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| Europe |
| EU: Greek Austerity is the 'Only Way' to Avoid Default |
| 2011-06-29 |
| [An Nahar] European Union economic affairs chief Olli Rehn pressed the Greek parliament on Tuesday to adopt a tough austerity program, saying it was the "only way to avoid immediate default." "This week Greece faces a critical juncture. Both the future of the country and financial stability in Europe are at stake," Rehn said in a statement. "I trust that the Greek politicians are fully aware of the responsibility that lies on their shoulders to avoid default," he said. "The only way to avoid immediate default is for Parliament to endorse the revised economic program." Rehn slapped down speculation that Europe was working on a contingency plan in case Greek politicians this week reject 28.6 billion euros in budget cuts and tax rises as well as a 50-billion-euro privatization program. "To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default," he said. A high-ranking European official has said that a Plan B was in the works, stressing that "the next step is not a default of Greece." German Finance Minister Wolfgang Schaeuble said in a newspaper interview published on Sunday that the eurozone must be "prepared for the worst" and would cope even if Athens defaulted on its debt. Rehn reiterated that passing the austerity measures was a pre-condition for the EU and IMF to release 12 billion euros from last year's 110-billion-euro bailout, which Athens needs by July to avoid financial collapse. "They must be approved if the next tranche of financial assistance is to be released," he said. "The European Union continues to be ready to support Greece. But Europe can only help Greece if Greece helps itself," he said. Angry workers launched a 48-hour general strike on Tuesday to protest the measures, which the parliament is scheduled to vote on Wednesday and Thursday. Socialist Prime Minister George Papandreou, who has a five-seat majority in parliament, pleaded on Monday with politicians to back the measures, but the conservative opposition has criticized the plan. Eurozone finance ministers are holding a special meeting on Sunday, awaiting to see the result of the Greek vote before deciding on unblocking the loans and devising a second bailout requested by Papandreou, which could also amount to 110 billion euros. "The preparation of a new program will intensify in the coming weeks," Rehn said. |
| Posted by:Fred |
| #8 Germany grows up or Germany leaves the Euro. I think this is where they're headed. I won't be surprised if Germany is out by no later than the end of the decade. |
| Posted by: charger 2011-06-29 12:55 |
| #7 Sigh. Just like the United States. |
| Posted by: Ebbang Uluque6305 2011-06-29 11:46 |
| #6 They made their bed, let them lie in it. |
| Posted by: Spot 2011-06-29 08:34 |
| #5 And default is the only way to avoid austerity. Guess which, most Greeks would chose? |
| Posted by: phil_b 2011-06-29 04:47 |
| #4 abu dhabi bailed out dubai, or however they're spelled.....just sayin' |
| Posted by: 746 2011-06-29 00:50 |
| #3 Greece grows up or Germany leaves the Euro. |
| Posted by: newc 2011-06-29 00:22 |
| #2 Germany grows up or Germany leaves the Euro. |
| Posted by: newc 2011-06-29 00:22 |
| #1 "Avoid default"??? The Greeks have already defaulted. This is all shuckin' and jivin'. |
| Posted by: Anguper Hupomosing9418 2011-06-29 00:05 |