THE REASONS WHY THERE IS NOT AN AGREEMENT BETWEEN GREECE AND THE “TROIKA”

The Tsipras Government’s Plan does not undertake the big reforms asked by the so-called Troika’s negotiators –formed by the European Central Bank, the International Monetary Fund and the European Commission. While Greece is running out of time to give back a loan to the IMF before this Friday (5/6/2015), Alexis Tsipras presented a plan to give an end to six years of crisis. A plan that does not undertake the great reforms requested by the EU negotiators, although the Greek Executive does show certain intention of reaching an agreement.

WHAT IS REQUESTED BY THE “BRUSELAS GROUP”

  • Reduction of the public spending
  • Improvement of tax incomes, in order to enhance the State’s incomes and a rise of IVA
  • Rationalize pensions and make this system sustainable
  • Program of privatizations as a source of incomes and keep ongoing plans underway.

WHAT ALEXIS TSIPRAS OFFERS

  • Fewer cutbacks and fewer debts. Tsipras tries to renegotiate the debt, in order to settle the annulment of part of the debt simply because Greece cannot pay it.
  • Limitation of the IVA’s increase: Greece offers keep three types of IVA (6%, 11% and 23%) to collect 1,000 millions of Euros, while European negotiators ask 2,000 million more with two types.
  • Less early retirements: the Greek Government accepts the gradual restriction of early retirements but not the sustainability of the public system of pensions.
  • They want the electricity kept public. They accept other kinds of privatizations, but not in this realm.
  • Athens also tries to gain a greater margin in order to be able of making social policies. That is why Tsipras wants to reduce the aim of primary surplus roughly to 1% of GDP in 2015 and 2% in 2016; while the previous objective was 3% in 2015 and 4% in 2016.

Here Tsipras gives the hand to Jean-Claude Juncker, President of the European Commission. http://ep01.epimg.net/internacional/imagenes/2015/06/03/actualidad/1433360287_548191_1433360441_noticia_normal.jpg

Although there is no an agreement between Athens and the “Troika” and now Greece is found in a hard situation due to the difficulties in paying the debts back the President of the European Commission, Jean-Claude Juncker, thinks that the way out of Greece is not a “desirable framework” because it could bring more problems than solutions. If it would occur, the people would start to think that the euro is not reversible.

Pier Carlo Padoan, Minister of Economies and Finances in Italy, believes that it “is possible”, although there would be consequences in a mid-term because, as Juncker said, it would mean that the euro is reversible.

However, Padoan believes that nobody is in the condition to say how the way out of Greece would be managed. However, he hopes that Tsipras reaches an agreement with the creditors these days.

This is a crucial week for Greece: it must pay the first part of the 300 million Euros to the IMF, while this month it has to give back roughly 1,600 million Euros.

In general, some conclusions have been great progresses with Greece, although there is still a long way to walk, although conversations start to be successful.

Pierre Moscovici, Commissioner of Economic Issues in Italy, points out that there has been a progress in concrete issues –IVA and reform of Greek Administration- even though the time to reach an agreement “hurries”.

BIBLIOGRAPHY

http://www.expansion.com/economia/2015/06/01/556cabf0268e3e5f108b458c.html

http://internacional.elpais.com/internacional/2015/06/01/actualidad/1433194209_089453.html

http://www.dw.de/juncker-salida-de-grecia-del-euro-acarrear%C3%ADa-m%C3%A1s-problemas/a-18491258

http://www.abc.es/internacional/20150603/abci-porque-grecia-acuerdo-bruselas-201506022142.html

http://elpais.com/elpais/2015/06/02/opinion/1433263452_484084.html

http://internacional.elpais.com/internacional/2015/06/03/actualidad/1433360287_548191.html

Immigration: Is the EU doing enough to tackle the issue?

On Sunday the 18th of April the world saw the worst immigration incident ever to occur in the Mediterranean. Two men have been arrested aged 27 years old and a 25 year old. It is has been confirmed that 800 people lost their lives. There is thought to only have been 27 survivors who were taken to the Sicilian coast of Catania on Monday evening.

It is believed that the ship capsized due to overcrowding. The boat had originally crashed. To add to the collision, when a Portuguese flagged ship came to help the overcrowded ship. It is thought the migrants on the ship moved position too fast causing the boat to become unbalanced.  The two men who were the organizer of the ship will be charged with accounts of people trafficking and reckless multiple homicide.

Amongst those who lost those lives in this tragic yet preventable event were children between the young ages of ten years old and twelve years old. The other twenty five survivors are being taken good care of and are to request asylum within the next few weeks.

The European Union (EU) have had the issue of immigration ever since the creation of Europe as a whole. The European Union faces issues of demographic pressures, identity and immigration policies, and a creation of a policy on Immigration to suit all 28 countries involved in the European Union. Currently the European Union are reviewing The 1951 Refugee convention. This is to solve any issues that are occurring with the application of this act to real life cases. At the moment within the European Union to gain citizenship within an EU country is very difficult even with  all the diverse rules from different countries. However this recent horrific event has made aware the severity of the problem of immigration.

From this event it is reported that more boats carrying hundreds more of migrants have passed through these seas. For example, Greece coast guards picked up three separate vessels carrying around 126 migrants. A few days later another yacht which was thought to be carrying around another 90 people.

This tragic event has made it aware how much of a problem immigration really is within the EU. This tragedy has taken place just after the emergency meeting of the EU interior and foreign ministers in Luxembourg. The meeting was to discuss and launch military actions on immigrant issues within and around Libya. There also been a push for the use of more naval ships to check the coast of Mediterranean to save more potential lives who are trying to get into Europe this way.

One concern has become clear from all this tragedy is that immigration is a clear issue and needs to be tackled sooner rather later as more lives are at risks each and every day.

Sources:

BBC (2015) ‘Mediterranean capsized migrant boat captain faces charges’. [Online] available from <http://www.bbc.com/news/world-europe-32390941> (3/4/2015)

The Guardian (2015) ‘Migrant boat captain arrested as survivors of sinking reach Italy’. [Online] Available from <http://www.theguardian.com/world/2015/apr/21/survivors-800-migrant-boat-disaster-reach-italy-catania>(3/4/2015)

Migration policy Institute

(2015) ‘Europe’. [Online] Available from<http://www.migrationpolicy.org/regions/europe?gclid=CjwKEAjwsZyqBRCT1aq6qcD53DQSJACcen4C7Hi6ZuCfLSod4y5JJavRr_tvOOB-gnvyr__0vSArUBoCJyHw_wcB>(2/4/2015)