Describing his country’s economy as ”œa sinking ship,” the Greek prime minister formally requested on Friday an international bailout, testing the solidarity of the European Union as never before.
”œWe drew up a plan, we took difficult and painful measures,” Prime Minister George A. Papandreou said in a nationally televised address. ”œBut the markets did not respond.”
Concerns about the Greek budget deficit ”” an estimated 13.6 percent of gross domestic product last year ”” have pushed interest rates on Greek bonds above those of emerging countries like India and the Philippines, leading to talk of a potential default and years of stagnant growth.
”œThere is the risk of the sacrifices of the Greek people being lost as rates of borrowing continue to rise,” Mr. Papandreou added, speaking from the Aegean island of Megisti. ”œThe time has come for us to ask our partners in the E.U. to activate the mechanism we formulated together.”
RFI, April 23
Greece has appealed for tens of billions of euros in urgent help from the EU and IMF to end its debt crisis, but Germany warned that aid would only come if the euro was threatened. The United States said it supports the application.
White House spokesman Robert Gibbs said the US Treasury Department was “closely monitoring” the situation after Greek Prime Minister George Papandreou said the 45-billion-euro package was a “national need.”
Papandreou said the previous conservative government had left the country a “sinking ship”, while Finance Minister George Papaconstantinou said he expected no problem in getting the aid and that it should be available in “a few days”.
But German Chancellor Angela Merkel, whose government has been reluctant to help Greece, declared that the rescue package would be activated only if the stability of the euro were threatened and Athens implemented tough policies.
One owes respect to the living. To the dead, one owes only the truth.
The financial crisis drove a large hole in EU government budgets in 2009
EUObserver, By Andrew Willis, April 23
BRUSSELS – The deplorable state of EU government finances was laid bare on Thursday (22 April), following the release of 2009 budget deficit figures by the EU’s statistics agency, Eurostat.
Greece’s deficit was shown to have reached 13.6 percent of GDP for the year, considerably higher that the previous 12.7 percent forecast, sending the country’s borrowing costs skyward and prompting a new credit rating downgrade from the Moody’s credit rating agency.
EU officials said the Greek deficit cutting target of four percent for this year still remained in place, but indicated that extra measures would be needed if the debt-ridden country was to successfully bring its deficit below three percent by 2012, as promised to Brussels.
The Eurostat figures “underline the urgency to intensify the preparations of structural reforms and additional measures for the coming years,” said EU economy commissioner Olli Rehn in a statement.
One owes respect to the living. To the dead, one owes only the truth.
Bloomberg, By Maria Petrakis, April 23
Greek unions and opposition political parties slammed Prime Minister George Papandreou for seeking a bailout from the European Union and International Monetary Fund that will bring more austerity measures.
ADEDY, the Athens-based federation representing the more than 500,000 Greek civil servants who have seen wages cut this year, said the move signaled a new and “barbaric attack,†and called a protest rally for April 27. Another demonstration has been set by the opposition Syriza party for today in Athens.
“This is a premeditated crime against Greek society,†Alexis Tsipras, the head of Syriza said in an e-mailed statement. “The majority of the Greek people are being tossed helplessly in the tempest of insecurity, unemployment and poverty.†He called for a referendum on the decision to seek IMF support.
h/t Zero Hedge: Greeks Call For Referendum On IMF Bailout, Call Austerity “Barbaric Attack” And “Premeditated Crime Against Greek Society”
One owes respect to the living. To the dead, one owes only the truth.
http://en.wikipedia.org/wiki/Ouzo
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