The Crisis Not Over For the Greece Economy
A new crisis looming ahead could force Greece to drop the euro, as Europe has made very little progress related to Greece debt and economy. According to a report by CNN, the left-wing party Syriza, the new government in Greece, says that the country has spiraled downward because of the half a decade of austerity. It is getting impossible to repay those enormous debts. The government wants a breathing space to negotiate a longer term solution instead of the existing international bailout program. The eurozone peers and the Greek finance minister met for some intensive and constructive talks. However, there were no agreements on how to advance the discussions.
As DailyMail reports, the economic crisis in Greece is getting larger, and there is an increasing risk that that 'very bad' outcome that everyone dreads could be very near. And, it could be soon when the world saw Greece crashing out of the Euro. This would spark off another economic crisis as any such step would hit the UK and the global economy on a wider scale. Prime Minister David Cameron is already into discussions on how to protect Britain from the consequences if Greece exits from the euro. The Prime Minister has already acknowledged that such a crisis could lead to chaos and disorder.
Athens, meanwhile is seeking a "bridge financing" deal so as to get an extension and propose certain measures to ease the burden of debt. It has recommended that the growth-linked "Bisque bonds should be used to replace some of its loans. According to Telegraph, these steps would lower the burden of debt on the Greek government until economic growth picked up. Athens also wants a humanitarian program for the worst-affected areas of its country. Greece's finance minister is already negotiating opponents but the assurances seem feeble and few. Greece wants to lower down its total debt burden, which is 175% of GDP and the second highest in the world. It wants to reverse some tax hikes while raising the minimum wage and pensions.
