Eurozone finance ministers warned on Thursday that a “window of opportunity” was closing on bridging a split over Greece’s bailout program, even as they failed to heal a row with the IMF over debt relief.
The IMF and the 19-nation single currency area are battling over how much debt relief Greece needs, and over economic targets required of Athens that the IMF says are not realistic.
“The window of opportunity is still open, but will soon shut because there are elections coming,” French Finance Minister Michel Sapin said after unsuccessful talks on Greece with his eurozone counterparts.
In addition, by the summer “Greece faces important debt repayments, so we have to find a solution before then,” Sapin said, with bailout cash blocked until a solution is found.
Months of bickering have delayed progress of Greece’s 86 billion euro (US$92.4 billion) bailout program agreed in 2015 and officials are increasingly worried that elections this year in the Netherlands, France and Germany could further poison any progress.
Eurogroup President Jeroen Dijsselbloem insisted that the IMF remained committed to the Greek bailout program, but that its demands were indeed strict.
“The IMF has been very clear and consistent on its position. They want the reform package to be credible, they want the fiscal trajectory to be feasible and economically viable and they want the debt to be sustainable,” said Dijsselbloem, who is also the Dutch finance minister.
Germany, Greece’s biggest creditor, says that Athens is up to the task of meeting the targets without further debt relief and has called on the Greek government to deliver on reforms.
“It’s up to the Greeks to solve the problem,” said German Finance Minister Wolfgang Schaeuble, the Eurogroup’s most influential member.
At heart of the problem is a demand by the eurozone that Greece deliver a primary balance, or surplus on public spending before debt repayments, of 3.5 percent of GDP.
The target is very high — and most countries do not even come close — but Germany and other eurozone hardliners are insistent that Greece reach it for several years after its current program concludes next year.
The IMF believes that hitting the long-term target will require debt relief and has also demanded extra commitments by Athens in case it falls short.
Greek Finance Mister Euclid Tsakalotos slammed these new demands as undemocratic.
“It is not correct to ask a country in a program to legislate, two or three years beforehand, what it will do in 2018,” Tsakalotos said.
Already huge, Greece’s debt hit 311 billion euros last year, or around 180 percent of output, according to the latest EU data.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS