BERLIN // Global concern about a break-up of the euro zone grew yesterday as markets slid and Greeks withdrew hundreds of millions of euros from banks on fears their country would be forced to quit the euro after next month's election.
The euro fell to a four-month low of US$1.27 yesterday at the prospect of deepening turmoil in Greece, which on Tuesday called for a repeat vote on June 17 after party leaders failed to form a government. A leftist party vowing to cancel the terms of an international aid package is expected to win, a result that could push the country towards bankruptcy and a euro exit.
The Greek president, Karolos Papoulias, warned of "fear that could develop into panic" among citizens in the weeks before the election. Greeks are withdrawing euros because they are afraid of a massive devaluation if the country leaves the single currency.
George Provopoulos, the head of Greece's Central bank, said savers withdrew at least €700 million (Dh3.3bn) on Monday, the Greek president told party chiefs according to minutes of his meetings with them.
"Mr Provopoulos told me there was no panic, but there was great fear that could develop into a panic," the minutes posted on the president's website said.
The president appointed a judge, Panagiotis Pikrammenos, as the caretaker prime minister yesterday.
A leading index of European shares fell to its lowest level this year and Spanish and Italian bond yields jumped on fears that Greece's departure might cause other heavily indebted European states to wobble.
The worsening crisis has led to speculation that the European Union and International Monetary Fund may soften the terms of the €130 billion Greek bailout. But Wolfgang Schäuble, the German finance minister, remained firm yesterday, saying there would be no renegotiation.
"The Greeks can't have their cake and eat it," Mr Schäuble told German radio. "There is no comfortable way to solve Greece's problems. If Greece wants to remain in the euro zone — and we all want that — then that is the path that can help Greece," he said, referring to continued reforms and austerity measures linked to the bailout.
Opinion polls show Greeks want to end the austerity but also remain in the euro, a promise made by Alexis Tsipras, the 37-year-old leader of the leftist Syriza party.
Syriza, which emerged as the second-strongest party in an election on May 6, is on track to become the biggest group in parliament on June 17, ahead of the centre-left and centre-right parties that negotiated the bailout.
EU officials are warning Greeks that they cannot abandon reforms and expect to remain in the euro zone.
The president of the European Commission, José Manuel Barroso, said the Greek people must be aware of the consequences of their vote.
"The ultimate resolve to stay in the euro area must come from Greece itself," Mr Barroso told a news conference.
Meanwhile there was continued uncertainty about the future of the French-German alliance, seen as key to tackling the crisis, after the German Chancellor Angela Merkel and France's new Socialist president, Francois Hollande,held their first meeting in Berlin on Tuesday.
The leaders were at pains to show unity and pledged to work together to find a joint approach in time for an EU summit next month.
But their body language showed that they were uncomfortable, with a stiff handshake replacing the kisses on the cheek that had been customary whenever Mrs Merkel met Mr Hollande's predecessor, Nicolas Sarkozy.
They could not conceal their differences on how to save the euro and pull the euro zone out of its economic downturn. Mr Hollande is seeking a greater focus on growth stimulus, while Mrs Merkel is insisting on continued austerity.
Mr Hollande repeated that he wants a renegotiation of budget discipline rules that Mrs Merkel and other EU leaders agreed to adopt earlier this year. He also mentioned the possibility of jointly issued so-called euro bonds as a way to shield countries from speculators — a taboo for Mrs Merkel, who has said the move would be premature and would increase German borrowing costs.
"I said it during my election campaign and I say it again now as president that I want to renegotiate what has been agreed to include a growth dimension," Mr Hollande told a news conference with Mrs Merkel.
Mr Hollande also made conciliatory comments towards Greece that appeared at odds with Germany's position, saying: "I do appreciate the suffering the Greek people are going through today. The Greeks should know that we will reach out to them through measures to support growth to allow them to remain in the euro zone."
David Cameron, the British prime minister, whose country is not a member of the euro zone, urged leaders to make greater efforts to save the currency.
"It either has to make up or it is looking at a potential break-up," Mr Cameron told parliament in London. "That is the choice they have to make, and it is a choice they cannot long put off."
foreign.desk@thenational.ae
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
COMPANY%20PROFILE
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Simran
Director Hansal Mehta
Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey
Three stars
Company%20Profile
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How Sputnik V works
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
School counsellors on mental well-being
Schools counsellors in Abu Dhabi have put a number of provisions in place to help support pupils returning to the classroom next week.
Many children will resume in-person lessons for the first time in 10 months and parents previously raised concerns about the long-term effects of distance learning.
Schools leaders and counsellors said extra support will be offered to anyone that needs it. Additionally, heads of years will be on hand to offer advice or coping mechanisms to ease any concerns.
“Anxiety this time round has really spiralled, more so than from the first lockdown at the beginning of the pandemic,” said Priya Mitchell, counsellor at The British School Al Khubairat in Abu Dhabi.
“Some have got used to being at home don’t want to go back, while others are desperate to get back.
“We have seen an increase in depressive symptoms, especially with older pupils, and self-harm is starting younger.
“It is worrying and has taught us how important it is that we prioritise mental well-being.”
Ms Mitchell said she was liaising more with heads of year so they can support and offer advice to pupils if the demand is there.
The school will also carry out mental well-being checks so they can pick up on any behavioural patterns and put interventions in place to help pupils.
At Raha International School, the well-being team has provided parents with assessment surveys to see how they can support students at home to transition back to school.
“They have created a Well-being Resource Bank that parents have access to on information on various domains of mental health for students and families,” a team member said.
“Our pastoral team have been working with students to help ease the transition and reduce anxiety that [pupils] may experience after some have been nearly a year off campus.
"Special secondary tutorial classes have also focused on preparing students for their return; going over new guidelines, expectations and daily schedules.”
Company%20Profile
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In The Heights
Directed by: Jon M. Chu
Stars: Anthony Ramos, Lin-Manual Miranda
Rating: ****
MORE ON INTERNATIONAL JUSTICE
SPECS
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COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
COMPANY%20PROFILE%20
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Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
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Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Sukuk explained
Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
Company%20profile
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Tree of Hell
Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla
Director: Raed Zeno
Rating: 4/5
COMPANY%20PROFILE
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APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
COMPANY%20PROFILE
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The specs
The specs: 2019 Audi Q8
Price, base: Dh315,000
Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km