Global Security Studies Practicum

06 December 2011 (ATHENS, Greece) – The interim Greek government passed a series of unpopular tax hikes and spending cuts to complete its 2012 budget. The package is a signal that Greece is attempting to sort out its finances. Prime Minister Lucas Papademos believes the budget will create the conditions necessary for recovery. Conservative leader Antonis Samaras , however, vows to ease the tax burden if elected prime minister in February. The New Democracy party lost control in 2008. If Antonis Samaras comes to power in 2012, he will likely lead a coalition government. New Democracy is unlikely to have a majority in parliament. Comment – The economic turmoil in Greece is far from over. No political party is currently in position to have a clear majority in the government. This is likely to cause many debates and political maneuvering. If Greece is to continue receiving aid from the European Union, it will have to hit budget benchmarks. So far it has been unable to do so. ...

29 November 2011 ( ATHENS , Greece ) – George Provopoulos , Greece ’s central bank governor stated that deposits in banks had shrunk over the past two months. Outflows from the banks were €5.5bn in September and €6.5bn in October. Analysts speculate that political uncertainty surrounding former Prime Minister George Papandreou’s government was the cause. After the new government under Lucas Papademos took charge, the outflows stopped. Money has not yet begun to return though the trend has changed. Foreign banks with branches in Greece and larger Greek banks were the primary destinations of the deposits. Comment – Eurozone ministers delivered the €8bn that Greece needed while the country continues to restructure its finances. The loan has temporarily eased the monetary burden of the country. The bigger issue now is how to save the Eurozone itself. The single-currency area seems unlikely to survive as it presently exists. The increasing financial burden of struggling ...

Antonis Samaras, Leader of New Democracy 23 November 2011 (ATHENS, Greece) – Antonis Samaras , the leader of the New Democracy party, has refused to put his commitment to austerity measures in writing. European leaders have requested the new Greek government reaffirm their commitment to the agreed upon plan in writing. Samaras stated that his verbal agreement is enough of a commitment. It is likely that Samaras is attempting to distance himself from the unpopular cuts. Greece is set to run out of money in 20 days and begin defaulting on €2.8 billion in bond payments. The government will be unable to pay salaries and pensions without the delivery of the next loan tranche. Comment – The majority party, PASOK , has been losing support from the public since the beginning of the financial crisis. The agreement in place with the troika , for Greece’s bailout funds, is unpopular but necessary. There is not enough time to come up with an alternative solution before Greece runs ...

11 November 2011 Lucas Papademos (ATHENS, Greece) -- Former European Central Bank vice-president, Lucas Papademos , will lead a coalition government in an attempt to secure the nation’s economy. The government will attempt to push through reforms to avoid a default in December. Papademos’s term is likely to only last until February when new elections are expected. He will likely have to balance demands of the leading political parties including the conservatives who wish to cut taxes to rebuild the economy. Many European heads of state have expressed their congratulations to Papademos. They have also stated they hope the new government is able to approve the bailout package to ensure the country stays in the Eurozone . Comment – On 17 November, the next loan tranche for Greece is due to be released. Instead of having one party in control with opposition, there is now a coalition government that must please several interests. To secure the funds, Greece would have to...

Antonis Samara leads New Democracy     08 November 2011 (ATHENS) -- Greek officials will announce the make-up of the interim government on Wednesday. Prime Minister George Papandreou and Antonis Samaras have been in negotiations since Monday. Samaras is the leader of New Democracy , the largest opposition party. The following names could be possible candidates to lead the new government: Lucas Papademos, a former vice-president of the European Central Bank, Nikiforos Diamandouros, Greece's European ombudsman , and Panagiotis Roumeliotis, Greece's representative to the International Monetary Fund. Greece is set to run out of money within weeks. Jean-Claude Juncker, the Eurozone chief, wants the leaders of the two main parties in Greece to sign an agreement committing to the previously agreed upon reforms. Comment – Turbulence within the government has been apparent. The second loan tranche continues to be the source of much debate. Some members of the ruling pa...

01 November 2011 ( ATHENS , GREECE ) -- Greek Prime Minister George Papandreou announced that he would put Greek’s bailout through a referendum. The referendum will allow Greek citizens to vote on whether the bailout will proceed. Papandreou’s announcement has caused members of his party to resign and call for a vote of confidence. The vote will start on Tuesday and end this week. If Papandreou remains in power, the referendum will likely go through. Citizens of Greece have been against the austerity measures required to secure bailout funds from the troika . A recent poll suggested that 59% of Greeks thought the new package would have a negative effect on their country. Among the reasons for voting against the bailout are cuts to pensions, cuts to the public workforce, and increased taxes. Comment – This is not the first time Papandreou has faced a confidence vote. He faced one in June and got through by a narrow margin. If the Prime Minister continues to lose support ...

Vasso Papandreou has vowed to vote against future austerity measures. 20 October 2011 The Greek Parliament approved austerity measures that will very likely ensure they receive an €8billion loan tranche from the European Union and International Monetary Fund . The bill was approved 154 to 144. The narrow margin reflects the predicament of the Greek government. Lenders are demanding cuts to the country’s budget and the public is resisting. Members of the ruling party, PASOK , are also beginning to resist new measures. Vasso Papandreou said, “I will vote in favor, but this is the last time -- I am struggling with my conscience.” The measures passed as workers continue to strike, shutting down many facilities. Reuters reports that unions vow continued stoppages. Banks, schools, and government buildings closed on Thursday. Hospitals ran on limited staff. Comment – Over 100,000 protesters took to the streets on Wednesday in Athens to oppose the new government measures...

Strikes in Athens have prevented public services such as waste removal from functioning . 18 October 2011 ATHENS, GREECE – Unions representing approximately half of the 4 million people in the Greek workforce will strike Wednesday and Thursday to protest a new package of austerity measures. Parliament is likely to pass the measures this week. PrimeMinister George Papandreou has stated the package must pass to allow Greece to emerge from the financial crisis. Two PASOK deputies will very likely vote against the package, but it is still likely to pass. The new strikes are in addition to several independent ongoing strikes. The strike will almost certainly prevent normal business operations in Athens for 48 hours. Comment -- The bill includes tax hikes, wage cuts, public sector layoffs and changes to collective bargaining rules. It is likely to be passed Wednesday or Thursday. Greece's public debt is currently 162 percent of the country's GDP . Source: ...

State Workers Strike in Athens 11 October 2011 ATHENS ,  GREECE  – Beginning today, Greek petroleum workers will strike indefinitely. The strike is in response to the government’s plan to cut the workforce and reduce wages. The Panhellenic Federation of Employees in Petroleum Products and Refineries stated it would strike for as long as necessary. The union believes the government wants to dissolve unions. The petroleum union joins other unions on strike as a response to budget measures. Comment –  The union responses are a result of austerity measures undertaken by the Greek government. The government must cut state spending to secure the next loan tranche from the EU, International Monetary Fund and European Central Bank ( troika ). Inspectors from the troika recently finished examining the Greek books. Troika representatives expect the November loan payment to occur, but has not been officially announced.  Greece  is already having trouble r...

Greek Prime Minister George Papandreou 2 October 2011 ATHENS, GREECE – Forecasts predict Greece will miss deficit targets for 2011. Inspectors from the International Monetary Fund , EU and European Central Bank ( troika ) are examining the country’s books. The troika is deciding whether to approve another needed loan installment. Without the money, Greece could run out of cash within a month. The shortfall means that tax hikes and wage cuts have not been enough to ease the country’s financial problems. The inspectors are likely to approve the next loan installment. The troika’s forecasts for 2012-2014 could mean deeper losses for banks holding Greek debt. Those banks have already written off 21 percent of the value of debt they hold. Source: Greece to miss deficit targets despite austerity http://www.reuters.com/article/2011/10/03/us-greece-idUSTRE7900SU20111003 Reliability: 9

Turkey and its neighbors are in a fierce tussle about who owns the right to drill for newly discovered natural gas in the Eastern Mediterranean sea bed. Both Turkey and Cyprus lay claim to the offshore zone believed to hold about a trillion cubic meters of hydrocarbons. The natural gas is estimated to be worth over several billions of dollars and whoever comes out on top will control the energy future of Europe. The row flared-up when Cyprus allowed a U.S company to start drilling off its southern shores last month and Turkey retaliated by sending a seismic vessel to the same area accompanied by gun boats. Israel which is conducting drills in the area sent fighter jets to buzz the Turkish vessels and Turkey retaliated by scrambling its own fighter jets. Turkish premier Recep Tayyip Erdogan has characterized the Israeli and Cyprus drilling as “madness” and denounced their activities in the area.  Turkish troops invaded Cyprus in 1974 to quell a coup orchestrated by Greece. T...