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<p style="margin-top: 0cm; margin-right: 0cm; margin-bottom: 15.0pt; margin-left: 0cm;"><b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">Greek bonds: </span></b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">A day after Greece returned to the market, the country’s 10-year government bond yields stood 4 basis points higher at 6.018%. Greece sold 3 billion euros of new five-year bonds yielding 4.95% on April 11. Read more </span><span lang="EN-US"><a href="http://www.reuters.com/article/2014/04/11/markets-bonds-euro-idUSL6N0N31J120140411?rpc=401&amp;feedType=RSS&amp;feedName=bondsNews&amp;rpc=401"><span style="font-family: Arial; color: black; background: white;">here</span></a></span></p>
<p style="margin-top: 0cm; margin-right: 0cm; margin-bottom: 14.0pt; margin-left: 0cm;"><b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">Greed and fear:</span></b><span lang="EN-US" style="font-family: Arial; color: black; background: white;"> Greece's auction signals two things: greed is outweighing fear in the market; countries with current account surpluses have to recycle that money somehow. Read more </span><span lang="EN-US"><a href="http://www.cnbc.com/id/101574949"><span style="font-family: Arial; color: black; background: white;">here</span></a></span></p>
<p style="margin-top: 0cm; margin-right: 0cm; margin-bottom: 11.0pt; margin-left: 0cm;"><b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">Merkel’s visit</span></b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">: Athens welcomed German Chancellor Angela Merkel on April 11 in the wake of Greece's return to international bond markets for the first time in four years. Read more </span><span lang="EN-US"><a href="http://www.neurope.eu/article/german-chancellor-visits-athens-after-greeces-return-bond-market"><span style="font-family: Arial; color: black; background: white;">here</span></a></span><span lang="EN-US" style="font-family: Arial; color: black; background: white;">. </span></p>
<p style="margin-top: 0cm; margin-right: 0cm; margin-bottom: 11.0pt; margin-left: 0cm;"><b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">Sustained development</span></b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">: European Commission and International Monetary Fund officials privately say that, despite signs that the Greek economy has finally bottomed out after a six-year recession, the return to sustained growth is far from certain. Read more </span><span lang="EN-US"><a href="http://online.wsj.com/news/articles/SB10001424052702303873604579493510806006056?mg=reno64-wsj&amp;url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303873604579493510806006056.html"><span style="font-family: Arial; color: black; background: white;">here</span></a></span><span lang="EN-US" style="font-family: Arial; color: black; background: white;">.</span></p>
<p style="margin-top: 0cm; margin-right: 0cm; margin-bottom: 14.0pt; margin-left: 0cm;"><b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">New submarines</span></b><span lang="EN-US" style="font-family: Arial; color: black; background: white;">: A new legislative amendment provides for the completion of the certification procedures and the operational accession of four new submarines into the Greek Navy fleet. Read more </span><span lang="EN-US"><a href="http://greece.greekreporter.com/2014/04/11/greek-parliament-passes-law-amendment-for-four-navy-submarines/"><span style="font-family: Arial; color: black; background: white;">here</span></a></span><span lang="EN-US" style="font-family: Arial; color: black; background: white;">. </span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><b><span lang="EN-US" style="font-family: Arial; color: black;">In memory of Jose Edgardo Campos </span></b></p>
<span lang="EN-US" style="font-family: Arial; color: black; mso-bidi-font-weight: bold;">I am deeply saddened to write of the sudden death of Jose Edgardo, a dear friend and esteemed colleague at the World Bank. Ed, as he was known, passed away on April 10. He was 60 years old. </span> <span lang="EN-US" style="font-family: Arial; color: black; mso-bidi-font-weight: bold;">First and foremost I want to extend my sincere sympathy to his family and his co-workers, both past and present. In his long and fruitful career as an economist with the World Bank, Ed touched the lives of so many. He took pride in his work. </span>
<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black; mso-bidi-font-weight: bold;">A Philippine national, Ed started his career at the World Bank in 1992 in the County Economics Department as an economist. At the time of his death, he was </span><span lang="EN-US" style="font-family: Arial; color: black;">the Manager for WBI’s Leadership Practice.</span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">Ed’s career focused on governance and political economy, and he was most passionate about finding ways to highlight the human dimension of the most difficult development interventions. He was a firm believer that no matter how complex a set of reforms, it had to take into account the aspirations, needs and concerns of the citizens who had to live by them. A recognized innovator, he pushed the frontiers of governance throughout his career, most recently by helping leaders in developing countries expand the reform space by forging public-private coalitions to overcome political obstacles and advance reform.</span></p>
<span lang="EN-US" style="font-family: Arial; color: black; mso-bidi-font-weight: bold;">Ed was also a very close supporter of Thought 4 Action. He was a member of our advisory board. His dedication and contribution will forever be appreciated.</span>
<p class="MsoNormal"><span lang="EN-GB" style="font-family: Arial; color: black; mso-bidi-font-weight: bold;">We will miss you Ed!</span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><b><span lang="EN-US" style="font-family: Arial; color: black;">Does Greece’s return to the bond market mean the crisis is over?</span></b></p>
<p class="MsoNormal"><span lang="EN-GB"><br style="mso-special-character: line-break;" /> </span><span lang="EN-US" style="font-family: Arial; color: black;">Greece</span><span lang="EN-US" style="font-family: Arial; color: black;">’s return to the bond market after four very long years made the headlines around the world. </span></p>
<p class="MsoNormal"><span lang="EN-GB"><br style="mso-special-character: line-break;" /> </span><span lang="EN-US" style="font-family: Arial; color: black;">The New York Times reported that pension funds, banks and other big money managers were snapping up billions of dollars of new Greek debt and trying to get their hands on even more. Joining the bandwagon of optimism was Reuters, which noted that Greece - at risk of crashing out of the Eurozone just two years ago - finally ended its bond market exile with the issue of its first sovereign bond since 2010. The Guardian was also quick to stress that bond markets cannot get enough of Greece.</span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">The rate of the five-year bonds was 4.75% - much lower than the 30% rate of 10-year Greek bonds at the height of the crisis, but still more expensive than the German bonds.</span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">While the news about Greece’s bond market comeback is good, it’s still not <i style="mso-bidi-font-style: normal;">all</i> good. Despite the growing optimism, Greece’s return to the bond market is only a signal that the country is on its way out of the debt crisis. Yes, the country is doing better, but the crisis is far from over. </span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">Greece</span><span lang="EN-US" style="font-family: Arial; color: black;"> still needs to continue with structural reforms. The fact that the country’s growth rates are still very close to zero should give us little reason to smile. Greece has yet to solve all the problems that hurled the country into the crisis. What this means is that the euphoria over Greece’s return to the bond market may be short-lived. </span></p>
<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US"> </span></p>
<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">In fact, the recent events leading up to Greece’s return is more about the evolution of the European Union and its attempts to respond to the crisis than Greece’s success in solving its crisis. </span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">Since 2011, the EU has become more reactive. In October 2012, Euro area finance ministers inaugurated the permanent crisis management mechanism - the European Stability Mechanism, which will finance all future support for the Euro area. It is clear now - just as Mario Draghi, the president of the European Central Bank, has said - that the EU will do anything and everything possible to make sure that no country falls out of the Eurozone. Why? Because if one country goes, the entire Eurozone will go with it. </span></p>
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<p style="margin: 0cm; margin-bottom: .0001pt;"><span lang="EN-US" style="font-family: Arial; color: black;">So, it is easy to understand that the success of the Greek bond is not so much about confidence in Greece (as the Greek politicians would like us to believe), but more about the growing confidence in the European Union. </span></p>
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