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| Eurozone crisis live: Mario Monti holds crunch talks with Italian unions | Eurozone crisis live: Mario Monti holds crunch talks with Italian unions |
| (40 minutes later) | |
| 8.54am: European Union leaders have been accused of "moral decay" for delaying Greece's debt restructuring by two years while they strengthened their banking sector. | |
| Carl Weinberg, founder and chief economist at High Frequency Economics, claimed in a report that Greece's first bailout was deliberately limited, because EU banks were not in a position to swallow losses. | |
| Weinberg asked, rhetorically: | |
Why wasn't Greece allowed to restructure its debt two years ago, before its economy contracted by 15 percent, and before it was necessary to impose a haircut on private sector borrowers, destabilize the government and the economy, illegally implement retroactive collective action clauses, and trigger credit default swaps.... | |
| It was inconvenient for the banks, that is why. | |
| Do we agree? | |
| It's certainly true that Greece's initial financial package, agreed in May 2010, wasn't wide-ranging enough (thus the need for the second deal). But Weinberg's claim that the likes of Angela Merkel and Nicolas Sarkozy deliberately "put a few million Greek citizens through the wringer" is open to debate.... | |
| 8.43am: In Greece, ferry services remain disrupted today as the Panhellenic Seamen's Union (PNO) continue their 48-hour strike – despite pleas from Greek farmers who say they will suffer badly from the disruption. | 8.43am: In Greece, ferry services remain disrupted today as the Panhellenic Seamen's Union (PNO) continue their 48-hour strike – despite pleas from Greek farmers who say they will suffer badly from the disruption. |
| As we reported yesterday, PNO workers down tools (and anchors) in protest at cuts to pensions, and changes to collective labor contracts. With boats stuck in harbours until at least tomorrow morning, many of Greece's islands are cut off. | As we reported yesterday, PNO workers down tools (and anchors) in protest at cuts to pensions, and changes to collective labor contracts. With boats stuck in harbours until at least tomorrow morning, many of Greece's islands are cut off. |
| Development Minister Anna Diamantopoulou is due to meet with representatives of the Panhellenic Seamen's Union (PNO) later today. She blasted the disruption yesterday, saying: | Development Minister Anna Diamantopoulou is due to meet with representatives of the Panhellenic Seamen's Union (PNO) later today. She blasted the disruption yesterday, saying: |
| Every blow against agricultural production, against tourism, against the islands, against the national economy, is a blow against the unemployed Greek, the pensioner, the worker. | Every blow against agricultural production, against tourism, against the islands, against the national economy, is a blow against the unemployed Greek, the pensioner, the worker. |
| 8.21am: Mario Monti has enjoyed a decent spell as Italy's prime minister since replacing Silvio Berlusconi four months ago. Austerity measures have been passed, borrowing costs have fallen, and EU leaders and economist have both cheered his performance. | 8.21am: Mario Monti has enjoyed a decent spell as Italy's prime minister since replacing Silvio Berlusconi four months ago. Austerity measures have been passed, borrowing costs have fallen, and EU leaders and economist have both cheered his performance. |
| Today's talks with unions, though, could unseat Monti's efforts to reform Italy's labour markets. Reuters claims that the price of failure could be: | Today's talks with unions, though, could unseat Monti's efforts to reform Italy's labour markets. Reuters claims that the price of failure could be: |
| mass strikes and ructions within Monti's left-right parliamentary coalition. | mass strikes and ructions within Monti's left-right parliamentary coalition. |
| But what is Monti trying to achieve? One of his key goals is to reform Article 18 of Italy's employment law, which gives workers strong protection against being dismissed. | But what is Monti trying to achieve? One of his key goals is to reform Article 18 of Italy's employment law, which gives workers strong protection against being dismissed. |
| Critics of the law claim it prevents employees from dismissing workers who simply fail to perform. Union leaders, though, fear indiscriminate job losses if Article 18 is changed. | Critics of the law claim it prevents employees from dismissing workers who simply fail to perform. Union leaders, though, fear indiscriminate job losses if Article 18 is changed. |
| Luigi Angeletti, the leader of the UIL union, has said that the Italian government must water down its demands, saying: | Luigi Angeletti, the leader of the UIL union, has said that the Italian government must water down its demands, saying: |
| An agreement is very possible.....All that must be done is to change the hard line. | An agreement is very possible.....All that must be done is to change the hard line. |
| More details here. | More details here. |
| 8.10am: Today's agenda includes two pieces of UK economic data, and an appearance by US treasury secretary Tim Geithner this afternoon to doscuss "the state of the international financial system". | 8.10am: Today's agenda includes two pieces of UK economic data, and an appearance by US treasury secretary Tim Geithner this afternoon to doscuss "the state of the international financial system". |
| • UK inflation data for February: 9.30am GMT • UK CBI industrial trends for March: 11am GMT • US Treasury secretary Tim Geithner testifies to the House Financial Services committee: 2pm GMT / 10am EST • Mario Monti meets with Italian union leaders: from 2.30pm GMT / 3.30pm CET | • UK inflation data for February: 9.30am GMT • UK CBI industrial trends for March: 11am GMT • US Treasury secretary Tim Geithner testifies to the House Financial Services committee: 2pm GMT / 10am EST • Mario Monti meets with Italian union leaders: from 2.30pm GMT / 3.30pm CET |
| In the debt markets, Greece will action 13-week bills, Spain will sell 12 and 18-month bonds, and Italy will auction four-year bonds. | In the debt markets, Greece will action 13-week bills, Spain will sell 12 and 18-month bonds, and Italy will auction four-year bonds. |
| 8.00am: Good morning, and welcome to our rolling coverage of the eurozone debt crisis. | 8.00am: Good morning, and welcome to our rolling coverage of the eurozone debt crisis. |
| Europe's two technocratic prime ministers will be busy today. In Rome, Mario Monti is holding crunch talks with unions over his proposals to reform Italy's economy. | Europe's two technocratic prime ministers will be busy today. In Rome, Mario Monti is holding crunch talks with unions over his proposals to reform Italy's economy. |
| Meanwhile, Greece is moving closer to an election footing as Lucas Papademos's government completes its last few tasks. That list includes the selection of a new finance minister, following Evangelos Venizelos's resignation yesterday. | Meanwhile, Greece is moving closer to an election footing as Lucas Papademos's government completes its last few tasks. That list includes the selection of a new finance minister, following Evangelos Venizelos's resignation yesterday. |
| Greece is also gripped by the strike action that the country's seamen began yesterday – ministers are due to hold talks with their union in an attempt to end the disruption. | Greece is also gripped by the strike action that the country's seamen began yesterday – ministers are due to hold talks with their union in an attempt to end the disruption. |
| We're also expecting protests outside the Athens parliament this evening as the final pieces of legislation covering its new economic programme are approved by MPs. | We're also expecting protests outside the Athens parliament this evening as the final pieces of legislation covering its new economic programme are approved by MPs. |
| And in the UK, the latest inflation data will be closely watched ahead of tomorrow's Budget. | And in the UK, the latest inflation data will be closely watched ahead of tomorrow's Budget. |