Crying Greek pensioner: The story behind the poignant photo

THESSALONIKI, Greece - Retiree Giorgos Chatzifotiadis had queued up at three banks in Greece's second city of Thessaloniki on Friday in the hope of withdrawing a pension on behalf of his wife, but all in vain.

When he was told at the fourth that he could not withdraw his 120 euros ($133), it was all too much and he collapsed in tears.

The 77-year-old told AFP that he had broken down because he "cannot stand to see my country in this distress".

"That's why I feel so beaten, more than for my own personnel problems," Chatzifotiadis said.

The image of him sitting outside the bank, openly crying in despair with his savings book and identity card on the floor, was captured by an AFP photographer illustrating how ordinary Greeks are suffering during the country's debt crisis.

Athens had imposed capital controls and shut all banks since Monday to stem a haemorrhage of cash, but on Wednesday allowed some branches to reopen for three days so retirees who have no bank cards could withdraw their pensions -- capped at 120 euros.

Recounting how he had gone from bank to bank in a futile attempt to collect his wife's pension, Chatzifotiadis said when he was told at the fourth "that I could not get the money, I just collapsed".

Both he and his wife, like many Greeks in the north of the country, had spent several years in Germany where he "worked very hard" in a coal mine and later a foundry.

And it is to Berlin, which is being blamed by many in Greece for its hardline stance in demanding the government impose more austerity measures for fresh international aid, that Chatzifotiadis is sending his wife's pension.

"I see my fellow citizens begging for a few cents to buy bread. I see more and more suicides. I am a sensitive person. I cannot stand to see my country in this situation," he said.

"Europe and Greece have made mistakes. We must find a solution," he added.

But Chatzifotiadis feels he can do little to change the situation, and he is not even sure if he would be able to vote at Sunday's referendum on whether to accept international creditors' bailout conditions.

European leaders have warned that a 'No' vote would also mean no to the eurozone.

Pointing out that the polling station is 80 kilometers (50 miles) away, Chatzifotiadis said: "I have no money to go there, unless perhaps if my children would take me in their car."

source: www.abs-cbnnews.com

WTO chief calls for 'European growth budget'

PARIS - World Trade Organization chief Pascal Lamy backed calls for a rethink of European economic policy on Tuesday, calling for a "European growth budget".

In an opinion piece published on the website of French newspaper Le Monde, Lamy and former European Bank for Reconstruction and Development head Jacques Attali called for deeper integration to combat the eurozone debt crisis.

"In the months and years to come, the countries of the eurozone are facing a major political and social crisis if they do not go through an additional step in integration," the two wrote.

Both men are closely linked with France's Socialists, whose candidate Francois Hollande defeated Nicolas Sarkozy Sunday to become France's president and who has called for a refocus in Europe on growth instead of austerity.

"The survival of the eurozone depends on an economic government and a European growth budget. Only federalism is capable of avoiding the disastrous consequences of its (the euro's) collapse on our standard of living," they wrote.

The two called for pooling some European debt the creation of "project bonds" to generate more than a billion euros ($1.3 billion) in financing for investment projects in industry and infrastructure.

They also called for Europe-wide carbon and financial transaction taxes and reforms to deepen political integration.

"Europe cannot emerge from this crisis without a change in logic. If the current situation continues... (the euro's) disappearance is only a question of time," they wrote. "Another exit path is possible.

source: interaksyon.com

China says Europe debt crisis is now 'critical'

BEIJING -- Europe's debt crisis has reached a "critical juncture", Beijing said on Monday, a day ahead of talks between Chinese leaders and European Union officials.

The crisis, which has triggered violent unrest in Greece, will top the agenda at the EU-China summit this week as Europe's leaders try to persuade Beijing to help resolve the continent's financial woes.

"China is concerned over it. The debt issue is at a critical juncture," foreign ministry spokesman Liu Weimin told a press briefing in response to a question about the crisis.

"We believe that as China's largest trading partner and the largest economy in the world (collectively), it is important for the European Union to resolve this issue.

"Apart from contingency measures, they should also push forward... structural and long-term reforms."

European leaders have previously called on China, which has the world's largest foreign exchange reserves, to invest in a bailout fund to rescue debt-stricken countries.

Beijing has so far made no firm commitment to provide financial assistance, but Chinese Premier Wen Jiabao said last month it was considering offering assistance through the International Monetary Fund or bailout funds.

Wen will hold talks in Beijing on Tuesday with EU president Herman van Rompuy and European Commission president Jose Manuel Barroso which are expected to focus on the crisis, following a wave of credit-rating downgrades and as Greece teeters on the brink of bankruptcy.

Barroso and Van Rumpuy will also meet with China's President Hu Jintao during the two-day summit, which takes place after lawmakers in Greece agreed late Sunday on a set of drastic austerity measures.

The agreement on the measures, which triggered street battles between police and protesters that left dozens injured, cheered markets and led the euro to rise in Asian trade.

Beijing has watched with increasing concern as the crisis has deepened, repeatedly urging EU leaders to get a grip on the situation and put their house in order.

The IMF warned earlier this month that an escalation of Europe's debt crisis could slash China's economic growth in half this year, and urged Beijing to prepare stimulus measures in response.

On Monday, the head of China's sovereign wealth fund said German Chancellor Angela Merkel had asked the country's investors to buy Italian and Spanish debt during a recent official visit to China.

Lou Jiwei, chairman of the China Investment Corporation, said more reform of those two countries was needed before China would invest in them, in comments reported by the Dow Jones news agency.

But he said the fund saw opportunities to invest in infrastructure and industrial projects in Europe.

Chinese companies and funds have ramped up their investment in Europe, buying up utilities, energy firms and even luxury yacht makers, in a move welcomed by some but eyed with concern by others.

The Chinese government has sought to calm concerns in Europe that a wave of investment by Chinese companies and government-backed funds will give Beijing too much influence over struggling European economies.

On Monday, the People's Daily, mouthpiece of China's ruling Communist Party, said in a front-page commentary that the country was not seeking to "buy out Europe".

source: interaksyon.com

FOREX-ASIA: Euro steady but debt crisis overshadows sentiment

TOKYO — The euro steadied against the dollar in Asia on Friday but sentiment remained sour after Spain and France faced a sharp spike in borrowing costs as eurozone sovereign debt fears deepened.

The euro traded at $1.3468 and 103.66 yen in Tokyo against $1.3457 and 103.60 yen in New York late Thursday.

The dollar was flat at 76.96 yen compared with 76.98 yen.

Aggressive euro selling took a pause in Asian trade. The current sell-off feels like "it may just be a little bit over done in the near term," BNZ FX Strategist Mike Burrowes told Dow Jones Newswires.

Everyone is "bearish euro and talking about European breakups and bailouts and it feels like the news is all very negative," Burrowes said.

Investor concerns over the debt crisis gained momentum overnight in the wake of troubled new Spanish and French bond issues and rising borrowing costs for under-pressure countries such as Italy to dangerously high levels.

In a poorly received auction, Spain's treasury had to pay a record 6.975 percent when it raised 3.6 billion euros in a sale of 10-year bonds.

'Little reason for euro optimism'

France, the eurozone's second-largest economy, also was forced to pay sharply higher rates to raise 7.0 billion euros in new bond sales.

"Spanish and French government bond auctions Thursday provided little reason for euro optimism," Credit Agricole strategist Adam Myers said in a note to clients, adding that "they indicated a growing level of market stress".

Despite new governments taking over in Italy and Greece to push through key reforms, Italian benchmark 10-year bond yields once again topped 7.0 percent, a level considered as unsustainable.

In Italy, Prime Minister Mario Monti laid out radical economic reforms on Thursday aimed at cutting Rome's huge debt mountain, boosting growth and preventing Italy from dragging down the eurozone.

Fears of that the debt crisis may engulf bigger economies in the continent sent global stocks sliding.

The euro may remain downwardly biased against the dollar given ongoing worries about the eurozone sovereign debt crisis, said Osao Iizuka, head of FX trading at Sumitomo Trust and Banking. — Agence France-Presse

source: gmanews.tv