Yaroufakis meets Osbourne

Tsipras Does Not Rule Out Russian Aid As UK Chancellor Calls Greece "Greatest Risk To Global Economy"

Zero Hedge,

2 February, 2015

"It is clear that the stand-off between Greece and the eurozone is the greatest risk to the global economy,"warns UK Chancellor George Osborne adding that he hopes Greece's new finance minister "acts responsibly," as Varoufakis toured Europe to discuss Greece's 'demands'.Mainstream media's attention, however, is not focused on this warning (remember, Greece is small and contained is the meme to pay attention to), but instead proclaimed Greece's pivot to Russia over when in fact, Tsipras words did anything but 'rule out' Russian aid as he said - specifically - "we are in substantial negotiations with our partners in Europe and those that have lent to us," adding that with regards Russia, "right now, there are no other thoughts on the table." Hardly the definitive "ruling out" that US media spins.

As Reuters reports, Varoufakis also met British officials, seeking more European allies, although Britain is not a member of the euro zone.

"It is clear that the stand-off between Greece and the euro zone is the greatest risk to the global economy," Britain's finance minister, George Osborne, said after their meeting.

"I urge the Greek finance minister to act responsibly but it's also important that the euro zone has a better plan for jobs and growth," Osborne said.

*  *  *

And this follows France's "support for debt renegotiation" and Germany's dismissal of any changes to the current plan:

It has so far met a tough line from European partners, above all from Germany. German Finance Minister Wolfgang Schaeuble told Reuters in an interview on Monday that Berlin would not accept any unilateral changes to Greece's debt program.

"We want Greece to continue going down this successful path in the interests of Greece and the Greeks but we will not accept one-sided changes to the program," he said at the Reuters Euro Zone Summit.

*  *  *

But it is the US media spin of the Russian pivot that is notable...

Here is Reuters' headline...

And here is what Tsipras actually said...

"We are in substantial negotiations with our partners in Europe and those that have lent to us. We have obligations towards them," Tsipras said at a news conference in Cyprus during his first foreign visit as prime minister.

"Right now, there are no other thoughts on the table," he said, when asked whether Greece would seek aid from Russia, which has suggested it could be willing to listen to a request for support from Athens.

*  *  *

Hardly the definitive ruling out of Russian aid that the headline proclaims.

"NATO and the United States should change their policy because the time when they dictate their conditions to the world has passed," Ahmadinejad said in a speech in Dushanbe, capital of the Central Asian republic of Tajikistan

Mr. Varoufakis Arrives In London

Zero Hedge,

2 February, 2015

The new Greek PM has a thing against ties; The new Greek finmin, on the other hand, has a thing for boots and barbour jackets as seen in this series of photos of him arriving from Paris (where he secured French support for the Greek debt "renegotiation") for a meeting with UK chancellor George Osborne.

Spot the suit:

What did they talk about? Here is the UK side of things via the FT:

Mr Osborne said: “We had a constructive discussion, and it is clear that the stand-off between Greece and the eurozone is the greatest risk to the global economy. I urge the Greek finance minister to act responsibly but it’s also important that the eurozone has a better plan for jobs and growth.

 

“It is a rising threat to the British economy. And we have got to make sure that in Europe as in Britain, we choose competence over chaos.”

 

Mr Varoufakis, who was wearing a wax jacket over his suit and sporting the trademark tieless look of the new Greek cabinet, met George Osborne, the chancellor, in Downing Street, where he was told that the UK expected Athens to honour its obligations.

 

Downing Street had earlier said that Mr Osborne would tell his Greek counterpart the UK would not be sympathetic towards a wholesale restructuring of Greece’s debt.

As for the Greek version: GREECE'S VAROUFAKIS HAS NO COMMENT TO PRESS AFTER OSBORNE TALKS

Emily Purser @EmilyPurserSky

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Yanis Varoufakis studiously avoids questions as he leaves No 11 #greece https://vine.co/v/Ot3nL3YAQQM 

12:50 AM - 3 Feb 2015

Vine @vine

Europe Fractures: France "Prepared To Support Greece" 

In Debt Renegotiations

Greece’s Syriza govt could 

pose greater risk to global 

economy than Middle East 

conflict – Osborne

RT,

2 February, 2015

Greece’s standoff with Eurozone governments and international creditors poses a greater threat to the global economy than conflict in the Middle East, climate change and rising tensions between Russia and the West, UK Chancellor George Osborne says.

After a meeting with Greece’s new finance minister, Yanis Varoufakis, Osborne implored Greece and the Eurozone’s 18 other states to act “responsibly” as the newly elected Greek government attempts to renegotiate the country’s €240 billion (£180 billion) bailout program.

Since coming to power in late January, the largely leftist Syriza government’s challenge to the austerity diktats of EU policy makers has been made clear.

As it continues to collide with Eurocrats over plans to reverse draconian austerity policies and renegotiate the country’s debt burden, concern is growing among neoliberal governments and international creditors alike.

Following his meeting with Varoufakis on Monday morning, Osborne said the discussions were“constructive.” But he warned that the current impasse between the Greek government, Eurocrats and international creditors poses a serious risk to economic stability throughout Europe.

Osborne said he asked Varoufakis to “act responsibly” when preparing to restructure Greece’s social and economic position on a heavily indebted European stage. But he acknowledged the Eurozone needs a “better plan for jobs and growth.”

Osborne said the Conservative Party’s economic plan for Britain would continue to increase employment levels and growth, and should be loyally pursued through uncertain economic times.

JubileeDebtCampaign @dropthedebt

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Greece debt standoff: George Osborne urges Athens and Brussels to strike deal http://www.theguardian.com/politics/2015/feb/02/greece-debt-standoff-george-osborne-urges-athens-brussels-deal … But sits on fence on what sort of deal

5:09 AM - 3 Feb 2015

Greece debt standoff: George Osborne urges Athens and Brussels to...

UK chancellor says debt talks are greatest threat to world economy during meeting with Greek finance chief Yanis Varoufakis

The Guardian @guardian

He warned that tensions between the Greek government and the architects of its IMF-EU imposed bailout pose a “rising threat to the British economy,” and that a path of “competence over chaos” in Europe is paramount.

But in contrast to Osborne, US President Barack Obama warned that perpetual austerity in Greece may well backfire against creditors’ interests.

“You cannot keep on squeezing countries that are in the midst of depression,” Obama told CNN.

“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits,” he dded.

Last week, Bank of England Governor Mark Carney sharply criticized austerity policies common to the Eurozone states, warning that the single-currency area was constrained by strangulating levels of debt that could plunge it into years of stagnation.

Following Carney’s comments, UK economist and anti-austerity campaigner Michael Burke argued that debt burdens of struggling EU states such as Greece and Ireland are unsustainable, and must be largely written off if real growth is to occur in these states.

George Osborne        ✔ @George_Osborne

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Constructive meeting with Greek finance min @yanisvaroufakis.Standoff between Greece & Eurozone fast becoming biggest risk to global economy

5:49 AM - 3 Feb 2015

Unlike Osborne, Greece’s new finance minister is not an advocate of austerity.

Central to Varoufakis’ pre-electoral mandate was a pledge to address the human price of Greek austerity, a vow to cancel or reduce the nation’s bailout burden, and a pledge to tackle the country’s oligarchic elites.

As part of a brief tour across Europe following Syriza’s election victory, Varoufakis also met with a series of City of London bankers Monday.

He is set to travel to Rome next, where he will speak with Italy’s finance minister, Pier Carlo Padoan, and Prime Minister Matteo Renzi.

Syriza is seeking to renegotiate Greece's rescue package in a manner that will link Greek debt repayments to tangible economic growth.

The party's plans have been met with resistance from German Finance Minister Wolfgang Schauble, who warned on Monday that Germany would not accept “one-sided” adaptations of the bailout program.

Commenting on Greece’s path forward, Italian PM Renzi said a “great deal of seriousness, caution and responsibility” was needed.

He warned that the Eurozone’s debate compass had to shift away from austerity and toward growth.

“We want to change economic policy in Europe, not just for Greece or for another country. We want to shift the debate on economic policy away from austerity and rigor toward growth and investment,” he told RTL radio.

Graeme Wearden @graemewearden

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George Osborne warns stand-off between Greece & €zone is fast becoming biggest risk to global economy (via Reuters) http://www.theguardian.com/business/live/2015/feb/02/greek-finance-minister-yanis-varoufakis-george-osborne-debt-deal-live-updates …

1:31 AM - 3 Feb 2015

As Syriza begins its task of restructuring Greece’s political and economic position on a fraught European stage, citizens and leftist parties in heavily indebted EU states will be watching closely.

To date, the anti-austerity government has refused to work with the Troika inspectors responsible for monitoring the state’s punitive fiscal restructuring.

Rather, Varoufakis has indicated he wants to directly negotiate with Greece’s creditors: the International Monetary Fund (IMF), the European Union (EU) and the European Central Bank (ECB).

Varoufakis’ meeting with Osborne follows the Greek finance minister’s controversial claim last week that Greece does not want the next scheduled loan of €7.2 billion from the Troika.

Outlining a timetable for a revised bailout agreement, Varoufakis said if Athens could have until the end of February to submit its proposals, it could reach a final agreement with its international partners by mid-April.

From the Guardian - 

Greece debt standoff: George Osborne urges Athens 

and Brussels to strike deal

UK chancellor says debt talks are greatest threat to world economy during meeting with Greek finance chief Yanis Varoufakis