Greek Prime Minister To Meet Angela Merkel To Work On Debt

The European Central Bank (ECB) head Mario Draghi has said the ECB is ready to restore support for Greece’s banks if talks between the Greek government and its creditors get back on track.

Mr. Draghi told EU parliamentarians that the parties should “restore the policy dialogue” so talks could yield “a credible prospect” for a deal on more emergency aid.

“Greece and its creditors in the 19-country eurozone have sparred over the conditions Greece needs to fulfil to get more help to avoid defaulting on its debts,” states breakingnews.com.

Once a deal is in sight, the ECB could restore the ability for Greek banks to tap ECB credit using Greek government bonds as collateral, according to Draghi.

Greek prime minister Alexis Tsipras will meet with with German chancellor Angela Merkel to try to break the deadlock.

Mr. Draghi rejected a comment from one politician that the ECB was “blackmailing” Greece into yielding to creditor conditions.

He noted that the ECB held €104bn of credit exposure to Greece.  “What kind of blackmail is this?” he asked, before calling the statement “a bit rich.”

British Cabinet Minister George Osborne Warns Of Greek Debt Crisis Fallout

What is the “chancellor of the exchequer” in England?

Wikipedia: “The Chancellor of the Exchequer is the (wordy) title held by the British Cabinet minister who is responsible for all economic and financial matters, equivalent to the role of Minister of Finance or Secretary of the Treasury in other nations.”

Britain’s chancellor of the exchequer George Osborne has warned that the risks of a “very bad outcome” from the Greek debt crisis have risen.

Speaking in Istanbul, Obsborne said that there was a growing danger that the deadlock over Greece’s bailout program would spiral out of control.

He cautioned that this could potentially cause serious damage to the global economy as well as the UK’s.

Osborne raised the pressure on Athens, and its creditors, by declaring:

“It’s clear that the risks to the world economy, the risk to the British economy of this standoff between the eurozone and Greece, is growing each day.

Osborne:

“The risks of a miscalculation or a misstep leading to a very bad outcome are growing as well.”

Osborne said the UK had been arguing for both sides in the Greek debt crisis to find some common ground, during the G20 meeting of finance ministers in Turkey.

Greek PM Easily Wins Parliamentary Backing To Take On Brussels Over Bailout

According to sources, Germany and Greece are heading into an emergency meeting with official creditors today, setting the stage for a clash over Greek debt and Greece’s monetary union with the Eurozone.

The repercussions of a Greek exit and Eurozone break-up could be catastrophic for both the European and global economies.

German Finance Minister Wolfgang Schaeuble rejected Greece’s call for a new debt accord, while Greece’s new Prime Minister Alexis Tsipras remained defiant, saying there is “no way back” for his government, and that he can’t condemn his people to more pain.

“We will not get a clean close to this crisis today,” Michael O’Sullivan, chief investment officer for the U.K. and Europe, the Middle East and Africa at Credit Suisse Private Banking in London, said in an interview on Bloomberg Television. “I think this will drag on. The Greeks have digested a record amount of austerity, so they’ll want some relief from that.”

Any agreement would require an easing of Germany’s stance over conditions attached to Greece’s 240 billion-euro ($272 billion) bailout. A non-settlement risks leaving Greece without funding as of the end of this month, when its current bailout expires, and it may put Europe’s most-indebted state’s euro membership in danger.

euronews

Could Greece Exit The Euro?

According to Euronews, German Chancellor Angela Merkel believes the eurozone could cope with a potential Greek exit.

Her government considers a Greek exit almost unavoidable if the left-wing Syriza opposition party, which wants to cancel austerity measures and a chunk of Greek debt, wins an election set for January 25.

Euronews video.

Ferry Burning In The Adriatic Sea

A joint Italian-Greek rescue operation is under way to rescue hundreds of people aboard a burning ferry in the Adriatic. Sources claim that one person has died and hundreds are being rescued.

In a separate story, also in the Adriatic, there was a collision between a Turkish cargo ship and another vessel flying a Belize flag.

According to the mayor of the Italian port of Ravenna, two people have died, and another four are missing. Several more people have been rescued.

CNN video.