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Eurozone crisis live: Bernanke and Geithner talk about Europe Eurozone crisis live: Geithner warns Europe against too much austerity
(40 minutes later)
5.01pm: Here's more from Tom Kington in Rome on the union reaction to prime minister Mario Monti's labour reforms. In brief the CGIL union is promising a battle over the issue:
Italy's biggest union, with 5.7 million members, believes the easing on firing restrictions promised by Monti will lead to "years of mass dismissals," and is proposing a general strike to be held as the reforms move through parliament.
It is worth noting that Italy's two other large unions, the CISL and UIL, which sat in with the CGIL on talks with Monti and approved the reform on Tuesday, together count for 6.6m members, more than the CGIL's total. It is also interesting that 2.7m of the CGIL's members are pensioners.
But Susanna Camusso, the tough head of the union looks likely to be able to bring thousands onto the streets, with bank staff and police officers already voicing their support for action.
The European Commission meanwhile came out in favour of Monti's measures. Labour commissioner Laszlo Andor said it mirrored the EU's own ambitions to make the job market more "dynamic".
And Pier Luigi Bersani, the head of the centre-left Democratic Party – who wants to support Monti but is beholden to his union support – has promised to give his views in what will be an uncomfortable TV interview tonight. He has already said he is unhappy that Monti backed down on a promise to keep on negotiating with unions until all sides were happy.
4.44pm: Time for a quick market round-up, and a mixed picture it is too.4.44pm: Time for a quick market round-up, and a mixed picture it is too.
The FTSE 100 has finished up just 0.54 points at 5891.95, with investors fairly unmoved by George Osborne's budget. Germany's Dax is also marginally higher, up 0.29%, while France's Cac is virtually unchanged, down 0.01%. Italy and Spain have fallen 1.29% and 0.89% respectively, but Portugal is up arounf 0.6%. The FTSE 100 has finished up just 0.54 points at 5891.95, with investors fairly unmoved by George Osborne's budget. Germany's Dax is also marginally higher, up 0.23%, while France's Cac is virtually unchanged, down 0.1%. Italy and Spain have fallen 1.29% and 0.89% respectively, but Portugal is up arounf 0.6%.
In the US the Dow Jones Industrial Average is off 8 points or so, following slightly worse than expected existing home sales for February. In the US the Dow Jones Industrial Average is off 8 points or so, following slightly worse than expected existing home sales for February.
3.40pm: Greece's budget deficit in the first two months of 2012 shrank by more than 50% compared with the same period last year.3.40pm: Greece's budget deficit in the first two months of 2012 shrank by more than 50% compared with the same period last year.
Athens said the budget gap dropped to €495m from €1.05bn in the same period last year. The deficit was below the government's €879m target.Athens said the budget gap dropped to €495m from €1.05bn in the same period last year. The deficit was below the government's €879m target.
Readers should note that the figures refer to the state budget deficit and not the general government shortfall, which is the benchmark for the EU's assessment of Greece's economic policy programme.Readers should note that the figures refer to the state budget deficit and not the general government shortfall, which is the benchmark for the EU's assessment of Greece's economic policy programme.
3.28pm: Greek poets joined the anti-austerity protests in Athens today to mark World Poetry Day, following a wonderfully eloquent call to arms.3.28pm: Greek poets joined the anti-austerity protests in Athens today to mark World Poetry Day, following a wonderfully eloquent call to arms.
If not now when?If not now when?
As winter seems to wish to settle permanently astride our lives, preventing the coming of spring.As winter seems to wish to settle permanently astride our lives, preventing the coming of spring.
As the threat of a Waste Land becomes increasingly real as an imminent prospect for our country.As the threat of a Waste Land becomes increasingly real as an imminent prospect for our country.
As we have every reason to doubt whether poetry can innocently celebrate its day, when justice, our very being and country are fast collapsing around us.As we have every reason to doubt whether poetry can innocently celebrate its day, when justice, our very being and country are fast collapsing around us.
We set out to meet poetry and spring in the streets of Athens; we set out to seek the hope of resistance amid the bewildered, angry, and desperate eyes of fellow citizens.We set out to meet poetry and spring in the streets of Athens; we set out to seek the hope of resistance amid the bewildered, angry, and desperate eyes of fellow citizens.
There are some great pictures of the protest on on Flickr here. Thanks to reader @Finisterre67 for those.There are some great pictures of the protest on on Flickr here. Thanks to reader @Finisterre67 for those.
2.58pm: Back to Athens, Helena Smith has written a profile of the new Greek finance minister.2.58pm: Back to Athens, Helena Smith has written a profile of the new Greek finance minister.
Filippos Sachinidis is a macro-economist who lectured at Manchester University where he earned his doctorate before going into politics. A reform-minded modernizer, the 49-year Socialist Pasok MP who also studied at Queens College in New York City is typical of the crisis-hit country's new breed of politician.Filippos Sachinidis is a macro-economist who lectured at Manchester University where he earned his doctorate before going into politics. A reform-minded modernizer, the 49-year Socialist Pasok MP who also studied at Queens College in New York City is typical of the crisis-hit country's new breed of politician.
Since 2009, with the elevation to power of Pasok under former prime minister George Papandreou, the deputy finance minister has played a seminal role running Greece's economy ministry. Behind the front players he has kept the government department going at a time when bankruptcy never seemed far away for the nation at the centre of Europe's debt crisis.Since 2009, with the elevation to power of Pasok under former prime minister George Papandreou, the deputy finance minister has played a seminal role running Greece's economy ministry. Behind the front players he has kept the government department going at a time when bankruptcy never seemed far away for the nation at the centre of Europe's debt crisis.
His promotion Wednesday to the top job was in part recognition for the hard work. "Everyone in government thought it was right that he should be acknowledged for his efforts," said one official. "And he knows the brief. He's the man best qualified for the position."His promotion Wednesday to the top job was in part recognition for the hard work. "Everyone in government thought it was right that he should be acknowledged for his efforts," said one official. "And he knows the brief. He's the man best qualified for the position."
2.43pm: More from Geithner...2.43pm: More from Geithner...
We are in a much stronger position than the continent [Europe] as a whole. We will grow much faster in part because we are a younger country. The commitments to health and welfare we have made are much less generous. We have made unsustainable commitments but we have more room for manoeuvre.We are in a much stronger position than the continent [Europe] as a whole. We will grow much faster in part because we are a younger country. The commitments to health and welfare we have made are much less generous. We have made unsustainable commitments but we have more room for manoeuvre.
2.36pm: More on the IMF from Geithner. Question from the floor: Are you considering additional contirubitons to European special bail-out? Geithner's response...2.36pm: More on the IMF from Geithner. Question from the floor: Are you considering additional contirubitons to European special bail-out? Geithner's response...
No we are not. Europe has very substantial financial capacity to resolve this crisis. We do not see the case for coming to Congress and asking for more.No we are not. Europe has very substantial financial capacity to resolve this crisis. We do not see the case for coming to Congress and asking for more.
But he says the US is already obliged to provide funds when the IMF draws on the 'new arrangements to borrow'.But he says the US is already obliged to provide funds when the IMF draws on the 'new arrangements to borrow'.
We have 60 years of experience dealing with the IMF, the record supports our judgement that there are strong safeguards to protect our interests.We have 60 years of experience dealing with the IMF, the record supports our judgement that there are strong safeguards to protect our interests.
2.19pm: US treasury secretary Tim Geithner says European policymakers need to be careful to concentrate on growth as well as austerity.2.19pm: US treasury secretary Tim Geithner says European policymakers need to be careful to concentrate on growth as well as austerity.
For economic reforms [in Europe] to work, policymakers in the Euro Area will have to be careful to calibrate the mix of financial support and the pace of fiscal consolidation.For economic reforms [in Europe] to work, policymakers in the Euro Area will have to be careful to calibrate the mix of financial support and the pace of fiscal consolidation.
Also warns of "a self-reinforcing negative spiral of growth-killing austerity", which will ring true in Portugal after today's figures on the deficit.Also warns of "a self-reinforcing negative spiral of growth-killing austerity", which will ring true in Portugal after today's figures on the deficit.
Economic growth is likely to be weak for some time. The path of fiscal consolidation should be gradual with a multiyear phase-in of reforms. If every time economic growth disappoints governments are forced to cut spending or raise taxes immediately to make up for the impact of weaker growth on deficits, this would risk a self-reinforcing negative spiral of growth-killing austerity.Economic growth is likely to be weak for some time. The path of fiscal consolidation should be gradual with a multiyear phase-in of reforms. If every time economic growth disappoints governments are forced to cut spending or raise taxes immediately to make up for the impact of weaker growth on deficits, this would risk a self-reinforcing negative spiral of growth-killing austerity.
He is backing the IMF but cautiously.He is backing the IMF but cautiously.
It is in the interest of the United States that the IMF is able to continue to play a constructive role in Europe. IMF resources cannot substitute for a strong and credible European firewall and response, but they can help supplement the resources Europe mobilized on its own.It is in the interest of the United States that the IMF is able to continue to play a constructive role in Europe. IMF resources cannot substitute for a strong and credible European firewall and response, but they can help supplement the resources Europe mobilized on its own.
He was questioned about this further, there is clearly a lot of anger in the US about the US putting money into the IMF that is going to Europe. This was Geithner's response.He was questioned about this further, there is clearly a lot of anger in the US about the US putting money into the IMF that is going to Europe. This was Geithner's response.
Europe is a very rich continent that has the means to solve this on their own. The IMF is an institution where members have a right to request assistance. Our judgment has been that it has been in the interest of the US for the IMF to play a modest supplemental role alongside europe. We are not going to do it in a way that shifts the burden of resolving their crisis to the US taxpayer.Europe is a very rich continent that has the means to solve this on their own. The IMF is an institution where members have a right to request assistance. Our judgment has been that it has been in the interest of the US for the IMF to play a modest supplemental role alongside europe. We are not going to do it in a way that shifts the burden of resolving their crisis to the US taxpayer.
1.51pm: Filippos Sachinidis has just been sworn in as Greece's new finance minister reports Helena Smith in Athens.1.51pm: Filippos Sachinidis has just been sworn in as Greece's new finance minister reports Helena Smith in Athens.
The new finance minister took the oath of office in a short ceremony attended by the country's head of state president Carolos Papoulias and technocrat prime minister Lucas Papademos.The new finance minister took the oath of office in a short ceremony attended by the country's head of state president Carolos Papoulias and technocrat prime minister Lucas Papademos.
As Greece's spiritual leader Archbishop Ieronymnos oversaw the ceremony, the British-trained Sachinidis stood before him, his hand on a silver-plated bible before pledging to fulfill his duty as best he could at the helm of the ministry. Both Papoulias and Papademos watched on almost as father figures, crossing themselves as the finance minister took the oath. Sachinidis, who was accompanied by his wife, is set to spend the afternoon in the finance ministry familiarising himself with his portfolio, sources said. A cabinet meeting sceduled for later today (as we reported earlier) has been postponed until tomorrow.As Greece's spiritual leader Archbishop Ieronymnos oversaw the ceremony, the British-trained Sachinidis stood before him, his hand on a silver-plated bible before pledging to fulfill his duty as best he could at the helm of the ministry. Both Papoulias and Papademos watched on almost as father figures, crossing themselves as the finance minister took the oath. Sachinidis, who was accompanied by his wife, is set to spend the afternoon in the finance ministry familiarising himself with his portfolio, sources said. A cabinet meeting sceduled for later today (as we reported earlier) has been postponed until tomorrow.
1.46pm: Germany's RWI economic institute nearly doubled its forecast for growth in Europe's largest economy this year to 1% because of an improvement in the outlook for the global economy and stabilising financial markets.1.46pm: Germany's RWI economic institute nearly doubled its forecast for growth in Europe's largest economy this year to 1% because of an improvement in the outlook for the global economy and stabilising financial markets.
The research group forecast 0.6% growth in December. It said today that Germany's economy would likely pick up steam in the second half of 2012 on rising exports and would grow 2% in 2013.The research group forecast 0.6% growth in December. It said today that Germany's economy would likely pick up steam in the second half of 2012 on rising exports and would grow 2% in 2013.
1.30pm: While we're waiting for the main speakers at the house committee.... disgraced former IMF chief Dominique Strauss-Kahn has cancelled plans to speak at the European Parliament next week.1.30pm: While we're waiting for the main speakers at the house committee.... disgraced former IMF chief Dominique Strauss-Kahn has cancelled plans to speak at the European Parliament next week.
Strauss-Kahn had been invited to take part in a debate on the financial crisis alongside eurozone chief Jean-Claude Juncker and ex-European Central Bank boss Jean-Claude Trichet.Strauss-Kahn had been invited to take part in a debate on the financial crisis alongside eurozone chief Jean-Claude Juncker and ex-European Central Bank boss Jean-Claude Trichet.
But the invite prompted a flurry of complaints from MEPs. Hungarian socialist MEP Zita Gurmaï and Belgium's Isabelle Durant, European Parliament vice president, denounced "a show based on scandal". They said in a letter to parliament president Martin Schulz:But the invite prompted a flurry of complaints from MEPs. Hungarian socialist MEP Zita Gurmaï and Belgium's Isabelle Durant, European Parliament vice president, denounced "a show based on scandal". They said in a letter to parliament president Martin Schulz:
In the name of our struggle for the dignity of women, we are opposing ourselves to this invitation and ask of you, Mister President, to ensure that this Parliament remains a place of legislative work, where the sensitivities of each and every one are considered and that it does not become a media arena where one must make a show, create stunts and spectacles of ourselves.In the name of our struggle for the dignity of women, we are opposing ourselves to this invitation and ask of you, Mister President, to ensure that this Parliament remains a place of legislative work, where the sensitivities of each and every one are considered and that it does not become a media arena where one must make a show, create stunts and spectacles of ourselves.
There's more on that story on the Euractiv website here.There's more on that story on the Euractiv website here.
1.22pm:The US house committee hearing on the eurozone crisis where Fed chairman Ben Bernanke and US treasury secretary Tim Geithner are speaking is due to start at 1.30pm GMT. You can watch it live here and we'll be following it on the blog. We had a look at Bernanke's prepared comments earlier today.1.22pm:The US house committee hearing on the eurozone crisis where Fed chairman Ben Bernanke and US treasury secretary Tim Geithner are speaking is due to start at 1.30pm GMT. You can watch it live here and we'll be following it on the blog. We had a look at Bernanke's prepared comments earlier today.
The committee chairman Congressman Darrell Issa posted this ahead of the hearing...The committee chairman Congressman Darrell Issa posted this ahead of the hearing...
The United States and Europe together account for 50 percent of world GDP and 40 percent of the world's trade in goods and services. With these two economies inexorably linked, a downturn in one immediately and broadly impacts the other. A catastrophic failure in Europe would threaten our own economic situation at a time we can least afford it.The United States and Europe together account for 50 percent of world GDP and 40 percent of the world's trade in goods and services. With these two economies inexorably linked, a downturn in one immediately and broadly impacts the other. A catastrophic failure in Europe would threaten our own economic situation at a time we can least afford it.
1.08pm: Quick note from Tom Kington in Rome.1.08pm: Quick note from Tom Kington in Rome.
Italy's largest union, the CGIL, is proposing an eight hour general strike against Prime Minister Mario Monti's labour reform. One party says there will be "Vietnam" in parliament over the measure. Senior police officer fears for public security.Italy's largest union, the CGIL, is proposing an eight hour general strike against Prime Minister Mario Monti's labour reform. One party says there will be "Vietnam" in parliament over the measure. Senior police officer fears for public security.
We'll post more on that as it comes in.We'll post more on that as it comes in.
12.59pm: European markets have turned weak gains into very slight losses. The French CAC is down by 0.2% and the German Dax is also 0.2% lower. Traders in London are sitting on their hands as Osborne delivers the budget and the FTSE is unchanged.12.59pm: European markets have turned weak gains into very slight losses. The French CAC is down by 0.2% and the German Dax is also 0.2% lower. Traders in London are sitting on their hands as Osborne delivers the budget and the FTSE is unchanged.
12.40pm: UK chancellor Geroge Osborne is now delivering his Budget to the Commons. We'll leave coverage of that to Graeme Wearden and Andrew Sparrow over on the Budget live blog.12.40pm: UK chancellor Geroge Osborne is now delivering his Budget to the Commons. We'll leave coverage of that to Graeme Wearden and Andrew Sparrow over on the Budget live blog.
Just to note, Osborne says the Office of Budget Responsibility regards the eurozone as a "major risk" to the UK economy, as well as oil prices.Just to note, Osborne says the Office of Budget Responsibility regards the eurozone as a "major risk" to the UK economy, as well as oil prices.
12.29pm: If the UK's public finances looked bad, George Osborne can take heart that Portugal's are significantly worse.12.29pm: If the UK's public finances looked bad, George Osborne can take heart that Portugal's are significantly worse.
Portugal's core public deficit nearly tripled in the first two months of 2012 to €799m from €274m a year earlier. The news only fuels concerns that Portugal is the new Greece. Filipe Garcia, head of Informacao de Mercados Financeiros consultants told Reuters:Portugal's core public deficit nearly tripled in the first two months of 2012 to €799m from €274m a year earlier. The news only fuels concerns that Portugal is the new Greece. Filipe Garcia, head of Informacao de Mercados Financeiros consultants told Reuters:
With a weakening economy you collect less taxes, it's simple. Portugal is considered a good pupil in terms of austerity, so if something is not working, something probably has to change in the adjustment programme. Unlike with Greece, the blame cannot be put on Portugal. But I think Portugal needs more money, not necessarily in the form of a new bailout, and not a debt restructuring, but more money for the economy and possibly more moderate austerity.With a weakening economy you collect less taxes, it's simple. Portugal is considered a good pupil in terms of austerity, so if something is not working, something probably has to change in the adjustment programme. Unlike with Greece, the blame cannot be put on Portugal. But I think Portugal needs more money, not necessarily in the form of a new bailout, and not a debt restructuring, but more money for the economy and possibly more moderate austerity.
Analysts are predicting the country will need further bail-out funds. Jurgen Michels, an economist with Citi, said:Analysts are predicting the country will need further bail-out funds. Jurgen Michels, an economist with Citi, said:
We do think Portugal will need additional assistance this year and that we're heading for a second package, but this data definitely won't be a trigger for any requests.We do think Portugal will need additional assistance this year and that we're heading for a second package, but this data definitely won't be a trigger for any requests.
In better news, Portugal sold almost €2bn of four and 12-month treasury bills this morning and its borrowing costs fell to their lowest levels in more than a year. Average yields on the 12-month debt dropped to 3.7% compared with 4.9% in February.In better news, Portugal sold almost €2bn of four and 12-month treasury bills this morning and its borrowing costs fell to their lowest levels in more than a year. Average yields on the 12-month debt dropped to 3.7% compared with 4.9% in February.
11.23am: Our correspondent in Rome, Tom Kington, reports that the break-down of talks between the Italian government and the country's largest union last night could damage support for Mario Monti's government.11.23am: Our correspondent in Rome, Tom Kington, reports that the break-down of talks between the Italian government and the country's largest union last night could damage support for Mario Monti's government.
The refusal by Italy's largest union to sign up to Mario Monti's shake up of Italy's labour laws – the keystone of his plan to reform the economy – has sent ominous cracks through the solid support Monti's government has hitherto enjoyed in parliament.The refusal by Italy's largest union to sign up to Mario Monti's shake up of Italy's labour laws – the keystone of his plan to reform the economy – has sent ominous cracks through the solid support Monti's government has hitherto enjoyed in parliament.


The CGIL union emerged from talks with Monti on Tuesday warning strike action over the prime minister's plan to modify the so-called Article 18 rule which restricts the freedom of firms with over 15 staff to lay off employees.

Monti said the time for talks on Article 18 was over and he would now take the measure to parliament where parties on all sides of the spectrum have so far stood behind him. In the short term, Monti said he wanted to be able to tell investors during his Asian roadtrip next week "That we will have a more modern, more European labour market and that there are no longer reasons not to invest in Italy."

But by upsetting the CGIL, Monti has also riled Pier Luigi Bersani, the leader of the centre-left Democratic Party, who is a key supporter for Monti in parliament but who in turn relies for his support on the backing of unions.

Amid the welter of news devoted to the reform on Wednesday – it filled the first nine pages of Corriere della Sera – were warning signs that the Democratic Party rank and file is split over the reform and may try to water it down when it comes up for debate in parliament.

The crunch could come if Monti send a decree instead of a bill to parliament, which would make it a take-it-or-leave-it deal for MPs voting on the deal.

More irritating for the centre-left is Monti's recent diluting of his measure to open up Italy's cosy business lobbies to competition following fierce resistance from business groups and much to the delight of Silvio Berlusconi's Freedom People party.		The CGIL union emerged from talks with Monti on Tuesday warning strike action over the prime minister's plan to modify the so-called Article 18 rule which restricts the freedom of firms with over 15 staff to lay off employees.

Monti said the time for talks on Article 18 was over and he would now take the measure to parliament where parties on all sides of the spectrum have so far stood behind him. In the short term, Monti said he wanted to be able to tell investors during his Asian roadtrip next week "That we will have a more modern, more European labour market and that there are no longer reasons not to invest in Italy."

But by upsetting the CGIL, Monti has also riled Pier Luigi Bersani, the leader of the centre-left Democratic Party, who is a key supporter for Monti in parliament but who in turn relies for his support on the backing of unions.

Amid the welter of news devoted to the reform on Wednesday – it filled the first nine pages of Corriere della Sera – were warning signs that the Democratic Party rank and file is split over the reform and may try to water it down when it comes up for debate in parliament.

The crunch could come if Monti send a decree instead of a bill to parliament, which would make it a take-it-or-leave-it deal for MPs voting on the deal.

More irritating for the centre-left is Monti's recent diluting of his measure to open up Italy's cosy business lobbies to competition following fierce resistance from business groups and much to the delight of Silvio Berlusconi's Freedom People party.
11.14am: In debt market news, Germany sold €4.1bn of two year government bonds this morning. The average yield was 0.31% up from 0.25% in February. Traders said the pricing was good, particularly considering the sell-off in safe-haven government bonds last week when confidence in US growth improved and fears about the eurozone diminished.11.14am: In debt market news, Germany sold €4.1bn of two year government bonds this morning. The average yield was 0.31% up from 0.25% in February. Traders said the pricing was good, particularly considering the sell-off in safe-haven government bonds last week when confidence in US growth improved and fears about the eurozone diminished.
Reuters is also reporting that there was €12.9bn of demand for the €4bn five-year EFSF bond. Price guidance for that bond came down this morning from 0.4% over mid-swaps to 0.38%.Reuters is also reporting that there was €12.9bn of demand for the €4bn five-year EFSF bond. Price guidance for that bond came down this morning from 0.4% over mid-swaps to 0.38%.
10.56am: Some rare good news out of Europe (thanks to several commenters pointing out that Denmark is quite clearly not in the Eurozone). Denmark's central bank said the Danish economy is recovering and has raised its forecasts for GDP growth this year from 1.1% to 1.2%.10.56am: Some rare good news out of Europe (thanks to several commenters pointing out that Denmark is quite clearly not in the Eurozone). Denmark's central bank said the Danish economy is recovering and has raised its forecasts for GDP growth this year from 1.1% to 1.2%.
It held forecasts for 2013 GDP growth of 1.6% and introduced a 2014 forecast for growth of 1.7%, adding that unemployment would start to fall in the same year. Central bank Governor Nils Bernstein said:It held forecasts for 2013 GDP growth of 1.6% and introduced a 2014 forecast for growth of 1.7%, adding that unemployment would start to fall in the same year. Central bank Governor Nils Bernstein said:
There are signs that the Danish economy is improving again little by little, although the property market remains weak. At the same time, there is significant potential for households and companies to increase consumption and investments following several years with a high level of savings.There are signs that the Danish economy is improving again little by little, although the property market remains weak. At the same time, there is significant potential for households and companies to increase consumption and investments following several years with a high level of savings.
10.40am: News in from Athens, where our correspondent Helena Smith, says Filippos Sachinidis, the new finance minister, will be sworn in before the country's head of state at 2:45 pm local time (12.45pm GMT).10.40am: News in from Athens, where our correspondent Helena Smith, says Filippos Sachinidis, the new finance minister, will be sworn in before the country's head of state at 2:45 pm local time (12.45pm GMT).
The appointment of the British-trained economist was seen as the the "least troublesome" way of filling the gap left by Evangelos Venizelos' departure. Officials emphasized that it is a post he is unlikely to hold for more than a month given that crisis-hit Greece is also gearing up for elections in the coming weeks. "Ultimately it meant that no one else had to be moved in the cabinet" said one insiderThe appointment of the British-trained economist was seen as the the "least troublesome" way of filling the gap left by Evangelos Venizelos' departure. Officials emphasized that it is a post he is unlikely to hold for more than a month given that crisis-hit Greece is also gearing up for elections in the coming weeks. "Ultimately it meant that no one else had to be moved in the cabinet" said one insider
..
Sachinidis, who has been deputy finance minister since the formation of Lucas Papademos' "national unity" government last November, was regarded as a safe pair of hands able to ensure a seamless transition in the hot seat that is Greece's economy ministry.Sachinidis, who has been deputy finance minister since the formation of Lucas Papademos' "national unity" government last November, was regarded as a safe pair of hands able to ensure a seamless transition in the hot seat that is Greece's economy ministry.
His elevation came within hours of Athens' 300-seat parliament voting through the legislation [213 for vs 79 against] that will unlock €130bn in rescue funds from the EU and IMF for the debt-laden country.His elevation came within hours of Athens' 300-seat parliament voting through the legislation [213 for vs 79 against] that will unlock €130bn in rescue funds from the EU and IMF for the debt-laden country.
The 49-year-old modernizer, an MP with the socialist Pasok party, may not be finance minister for long but he has his work cut out for him: his first task will be to oversee €13.3bn worth of "horizontal cuts" in government expenditure by slashing ministerial budgets – a reform agreed by Athens in return for the second financial support package.The 49-year-old modernizer, an MP with the socialist Pasok party, may not be finance minister for long but he has his work cut out for him: his first task will be to oversee €13.3bn worth of "horizontal cuts" in government expenditure by slashing ministerial budgets – a reform agreed by Athens in return for the second financial support package.
At a cabinet meeting later today Sachinidis will be called to expand on how the government will expedite the process of opening up "closed shop" professions blamed for keeping the Greek economy one of the most insular in Europe.At a cabinet meeting later today Sachinidis will be called to expand on how the government will expedite the process of opening up "closed shop" professions blamed for keeping the Greek economy one of the most insular in Europe.
Foreign lenders are demanding that professions, including lawyers (who with the exception of those in Athens have gone on strike in protest today) be liberalised "immediately" as a step to raising Greece's notoriously low competitiveness.Foreign lenders are demanding that professions, including lawyers (who with the exception of those in Athens have gone on strike in protest today) be liberalised "immediately" as a step to raising Greece's notoriously low competitiveness.
Readers will recall that with much hullabaloo the issue was first raised by the former prime minister George Papandreou some 18 months ago – but in a sign of how resistant to change Greece is has yet to be implemented.
Creditors are further demanding that outdated state utilities and other public entities either be closed or merged – prompting work stoppages by doctors at state hospitals today who are also up in arms over delayed salaries. Many say they have not been paid since November.		Readers will recall that with much hullabaloo the issue was first raised by the former prime minister George Papandreou some 18 months ago – but in a sign of how resistant to change Greece is has yet to be implemented.
Creditors are further demanding that outdated state utilities and other public entities either be closed or merged – prompting work stoppages by doctors at state hospitals today who are also up in arms over delayed salaries. Many say they have not been paid since November.
10.40am: An ECB banker has said this morning people shouldn't assume the ECB will "automatically" launch a third and a fourth bout of the three-year long-term refinancing operation (LTRO) after the first two.10.40am: An ECB banker has said this morning people shouldn't assume the ECB will "automatically" launch a third and a fourth bout of the three-year long-term refinancing operation (LTRO) after the first two.
ECB banker Joerg Asmussen said in an interview with German newspaper Die Zeit that the ECB must start preparing to exit its special crisis-time measures, even if it's too early to withdraw them now. Here's a link to the interview in German.ECB banker Joerg Asmussen said in an interview with German newspaper Die Zeit that the ECB must start preparing to exit its special crisis-time measures, even if it's too early to withdraw them now. Here's a link to the interview in German.
He warned that house prices in parts of Germany are rising noticeably, which should be watched closely.He warned that house prices in parts of Germany are rising noticeably, which should be watched closely.
He also stressed that Germany has profited most from the currency union and the single market. But the currency union can only function if it is supplemented by an economic and fiscal union, which entails member states giving up some sovereignty.He also stressed that Germany has profited most from the currency union and the single market. But the currency union can only function if it is supplemented by an economic and fiscal union, which entails member states giving up some sovereignty.
10.13am: Athens said this morning it would sell stakes in two major listed companies in May, as part of its much-delayed privatisation plan. The Greek government currently holds large stakes in monopoly betting company OPAP and refiner Hellenic Petroleum, Greece's third and fourth biggest listed firms by market value. Selling them off is part of the plan to help cut the country's debt pile.10.13am: Athens said this morning it would sell stakes in two major listed companies in May, as part of its much-delayed privatisation plan. The Greek government currently holds large stakes in monopoly betting company OPAP and refiner Hellenic Petroleum, Greece's third and fourth biggest listed firms by market value. Selling them off is part of the plan to help cut the country's debt pile.
The chief executive officer of Greece's privatisation agency, Costas Mitropoulos, told Reuters the sale of a 29% stake in OPAP, would be launched before national elections set to take place by early May, and concluded this year. The Greek government currently holds 34% of OPAP.The chief executive officer of Greece's privatisation agency, Costas Mitropoulos, told Reuters the sale of a 29% stake in OPAP, would be launched before national elections set to take place by early May, and concluded this year. The Greek government currently holds 34% of OPAP.
If elections go well, if there is a government and a clear direction ... then the perceived country risk for investors will fall to levels that will allow investment. This means they will commit cash to the country.If elections go well, if there is a government and a clear direction ... then the perceived country risk for investors will fall to levels that will allow investment. This means they will commit cash to the country.
Investors are very interested in our assets. They have some concerns over the situation in the country, its dynamics. We must show them our country's dynamics are turning from negative to positive.Investors are very interested in our assets. They have some concerns over the situation in the country, its dynamics. We must show them our country's dynamics are turning from negative to positive.
9.44am: George Osborne will be very unhappy with the public finance data just out. According to Reuters...9.44am: George Osborne will be very unhappy with the public finance data just out. According to Reuters...
A drop in income tax receipts failed to offset higher public spending, though Osborne remains on track to undershoot borrowing targets for the tax year.A drop in income tax receipts failed to offset higher public spending, though Osborne remains on track to undershoot borrowing targets for the tax year.
Forecasts for the public sector net borrowing was £8bn but it came in at £15.2bn, a record high for February.Forecasts for the public sector net borrowing was £8bn but it came in at £15.2bn, a record high for February.
Sterling dropped on the news from $1.5898 to $1.5855. My colleague Katie Allen has written more here.Sterling dropped on the news from $1.5898 to $1.5855. My colleague Katie Allen has written more here.
Minutes from the March MPC meeting were also released. They show Bank of England officials were worried about oil prices and future wage inflation when they left rates on hold at the last meeting.Minutes from the March MPC meeting were also released. They show Bank of England officials were worried about oil prices and future wage inflation when they left rates on hold at the last meeting.
On QE, David Miles and Adam Posen voted for £25bn of additional asset purchases but were overruled 7-2, and the target level was kept unchanged at £325bn.On QE, David Miles and Adam Posen voted for £25bn of additional asset purchases but were overruled 7-2, and the target level was kept unchanged at £325bn.
9.31am: UK public finances just out. Public sector borrowing was almost twice as high as expected in February. Public sector net debt as a percentage of GDP was 63.1%.9.31am: UK public finances just out. Public sector borrowing was almost twice as high as expected in February. Public sector net debt as a percentage of GDP was 63.1%.
9.20am:Still with Greece, Athens approved the new €130bn bail-out this morning.9.20am:Still with Greece, Athens approved the new €130bn bail-out this morning.
213 MPs voted in favor, while 79 deputies voted against it and 8 MPs abstained. The Communist party, left-wing SYRIZA, as well as Democratic Left, far-right, and several independent MPs voted against it.213 MPs voted in favor, while 79 deputies voted against it and 8 MPs abstained. The Communist party, left-wing SYRIZA, as well as Democratic Left, far-right, and several independent MPs voted against it.
Eurozone countries finalized the deal last month, agreeing that Greece would receive €130bn in new loans as well as the remainder unpaid from the first rescue deal, about €42bn.Eurozone countries finalized the deal last month, agreeing that Greece would receive €130bn in new loans as well as the remainder unpaid from the first rescue deal, about €42bn.
Greece must continue with unpopular austerity measures to ensure the funds are disbursed in regular installments, and will be under tight supervision from its creditors.Greece must continue with unpopular austerity measures to ensure the funds are disbursed in regular installments, and will be under tight supervision from its creditors.
Last night, protestors gathered in Syntagma square to to push home the message that "resistance exists".Last night, protestors gathered in Syntagma square to to push home the message that "resistance exists".
9.13am:We were promised it yesterday but today we finally got the name of the new Greek finance minister.9.13am:We were promised it yesterday but today we finally got the name of the new Greek finance minister.
Philippos Sachinidis, the vice minister for finance, will step into the role after Evangelos Venizelos stepped down on Monday to take over as head of the socialist Pasok party.

Sachinidis is 49. He monitored the budget and was among senior ministry officials who have applied a tough economic overhaul for the past two years in return for EU and IMF loans.		Philippos Sachinidis, the vice minister for finance, will step into the role after Evangelos Venizelos stepped down on Monday to take over as head of the socialist Pasok party.

Sachinidis is 49. He monitored the budget and was among senior ministry officials who have applied a tough economic overhaul for the past two years in return for EU and IMF loans.
In other news, Iceland's central bank has raised interest rates from 4.75% to 5%.In other news, Iceland's central bank has raised interest rates from 4.75% to 5%.
9.00am: As we mentioned earlier, Fed chairman Ben Bernanke released the text of his prepared statement to the house committee on government oversight and reform, where he is due to talk about the lessons learned from the eurozone crisis later today.9.00am: As we mentioned earlier, Fed chairman Ben Bernanke released the text of his prepared statement to the house committee on government oversight and reform, where he is due to talk about the lessons learned from the eurozone crisis later today.
A couple of key quotes...A couple of key quotes...
In the past few months, financial stresses in Europe have lessened, in part, [due to] a number of actions taken by European policymakers.In the past few months, financial stresses in Europe have lessened, in part, [due to] a number of actions taken by European policymakers.
He applauded the ECB for the two rounds of the LTRO (its version of QE), which he said,He applauded the ECB for the two rounds of the LTRO (its version of QE), which he said,
Have allowed European banks to lock in funding for up to three years, thereby alleviating concerns about their near-term prospects. With the benefit of this support, European banks in turn have increased their holdings of sovereign debt, contributing to lower borrowing costs for some countries.Have allowed European banks to lock in funding for up to three years, thereby alleviating concerns about their near-term prospects. With the benefit of this support, European banks in turn have increased their holdings of sovereign debt, contributing to lower borrowing costs for some countries.
He's happy with the new fiscal compact.He's happy with the new fiscal compact.
This treaty represents a positive step toward resolving the fundamental tension inherent in having a monetary union without a fiscal union, and thus should help bolster the viability of the euro-area economy in the longer term.This treaty represents a positive step toward resolving the fundamental tension inherent in having a monetary union without a fiscal union, and thus should help bolster the viability of the euro-area economy in the longer term.
But, he says, more needs to be done.But, he says, more needs to be done.
Full resolution of the crisis will require a further strengthening of the European banking system; a significant expansion of financial backstops, or "firewalls," to guard against contagion in sovereign debt markets; and, critically, continued efforts to increase economic growth and competitiveness and to reduce external imbalances in the troubled countries.Full resolution of the crisis will require a further strengthening of the European banking system; a significant expansion of financial backstops, or "firewalls," to guard against contagion in sovereign debt markets; and, critically, continued efforts to increase economic growth and competitiveness and to reduce external imbalances in the troubled countries.
He then talks about the risks posed to the US by the Eurozone crisis.He then talks about the risks posed to the US by the Eurozone crisis.
Although US banks have limited exposure to peripheral European countries, their exposures to European banks and to the larger, "core" countries of Europe are more material. Moreover, European holdings represented 35% of the assets of prime US money market funds in February, and these funds remain structurally vulnerable.Although US banks have limited exposure to peripheral European countries, their exposures to European banks and to the larger, "core" countries of Europe are more material. Moreover, European holdings represented 35% of the assets of prime US money market funds in February, and these funds remain structurally vulnerable.
We'll be following the hearing later, where US treasury secretary Tim Geithner will also be talking.We'll be following the hearing later, where US treasury secretary Tim Geithner will also be talking.
8.29am: The Budget live blog is now up and running. Follow rolling coverage from Andrew Sparrow and Graeme Wearden here.8.29am: The Budget live blog is now up and running. Follow rolling coverage from Andrew Sparrow and Graeme Wearden here.
As Andrew points out, there's already plenty to talk about ahead of Osborne's statement to parliament at 12.30pm.As Andrew points out, there's already plenty to talk about ahead of Osborne's statement to parliament at 12.30pm.
John Bercow's campaign to stop George Osborne revealing the contents of his budget in advance, before parliament has been told, doesn't seem to be going too well. In fact, he's failing dismally. According to one source, the Treasury have already put out 11 budet-related stories and the broad outline of the tax changes being announced are already in the public domain. The personal tax allowance will rise to above £9,000 in April 2013 - to £9,205, according to ITN's Tom Bradby - and the 50p top rate of tax will be cut to 45p. These measures will be funded by taxes that hit the rich, including stamp duty going up from 5% to 7% on properties worth more than £2m, a crackdown on aggressive tax avoidance and some kind of limit on the amount of tax relief the very wealth can claim. You can read all the Guardian's budget coverage here, where there are full details of what has already come out. The cabinet were meeting at 8am to be briefed on the budget. But ministers could be forgiven for staying in bed because there is so much out there already.John Bercow's campaign to stop George Osborne revealing the contents of his budget in advance, before parliament has been told, doesn't seem to be going too well. In fact, he's failing dismally. According to one source, the Treasury have already put out 11 budet-related stories and the broad outline of the tax changes being announced are already in the public domain. The personal tax allowance will rise to above £9,000 in April 2013 - to £9,205, according to ITN's Tom Bradby - and the 50p top rate of tax will be cut to 45p. These measures will be funded by taxes that hit the rich, including stamp duty going up from 5% to 7% on properties worth more than £2m, a crackdown on aggressive tax avoidance and some kind of limit on the amount of tax relief the very wealth can claim. You can read all the Guardian's budget coverage here, where there are full details of what has already come out. The cabinet were meeting at 8am to be briefed on the budget. But ministers could be forgiven for staying in bed because there is so much out there already.
8.23am: Greek deputy finance minister Filippos Sachinidis to be appointed finance minister. More on that shortly.8.23am: Greek deputy finance minister Filippos Sachinidis to be appointed finance minister. More on that shortly.
8.13am: Today's agenda includes minutes from the Bank of England's last interest rate meeting. Portugal is issuing treasury bills and there are figures on existing home sales out of the US.8.13am: Today's agenda includes minutes from the Bank of England's last interest rate meeting. Portugal is issuing treasury bills and there are figures on existing home sales out of the US.
• Bank of England publishes minutes from the monetary policy committee's March meeting: 9.30am GMT
• UK public sector finances and public sector net borrowing: 9.30am GMT
• Portugal issues up to €2bn of treasury bills: 10.30am GMT
• UK Chancellor George Osborne delivers budget statement to the Commons: 12.30pm GMT
• Ben Bernanke and Tim Geithner testify before a house committee hearing, "Europe's Sovereign debt Crisis: Causes, Consequences for the US and Lessons Learned": 1.30pm GMT
• US existing home sales for February: 2pm GMT		• Bank of England publishes minutes from the monetary policy committee's March meeting: 9.30am GMT
• UK public sector finances and public sector net borrowing: 9.30am GMT
• Portugal issues up to €2bn of treasury bills: 10.30am GMT
• UK Chancellor George Osborne delivers budget statement to the Commons: 12.30pm GMT
• Ben Bernanke and Tim Geithner testify before a house committee hearing, "Europe's Sovereign debt Crisis: Causes, Consequences for the US and Lessons Learned": 1.30pm GMT
• US existing home sales for February: 2pm GMT
Elsewhere in the debt markets, we're hoping for pricing of of the €4bn 5-year EFSF bond announced yesterday. Germany is auctioning €5bn of 2-year Schatz (government bonds), and €2bn of inflation-linked bonds; and there's another day of auctions for Italy's four-year inflation-linked bond.Elsewhere in the debt markets, we're hoping for pricing of of the €4bn 5-year EFSF bond announced yesterday. Germany is auctioning €5bn of 2-year Schatz (government bonds), and €2bn of inflation-linked bonds; and there's another day of auctions for Italy's four-year inflation-linked bond.
7.50am: Good morning, and welcome to our rolling coverage of the eurozone debt crisis.7.50am: Good morning, and welcome to our rolling coverage of the eurozone debt crisis.
All eyes will be on the UK today, with chancellor George Osborne due to present the budget at 12.30pm. My colleagues Graeme Wearden and Andrew Sparrow will be providing rolling coverage of all budget-related news on a separate live blog from 8am. I'll post a link when that is up and running.All eyes will be on the UK today, with chancellor George Osborne due to present the budget at 12.30pm. My colleagues Graeme Wearden and Andrew Sparrow will be providing rolling coverage of all budget-related news on a separate live blog from 8am. I'll post a link when that is up and running.
Later today, Fed chairman Ben Bernanke and US treasury secretary Tim Geithner are talking all about the lessons they've learned from the eurozone crisis in a House committee. We've already got a prepared statement from Bernanke, which I'll post more of shortly.Later today, Fed chairman Ben Bernanke and US treasury secretary Tim Geithner are talking all about the lessons they've learned from the eurozone crisis in a House committee. We've already got a prepared statement from Bernanke, which I'll post more of shortly.
And in Greece, they're due to announce the new finance minister.And in Greece, they're due to announce the new finance minister.