The Uber company and two of its leaders will be judged on September 30 Correctional for the provision of their mobile UberPOP, dedicated to public obloquy by taxis for its unfair competition, announced Tuesday the Paris prosecutor.
The company Uber France, its CEO Thibaud Simphal and Director for Western Europe Uber, Pierre-Dimitri Gore-Coty, including appearing for deceptive trade practice, complicity in illegal practice of the taxi trade, illegal computer data processing.
It is their particular accused to connect customers with individuals who use their private vehicles to transport the load without paying.
“The investigations – many and complex – conducted into the framework of this survey, were conducted in parallel with the proceedings against the drivers employed by the organizing company for illegally practicing the profession of taxi (lack of parking permit on the street waiting for customers), “said the prosecutor in a statement.
As of June 30, 202 of these drivers have been sentenced to fines, another was sentenced to 15 days suspended sentence and 79 procedures are being processed.
“These proceedings against the drivers have helped support the investigation opened against the Company Uber France,” continued the prosecutor.
Simphal Thibaud and Pierre-Dimitri Gore-Coty, had been placed in custody Monday morning as part of a preliminary inquiry in November 2014, before mobilization taxis against undeclared work in sector.
The type of relationship made up possible applications such UberPOP include in particular by Thévenoud Act of 1 October 2014 which strengthened the sanctions.
In March the Paris headquarters Uber France had been searched. Documentation, mobile phones and computers were seized.
On the cover personal data, it is accused in particular the conditions for collecting and maintaining this customer data, possibly in violation of the Data Protection Act 1978.
Uber disputes for months Thévenoud the law which governs the activity of transport vehicles with driver (VTC).
The parent US filed two complaints against France before the European Commission, to obtain the cancellation of this law
Greece defaults on its vis-à-vis the International Monetary Fund debt by not honoring a refund of 1.5 billion euros which was due Tuesday announced the Washington-based institution. Athens becomes the first developed country to accumulate vis-à-vis payment of arrears and the IMF no longer has access to the institution’s financial resources, meanwhile, wipes the largest default in history.
The IMF noted in a terse statement, adding also that its Board of Directors, representing 188 member states, had been informed. “I confirm that the refund (…) due to the IMF by Greece today has not been received,” said the spokesman Gerry Rice IMF in the release.
cash-strapped Greece warned Tuesday that it would not reimburse the IMF, which participated alongside European countries to both rescue plans with a drastic austerity. But the country had, however, made on Tuesday a final request to the IMF for a last minute delay. The Fund’s Board of Directors was informed on Tuesday and began to study it, according to a source close to the case, but should meet later to approve it or not. The board will meet “in time,” said Gerry Rice, without giving more details.
setback for the credibility of the IMF
Athens will have to happen now money from its public creditors as part of the European rescue plan has also expired Tuesday and will no longer have its financial survival to the emergency aid to its banks by the European Central Bank. This payment incident also constitutes a serious setback for the credibility of the IMF, which had not registered in default since 2001 with Zimbabwe and has granted Greece the largest loan in its history.
Until recently, the Fund said to expect Athens to honor its financial commitments. In early June, the Executive Director Christine Lagarde clung to the Greek Prime Minister’s assurances Alexis Tsipras inviting him to “not worry”. The IMF misadventures with Greece however, are not finished. The country has a total transfer 5.4 billion euros in the Fund’s coffers this year on a total debt of around 21 billion euros. The next payment of € 284 million is due by 1 August.
June 30, 2015, 7:35 p.m. | Updated: June 30, 2015, 7:52 p.m.
Except rebound, the Directorate General of Civil Aviation (DGAC) asked Wednesday the companies to proactively reduce their flight programs. Illustration. LP / ARNAUD DUMONTIER
Except rebound, the Directorate General of Civil Aviation (DGAC) asked Wednesday to companies preventively reduce their flight programs.
During the last strike by the SNCTA on 8 and 9 April, 40% of planned flights had been deprogrammed well.
“The negotiations are broken. The government considers to be went down the end and chose the standoff. Each takes its responsibilities, “said Roger Rousseau, national secretary of SNCTA (49.8% of votes) at the end of more than eight hours of discussion, as the day before.
On the main discontent of topics (budget of the Arian navigation redesign of premiums of the civil service, changing employment conditions), the discussions “have not achieved an overall balance, “laments there.
” We consider that our demands are not disproportionate and we will defend them, “added the spokesman waving now the threat of new strike in 10 to 15 days.
The union “will report to control centers, tonight, for audio conferences” the fruit of the discussions. Wednesday general meetings will be organized “and the issue of a new strike will be laid,” there is a strong probability that a new notice be filed. “
On the level of fees paid by airlines, the union claims to have received “a cold shower” because the government should document “a drop in fee.”
As for the incentive bonus traffic controllers claimed for testing new organizations more productive work ” half the expected valuations “was proposed, deplores the SNCTA.
The Greek Deputy Prime Minister Ioannis Dragasakis said Tuesday on state television ERT Greece had asked the IMF postponed the repayment of some 1.5 billion euros by 2200 GMT due to the International Monetary Fund ( IMF).
“We have submitted to the IMF a request that it take the initiative to defer payment in November,” said Mr. Dragasakis, which would allow Greece to avoid defaulting on its vis-à-vis debt of the institution of Washington and aggravate an already critical financial situation.
Greece and used a provision of the IMF charter that allows “to the request of a member state “without vote” reporter “the date of a refund within the limit of 3 to 5 years, which corresponds to the lifetime of its loans.
This possibility has been used twice in the IMF’s history, each time in 1992 and for two poor countries: Nicaragua and Guyana, the former British Guyana.
The country and escape an exceptional situation and lackluster: to become the first industrialized country to default vis-à-vis the IMF, which would result immediately stripped of access to the resources of the ? institution.
Meanwhile, the IMF avoid damage to its reputation and credibility of its future aid plans.
The break last week, negotiations between Greece and its creditors on continued funding of the country had nullified any hopes that Greece will reimburse this amount it is not on hand. “How to pay the IMF while banks have been completed asphyxiation?”, Had decided on Monday Prime Minister Alexis Tsipras.
While the Greek Finance Minister Yanis Varoufakis has officially confirmed that the country can not pay its Tuesday deadline 1.6 billion euros to the IMF, Athens has submitted to its creditors a new proposal help, in what looks like a last-minute attempt to break the deadlock. “The Greek government today proposed a two-year agreement with the ESM (European Financial Stability Mechanism [the European emergency fund]) to fully cover its financial needs, with a debt restructuring in parallel” , said on Tuesday govern in a statement.
An “extraordinary” meeting between the finance ministers of the Eurogroup is scheduled for Tuesday at 19.00 (Brussels time) to discuss the request for assistance from Greece, its chairman Jeroen Dijsselbloem and, according to rumors circulating in Brussels, Klaus Regling, head of the SS, could also meet Francois Hollande in Paris this evening to prepare for a move on Greek debt.
A form of cons-proposal, in fact: the President of the European Commission, Jean-Claude Juncker of his proposed next Monday, the Greek prime minister, Alexis Tsipras, a solution “last minute” containing the latest proposals of creditors put on the table last Friday in Brussels, before the Prime Minister called for a referendum.
VIDEO analysis of Jean-Marc Vittori on the referendum issue
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A Eurogroup could be convened
Jean-Claude Juncker, who spoke to Alexis Tsipras Monday by phone , has offered to send him a letter by midnight tonight, the President of the Eurogroup Jeroen Dijsselbloem, and German leaders, Angela Merkel and French, Francois Hollande, “accepting Saturday from proposals of the three institutions “, creditors, ECB, IMF and EU.
“Settings” of such a solution, according to Jean-Claude Juncker, “would include a response to the country’s financial needs and the question the debt sustainability “ in exchange for the commitment of the Greek government to campaign for the yes vote, said a spokesman of the Commission. In this case, a meeting of the 19 finance ministers of the euro area -l’Eurogroupe- could be called “to adopt a declaration on the basis of the lines already explained to Mr. Tsipras’ , Had does one European source said.
A support Syriza?
“The Office of the Prime Minister in Brussels said they were examining the new proposal made yesterday by the President of the European Commission, which includes debt relief in October and changes in the EKAS device [the bonus granted to the poorest pensioners] “ had said in the morning daily “Ekathimerini.”
Lawmaker Syriza, Stelios Kouloglou, ruled that “Juncker initiative must be seized” , in an interview with Greek radio. He said that “the presidents of all parliamentary groups in Brussels” had prompted Monday Juncker “to resume negotiations to reach an agreement even at the last moment” .
Merkel not ready to discuss before the referendum
German Chancellor Angela Merkel said her next Tuesday that she expected no further developments on Greece Tuesday, seeming to ignore the hopes of a last-minute agreement; she even advised during a meeting with members of his conservative party, that Germany was not ready to discuss a new Athens aid application before the holding of a referendum in Greece Sunday, according to a participant. Its Economy Minister and Vice Chancellor Sigmar Gabriel even further discussions related to the cancellation of the poll.
The Paris Bourse is bullish and gained 0.29% as a result of this information, as well as Wall Street opening.
The moment everyone dreads approaches: Greece will default on its debt on Tuesday June 30 evening. Since Monday, stock markets around the world plunged, Greeks are queuing at ATMs to withdraw painfully allowed 60 euros, and European leaders are pulling their hair.
Until Tuesday night, there is still time to reach an agreement, claim the Heads of State and Government of the euro area one after the other. But Tsipras government seems determined to await the results of Sunday’s referendum in order to obtain from the creditor financial aid without implementing a new economic austerity program.
Nobody wants to be held responsible for the Grexit, the exit of Greece from the eurozone. The President of the European Commission, Jean-Claude Juncker, has sent a final proposal for an agreement in Athens. In vain, it seems. Prices Nobels, the central bankers and observers fear that June 30 remains in history as the beginning of the end of the single currency and the European dream.
And yet, at midnight, in Greece, you will see, it will not do anything!
First of all because the deadline for the payment of 1.6 billion euros of Greece at International Monetary Fund (IMF) is 30 June 2015 6 pm Washington time, that is to say, 1 am in Athens! At that moment, an official of the International Monetary Fund, probably exempt from tax, officially declares that Greece has not paid its due. And even at 1 hour, Athens time, the “backlog of payment”, as they say in the jargon of the institution, will not cause any cataclysm.
In the IMF? Nothing
The procedure requires that a country in that position is private way of any further assistance from the Fund.
But this should be neither hot nor cold in Athens, “says Eric Dor, an economist at IESEG,” because since May, all payments to Greece from the IMF are somehow frozen pending the outcome of negotiations. “
At most, failure will it triggers a count-down of one month, after which IMF chief Christine Lagarde must notify the Board of Governors, ie the 188 member countries of the Fund. A month later, the former Finance Minister Nicolas Sarkozy is to file a formal complaint. And yet a month later, the country may find itself deprived of Special Drawing (SDR). Big deal!
The rupture between Greece and the Fund is not for right . The following “declaration of non-cooperation” can happen in 15 months the suspension of voting rights in 18. The exclusion, in two years, and again, this is very unlikely.?:. more than 20 countries have already had arrears, only Czechoslovakia was excluded during the Cold War, and even Somalia, Zimbabwe and Sudan, which have not paid their slate for years, have not undergone such treatment. And by then, the fate of Greece, whatever it is, will be settled.
In European funds? Nothing
One of the legal consequences of failure to the IMF deals with the European Financial Stability Facility (EFSF), the Europeans created in crisis to help countries in trouble.
The EFSF has lent some 140 billion euros in Athens, and by virtue of a clause in the contract which links it to the IMF, if it is not repaid, the EFSF is entitled to demand accelerated repayment of all of what he has lent him, “said Eric Dor.
This which makes some people say that every French may lose a few hundred euros in the case. But we are very far away. The Europeans will not require repayment that would completely bankrupt Greece and make this refund eventually impossible.
With the rating agencies? Nothing
This time, we can not accuse Standard and Poor’s, Moody’s and Fitch Ratings have poured oil on the fire. The first recalled that it was interested in the solvency of Greece from the point of view of private creditors. However, since 2012, government debt has been restructured. On 320 billion, private (that is to say, banks) hold only for 39 billion euros in bond and 15 billion euros in treasury bills (including 9 billion held by Greek banks ).
Standard and Poor’s has downgraded Greece this week, it rose from CCC to CCC-. However this has nothing to do with the failure to pay the IMF but with the freezing of funds decided by the government, a sign that the country is approaching the exit from the euro, and that within six months, If exit, this time it could be a difficulty repaying private creditors. By then, again, the negotiations are either triumphed or failed miserably.
On the financial markets? Nothing
two hours Wednesday morning, Asian markets will be open. Europe and the finance will wake a few hours later with Greece in default, a prospect that rattled investors for several weeks. No way to let their precious investments depreciate overnight. The latest debt crisis, with its current form of roller coasters, has left traces.
And yet, we expect only a small wave on the stock exchanges the planet. Would the traders took the lead? The Cac 40 lost nearly 3% Monday, and all the other awards have followed the same trend after the announcement by the Greek Prime Minister Alexis Tsipras that the agreement with the creditors of Greece would be put to a referendum. But it is only a correction increases that have occurred in recent weeks in the hope of good news.
In reality, the situation is rather calm . First, because the European Central Bank announced Sunday that it was maintaining the emergency loan program that allows Greek banks to survive. Secondly, because the default to the IMF became a non-event. “As long as negotiations are underway,” said Christian Parisot, economist at Aurel BGC, “rather it is considered a late payment as a defect. Investors remain motionless, as if there is an agreement and that they sold their shares, they will miss a rise in prices. They have their eyes on the referendum and the negotiations that will follow. “
For the ECB, so far, so good …
The only place where the default of Greece has real consequences, in Frankfurt, in the corridors lined with orange carpet seat of the ECB. For it is not certain that the institution can maintain a drip Greek banking system long. Its statutes allow it to be paid to Greek banks for emergency loans (ELA) until they are creditworthy, and accept as collateral for the solvency of Greek debt ….
Once Greece defaults on part of its debt, can the ECB still consider that these titles are still valid, that Greek banks are solvent and ELA is that legal? To this question, apparently technical, there are as many answers as political views. It seems that the Germans began to advocate for stopping the program to support Greek banks at the weekend. But we need a strong majority to reach such a decision.
The ECB ultimately upheld the program while limiting the amount awarded, forcing the Greek government to introduce a freeze of funds and restrictions on withdrawals. The question is whether it will do so long. She should be able to achieve it by Sunday, not to hijack the Greek citizen called to vote. But then? It will take a deal. Otherwise the consequences will be much more visible than the default to the IMF.
Greece to closed banks will not honor a payment Tuesday 1.5 billion euros to the IMF, an exceptional failure that creditors should nevertheless relativize while negotiations seem to have taken five days of a crucial referendum.
“How to pay the IMF tomorrow as Banks were conducted to asphyxia “, questioned Monday evening on television the Greek Prime Minister Alexis Tsipras, but added:”? as soon as they decide to lift suffocation, they will be paid “.
Greece had normally until 2200 GMT on Tuesday to pay, but she did not do, except miracle. Folder experts confirmed Monday that there in crates barely enough to buckle the salaries and pensions of the month, and certainly nothing for the IMF.
The Minister of Finance Yanis Varoufakis, was not embarrassed frills Tuesday confirming breezed to reporters who asked whether the IMF would be paid, “no”, before running off to his office.
His French counterpart Michel Sapin, however, believed that a Greek default vis-à-vis Tuesday of the International Monetary Fund (IMF) would be “no great consequence.”
On the same line, there are fifteen days , the rating agency, Standard & amp; Poor’s (S & amp; P) recalled that non-payment of a State with its public creditors such as the IMF, the World Bank or a central bank, is not strictly speaking a default.
Still, it is an exceptional event. Now presented in recent months as a terrible risk for Greece, non-payment now comes second
-. Contacts Reprise –
The Europeans now expect a “yes “Sunday’s referendum, in which the Greeks are invited by the government of radical left to say” no “to the latest proposals from the country’s creditors (EU, IMF, ECB).
They make up the pressure on Greek voters by saying that the real question is “yes” or “no” to the euro, which they hold in great majority.
On Monday night, Alexis Tsipras wanted to put the scope of voting. For him, a “no” only serve that Greece is “better equipped” to further negotiations, implying that this “no” does not mark a break from the past.
If the “yes” wins, he was evasive, stating that he was not one to remain prime minister “come rain or shine.”
And since the beginning The Greeks do not exclude to change their recommendation of “no” recommendation in “yes” if a favorable their proposal is made in the meantime.
On Tuesday morning, President of the European Commission Jean Claude Juncker has proposed a solution to Mr. Tsipras “last minute,” said a spokesman in Brussels.
The idea is that Mr. Tsipras accept the latest plan of creditors dated Saturday and undertakes to call the Greeks to endorse this text in voting yes in Sunday’s referendum, which would by then holding a Eurogroup to enact the agreement.
Athens n ‘ has not immediately respond, but announced in the morning having had contacts with Mr Juncker, ECB President Mario Draghi and the European Parliament Martin Schulz.
However, German Chancellor Angela Merkel assured little after not being aware of a new EU offer.
The financial strangulation of Greece was precipitated by the interruption of discussions between Athens and its creditors Friday night when Alexis Tsipras had created a stir by announcing the organization of a referendum.
The creditors were first reacted strongly denying the request for the extension of Athens one month of the assistance program, pushing the government to impose capital controls in the country, except for foreigners.
This decision resulted in a further deterioration of the ratings for Greece and its banks by rating agencies.
Though brutal, the measure was being introduced quietly enough, the Greeks look up now unhurried distributors 60 euros per day which they are entitled.
In an open letter published by the Financial Times 19 leftist economists were mobilized Tuesday in favor of Greece, including US Nobel Prize Joseph Stiglitz or French Thomas Piketty, asking the country to be bailed out in an emergency, before “a new beginning” of the negotiations.
In Britain, a young Londoner for its part launched a crowdfunding transaction or crowdfunding, to try to help Greece pay its due to the IMF. Tuesday morning, he had managed to gather 31,000 euros
Greece will be well into default at midnight tonight. The Greek Finance Minister Yanis Varoufakis confirmed that the country can not pay its Tuesday deadline 1.5 m euros from the IMF. The minister, waited by the media at the entrance of his ministry, was asked if the payment would take place. “No,” said he laconically replied before going to his office.
The Greek prime minister, Alexis Tsipras, however consider the offer last minute put forward by the European Commission last Friday, Saturday and made public in order to reach agreement on a package of reforms in exchange for financial assistance of 15 billion euros, reported Tuesday the Greek daily “Ekathimerini” and the Greek television channel Skai TV.
The President of the European Commission, Jean-Claude Juncker, proposed Monday to Greek Prime Minister Alexis Tsipras, a solution “last minute” likely to unblock a deal on the bailout of the country, by which Alexis Tspiras accept that plane and creditors would agree to call the Greeks to endorse this text in Sunday’s referendum, which would allow the holding of a by then Eurogroup meeting.
A Eurogroup could be convened
Jean-Claude Juncker, who spoke to him Monday by phone, as well as propose Greek Prime Minister sends a letter by midnight tonight, the President of the Eurogroup Jeroen Dijsselbloem, and German leaders, Angela Merkel and French, Francois Hollande, “accepting proposals Saturday the three institutions “, creditors, ECB, IMF and EU. The “parameters” of such a solution, according to Jean-Claude Juncker, “would include a response to the financial needs of the country and the question of debt sustainability” in exchange for commitment Greek government to campaign for the yes vote, said a spokesman of the Commission. In this case, a meeting of the 19 finance ministers of the euro area -l’Eurogroupe- could be called “to adopt a declaration on the basis of the lines already explained to Mr. Tsipras’ , a- does one European source said.
Greece has not yet officially responded to the offer last chance submitted by creditors to unlock financial aid, but contacts are ongoing, said Tuesday the European Commission.
“The services of the Prime Minister said in Brussels that they were examining the new proposal made yesterday by the President of the Commission European, which includes debt relief in October and changes in the EKAS device [the bonus granted to the poorest pensioners] “ says” Ekathimerini “without citing sources.
The support within Syriza?
The current aid program expires enjoyed by Greece on Tuesday and, without further assistance, Greece seems unable to repay 1.6 billion euros owed to the International Monetary Fund (IMF), and thus diving into the “default” payment with respect to the international institution.
Lawmaker Syriza, Stelios Kouloglou, ruled that “Juncker initiative must be seized” , in an interview with Greek radio. He said that “the presidents of all parliamentary groups in Brussels” had prompted Monday Juncker “to resume negotiations to reach an agreement even at the last moment” .
The Paris Bourse is bullish and gained 0.29% as a result of this information.
On Tuesday, in Athens and throughout the country, it’s payday, but the Hellenic banks lowered their curtains. With the introduction of capital controls yesterday, a new week has begun in Greece. After the government’s decision to suspend the negotiations with creditors, the continent is now suspended from the result of the referendum announced by Prime Minister Alexis Tsipras. Europe, she has left the negotiating leaving behind a door ajar pointedly. But it was again France who demonstrates the most obvious optimism. “There are still negotiating margins,” there are only “the last centimeters to cross to reach an agreement”, assured the European Commissioner Pierre Moscovici yesterday morning on RTL.
Meanwhile, Finance Minister Michel Sapin, angry with Tsipras, but questioned at the same time on the antenna of France Inter still wanted to believe that “the place of Greece is in the euro” . As for Francois Hollande, he sought to reassure all directions. “France is completely [and still] available for that dialogue can resume now [or] tomorrow. But today, there is the possibility of an agreement. Tomorrow it will depend on the response of the Greek referendum proposed to them. ” In case of refusal of the Greek people, do not panic: “The French economy is more robust than four years ago, and she has nothing to fear of what might happen,” the head of the defuses State. Yet following the events as they are emerging, is it likely to reassure us?
Francois Hollande just outside the small board on Greece June 29, 2015 at the Elysee Palace in Paris
afp.com/ALAIN JOCARD
Are negotiations irretrievably broken?
They are de facto since the announcement of the referendum on the night of June 29 An ad that has taken everyone by surprise and whose legend has it that even Greek negotiators, then open arm wrestling in Brussels will have read that on Twitter by visiting their smartphone. This does not prevent many European politicians leading, Jean-Claude Juncker and Merkel at the head, to call a compromise while only a few hours before the official deadline of the discussions. But all these statements are intended more to blame for the failure of the Greek government rather than convince him to go back. 72 hours after his statements, it is hard to imagine Alexis Tsipras will deny doing reverse. On Sunday, Interior Minister Nikos Voutsis has also judged “impossible” that the government “gives up the referendum.” Europeans want the negotiations to continue (without Tsipras) in case of victory of “yes dream. Tsipras resume, but in a strong position, in case of victory of” no. “
Greece she will soon default this Tuesday, June 30?
If June 30 was the deadline of the discussions is that, that date expires on next Greek repayment: a loan of 1.5 billion euros to the IMF But nothing says that Athens has the means to pay the government of Alexis Tsipras argues moreover, since.. several weeks, he can not. If the transfer does not arrive in time, Greece would not however be immediately in default, but simply “backward”. The statutes of the IMF give the institution the power to delay by several months a formal default. Greece will have to rely on his good will.
What are the next Greek deadlines?
The short Greek debt beyond 2050 and each month new deadlines succeed. “The next step is the refund, on 20 July, from 3.5 billion euros at the European Central Bank and, most likely, Greece does not have the means to honor this commitment,” says Director of economic research at Natixis Philippe Waechter. Meanwhile, the Greeks could have argued for an exit from the euro zone. “Clearly, the crucial step is [that of] July 5,” still believes the economist. It is on this date that the referendum be held by Tsipras announced.
What will bring the referendum?
No one knew on Monday, what are the exact terms of the question sent by the Greek government to its citizens. Just Tsipras he referred to a question concerning “the signing of the agreement” proposed by the European Commission. The subject is the subject of bitter debate in Greece on Monday. “Voting on a proposal that does not exist? It’s surrealism in its purest form!” Said one member of the opposition well summarizing the general feeling in its ranks. For his part, former Prime Minister Antonis Samaras was indignant that we can to vote “on a working document”. But whatever the terms of the referendum, watermark, the challenge for the country is that of maintaining it or not in the euro area.
What are the consequences in case of victory of “yes”?
A victory of “yes” probably mean a reopening immediate negotiations. But “the matter will [then] know who will sign the troika,” notes Philippe Waechter. Neither Alexis Tsipras, nor his government politically survive a “yes” resounding, while they are campaigning for “no.” But their resignation, causing new elections would delay the conclusion of an agreement and weaken a little the Greek economy.
A victory for the “no” Sunday is it necessarily mean Grexit?
“no” in the referendum on the proposals of creditors would be “a no to Europe,” warned Monday the President of the European Commission, Jean-Claude Juncker, calling to vote “yes” and roundly criticizing the attitude of Alexis Tsipras. This is also what was said Michel Sapin, Hollande, albeit with less vehemence. Such a scenario very likely mark an exit from the euro and “a change of currency” accompanied by a devaluation. In such a case, “the situation would quickly become problematic in Greece,” warns Philippe Waechter who fears “a significant political instability” and predicts an equally significant decline “in compensation and pensions, especially in the public sector” . In other words, for Greece, anti-austerity cure Tsipras could prove worse than the disease.
For Europe, the political cost could easily exceed the financial cost of a Grexit. A feeling summed Monday by Merkel for whom “if the euro fails, Europe fails.” “If we lose the ability to compromise, then Europe is lost”, considered the German chancellor before the Conservatives. After Greece, the fear of Europeans is to see the Union disintegrate while Europhobia progress and nationalism on the continent.
To what extent is it exposed France?
A Greek default would cost a whopping 43 billion euros to France. She is behind Germany (57 billion) and ahead of Italy (34 billion), the second Athens creditor in Europe. The sum represents almost two percentage points of GDP for a French country itself at odds with its debt and budget deficit. But the hexagonal banking system is a priori most exposed to a Greek bankruptcy. And the maturity of the receivables (2,041 respectively for bilateral loans, and in 2054 for the contribution to stability funds) will allow the economy to spread the impact of a Greek default on public finances. Unless the Grexit threatening not act as a new Lehman Brothers, the investment bank name whose bankruptcy had launched the subprime crisis, destroying economic, fragile recovery in France and in the euro area.
The CEO of Uber France, Thibaud Simphal will soon be tried for the smartphone application UberPOP. (AFP / File / MIGUEL MEDINA / STF)
UberPOP is in the viewfinder of government and justice. The CEO of Uber France, Thibaud Simphal and the Director for Western Europe, Pierre-Dimitri Gore-Coty, “should be notified of a summons for trial later,” said a judicial source in AFP this Tuesday, June 30 The two officials agreed since Monday as part of a preliminary inquiry in November 2014.
Only UberPOP is covered by the survey. The application for smartphones is indeed perceived as an “illegal”. This allows to connect drivers and customers to transport against remuneration, but it carries no social burden. This type of linking is particularly targeted by the Thévenoud Act of 1 October 2014 which strengthened the sanctions.
The application allows to be linked with a UberPOP driver. But unlike taxis or bikes, they do carry no social burden. (AFP / THOMAS OLIVA / STR)
Last Thursday, after mobilizing – sometimes violent – taxis, François Hollande had found qu’UberPOP should be “disbanded and declared illegal “. After receiving the representatives of taxis, the Interior Minister had also increased the firmness of gestures, recognizing that only justice could pronounce the closure of UberPOP service.
The survey also aims alleged acts of “illegal storage of personal data beyond the period previously provided for the implementation of the treatment,” according to a judicial source. This component involves customer data collection and possible violations of the Data Protection Act 1978. freedoms In March, the Paris headquarters Uber France had been searched. Documentation, mobile phones and computers were seized.
Uber disputes for months Thévenoud the law which governs the activity of transport vehicles with driver (VTC). The US parent company filed two complaints against France before the European Commission, to obtain the cancellation of this law. Other companies like Airbnb – based on the same model of “collaborative economy” – have managed to comply with French legislation
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Comparison of permit conditions and supply of taxis, VTC and UberPop vehicles in France. (AFP /)
MP Thomas Thévenoud (not registered, ex-PS) received on Monday afternoon taxi organizations and private cars with driver (VTC), a meeting that had the merit, according participants, to allow an “exchange” live that is “anything but invective”. And even as the two leaders of the Uber company were taken into custody.
For the member to the origin of the law enacted in October 2014, it was no “not to bypass the government” but to ensure the “post-Service sale “of his law, he told AFP. The twenty participants present, according to the deputy, “all have reiterated their opposition to UberPOP service and asked again the application of the law, the whole law.”
Several measures the “Thévenoud law” are not applied
The elected Saône-et-Loire is “committed to getting the message across to the government.” He recalled that several measures are not implemented yet: geolocation taxis, mandatory credit card, removal of tenants scheme, the “slaves of the system”, and the creation of free taxi licenses. For some, “it lacks the decrees of application,” said he said.
For Nordine Dahmane (FO), meeting at least had the “usefulness” of allow an “exchange on non-application of the law.” “This is the first time that professional organizations taxi and VTC gathered around the table,” according to the delegate.
A point of agreement with Yves Weisselberger of SnapCar “It did not revolutionize the state of things, but it was long since taxis and VTC had not sat in one room to discuss anything other than invective”
But, according to the founder of this company VTC,” still tension we felt a strong enough side taxis at any time it can leave. “
During mobilization days enamelled violence, Thursday and Friday, taxis protested against UberPOP, which allows individuals to transport customers without paying charges. The drivers of VTC, whose activity is legal, have also been the target of taxis who accuse them of “marauder” when they have the right to work upon reservation.
Taxis” have a communication work to do “
Despite the repeated commitments of VTC to meet their various obligations, taxis remained skeptical. They still need a “booster shot,” said Séverine Bourlier, Secretary General National Taxi Union (UNT).
It recognizes that taxis have on their side a ” communication work to do “in terms of drivers to distinguish them VTC” that fall within the framework of the law, “of others.
” We expect that in practice on the ground “, the VTC respect the law, also stressed Abdel Ghalfi (CFDT, in conflict with the CFDT federation of transport).
Taxis have according to him was” a somewhat appeased “by” very strong message “of the government and President Francois Hollande, who promised to strengthen controls and reaffirmed the illegality of UberPOP, and the” nice little news “that is in his custody Monday’s two leaders Uber
A few hours after an event that brought together more than 17,000 people in Greece to support the policy of his government, Prime Minister Alexis Tsipras held on Monday 29 June, that the planned referendum Sunday – on the acceptance or not of the austerity measures imposed by creditors of Greece which he called to vote no – is the best way of “ lead to further negotiations” . With a clear majority rejecting the latest proposal of creditors, Mr. Tsipras believes it will be “better equipped” to negotiate with them.
“Our choice is to remain in the euro (…) the message is that the Greek government will continue to be at the table next to the referendum negotiations “
He accused those who see in this consultation, whether or not the Greeks approve the proposals of their creditors, a way out of the eurozone, speaking “intimidation” and adding that if the Greeks were in favor of the further austerity, he might leave his post.
“If the Greeks want to continue with the austerity plans in perpetuity, which prevent us from looking up … we will respect their choice, but we will not apply “.
Mr. Tsipras was again convinced that “institutions” do not want the output of Greece from the euro zone because of the “substantial cost” what would such an initiative.
“I do not think their intention is to push Greece out of the euro but to end the hopes that there could be a different policy in Europe” .
Read decryption: Reforms or exit from the euro: understand the situation of Greece
He added that if creditors made a new proposal acceptable to his government on Monday, Athens repay as scheduled maturity of 1.6 billion euros owed to the International Monetary Fund (IMF) on Tuesday at midnight. But this prospect seems even more distant he then launched: “How to pay the IMF while banks have been completed asphyxiation? “
While the main actors of this crisis are spoken by interposed media, European stock markets fall, and Greece the closure of banks and the introduction of capital controls decreed by the government will have a direct impact on the daily life of the Greeks and the economy in general.
(Boursier.com) – Finish the discretion and anonymity payments extras in cash … According to a decree published in the Official Gazette of June 27, it will be forbidden to pay in cash or by money e any amount exceeding 1,000 euros. The French state applied by the directive of the Monetary and Financial Code concerning the prohibition of cash payment of certain debts. The measure, announced by the Minister during the presentation of the plan against terrorist financing March 18, 2015, had been reaffirmed at the National Committee for the Fight against Fraud June 23. This text, which lowers the payment threshold in cash, will come into effect from 1 September 2015.
Strengthening the tracking of financial flows
The adjustment of 3,000 euros to 1,000 euros the maximum amount of cash payments “aims to strengthen the fight against illicit financial circuits that use of anonymous payment systems.” With this legislative strengthening Bercy therefore endows better opportunities to tracing financial flows, especially those from parallel circuits or concealed as drug trafficking, illegal work, or tax evasion. To justify the introduction of this threshold lowering, Michel Sapin also states that “the decree draws the consequences of the prohibition of cash payment for the purchase of metals,” and removes the threshold of 500 euros relating to purchase of ferrous and non-ferrous
“Draw suspicious transactions very early”
Following the publication of this decree, Michel Sapin said in a statement. “The objective of this measure is to limit the share of anonymous transactions in the economy that can match the actions of fraud, money laundering or terrorist financing “. The Minister for Finance and Public Accounts, he stresses: “The first aim is to roll back the cash and anonymity in the French economy We need to be able to trace suspicious transactions must be very early.. tighten the net “.
VIDEO – Creditors are willing to reopen negotiations. Jean-Claude Juncker, he openly supports the ‘yes’ in the referendum.
This time, we are. For weeks extraordinary Eurogroup special European summit, the dated Tuesday, June 30 was held up as the fateful date. It’s Tuesday evening qu’expire the European aid plan initiated in 2012. And that disappears with it the possibility for creditors of Athens, to pay the remaining 7.2 billion euros was conditioned an agreement on savings measures. This is also what 30 June that Greece may find itself in default if it fails to repay the International Monetary Fund (IMF) the maturity of € 1.5 billion due date.
And yet, this deadline was swept by the July 5 Alexis Tsipras imposed out of his sleeve the referendum card. We now know the matter referred to the approximately 10 million Greek voters. In short: “Do you approve the savings measures proposed by the creditors’ costs in exchange for money? Greek voters as European leaders are not mistaken. “The Greek referendum will not be a derby against Tsipras European Commission, but against euro drachma. That’s the choice, “summarizes Italian Prime Minister Matteo Renzi on his Twitter account. Same story in Brussels: “A ‘no’ would mean, regardless of the question asked, which Greece says ‘no’ to Europe,” says Jean-Claude Juncker, President of the European Commission
Preview of Grexit
The European leaders who negotiated unsuccessfully for more than five months with Alexis Tsipras and his finance minister Ianis Varoufakis are now turning to Greek voters. Better, some of them, starting with Jean-Claude Juncker, are openly campaigning for the yes. “I ask the Greek people to vote yes, whatever the issue,” argues the head of the EU executive. And accusing at a press briefing, the Tsipras Varoufakis-duo to have left the negotiating table on Friday night in Brussels while discussions were not completed. Juncker, who has published on the Commission website ten pages of the draft agreement says that the “full package” would have approached “the sustainability of the Greek debt.” In other words, the creditors were ready to make offers on the renegotiation of the debt, Alexis Tsipras campaign promise.
From which side the majority of Greeks? Indications exist. Two surveys, conducted on the European proposals late last week, that is to say, before the surprise announcement of the referendum, published in the Greek press, give 60% yes. Creditors rely on fear of Grexit, the output of the euro, to push voters to repudiate their premier.
The bank closure and capital controls put in place give the Greeks a Monday foretaste of paralysis and chaos that could lead to forced abandonment of the common currency. These exceptional measures prevent for now a phenomenon of bank runs that would be the first cog in the gear uncontrollable leading to the collapse of banks and the Grexit. The device will poison the daily life of the Greeks for a week and maintain the anxiety about the post. But in the immediate term, it makes time pending the popular consultation on Sunday.
A window remains open
This in-between, several European leaders want to use the final negotiations to restart. Francois Hollande, in particular, is on the line. To give it more weight, it is in talks with Barack Obama and both are “agreed to combine their efforts to promote resumption of talks.”
Paris believes that before Tuesday night, a window remains open. Europe appears however react to gamble Tsipras, fragmented. And with a bit of cacophony; in the morning, the Vice-President of the European Commission, the French Pierre Moscovici, had announced on the radio that his boss, Jean-Claude Juncker, would make new proposals. At midday, when the boss of the Commission spoke, it was no question of any new offer. Juncker was rather harsh words, considering himself “betrayed” by Alexis Tsipras.
Meanwhile, Angela Merkel, whose voice is predominant in this Greek tragedy, also expressed support for a return to the negotiating table. But only after the referendum.
The Greek referendum becomes European. From Paris to Berlin, from Madrid to Dublin from Rome to Brussels, all the leaders were very clear on Monday: the Greeks did not have to vote for or against a reform program, moreover unfinished, since Greece interrupted the negotiations, but for the maintenance or not of their country in the euro. Surprised by the decision without notice the Greek Prime Minister Alexis Tsipras to organize a referendum on Sunday to ask the Greek people to vote “no” to “austerity program” wanted by the creditors, the capitals have abandoned the jargon and speak now “Grexit”. And then the same as Greek citizens are facing since Monday closed banks that do not pay more than 60 euros a day.
Hollande and Obama combined their efforts
“The Greek referendum is not a match between the European Commission and Tsipras, but a choice between the euro and the drachma,” Matteo Renzi said in a tweet in English. While reaching out to a final negotiation before the European aid program, Tuesday at midnight, President Francois Hollande has also recalled that the issue, fundamental, “is whether the Greeks want stay in the eurozone or if they take the risk of escape “. In the afternoon, the Elysee Palace reported a conversation between the head of state and Barack Obama agreed to “work together to promote a resumption of talks” . But no leader has suggested that a gesture of opening to facilitate a possible compromise.
Except turnaround, Europeans therefore hardly have any other choice but to wait for the outcome of Sunday vote. Coming out of a crisis meeting with leaders of political parties, Merkel blamed for the failure of negotiations with the Greek government on its own. It does not close the door to negotiations, but does not believe before the referendum: “if, for example after the referendum, the Greek Government asked for new negotiations we would oppose it naturally not” , she said, adding she had no instructions to vote to Greek citizens accountable.
Juncker entrance Battle of the referendum
Jean-Claude Juncker him instead called on Greeks to vote yes in a very personal plea. “Do not commit suicide because is afraid of death “, he begged. This eloquent entered the battle of the referendum was also a way for the Luxembourger to break Aléxis Tsipras. Until the end of last week, Jean-Claude Juncker was among the few to appear as a friend of the Greek Prime Minister, to the point of inciting criticism among the more angry against Athens countries. On Monday, after learning on Friday night in the announcement of the referendum by a message left on his answering machine while he was sleeping, it was all over. “I was disappointed at the political level and on a personal level. I really tried everything and they know it “, has he explained to reporters. His speech did not spare the Greek prime minister, charging him implicitly “insults, misunderstandings, unfinished sentences” that polluted the negotiations. So he preferred to speak directly to the Greek people: “Rejecting would mean that Greece says no to Europe” , he warned
Alexis Tsipras meanwhile, continues to play on a denial of democracy Europeans, and returns the ball in their court, arguing that capital controls result of their refusal to extend the program. “I expect immediate answer to this basic democratic request” says he has a new televised speech, accusing Jean-Claude Juncker of insincerity … The IMF wait probably Sunday before pronouncing a default. As the ECB will maintain during the week unchanged ceiling liquidity to support Greek banks.
The noose is tightening around UberPop. Two leaders of American society were taken into custody Monday at the offices of the Judicial Police (PJ) of Paris. This would be Simphal Thibaud, CEO of Uber France, and Pierre-Dimitri Gore-Coty, director Uber Europe says “The World”.
The problem
The Parisian PJ hears both leaders as part of an investigation opened in November 2014 for illegal activity on the taxi profession and computer data concealment .
The reason:. UberPop the service that connects customers with individuals to transport against remuneration
The drivers pay neither taxes nor contributions, are not insured professionally and did not follow 250 hours of training required. Yet, they continue to roll.
What changes the Thévenoud Act
In October 2014, the law was passed Thévenoud. It is now forbidden to offer provision of road transport “for consideration” if one is not registered as a taxi driver or passenger vehicles with drivers (VTC). The service between UberPop directly in the viewfinder of justice, with its non-professional drivers.
On January 1, 2015, the Act comes into force. The arrested drivers UberPop incur up to one year in prison, a fine of € 15,000, a license suspension and confiscation of the vehicle. The organizers may heavier sentences. Two years’ imprisonment and a fine of € 300,000
Read
Thévenoud: “Taxis, do enforce the law!”
The survey
The Paris court condemns UberPop in October 2014 to 100,000 euros in fine for improperly presented his company as a carpool service.
A month later, the Paris prosecutor opened a preliminary investigation against the activity “low cost” of the American Uber. The reason:. “Illegal organization” of “customer matchmaking system with people who engage in road transport (others) for consideration”
The survey also focuses on alleged acts of “illegal storage of personal data beyond the period previously provided for the implementation of the treatment”, says “The World”. This time the Uber whole society is covered and only his Pop service. On March 16, the Paris headquarters Uber France is searched. Mobile phones, documentation and computers were seized.
The California company defends and multiplies judicial offensives. The Company files four priority issues of constitutionality (QPC). The Constitutional Council rejects both, and valid (tariff freedom). Last QPC directly concerns UberPop but the verdict will not fall until September.
New prefectural
In early June, the tension a notch when Uber decides to deploy its service “low-cost” and illegal in many cities in France. Taxis are mobilizing and events of the past week degenerate. Violence are reported against UberPop drivers, but also VTC.
Bernard Cazeneuve, Minister of the Interior up to the plate, and with him Francois Hollande. The president denounced an activity that “no rules” tax or social, and requires qu’UberPop be “dissolved” notes “Le Figaro”. The government has chosen his camp and the American company does not belong.
Prefectural Orders are taken in several departments, including Paris last Thursday, to facilitate the application of the law Thévenoud. 420 procedures have already been open since January against the UberPop drivers.
The two leaders Uber France, Thibaud Simphal and Pierre-Dimitri Gore-Coty, respectively CEO and director Uber France France and Northern Europe, would have been placed in custody Monday by Paris judicial police in an investigation into their mobile UberPOP have told AFP judicial sources and close the file. Opened on 27 November 2014, this survey is prior to the day of mobilization taxis Thursday against illegal employment in their sector. Taxi events were interspersed with violence that day. The survey provides a system of “illegal organization” customer relationship development with individuals to transport against remuneration but without paying payroll taxes.
When asked by “Les Echos” Uber however refused to confirm or deny the information: “The leaders were due to meet France Uber investigators as part of the investigation UberPop for several months on, it was agreed for several days. We do not know more at this stage, “said a source close to the case.
UberPOP referred
In March, the Paris headquarters Uber France had been searched. Documentation, mobile phones and computers were seized. This is the app for smartphones UberPOP that is subject to this investigation. This matchmaking service comes from illegal activity, covered by the Thévenoud Act of 1 October 2014 which strengthened the sanctions. The survey also aims alleged facts “illegal storage of personal data beyond the period previously provided for the implementation of the treatment,” said the judicial source told AFP. This component involves the collection of customer data and possible breaches of the Data Protection Act 1978.
Uber disputes for months Thévenoud the law that regulates the activity of cars transportation with driver (VTC). The US parent company filed two complaints against France before the European Commission, to obtain the cancellation of this law.
Thursday evening, after receiving representatives taxis, Interior Minister Bernard Cazeneuve had increased the firmness of gestures. “UberPOP is an illegal service, it must be closed,” he had hammered while recognizing that only justice could pronounce such a closure.
In the wake of his statements, all Fraud departmental operational committees were to meet on Monday under the authority of the prefects and prosecutors “to implement all measures to suppress the illegal practice of the taxi profession,” he had announced.
Taxis and VTC received by Thomas Thévenoud for a “consultation meeting”
MP Thomas Thévenoud (not registered, ex-PS) called Monday afternoon taxi organizations and private cars with driver (VTC), excluding Uber, a “consultative meeting” to discuss the “means” of a “total” application of its legislation, is it has learned from sources. The deputy is responsible for the law governing the activities of the VTC, enacted in October 2014. In his invitation, the chosen of Saône-et-Loire explains that it will “examine all “the” means of rapid implementation, effective and complete “text. He justifies this meeting by the need to “get out of the impasse in which we find ourselves.” Precise MP had not invited to the meeting Uber “who clearly decided by its aggressive attitude destabilize balance that we had found together “referring without naming the illicit transport service between UberPOP individuals developed by the American company.
The President of the European Commission said he felt “a little betrayed, after all [its efforts]” during a press conference. “The exit of Greece from the eurozone is not and has never been an option,” he assured. It also encourages the Greeks to vote yes in the referendum. Reactions to his speech were mixed.
o Banks closed and limited withdrawals for the Greeks
As expected, banks and the Athens Stock Exchange did not open on Monday and should remain closed until July 7.
The distributors across the country, mostly emptied during the weekend, have started to be supplied at noon on Monday, leading to new investors wishing to remove the queues are allowed: 60 euros anyone except for foreign tourists
o Global stock markets plunge
Scholarships, euro, borrowing rates, oil. The reaction of financial markets the Greek crisis has been severe. The European financial centers unleash all between 3% and 4%. The euro fell below 1.10 dollars, oil prices fell by more than 2% and the borrowing rates of countries in the eurozone are soaring.
o Hollande tries to reassure the French
The president said that “France has nothing to fear (the Greek crisis). France is more robust than four years ago “(beginning of the Greek crisis). “I hope that negotiations can resume,” said he was in the courtyard of the Elysee at the end of a Council of Ministers restricted.
In general, the leaders of the euro area posted their serenity in the face of the seriousness of the Greek crisis.
The European Commission has released this weekend the latest reform proposals made to Greece by its creditors in exchange for cash. A map, however, unfinished, negotiations have been broken off by the announcement of Alexis Tsipras to hold a referendum.
While the paradox of the announced referendum Friday evening by Alexis Tsipras is that the Greeks will have to decide Sunday on a draft agreement … now obsolete. According to the speech of Greek Prime Minister Friday, the question should have regard to “the draft agreement presented by the European Commission, the ECB and the IMF at the Eurogroup on 25 June.” Or as recalled the boss of the IMF, these are all “proposals and arrangements that are no longer valid” because the aid plan for Greece in which they were part will stop Tuesday as was decided creditors of Greece after the dramatic turn of Alexis Tsipras.
“In the interest of transparency and information to the Greek people”, the European Commission has however posted on Sunday on its website the content of the draft agreement, although it is not a final document. This project is indeed that “a work in progress”, which was designed to evolve with discussions between Greek leaders and their creditors. It therefore does not necessarily reflect what awaited them if their Greek government had continued to negotiate ….
What does it contain, however at this point that has ruffled the Greek government? What are these reforms that “clearly violate European rules and fundamental rights at work, equality and dignity,” as formulated Premier Hellene in the night from Friday to Saturday?
VAT and pension reform
The draft agreement contains several components, most of which are conflicting pension reform and the rise in VAT. back to balance the pension system Greek (spending on pensions weigh more than 17% of GDP, a figure unmatched in Europe), creditors indeed require the government of Alexis Tsipras it saves the equivalent of one percentage point of GDP on this post. To do this, the European Commission, the ECB and the IMF are demanding several measures. Among them, the end of many early retirement, the immediate application of the retirement age to 67 years of decline (or 62 if the employee has contributed at least 40 years) already planned by previous reforms and suppression In December 2019, the premium paid to small pensions. The minimum pension for poor pensioners should be frozen until 2021 and raised the level of contributions. Economists deem indeed too low, while Greece currently has 3.5 million active for 2.6 million retirees and 1.2 million unemployed …
VAT rise required by creditors is another black spot of the agreement that pushed the Greek government. Creditors wanted next Wednesday, the VAT rate jumps from 6% to 13% in hotels and 13% to 23% in catering, two key sectors for Greek tourism. Three VAT rates would be maintained at 6% (for medicines, books and theater tickets), 13% (for food, energy, water, and hotels), and 23% for other goods and services. Creditors also demanded that the VAT rebate from 30% currently enjoyed by the islands should be deleted. A casus belli. All these tax measures should also report the equivalent of 1% of GDP.
Budget surplus
The creditors also want to see set up various tax measures that would increase the resources of the Greek state, such as capping military spending to 400 million euros, an increase of the tax on corporations from 26% to 28%, the introduction of a tax on television advertising, or an increase of the charge applicable to more yachts 10 meters. At these various taxes had to add a structural component, to strengthen the Greek tax system (and the creation of an independent agency to manage taxes) and to fight against fraud.
Overall, the Greeks were thus achieving a primary budget surplus, that is to say outside debt burden by 1% in 2015, 2% in 2016, 3% in 2017 and 3 5% in 2018. A concession on the part of the Commission, ECB and IMF, which still demanded recently that Greece will achieve the goal of 3.5% from 2015.
All these proposals, however, brought to evolve, if the Greek government agrees to return to the negotiating table. German Chancellor reiterated Monday that it was “obviously prepared to resume discussions” with Alexis Tsipras. “Margins for negotiation exist,” also said the European Commissioner for Economic Affairs, Pierre Moscovici. The ball is now in the camp of the Greeks.
SCAN THE ECO – Greece has introduced capital controls and organizes a referendum on Sunday. The financial world is concerned, the major European leaders react, the euro is again in full existential crisis … The detailed update on the Greek case.
No more living in Greece a week of all hazards. Athens has nothing less this weekend announced a referendum on the proposals of its creditors and capital controls! Banks will be closed until July 7 and limited cash withdrawals, the queues at cash dispensers and petrol stations get longer, the entire planet tremble finance, European leaders react and rumble. Welcome in unfamiliar territory!
To understand why this week will be decisive for the history of the euro area, make a clear and detailed update on what’s going on.
• Why Greece has introduced capital controls?
The Greeks massively withdraw their money this weekend Copyright: Thanassis Stavrakis / AP
Greece explained that this decision was the direct result of the creditors’ refusal to extend the financial assistance plan in the country beyond June 30 Then, in the wake of the decision of the ECB not to raise the ceiling granted emergency liquidity to banks in the peninsula.
But Greek banks, which were crushed by the crisis the debt exploded in late 2009, are in ground today. They fall out of money, when in front, the Greeks withdraw their funds massively (since 2010, 80 billion euros have escaped the country), especially for six months with the arrival of the radical left Alexis Tsipras to power. And more recent days: the Greeks flocked to distributors to withdraw cash this weekend, after the announcement as amazing than not a referendum on July 5 on the proposals of the creditors of Greece. We call this movement a “bank run”.
Greek banks found themselves in severe liquidity crisis, and a few hours of insolvency. But widespread bank failure results in a pending bankruptcy of the state. It was therefore necessary to plug the leaks banking, establishing what is called a “capital controls”.
• What is capital controls, and does what it’s meant to last?
The Greek Central Bank decided “activate the temporary closures of banks and limiting bank withdrawals” to 60 euros per day per card. In principle, capital controls may only be temporary, according to section 65-B of the Treaty of the European Union. It is allowed only in exceptional cases, namely the time the acute episode of the crisis passes, the banking sector is stabilized. It does not aim to continue, because in a monetary union, the Central Bank must address the lack of liquidity … if banks are solvent.
What is not certain to be the case a long time in Greece, since the ECB must normally stop its assistance to banks if Athens fails to meet its repayments. Same also for the EFSF, this European fund to help countries in the troubled eurozone, which must also normally cut valves in case of non-compliance with credit payments.
• Greece will she be in default tomorrow, Tuesday, June 30?
It is likely that Greece can not repay the famous $ 1.5 billion euros to the IMF tomorrow, Tuesday, June 30 But the country will still not be officially declared in default. The IMF should grant him -he has the right- still a reprieve last month to try to recover. But the situation would be much worse if Greece does not pay its due date of 3.5 billion euros, this time to the ECB, on 20 July.
To see all maturities repayments of Greece to its various creditors, surf the infographic below:
• Y he has already had capital controls in the euro zone?
There are two years, Cyprus had had to implement capital controls. In late March 2013, the banks had closed twelve days. The state had taxed directly over € 100,000 accounts. Then the control was relaxed in progressively, and it only just ended in April. At first, the government of Cyprus communicated to the introduction of controls for a single month.
• What are the direct consequences of capital controls?
Financial markets worldwide are affected by the Greek crisis Copyright: THOMAS PETER / REUTERS
A capital controls is a Such a bad sign that translates immediately by a reaction to the financial world. Greece is a small country but concern is global, because the viability of the euro zone is in question.
But on Monday morning, the major European indexes do not collapse. The CAC 40 was down 3%, gold (safe haven) rises slightly (1180 dollars per ounce) and the euro resists surprisingly well (-0.8%), above $ 1.10. Long-term interest rates, those that borrow States, is necessarily tend. Especially in the countries of southern Europe, the most fragile and the most “contaminable” the 10-year rate in Spain rose to 2.720% against 2.150% Friday. That of Italy rose to 2.598% (2.110% against). The rate at two years in Greece, they explode … 13 points to 32.1%.
In the longer term, capital controls always a recessive effect, especially in so dependent economy tickets!
• What will bring the referendum?
It is not yet the unclear! But the question should be on the creditors’ agreement proposal of Greece.
• What are the main proposals of creditors for an agreement
– The creditors want Greece liberates primary surplus 1% of GDP in 2015 from 2% in 2016, 3% in 2017 and 3.5% in 2018. The primary balance is the government budget, excluding debt interest and financial asset income. Thereupon Greece agrees.
– Second bullet negotiations: VAT . Objective: return 1% of GDP in tax revenues. Creditors are now calling rates to 6% for drugs, 13% for electricity, water and food and 23% for hotels and restaurants. For an introduction on 1 July. Too early to Greek government
-. Finally, the third sinews of war, pension . Reform should limit public spending 1% of GDP. Its implementation should also take place on 1 July. Too early for the Greek government., Who wishes an application in the fall.
• If Greece said “no” Sunday is that necessarily the end of the euro for Greece ?
The link is not automatic. The real problem is the financial infusion that the ECB grants to Greek banks. If the ECB stopped or braked its emergency plan (called ELA) to Greek banks became insolvent, Athens would soon default and would be forced to print drachmas to lend to banks and to pay its civil servants and pensioners. The drachma and the euro may well coexist time, and the country would try to recover to resume as soon as the path of the euro. But the return is very difficult.
This scenario, however, is not very possible because the ECB would be exceeding its mandate and its credibility at stake, since the main role of the ECB is precisely to ensure financial stability eurozone. Mario Draghi, the head of the ECB, is found in spite of himself in a very uncomfortable position where he must decide. And though he decides, he will be criticized.
After the creditors’ refusal to extend financial assistance beyond the 30 June Greek Prime Minister Alexis Tsipras announced Sunday, 28 June the banks are closed and the introduction of capital controls, while Asian markets retreated Monday sealed by fears that Athens leaving the euro zone.
Greece , withdrawals at ATMs to be July 6 limited to 60 euros per day, according to a decree on capital controls published in the Greek Official Gazette on the night of Sunday to Monday.
The text, signed by the President of the Republic Prokopis Pavlopoulos and Alexis Tsipras, reports “of extreme urgency and unexpected need to protect the Greek financial system and the Greek economy due to the lack of liquidity caused by the Eurogroup decision of 27 June to refuse extension of the loan agreement to the Greece . “
The Athens Stock Exchange was also to remain closed at least Monday, according to a source familiar with the matter .
Tsipras called the cool
Tourists staying in Greece – tourism is a vital engine of the economy – and anyone with a credit card issued in a foreign country, will not be affected by the withdrawals control measures, said the government
Drawing the consequences. the commotion caused by its ad referendum, Alexis Tsipras appeared Sunday evening on television to include inviting people to keep his cool.
Alexis Tsipras said that the refusal of the Eurogroup (the finance ministers of the euro area) on Saturday to extend the program of assistance to his country beyond June 30, “led the ECB not to increase the liquidity of Greek banks and forced the Bank Greece to activate the temporary closures of banks and limiting bank withdrawals. “
Prime Minister, failing to mention among the causes of the turmoil his sudden announcement on the night of Friday to Saturday, a referendum, assured a firm tone that “the deposits of citizens in Greek banks are absolutely guaranteed”, as the payment of salaries and pensions.
Alexis Tsipras said he also reformulated Sunday to the EU and the ECB request from the Greece an extension of the aid program which it benefits. This time, the request was addressed to the “President of the European Council and the leaders of the 18 member states of the euro zone and the presidents of the ECB, the Commission and the European Parliament.
“I expect immediate answer to this query democratic basis,” he added in his televised address. “These are the only ones who can as quickly as possible and even tonight, overthrow the Eurogroup decision and provide an opportunity for the ECB to restore the flow of bank liquidity, “he said.
Positive Signals creditors
The establishment of a control capital had been feared all weekend, and distributors of Greek notes have been dried up.
“I tried several machines, five, six, eight, ten …” told AFP Voula, exasperated. “I’m worried, sad and angry against the government. I hate it! “.
In Greece also the concern of cash + + became more urgent. Several countries, including Germany, have encouraged their nationals who go to Greece for the holidays to get away with a lot of cash.
However, creditors Sunday sent positive signals.
First, the European Central Bank, which gave respite to the Greece maintaining intact the provision of emergency liquidity ceiling to Greek banks , when it was feared that it cuts their funding
European Commissioner Pierre Moscovici also repeated on Twitter mantra of the Commission. “the door is always open” to negotiate
His boss Jean-Claude Juncker, meanwhile, tweeted the text of the proposal of the creditors “for the information of the Greek people”, hinting hollow that if voters approve these proposals, it will be even time to listen.
Jean-Claude Juncker has to give a press conference Monday at 10:45 GMT.
IMF ready to “assist “
The French Prime Minister Manuel Valls urged Greeks to” return to the negotiating table, “and called for” do everything “to the Greece remains in the euro.
As for the IMF, he said he remained ready to “assist”.
Meanwhile, the Minister Greek Finance Yanis Varoufakis said Sunday that it was now “institutions (EU, IMF and ECB) to show their good will” while saying open to new negotiations to reach a compromise in extremis.
But the financial markets, often quick to highly volatile reactions may incorrectly take these new twists and the day Monday could be hectic.
“If you ask me if (the markets) are ready for what is happening in Greece , I promise you that no, they do not provide, in their evaluations, no risk, “said in an interview with The Stampa published on Sunday economist of the OECD (Organisation for Economic Cooperation and Development) Catherine Mann.
The announcement of capital controls has not knocked the Greeks, who expected. Yiannis Grivas, a teacher, who had taken the precaution to withdraw his salary 940 euros Friday “was not afraid of capital controls,” because “he never withdraws more than 50 euros a day …”.
