FRANKFURT, GERMANY // More than two years after it came clean about its addiction to debt, Greece may finally have begun its long and painful road to recovery.
Greece’s political leaders struck a historic deal yesterday to make deep cuts in government jobs and spending to help save the country from a default that could shock the world financial system.
The deal, under negotiation since July, is one of two critical steps Greece must take to receive a €130 billion (Dh624bn) bailout from other countries in Europe and around the globe. It was announced by Greek prime minister Lucas Papademos’ office and will be scrutinised during talks in Brussels between finance ministers from the 17 countries that use the euro.
In addition to the fiscal austerity mandated by the European Union, the European Central Bank and the International Monetary Fund, Greece is close to an agreement with private investors who hold nearly two-thirds of its debt to sharply reduce the country’s borrowing costs.
Greece needs the bailout by March 20 so it will have enough money to redeem €14.5bn worth of bonds. If it doesn’t make that payment, it will be in default. Financial analysts fear that could set off a financial meltdown similar to the collapse of Lehman Brothers in 2008.
The bailout will ease some of the uncertainty that has unsettled Europe and the world financial system for more than two years, but it will not bring down the curtain on Greece’s debt drama.
Greece remains in a deep recession. Unemployment is 20.9 per cent after the economy’s third straight year of decline. Its government finances and its economy are being dragged down by costly political patronage, tax evasion and special protections for some favoured trades.
Greece will be struggling to pay its debts for years, says Domenico Lombardi, fellow at the Brookings Institution. “The scope of the problems that have to be tackled in Greece are so huge and so entrenched,” he says.
Efforts to fix those fundamental problems are moving slowly, if at all. If they are not solved, Greece may find itself back at the edge of default.
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Results
4pm: Al Bastakiya Listed US$300,000 (Dirt) 1,900m; Winner: Emblem Storm, Oisin Murphy (jockey), Satish Seemar (trainer).
4.35pm: Mahab Al Shimaal Group 3 $350,000 (D) 1,200m; Winner: Wafy, Tadhg O’Shea, Satish Seemar.
5.10pm: Nad Al Sheba Turf Group 3 $350,000 (Turf) 1,200m; Winner: Wildman Jack, Fernando Jara, Doug O’Neill.
5.45pm: Burj Nahaar Group 3 $350,000 (D) 1,600m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass.
6.20pm: Jebel Hatta Group 1 $400,000 (T) 1,800m; Winner: Barney Roy, William Buick, Charlie Appleby.
6.55pm: Al Maktoum Challenge Round-3 Group 1 $600,000 (D) 2,000m; Winner: Matterhorn, Mickael Barzalona, Salem bin Ghadayer.
7.30pm: Dubai City Of Gold Group 2 $350,000 (T) 2,410m; Winner: Loxley, Mickael Barzalona, Charlie Appleby.
if you go
The flights
Emirates offer flights to Buenos Aires from Dubai, via Rio De Janeiro from around Dh6,300. emirates.com
Seeing the games
Tangol sell experiences across South America and generally have good access to tickets for most of the big teams in Buenos Aires: Boca Juniors, River Plate, and Independiente. Prices from Dh550 and include pick up and drop off from your hotel in the city. tangol.com
Staying there
Tangol will pick up tourists from any hotel in Buenos Aires, but after the intensity of the game, the Faena makes for tranquil, upmarket accommodation. Doubles from Dh1,110. faena.com
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013