Prime Minister Papandreou is ready to accept harsh conditions for granting the loan, despite the high price you will pay the government, Greek media commented.While consultations to save the Greek economy is continuing interest on the debt of Greece continues to jump, and fears of bankruptcy investors grow increasingly.The collapse of European markets after the last decrease the credit rating of Greece reinforces concerns about the “death spiral” as the financier George Soros determine the situation in our southern neighbor.
Mechanism to save the Greek economy will be activated within a few days, but expect shocking measures announced today the correspondent of Radio in Greece Katia Peeva.Expected increase in VAT by two percentage points, a new reduction in public sector wages and eliminate additional fees.The remedy also includes administrative reforms and the closure of state firms, which the unions would leave the street over half a million unemployed.Prime Minister George Papandreou is ready to accept harsh conditions for granting the loan, despite the high political price to be paid by the government, Greek media commented today.Trade unions in the country continue protests against anti-social “economic policy of the Greeks and discontent grows daily. Today teachers strike. New mass protests are expected in May.
“The funds that Greece will receive a novikrediti for which the Government will ensure Germany. Tezipari will return and I hope that this will cost taxpayers nothing of Germany,” said Finance Minister of Germany Wolfgang Schäuble. German Economy Minister Bryuderle Reiner believes that Greece will need 135 billion new loans over the next three years According to deputies Germany Germany will have to guarantee loans amounting to 25 billion euros for Athens.Bundesbank President Axel Weber, who is also on the Governing Board of the European Central Bank (ECB), called for quick approval of the package of aid to Greece before the debt crisis, its spread into the economy.
In his words no acceptable alternative to aid Greece and delay will only make matters worse.Earlier, the representative of Germany Parliament expressed confidence that the Bundestag will quickly approve the aid, despite deep reservations that Germany has a question. Weber has already warned that the Greek debt crisis will have enormous consequences for financial markets and other countries.
He again rejected calls for the exclusion of Greece from the euro area, said there was no legal basis for this, and that such a move would cause serious economic and financial turmoil. In the current situation possible influence of Greek bankruptcy would be unimaginable.Financial assistance under strict conditions, is the best solution for all now, says Weber.After several weeks resist European pressure for aid to Greece, Chancellor Angela Merkel supported the deal, which EU leaders hope to rescue the Debt Crisis of spreading to other euro zone countries such as Portugal and Spain.Rating agency Standard & Poor’s yesterday lowered the credit rating of Spain, a day after reducing that of Portugal and Greece announced debt to “junk” (garbage).Movement seriously hit the single currency and stock markets in Europe.