New drastic austerity measures for Greece
Greece Government will take new austerity measures, more drastic than the ones from now and will accelerate the privatizations in exchange of a new international bailout that the euro zone officials gave their accord.
The Prime Minister George Papandreou will present the Eurogroup leader, Jean-Claude Juncker, on Monday a fiscal plan on a short term. Juncker is the representative of the Finance Ministries from the euro zone that will provide, along with the International Monetary Fund, a new bailout for Greece.
On the other hand, the austerity measures will be supported by the population that is very discontented with the news. They emerged on the streets and in front of the Finance Minister Institution placed a huge banner that it’s written about the austerity measures that will transform „the workers into modern slaves”.
The European officials that gathered in Vienna gave their principle accord for a new three years program for Greece, said for Reuters a source close to the officials. The new accord will replace the latest one of 110 billiard euro bailout that was made last year between Greece, the European Union and the International Monetary Fund.
But, while the emergency bailouts for Greece, Ireland and Portugal were supported from the public income of the euro zone states and the International Monetary Fund, the new program with Greece will have strong requests for the private creditors to take a part of the costs, said the source.
Some of the European officials said after the principle accord that the investors that bought the governmental shares will be constrained to take a part of the bailout, maybe in a form of giving up a strong part of the debts.
The European Central Bank is against this measure and it is afraid that it could provoke a bank crisis in Europe and more, there is a possibility to lead to a violent reaction on the financial market towards the euro zone. The cited source said for the reporters that, as a compromise measure, the private financial group’s implication will limit at the avoiding of a possible credit crisis.
The official value of the new international bailout of Greece is still unknown. The country’s newspaper Kathimerini wrote that the amount of the promised new bailout will rise to 85 billion Euros, given by the European Union and the International Monetary fund, and the 30 or 40 billiard Euros bailout will be provided by the private sector after the privatizations measures.
