Photo: Wikimedia Commons
European markets were heavy in the red again today.In Greece, it looks like negotiations surrounding the next bailout are falling apart again.
This time, the conflict comes from within the Greek government, which is trying to come to agreement over a package of spending cuts that will qualify it for the next disbursement of bailout aid from its troika creditors – money Greece desperately needs.
German press agency DPA has the details:
“As long as the EU/IMF presses Greece on the issue of labour reforms I will disagree,” said the leader of the Democratic Left, Fotis Kouvelis, adding that this will only serve to increase unemployment and deepen the recession.
Reports said coalition leaders have been unable to agree on the troika’s demands that automatic salary increases be scrapped, that compensation for redundant workers be lowered and that life-long job protection for civil servants be done away with.
“Negotiations continue,” Kouvelis said after the three-hour meeting, one of dozens to take place since July between the leaders of the three parties in Greece’s coalition government.
Kouvelis blasted the troika plan, saying that it “levelled” labour relations and that it had “nothing to do with fiscal reform; essentially they want wages stuck at low levels,” reported Athens News Agency.
The November meeting of eurozone finance ministers where Greece’s fate is supposed to be decided is getting closer and closer, and Greece could be setting itself up for a potential showdown with the troika.
Meanwhile, in Spain, one of the regions that didn’t get downgraded by Moody’s yesterday has delayed a bond auction due to market conditions.
The Spanish region of Madrid Tuesday pulled its plans to sell bonds, saying it would wait until enough investor demand could be garnered for a “larger transaction.”
“Recent taps have left the issuer with a comfortable liquidity position and the funding objective was to print a larger transaction, they will continue to monitor the market until conditions are optimal,” [the statement] said.
It’s been a rough start to the week so far for the eurozone.