Juncker Says Euro Overvalued, As G-Pap Willing To Consider Referendum On Bailout Measures
Tyler Durden's picture
Submitted by Tyler Durden on 06/06/2011 15:14 -0400

It appears Jean-Claude Jun(c)ker has been sniffing hallucinogenic Spanish cucumbers again:

* JUNCKER SAYS EURO OVERVALUED VS OTHER MAJOR CURRENCIES
* JUNCKER SAYS EURO AREA SHOULD HAVE EXCHANGE-RATE POLICY

The tautological question of whether he is lying we leave to the logicians. What is apparent is that Europe is finally getting pissed they are dead last in the FX race to the bottom. Cue Tim Geithner's strong dollar policy.

And in far more important news, Greece's G-Pap says that he is willing to consider a referendum on the Greek bailout measures. If so, it's goodbye EUR: a referendum has a snowball's chance in a Comcast business channel in passing.

Greek PM hints at referendum over austerity plans

Dimitri Messinis / AP
The Associated Press
updated 24 minutes ago 2011-06-06T19:510


ATHENS, Greece — Greece's prime minister says he will consider holding a referendum on austerity measures essential for the country to continue drawing on funds from an international bailout.

"I am prepared, for the great changes that we are putting forward, to use even the institution of a referendum, for the broadest possible consent or opinion," George Papandreou told his ministers during a marathon informal Cabinet meeting Monday that ran for more than seven hours.

Papandreou has been trying to quell dissent within his own governing Socialists as well as widespread anger among Greeks furious that a year's worth of the measures have failed to produce the expected results. Frustration increased as it became apparent that the government has to impose yet more spending cuts and tax hikes.

In statements delivered during the meeting and released by his office, Papandreou said he had called on the Interior Minister to set up the necessary legislative conditions that would allow such a move "when it is needed."

The new plans — remedial measures this year and a package through 2015 — are required if Greece is to continue receiving money from last year's euro110 billion ($160.56 billion) package of rescue loans from the International Monetary Fund and other countries that use the euro. The government is also pushing through an ambitious euro50 billion privatization drive.

Greece looks like it will also need more money to cover a funding gap next year and prevent the country from defaulting on its debts.

Last week, debt monitors from the EU and IMF said Greece should receive the next euro12 billion installment of the bailout in early July — as long as additional austerity and privatization measures are deemed sufficient. A final decision is to be taken by the IMF board and the eurogroup in meetings later this month.

But Papandreou, whose PASOK party has a majority of six seats in the 300-member Parliament, faced a potential rebellion from within the Socialists.

Last week, 16 PASOK deputies signed a letter demanding an extensive debate on the measures before they are ratified, with one of the signatories threatening during an interview on state television not to vote for the reforms otherwise.

A government official with knowledge of the discussions during Monday's meeting said the government would have to listen to the dissenting views. However, he said Greece's European partners want to see "steady action at a fast pace."

He spoke on condition of anonymity to reveal details of Monday's discussions.

Iniciado por Pedro Solves

Ya saben cual será la respuesta del pueblo:

Iniciado por carlosjpc

¿y después que?

Iniciado por carlosjpc

¿y después que?