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| Greeks hold general strike against austerity measures - live updates | Greeks hold general strike against austerity measures - live updates |
| (35 minutes later) | |
| 9.03am GMT09:03 | |
| Draghi: Don't blame us for bailout misery | |
| It’s wrong to blame the European Central Bank for the austerity misery suffered by bailed-out eurozone members, Mario Draghi claims. | |
| The ECB chief is defending the way events unfolded in Ireland, Greece, Cyprus and beyond, arguing that things would have been even worse without the ‘adjustment programmes’ demanded by creditor. | |
| During his testimony to the European Parliament, Draghi says: | |
| Since 2010, three countries have now successfully completed their programmes, and Ireland is a particularly good example of how such programmes can deliver the necessary adjustment and restore financial stability, economic competitiveness and fiscal sustainability. It has shown that a country which takes strong ownership of its programme can come out of it with robust growth and a more stable financial system, and that eventually employment will also rebound. | |
| There is no doubt that the adjustment process was painful. But we should keep in mind that the adjustment would have caused significantly more hardship in the absence of financial assistance. The programmes had to address excessive macroeconomic imbalances which had accumulated over several years in the run-up to the crisis, often reflecting misguided national economic policies. | |
| As we have said before: don’t blame the fire damage on the fire brigade. | |
| #Draghi on harshness of euro-area bailout programs: "don’t blame the fire damage on the fire brigade" https://t.co/TzQ4hV3Oc5 | |
| Central bankers are never wrong about anything, of course. | |
| But critics will argue that some of the austerity measures forced on Greece actually threw petrol, not water, on the flames, helping to wipe out 25% of GDP. | |
| Updated at 9.05am GMT | |
| 8.48am GMT08:48 | |
| Euro hits new seven-month low | |
| #Draghi talks, the euro tanks. Now below 1.07, new 7-month low. | |
| 8.47am GMT08:47 | |
| European Central Bank chief Mario Draghi has begun testifying to the European Parliament, and sent the euro falling. | |
| Draghi began by warning that the eurozone faces clear ‘downside risks’ from the global economy, and weakening inflation pressure too. | |
| Euro draghid lower as #ECB's Draghi sees downside econ risks. pic.twitter.com/MyFQYuc7m4 | |
| Here’s the key quote: | |
| Downside risks stemming from global growth and trade are clearly visible. | |
| Moreover, inflation dynamics have somewhat weakened, mainly due to lower oil prices and the delayed effects of the stronger euro exchange rate seen earlier in the year. In addition, price pressures – such as from producer prices – remain very subdued. | |
| And he followed up with a hint that further stimulus may be required, perhaps as soon as next month: | |
| #Draghi At our December monetary policy meeting, we will re-examine the degree of monetary policy accommodation #ECB #QE | |
| ECB's Draghi: QE would run beyond end-September 2016 if needed | |
| Updated at 8.48am GMT | |
| 8.32am GMT08:32 | |
| Greek unions pledge to fight austerity | |
| Today’s walkout could be the start of a winter of discontent in Greece. | |
| Unions are vowing to intensify the pressure against further austerity measures being implemented, arguing that Greek citizens cannot take any more. | |
| Our Athens correspondent Helena Smith reports: | |
| “The winter is going to be explosive and this will mark the beginning,” said Grigoris Kalomoiris, a leading member of the civil servants’ union Adedy. | |
| “When the average wage has already been cut by 30%, when salaries are already unacceptably low, when the social security system is at risk of collapse, we cannot sit still,” he said. | |
| Here’s her early report on the general strike: | |
| Related: 'Our rage will be relentless': Syriza faces mass strike in Greece | |
| 8.31am GMT08:31 | |
| Back in the City, shares in UK engineering group Rolls-Royce have plunged by a fifth at the start of trading. | |
| The company has shocked investors with another profits warning, saying that the outlook for 2016 has deteriorated sharply and is now ‘very challenging’. | |
| Related: Rolls-Royce share price plunges after latest profit warning | |
| 8.12am GMT08:12 | 8.12am GMT08:12 |
| Transport disruption in Greece | Transport disruption in Greece |
| All Greece’s public services, including tax offices and utilities, are due to be closed today to mark the general strike: | All Greece’s public services, including tax offices and utilities, are due to be closed today to mark the general strike: |
| The Kathimerini newspaper has the details: | The Kathimerini newspaper has the details: |
| Public hospitals will be operating with skeleton staff. Pharmacists, doctors, teachers and bank employees will also walk off the job. | Public hospitals will be operating with skeleton staff. Pharmacists, doctors, teachers and bank employees will also walk off the job. |
| The Athens metro will be shut throughout the day, as will the Proastiakos suburban railway and intercity trains. The Kifissia-Piraeus electric railway (ISAP) will only operate between 10 a.m. and 4 p.m. Buses in the capital will be out of service before 9 a.m. and after 9 p.m. There will be no ferry connections between the mainland and the islands as the Panhellenic Seamens’ Federation (PNO) is also joining in the strike. Aegean Airlines and Olympic Air have announced flight cancellations for Thursday. | The Athens metro will be shut throughout the day, as will the Proastiakos suburban railway and intercity trains. The Kifissia-Piraeus electric railway (ISAP) will only operate between 10 a.m. and 4 p.m. Buses in the capital will be out of service before 9 a.m. and after 9 p.m. There will be no ferry connections between the mainland and the islands as the Panhellenic Seamens’ Federation (PNO) is also joining in the strike. Aegean Airlines and Olympic Air have announced flight cancellations for Thursday. |
| Museums and archaeological sites will be shut as guards will not be working. | Museums and archaeological sites will be shut as guards will not be working. |
| 8.01am GMT08:01 | 8.01am GMT08:01 |
| Belgian finance minister criticises Syriza for supporting strike | Belgian finance minister criticises Syriza for supporting strike |
| Belgium’s finance minister has just blasted Greece’s ruling party for backing today’s general strike, against a bailout it signed up to. | Belgium’s finance minister has just blasted Greece’s ruling party for backing today’s general strike, against a bailout it signed up to. |
| Johan Van Overtveldt tweeted that the move “strange and dangerous”, at a time when Athens should be racing to meet its bailout targets. | Johan Van Overtveldt tweeted that the move “strange and dangerous”, at a time when Athens should be racing to meet its bailout targets. |
| Strange & dangerous logic in Athens: Syriza organises strike against program its own government pledges to execute. Sense of urgency needed. | Strange & dangerous logic in Athens: Syriza organises strike against program its own government pledges to execute. Sense of urgency needed. |
| Updated at 8.03am GMT | Updated at 8.03am GMT |
| 7.58am GMT07:58 | 7.58am GMT07:58 |
| In what may be a first for the eurozone, today’s general strike is actually supported by the ruling party, Alexis Tsipras’s Syriza coalition. | In what may be a first for the eurozone, today’s general strike is actually supported by the ruling party, Alexis Tsipras’s Syriza coalition. |
| Yesterday Syriza’s Labor Policy Department called on all workers, unemployed, pensioners and students to join the general strike on Thursday. | Yesterday Syriza’s Labor Policy Department called on all workers, unemployed, pensioners and students to join the general strike on Thursday. |
| They urged citizens to “actively respond” to the pressure of creditors who continue “the dynamics of extreme, unpopular neoliberal policies.” | They urged citizens to “actively respond” to the pressure of creditors who continue “the dynamics of extreme, unpopular neoliberal policies.” |
| These policies, though, were accepted by Tsipras under huge pressure this summer, when Greece finally caved into a third bailout deal. | These policies, though, were accepted by Tsipras under huge pressure this summer, when Greece finally caved into a third bailout deal. |
| It’s quite a paradox... | It’s quite a paradox... |
| #greek general strike is supported by the key Government party against the measures of which it is targeted. #oxymoron #surreal | #greek general strike is supported by the key Government party against the measures of which it is targeted. #oxymoron #surreal |
| 7.40am GMT07:40 | 7.40am GMT07:40 |
| Today’s walkout is the first general strike to hit Greece under prime minister Alexis Tsipras’s leadership: | Today’s walkout is the first general strike to hit Greece under prime minister Alexis Tsipras’s leadership: |
| It will be a new experience for the left-wing leader, as Bloomberg reports: | It will be a new experience for the left-wing leader, as Bloomberg reports: |
| As Greek workers take to the streets in protest on Thursday, Alexis Tsipras will for the first time be on the other side of the barricades. | As Greek workers take to the streets in protest on Thursday, Alexis Tsipras will for the first time be on the other side of the barricades. |
| Unions -- a key support base for the prime minister’s Syriza party -- will chant the same slogans Tsipras once used against opponents. Doctors and pharmacists will join port workers, civil servants and Athens metro staff in Greece’s first general strike since he took office in January, bringing the country to a standstill for 24 hours. | Unions -- a key support base for the prime minister’s Syriza party -- will chant the same slogans Tsipras once used against opponents. Doctors and pharmacists will join port workers, civil servants and Athens metro staff in Greece’s first general strike since he took office in January, bringing the country to a standstill for 24 hours. |
| ADEDY and GSEE, Greece’s biggest unions, have called for a rally at 11 am local time [9am GMT], accusing Tsipras of bowing to creditors and imposing measures that “perpetuate the dark ages for workers.” | ADEDY and GSEE, Greece’s biggest unions, have called for a rally at 11 am local time [9am GMT], accusing Tsipras of bowing to creditors and imposing measures that “perpetuate the dark ages for workers.” |
| Greece comes to a standstill as general strike sees unions turn against PM https://t.co/8rVybGgsqr pic.twitter.com/K7vrR5WVH2 | Greece comes to a standstill as general strike sees unions turn against PM https://t.co/8rVybGgsqr pic.twitter.com/K7vrR5WVH2 |
| Updated at 7.42am GMT | Updated at 7.42am GMT |
| 7.26am GMT07:26 | 7.26am GMT07:26 |
| The agenda: General strike in Greece, Draghi faces MEPs | The agenda: General strike in Greece, Draghi faces MEPs |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Public anger over Greece’s third bailout will hit the streets today, as its biggest unions call a 24-hour walkout and protests in Athens. | Public anger over Greece’s third bailout will hit the streets today, as its biggest unions call a 24-hour walkout and protests in Athens. |
| Greece will grind to a standstill as workers demonstrate against the tax rises and pension reforms agreed with its creditors this summer, in return for a third bailout. Shops and offices will be shuttered, and transport links disrupted, as Greeks vent their frustrations over the state of play. | Greece will grind to a standstill as workers demonstrate against the tax rises and pension reforms agreed with its creditors this summer, in return for a third bailout. Shops and offices will be shuttered, and transport links disrupted, as Greeks vent their frustrations over the state of play. |
| The scale of the protest will highlight how much public anger and disappointment is bubbling away in the country. | The scale of the protest will highlight how much public anger and disappointment is bubbling away in the country. |
| A year which began with prime minister Alexis Tsipras promising to end austerity draws to an end with more painful cuts and tax hikes looming. | A year which began with prime minister Alexis Tsipras promising to end austerity draws to an end with more painful cuts and tax hikes looming. |
| The protests comes as the Athens authorities try to reach agreement with creditors to unlock the next tranche of aid from July’s bailout deal. | The protests comes as the Athens authorities try to reach agreement with creditors to unlock the next tranche of aid from July’s bailout deal. |
| They are still at odds over how to implement laws covering mortgages in default and other bad debts. | They are still at odds over how to implement laws covering mortgages in default and other bad debts. |
| Greece has until Monday to reach a compromise, and unlock €2bn in loans plus €10-bn to recapitalise its banking sector. The stakes are rising again..... | Greece has until Monday to reach a compromise, and unlock €2bn in loans plus €10-bn to recapitalise its banking sector. The stakes are rising again..... |
| Also coming up this morning | Also coming up this morning |
| Mario Draghi, the ECB president, is due to testify at the European Parliament this morning, from 8.30am GMT (9.30am Brussels). He’ll be fielding questions on the eurozone economy, the deflation threat, as well as Greece I imagine. | Mario Draghi, the ECB president, is due to testify at the European Parliament this morning, from 8.30am GMT (9.30am Brussels). He’ll be fielding questions on the eurozone economy, the deflation threat, as well as Greece I imagine. |
| A flurry of top Federal Reserve officials are also speaking today, including Fed chair Janet Yellen. | A flurry of top Federal Reserve officials are also speaking today, including Fed chair Janet Yellen. |
| That should set ears waggling in the City and on Wall Street, for hints that US interest rates may be hiked in December. | That should set ears waggling in the City and on Wall Street, for hints that US interest rates may be hiked in December. |
| Plenty of Fed speakers today: #Yellen,Evans, #Lacker, #Dudley.First peep from Yellen since last week's #payroll blockbuster. @newsdotmarkets | Plenty of Fed speakers today: #Yellen,Evans, #Lacker, #Dudley.First peep from Yellen since last week's #payroll blockbuster. @newsdotmarkets |
| While in the City, engine maker Rolls Royce has just cut its profit guidance for 2016 - more on that shortly.... | While in the City, engine maker Rolls Royce has just cut its profit guidance for 2016 - more on that shortly.... |
| Engine maker Rolls-Royce cuts profit forecast again - fourth profit warning in just over a year | Engine maker Rolls-Royce cuts profit forecast again - fourth profit warning in just over a year |
| Fashion group Burberry and cars-to-cycles group Halfords are also reporting results. | Fashion group Burberry and cars-to-cycles group Halfords are also reporting results. |
| Burberry, which issued a profits warning last month, has posted a 5% rise in adjusted profits for the last six months. But it also cautions that “the external environment became more challenging in key markets over the period”. That’s the slowing Chinese economy. | Burberry, which issued a profits warning last month, has posted a 5% rise in adjusted profits for the last six months. But it also cautions that “the external environment became more challenging in key markets over the period”. That’s the slowing Chinese economy. |
| And Halfords has warned that its cycling sales are down again, due to weakness in July and August. | And Halfords has warned that its cycling sales are down again, due to weakness in July and August. |
| We’ll be tracking all the main events through the day... | We’ll be tracking all the main events through the day... |
| Updated at 7.47am GMT | Updated at 7.47am GMT |