Austerity measures had shaken the Greek public, riots broke out and crys against the “plutocracy” of Greece were being championed mostly in the Greek capital of Athens by two million people angrily protesting against the public budget slashes and for many, getting rid of pension and future funds along with “necessary” monetary aspects of their lives such as social programs and wages. The series of austerity measures have lowered the Greek standard of living.
The Greek government has, admirably, stood irate despite the riots as police had barely fought off the protestors and insisted that in cooperation with the European Union it had to cut down the national deficit which was startingly soaring above the EU’s bar of a 10% deficit.
The Greek government owes a total of some-50 billion euros. The Panhellenic Socialist Movement along with Prime Minister Papandreou has faced public criticism from his own people yet was applauded by a few EU members for sticking with the tough measures.
European governments after considering Greece’s financial situation agreed to offer a standby package of nearly 61 billion USD or 45 billion Euros at below-market interest rates, six times bigger than your average world donation of 10 billion USD for Haiti.
Greece has politely refused to use this large sum to help itself but grudgingly admitted that it may need the presence of both the package and presence of the European Union to calm investors down after there were talks of a long-term financial crisis hitting Greece and the sort.
While the package has helped Greece slightly, it has started to aid the currency of the euro considerably. The euro rose 1.2 percent to $1.3674 and is expected to rise to $1.3724.
This package is particularly unpopular in Germany as most of the public is against for ‘bailing’ out Greece, the people in the country are already bitter about having to fight a “war” over in Afghanistan. Greece is described to have been a front for the euro as the EU is determined to uphold the euro through its first dark trial since the adoption of the currency in 1999.
Additionally, the International Monetary Fund declared that Greece and other countries in similar finacial situation may face a period of up to 20 years of ‘extreme’ budget difficulty.
* Additonal Contribution: Bera Te.