Greece will pay a high price to escape the sinking. The European Commission gave the green light Wednesday to savings plan presented by Athens, while imposing strict monitoring of its implementation. A right of scrutiny of unprecedented severity, but necessary to restore market confidence and avert the specter of a bankruptcy of the country.
"We place our trust the Greek authorities, but we know that the implementation will be difficult," and said the European Commissioner for Economic Affairs, Joaquin Almunia. It is indeed a drastic plan that Athens has agreed to submit and obtain approval from Brussels, Prime Minister George Papandreou had announced new austerity measures.
The goal is to reduce the budget deficit below 3% by end 2012 (against nearly 13% last year).A plan "ambitious" but "achievable", according to Brussels, which does not yet make use of his right eye. "If we consider that the objectives are not met, we will ask the Greek authorities to take additional measures as soon as possible," Mr Almunia warned. And to show its determination, the Commission alongside the initiation of infringement proceedings against Athens for its statistics wrong.
Weak
With this quasi-trusteeship, the EU hopes to avoid bankruptcy of Greece Same Day Payday Loans . But any rumors panicked investors, who demand a risk premium of increasingly high debt to buy Greek.Wednesday, when Greek bonds regained ground, the traders continued to worry about the budgetary situation.
Brussels knows that the window to make adjustments is narrow. Athens will have to submit a report in mid-March, then another in mid-May "If by mid-2010 we have a positive evaluation of the program, then the market share that assessment," assured Mr Almunia.
The event – officially taboo in Brussels – European rescue of a move away then. Not sure however that the final page is turned, because the other weak links in the euro area as Spain and Portugal could be found tomorrow at the forefront. Referring to this risk, the Greek finance minister called Wednesday for the issuance of Eurobonds in the name of European solidarity.So indeed ultimately the future of the euro area could play in the coming weeks.
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