Greeks strike against austerity, EU demands more cuts

By Ingrid Melander and Tatiana Fragou – Before they release more aid, Greece‘s financial backers have demanded parliamentary ratification of the new austerity package this weekend, the identification of a further 325 million euros of spending reductions by next Wednesday and a strong commitment from all parties to implement the reforms.

But it may be a demand too far. Many Greeks, already suffering from five consecutive years of recession, are increasingly angry about the measures, which are unlikely to ease an economy, where one in five is unemployed, shops close one after another and households are tightening their budget. more> http://tinyurl.com/7uzo5z6

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France draws fire after “alarm bells” warning

By Daniel Flynn and James Mackenzie – Nervous markets also showed concern about whether Italy’s Mario Monti and new Greek leader Lucas Papademos, unelected European technocrats without a domestic political base, can impose tough austerity measures and economic reform.

French 10-year bond yields have risen around 50 basis points in the last week, pushing the spread over safe haven German bonds to a euro-era high of 173 basis points.

French banks are among the biggest holders of Italy’s 1.8 trillion euro public debt pile. more> http://tinyurl.com/codbh4f

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Europe: the rise of the technocracy

Editorial – The rise of the technocracy, to distort Michael Young’s famous phrase, is what we are witnessing. This ugly term conveys two separate things. The first is a contrast with a more familiar “ocracy” – that derived from “demos”, a Greek word which brings to mind the common people. Messrs Papademos and Monti have not had to worry about them since both are unelected.

A century plus a decade has passed since Britain was ruled by a prime minister from the pre-democratic splendour of the Lords. Yet the former European commissioner Mr Monti was last week installed as a life senator just before being asked to form a government. Meanwhile in Athens a central banking bureaucrat, Mr Papademos, was called in to fill a vacancy created precisely because the previous premier had flirted with the dangerous idea of giving the people a say on austerity, through a referendum. more> http://twurl.nl/i57zo3

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