December 26, 2012
By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – December 26, 2012
Graeme Gallery Best of International, 2012
Eurozone
Thursday June 7, 2012
By Graeme MacKay, The Hamilton Spectator, Thursday June 7, 2012
Harper says time running out to tackle eurozone’s woes
Prime Minister Stephen Harper says Europe has so far avoided a “catastrophic event” that could throw the global markets into turmoil, but that a “broader game plan” is needed to deal with the economic woes plaguing the continent.
“Although our European friends have done a great job of avoiding a catastrophic event over the past four years, the fact is that we are now four years into this crisis and we do not have definitive solutions,” Harper said during an interview with CBC’s chief correspondent, Peter Mansbridge.
Harper said the United States, facing its own financial crisis in 2008 and 2009, “decided to put all energies towards dealing with the crisis, they contained the crisis and reversed it. And the same thing needs to be done here.”
Speaking from London, where he attended the Queen’s Diamond Jubilee celebrations, Harper noted that many European countries are struggling with recession, sovereign debt crises and banking-sector woes.
The Bank of Canada said Tuesday that those problems have worsened in the past few weeks — so much so that they have prompted a “sharp deterioration” in global financial conditions. The latest crisis concerns the solvency of European banks, particularly those in Spain, but a Greek exit from the eurozone following mid-June elections also looms as a potential shock.
When asked how much room is on the runway, Harper said there is “still some room” but “we just can’t constantly deal with short-term problems — we’ve actually got to have a plan to make this a stable situation.” (Source: CBC News)
Tuesday May 15, 2012
May 15, 2012
By Graeme MacKay, The Hamilton Spectator – Tuesday May 15, 2012
Greek president warned of “fatal consequences” of instability
Greece’s President Karolos Papoulias described the tragic situation of the country to the three major political leaders Antonis Samaras, Evangelos Venizelos and Alexis Tsipras but failed to convince them that a new election should be avoided.
He pointed out the imminent danger for the collapse of the Greek banking system in order to highlight the urgent need for an government.
According to the minutes of the critical meeting held on Tuesday at the Presidential Palace, Mr Papoulias had been given a full and detailed briefing by prime minister Lucas Papademos, the head of the outgoing technocratic government, Finance minister Philippos Sachinidis and director of the Bank of Greece George Provopoulos, who all suggested that “the extension of political instability will lead to fatal consequences.”
The president made a dramatic appeal to the political leaders that “being fully aware of the situation I am telling you that the danger is real. We have already lost valuable time and the absence of government is a serious risk to the financial security of the Greek people and our national existence.” Mr Papoulias said “I have been informed by the prime minister, the director of the Bank of Greece and the minister of Finance for the country’s cash position and the risk of collapse of the banking system if withdrawals of deposits from banks continue due to the insecurity of the citizens generated by the political situation.”
The Republic President added he was “extremely worried” after contacting with EU president Herman Van Rompuy and President of the European Parliament Martin Schulz on the “outlook of European economic data” and had explained “that we have a duty to agree.” (Source: The Telegraph)
Marvellous Maps
Tuesday May 8, 2012
By Graeme MacKay, The Hamilton Spectator, Tuesday May 8, 2012
Merkel readies for fight
Angela Merkel is under pressure to defeat the popular backlash against austerity to save her political skin and preserve Germany’s dominance in the eurozone.
Over the next four weeks, the German chancellor will face the fight of her political life on all fronts, domestic and European, at a moment when one slip could sink her government and tear down the European Union’s single currency.
Merkel must take the lead in trying to find an answer for the crisis in Greece, after three-fifths of Greek voters rejected EU austerity measures. Ger-man taxpayers have put $275 billion on the line to bail out countries such as Greece, and Germany’s patience is running out with countries that reject the prescribed economic medicine of debt reduction while continuing to demand the handouts.
To appease her highly taxed voters, who are worried that EU bailouts have breached Germany’s constitution, Merkel has made German economic aid conditional on all eurozone countries signing the “fiskalpakt”.
The treaty, signed by 25 EU countries, gives Brussels officials the right to block bud-gets that break spending rules which are enshrined in national constitutions, as is the case in Germany.
The measures, the chancellor assured German voters, would prevent eurozone countries going bust and leaving Ger-many holding bailout bills.
Merkel on Monday insisted Greece had to stick to the austerity program so resoundingly rejected by voters and that the reforms to the Greek economy were of “utmost importance”(Source: Vancouver Sun)
Wednesday November 9, 2011
Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday November 9, 2011
Flaherty is bearer of bad news
Federal Finance Minister Jim Flaherty came to one of the country’s economic bright spots to deliver some gloomy news about the Canadian economy Tuesday.
Announcing the government’s economic update in a speech at the Calgary Chamber of Commerce, he said that in light of global economic turmoil, GDP growth projections for Canada had been revised downward.
And the Conservative campaign promise to eliminate Canada’s deficit by the 2014-2015 budget was now described by Flaherty as simply an “aim,” with the government update projecting a return to balanced budgets only in 2015-2016 at the earliest.
But Flaherty used his speech to stress Canada’s relative strength in the world economy and noted Alberta’s relatively strong position within the country.
“The employment situation is certainly much stronger in the West than it is in the East,” he said. Nevertheless, Flaherty said he expects continued modest economic growth without the country slipping into recession.
The stay-the-course update contained only a handful of tweaks to the Conservatives’ fiscal plan, including some relief on employment insurance premiums, extension of a federal work-sharing program and stretching out the timeline for eliminating a $31-billion deficit. (Source: Calgary Herald)