Daily Digest: Greece forms a new caretaker cabinet

It’s pretty much the usual suspects that made it to the headlines today. Greece, France, Britain, Spain and a little Germany in the end.

Let’s get it on.

Former prime minister Lucas Papademos greets the new caretaker Pikrammenos. (Photo from the webpage of the Greek government)

In Greece a new election day is set. It will be June 17, and until then a caretaker cabinet takes over. Former prime minister Papademos that was not democratic elected either is now of the hook, and instead a judge and former president president of the Council of State, the country’s Supreme Administrative Court, Panayiotis Pikrammenos, has taken over the leadership of another temporary government. Pikrammenos was elected after a tense meeting between the political parties that has now entered another election period. It will be a turbulent period that this new caretaker government will meet. Already the banks are suffering after the Greeks withdraw hundreds of millions of euros from their banks, and the ECB yesterday decided that they will stop lending money to some of the Greek banks.

Also in France a new cabinet is in order. Francois Hollande has now set his team and he did made a few controversial choices. The Financial Times has made an interview with the frenchman who oversees the EU’s financial system, Michel Barnier.

The british prime minister David Cameron will today tell a business audience that the eurozone is at a crossroad. “Either Europe has a committed, stable, successful eurozone with an effective firewall, well-capitalised and regulated banks, a system of fiscal burden sharing and supportive monetary policy across the eurozone or we are in uncharted territory which carries huge risks for everyone,” he is supposed to say.

To kind of stress the point of Cameron Spain’s borrowing cost is set to rise, when the country’s treasury is to sell sovereign state bonds today. This happens amid fears of the situation in Greece.

German finance minister, Wolfgang Schäuble, is proposing a bigger role for the EU Commission. Actually he is calling for the commission to become more like a central government for the European Union. “I would be for the further development of the European Commission into a government. I am for the election of a European president,” he said at an event yesterday.

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