Despite the latest agreement by Greek leaders with the troika of the IMF,EU,and ECB, teh German Finance minister and other high ranking officials are openly discussing Greece leaving the Eurozone.
Many analysts believe that the dozens of summits to agree on a new bailout plan for Greece which calls for more austerity is simply an expensive exercise in kiking the can down the road.
Greece's debt will still be worse than Italy after 8 years of punishing austerity which has seen the average Greek salary drop to 500 Euros per month. Riots and street protests have followed each round of austerity measures which call more taxes, wage cuts and layoffs totaling above 150,000.
Another Greek party leader Antonis Samaras of the New Democracyparty has agreed to the new austerity measures. The release of the funds by March 20 was conditioned on Greek party leaders accepting the terms of the bailout.
Now some members of the Eurozone including Germany, Finland and the Netherlands want to push the date for releasing the funds to April. Some Greeks see this as an interefernce into its democracy as elections are held in April and the Eurozone want parties that agreed to the bailout to prevail.
Greece capitulated to the tough line stance of the EU,IMF and ECB by agreeing to more austerity. The measures were agreed to so that Greece can obtain the next trancheof the second bailout.
The plan to postpone the payment of the 14.5Billion euros will make it less likely that the private bondholders would want to agree to a haircut on its bonds if they are not assured of EU participation.
Continue reading on Examiner.com Greek party leader pledges support for austerity measures - National European Finance | Examiner.com http://www.examiner.com/european-finance-in-national/greek-party-leader-pledges-support-for-austerity-measures#ixzz1mavGSr1m
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