After all night negotiations, the 17 Eurozone finance ministers have approved the second bailout package for Greece totalling 130 Billion euros. The deal included larger haircuts for private sector bondholders,which helped toplug a funding gap.
The final package is contingent on Greece implementing further austerity measures which are deeply unpopular. One of the Greek far left parties the KKE Communist party has vowed to fight the new austerity measures which were agreed to with the troika of the IMF, ECB, and EU.
At the meeting of the 17 Eurozone finance ministers today,Greece willlearn if it will receive the 14.5 Billion euro tranche of funds so that it can pay its creditors by March 20.
The release of funds was contingent on Greece passing more austerity measures, which are to include tax hikes, wage cuts and public sector layoffs. Greece's public sector employs 1 out of 4 Greek workers, the bloated sector has caused a drain on the wider Greek economy.
The public sector was allowed to grow as kickbacks in exchange for votes, that all parties in Greece participated in. 750,000 jobs have been lost in Greece so far the vast majority in the private sector,minimum wage is set tobe cut by 22%in the latest austerity measures.
The Eurozone and Greek officials are near agreement on releasing bailout funds, after Greece has agreed to new austerity measures. Greece had a week to find an additional 325 Million euros in savings, which it did by slashing 100 Million from the military, and the remainder from public sector wages, health and social spending.
Continue reading on Examiner.com Eurozone leaders vote on Greece today - National European Finance | Examiner.com http://www.examiner.com/european-finance-in-national/eurozone-leaders-vote-on-greece-today#ixzz1n1Ozi3Fm
Comments