


Mursi also assigned himself new authority to sack the prosecutor general, who was appointed during the Mubarak era, and appoint a new one. The dismissed prosecutor general, Abdel Maguid Mahmoud, was given a hero’s welcome at the Judges’ Club.


In open defiance of Mursi, Ahmed al-Zind, head of the club, introduced Mahmoud by his old title.


The Mursi administration has defended the decree on the grounds that it aims to speed up a protracted transition from Mubarak’s rule to a new system of democratic government.


Analysts say it reflects the Brotherhood’s suspicion towards sections of a judiciary unreformed from Mubarak’s days.


“It aims to sideline Mursi’s enemies in the judiciary and ultimately to impose and head off any legal challenges to the constitution,” said Elijah Zarwan, a fellow with The European Council on Foreign Relations.


“We are in a situation now where both sides are escalating and its getting harder and harder to see how either side can gracefully climb down.”


ADVISOR TO MURSI QUITS


Following a day of violence in Cairo, Alexandria, Port Said and Suez, the smell of tear gas hung over the capital’s Tahrir Square, the epicentre of the uprising that toppled Mubarak in 2011 and the stage for more protests on Friday.


Youths clashed sporadically with police near the square, where activists camped out for a second day on Saturday, setting up makeshift barricades to keep out traffic.


Al-Masry Al-Youm, one of Egypt’s most widely read dailies, hailed Friday’s protest as “The November 23 Intifada”, invoking the Arabic word for uprising.


But the ultra-orthodox Salafi Islamist groups that have been pushing for tighter application of Islamic law in the new constitution have rallied behind Mursi’s decree.


The Nour Party, one such group, stated its support for the Mursi decree. Al-Gama’a al-Islamiya, which carried arms against the state in the 1990s, said it would save the revolution from what it described as remnants of the Mubarak regime.


Samir Morkos, a Christian assistant to Mursi, had told the president he wanted to resign, said Yasser Ali, Mursi’s spokesman. Speaking to the London-based Asharq Al-Awsat newspaper, Morkos said: “I refuse to continue in the shadow of republican decisions that obstruct the democratic transition”.


Mursi’s decree has been criticized by Western states that earlier this week were full of praise for his role in mediating an end to the eight-day war between Israel and Palestinians.


“The decisions and declarations announced on November 22 raise concerns for many Egyptians and for the international community,” State Department spokeswoman Victoria Nuland said.


The European Union urged Mursi to respect the democratic process.


(Additional reporting by Omar Fahmy, Marwa Awad, Edmund Blair and Shaimaa Fayed and Reuters TV; Editing by Jon Hemming)


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‘Gangnam Style’ most watched YouTube video ever












SEOUL, South Korea (AP) — South Korean rapper PSY‘s “Gangnam Style” has become YouTube’s most viewed video of all time.


YouTube says in a posting on its Trends blog that “Gangnam Style” had been viewed 805 million times as of Saturday afternoon, surpassing Justin Bieber‘s “Baby,” which has had 803 million views.












The blog says the “velocity of popularity for PSY’s outlandish video is unprecedented.”


PSY’s video featuring his horse-riding dance was posted on YouTube in July, while “Baby” was uploaded in February 2010.


PSY’s video has become a global sensation, with many people around the world mimicking his “Gangnam Style” dance. In their October meeting, U.N. Secretary-General Ban Ki-moon, a South Korean, joked that he had to relinquish his title as “the most famous Korean,” and tried a few of PSY’s dance moves.


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Europe mulls banning ‘boxes’ for abandoned babies












BERLIN (AP) — German pastor Gabriele Stangl says she will never forget the harrowing confession she heard in 1999. A woman said she had been brutally raped, got pregnant and had a baby. Then she killed it and buried it in the woods near Berlin.


Stangl wanted to do something to help women in such desperate situations. So the following year, she convinced Berlin’s Waldfriede Hospital to create the city’s first so-called “baby box.” The box is actually a warm incubator that can be opened from an outside wall of a hospital where a desperate parent can anonymously leave an unwanted infant.












A small flap opens into the box, equipped with a motion detector. An alarm goes off in the hospital to alert staff two minutes after a baby is left.


“The mother has enough time to leave without anyone seeing her,” Stangl said. “The important thing is that her baby is now in a safe place.”


Baby boxes are a revival of the medieval “foundling wheels,” where unwanted infants were left in revolving church doors. In recent years, there has been an increase in these contraptions — also called hatches, windows or slots in some countries — and at least 11 European nations now have them, according to United Nations figures. They are technically illegal, but mostly operate in a gray zone as authorities turn a blind eye.


But they have drawn the attention of human rights advocates who think they are bad for the children and merely avoid dealing with the problems that lead to child abandonment. At a meeting last month, the United Nations Committee on the Rights of the Child said baby boxes should be banned and is pushing that agenda to the European Parliament.


There are nearly 100 baby boxes in Germany. Poland and the Czech Republic each have more than 40 while Italy, Lithuania, Russia and Slovakia have about 10 each. There are two in Switzerland, one in Belgium and one being planned in the Netherlands.


In the last decade, hundreds of babies have been abandoned this way; it’s estimated one or two infants are typically left at each location every year, though exact figures aren’t available.


“They are a bad message for society,” said Maria Herczog, a Hungarian child psychologist on the U.N. committee. “These boxes violate children’s rights and also the rights of parents to get help from the state to raise their families,” she said.


“Instead of providing help and addressing some of the social problems and poverty behind these situations, we’re telling people they can just leave their baby and run away.”


She said the practice encourages women to have children without getting medical care. “It’s paradoxical that it’s OK for women to give up their babies by putting them in a box, but if they were to have them in a hospital and walk away, that’s a crime,” Herczog said. She said the committee is now discussing the issue with the European Parliament and is also asking countries which allow the practice to shut them down.


Herczog also said it’s wrong to assume only mothers are abandoning these children and that sometimes they may be forced into giving up children they might otherwise have kept. “We have data to show that in some cases it’s pimps, a male relative or someone who’s exploiting the woman,” she said.


In some countries — Australia, Canada and Britain — it is illegal to abandon an infant anywhere. Yet, in the U.S. there are “safe haven” laws that allow parents to anonymously give up an infant in a secure place like a hospital or police department. A handful of other countries including Japan and Slovakia have similar provisions.


Countries that support this anonymous abandonment method contend they save lives. In a letter responding to U.N. concerns, more than two dozen Czech politicians said they “strongly disagreed” with the proposed ban. “The primary aim of baby hatches, which (have) already saved hundreds of newborns, is to protect their right to life and protect their human rights,” the letter said.


However, limited academic surveys suggest this hasn’t reduced the murder of infants. There are about 30 to 60 infanticides in Germany every year, a number that has been relatively unchanged for years, even after the arrival of baby boxes. That’s similar to the per capita rate in Britain where there is no such option.


Across Germany, there is considerable public support for the boxes, particularly after several high-profile cases of infanticide, including the grisly discovery several years ago of the decomposed remains of nine infants stuffed into flower pots in Brandenburg.


Officials at several facilities with baby boxes say biological parents sometimes name the infant being abandoned. “The girl is called Sarah,” read one note left with a baby in Lubeck, Germany in 2003. “I have many problems and a life with Sarah is just not possible,” the letter said.


The secretive nature also means few restrictions on who gets dropped off, even though the boxes are intended for newborns. Friederike Garbe, who oversees a baby box in Lubeck, found two young boys crying there last November. “One was about four months old and his brother was already sitting up,” she said. The older boy was about 15 months old and could say “Mama.”


Still, Germany’s health ministry is considering other options. “We want to replace the necessity for the baby boxes by implementing a rule to allow women to give birth anonymously that will allow them to give up the child for adoption,” said Christopher Steegmans, a ministry spokesman.


Austria, France, and Italy allow women to give birth anonymously and leave the baby in the hospital to be adopted. Germany and Britain sometimes allow this under certain circumstances even though it is technically illegal. Eleven other nations grant women a “concealed delivery” that hides their identities when they give birth to their babies, who are then given up for adoption. But the women are supposed to leave their name and contact information for official records that may be given one day to the children if they request it after age 18.


For German couple Andy and Astrid, an abandoned infant in a baby box near the city of Fulda ended their two-year wait to adopt a child nearly a decade ago.


“We were told about him on a Sunday and then visited him the next day in the hospital,” said Astrid, a 37-year-old teacher, who along with her husband, agreed to talk with The Associated Press if their last names were not used to protect the identity of their child. The couple quietly snapped a few photos of the baby boy they later named Jan. He weighed just over 7 pounds when he was placed in the baby box, wrapped in two small towels.


When Jan started asking questions about where he came from around age 2, his parents explained another woman had given birth to him. They showed him the photos taken at the hospital, introduced him to the nurses there and showed him the baby box where he had been left.


Earlier this year, the couple began the procedure to adopt a second child, a boy whose mother gave birth anonymously so she could give him up for adoption.


Astrid said Jan, now 8, loves football, tractors and anything to do with the farming that he sees daily in their rural community. She said it’s not so important for her and her husband to know who his biological parents are.


But for Jan, “it would be nice to know that he could meet them if he wanted to,” she said. “I want that for him, but there is no possibility to find out who they were.”


____


Medical writer Maria Cheng reported from London.


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Greece Waits for the Next Check From Europe












Given the way the euro crisis has played out during the past three years, it was no great surprise that euro-zone finance ministers were not able to agree in the early hours of Wednesday morning on a formula to reduce Greece’s unwieldy public debt. That is of little comfort, though, for an increasingly anxious Greek government that faces further financial and political pressure as a result of the latest delay.


Despite about 11 hours of talks, starting on Tuesday and ending at around dawn on Wednesday, the 17 ministers and International Monetary Fund managing director Christine Lagarde were not able to bridge differences on how to bring Greece’s debt down from a projected 189 percent of gross domestic product next year to 120 percent by 2020. In fact, there was no indication that the two sides had even agreed on the deadline, as the euro zone had been pushing for 2022 to be used as the watershed.












Greek Prime Minister Antonis Samaras, who has invested in efforts to rebuild trust with Greece’s lenders by adopting the austerity measures and structural reforms they have demanded, could hardly hide his frustration at the fact that the euro group had failed for a second time in eight days to reach a conclusion and would be meeting again on Monday.


“Greece did what it had to and what it had committed to,” said Samaras in an unusually terse statement. “Our partners, along with the IMF, have a duty to carry out their commitments.”


The new delay means Greece has yet to receive approval for the disbursement of as much as €44 billion ($ 56 million) from its bailout package, which it is expecting to receive by next month. The largest chunk of this, €31.5 billion, was due to be released in the summer, but lenders held off as Greece went through two tumultuous national elections. The bulk of that tranche, about €25 billion, is needed to complete the recapitalization of the country’s faltering banks. Some of the remaining money is intended to go toward paying €8 billion in arrears that the cash-strapped government owes to suppliers, social security funds, hospitals, pharmaceutical companies, and other organizations.


The longer Greece goes without this money, the more liquidity dries up and the more difficult it becomes for the state to carry out its basic functions. Earlier this month, Finance Minister Yannis Stournaras warned politicians in the European Parliament that there was a growing chance of a Greek default if Athens did not get the funding promptly. “The risk of an accident is very high,” he said.


The vicious circle in which the Greek government finds itself financially is underlined by the fact that it had to raise €5 billion through the sale of Treasury bills last week, at a yield of 3.9 percent to 4.2 percent, in a rollover of T-bills issued in August to pay a maturing bond that the European Central Bank had bought via the Securities Markets Program (SMP). The ECB had to first give permission to Athens to go beyond its T-bill limit. The paper was mostly bought by Greek banks, which are short of cash themselves.


The delay in finding a solution to Greece’s immediate liquidity problem and its longer-term debt concerns, however, are also ratcheting up the political pressure on the ruling coalition. The three-party coalition’s representation in the 300-seat Parliament fell from 177 MPs to 167 after a stormy vote this month on the latest austerity package demanded by the EU and IMF. In an effort to convince doubting lawmakers, and voters, to support the measures, Samaras had argued that approval of the package would pave the way for the release of new bailout installments and a solution regarding Greece’s debt sustainability. As long as this fails to materialize, the prime minister’s opponents will have a growing arsenal of ammunition to fire at Samaras.


“The prime minister stubbornly refuses to use the negotiating power he is being granted by the disagreement between our partners,” said Alexis Tsipras, the leader of the main, anti-austerity, opposition Syriza. “Clearly not up to the job, he is blaming the holdup on technical difficulties.”


Another Syriza MP, Dimitris Papadimoulis, claimed the coalition had been humiliated by the failure of the euro group to arrive at a decision.


Samaras and his government will now hope for an agreement between the euro zone and the IMF on Monday to avoid further political damage at home. The Greek prime minister was due in Brussels on Wednesday before an EU leaders’ summit the next day, when he will have the chance to discuss his concerns with his counterparts.


“It is not just the future of our country that depends on the successful outcome of the effort over the next few days but the stability of the whole euro zone,” Samaras warned in his statement.


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