Wednesday, May 9, 2012

Greece: No coalition government in sight as yet



Alexis Tsipras leader of the 2nd place Styriza party has so far been unable to form a coalition government. Given that the two other largest parties support the bailout deal while his party opposes it, it seems unlikely that he can form a government. If he fails then the task will fall upon the third place PASOK socialist party. However, it too is unlikely to be able to form a coalition. If this happens there will need to be new elections in June.

The leader of the New Democracy party Samaras was himself unable to form a coalition earlier. International creditors have been warning Greece that if the austerity measures are not implemented then bailout money will not be forthcoming in June. The uncertainty resulting from Greek politics is one of the reasons stock markets in many countries have declined of late. Greece has also promised that it will pass new austerity measures worth 18.9 billion next month as well as implement agreed upon measures. Given the political situation it seems quite unlikely that this will happen.

The Communist Party has refused to join any coalition government and the right wing New Dawn party has not been contacted by any one as yet since it is regarded as too extreme apparently. Tsipras wants Greece to pull out of the bailout agreement. This position puts him at odds with both New Democracy and PASOK. The New Democracy leader said"Denouncing the agreement, as [Tsipras] proposes, will lead to immediate internal collapse and international bankruptcy, with the inevitable exit from Europe," However, Samaras was open to amending the agreement.

Greece received two bailouts worth 312 billion dollars. In return salaries and pensions have been cut, state jobs eliminated, and new taxes imposed. The result has been continued recession now lasting five years.

The German foreign minister said that Greece will not obtain any further loans unless it continues its austerity policies. He said:"Germany would like to keep Greece in the euro zone but whether Greece actually does remain in the euro zone or not lies in its own hands," However it looks more and more as if Greece will not meet the demands of the EU and will end up bankrupt and leaving the Euro zone. For more see this article.

Karzai claims civilian deaths in NATO air strikes could undermine Strategic Partnership agreement



Just recently Obama paid a secret visit to Afghanistan to sign a Strategic Partnership Deal governing the U.S. continuing presence and support for Afghanistan from 2014 to 2024. Now Karzai claims that the deal is being undermined by recent NATO air strikes that have killed civilians.

This is probably simply political rhetoric that Karzai finds necessary in order to keep some semblance of legitimacy in the eyes of the public. There is an analogous situation in Pakistan where the parliament passes motions demanding drone strikes stop but they continue. However, Karzai is unpredictable and it is possible if pushed far enough he may feel forced to act.

Karzai said:“If the lives of Afghan people are not safe, the signing of the strategic partnership has no meaning,” Karzai again demanded that NATO stop air strikes in populated areas and bombing homes that might have civilians inside. NATO has refused to change course.

Afghanistan is an occupied country and the government and military are dependent upon foreign payments to function. Even after 2014 the Afghan government will require much over a billion a year to finance the military.

The Strategic Partnership deal does on paper give some control over night raids but only certain types of raids. This is no doubt meant to make it look as if Karzai has won concessions whereas in reality independent raids by the U.S. will continue as before the agreement . The NATO policy at present is unchanged with the inevitable collateral damage that follows. No doubt these raids help the Taliban recruit fighters. For more see this article.

US will bank Tik Tok unless it sells off its US operations

  US Treasury Secretary Steven Mnuchin said during a CNBC interview that the Trump administration has decided that the Chinese internet app ...