Global News Post: Greece

Greece Cannot Pay Back Debts by 2020 - Troika

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<div class="MsoNormal" style="text-align: justify;"><span style="background: white; color: black; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 9.0pt;">BERLIN, September (RIA Novosti) - Greece will be unable to pay back its debts to international creditors by 2020 according to the so-called troika of international lenders, German daily Handelsblatt reported on Monday, quoting unnamed sources.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; color: black; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 9.0pt;">The troika consists of the European Commission, European Central Bank and International Monetary Fund.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; color: black; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 9.0pt;">The existing financial rescue package for Greece includes a 130 billion euro rescue loan, of which 73 billion has already been disbursed, with the rest due to be handed over by 2014.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; color: black; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 9.0pt;">Greece's creditors hope it will be able to stand on its own feet regarding debt repayments by that date, including long-term and medium-term bond payments. Greece lost access to the long-term finance market when it went into recession and needed to resort to EU and IMF loans to meet its outstanding debt repayments.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; color: black; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 9.0pt;">In autumn 2010 Athens was granted a 110 billion euro rescue package until 2013. Creditors hoped that this would enable Greece to make a gradual return to market financing by 2012, but the rapid collapse of the country's credit rating and its economic turmoil and loss of lender confidence prevented this. The troika was then forced to step in with a second loan package in spring 2012.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="background: white; color: black; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-size: 9.0pt;">The troika said earlier this year that Greece must maintain its austerity drive of privatization, spending cuts and tax increases in order to boost government revenues, in order to get its outstanding rescue package funds. Greece has appealed for more time to implement austerity measures but has been rebuffed by Germany's Chancellor Angela Merkel.<o:p></o:p></span></div></div>

Greece Cannot Pay Back Debts by 2020 - Troika

BERLIN, September (RIA Novosti) - Greece will be unable to pay back its debts to international creditors by 2020 according to the so-called...

Greece Forms New Government

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<div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;"><b>By Dominic Laurie</b><o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br />
</span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">LONDON - Ending weeks of political limbo, Antonis Samaras, the leader of Greece's New Democracy party was sworn in Wednesday as prime minister after agreeing to form a coalition government with the Socialists and a smaller left-wing party, the Democratic Left. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">After winning Sunday's election, the president gave the New Democracy party three days to form a government. There were concerns that a resolution had to be found quickly to reassure markets that Greece was back in business after the second election in a matter of six weeks.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Mr. Samaras has fulfilled his president’s wishes.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">On Wednesday he concluded discussions with leaders of The Pasok socialist party and a smaller left wing party called the Democratic Left. After visiting the president, he was sworn in at a Greek Orthodox ceremony.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">He says that he is asking from the Greek people, patriotism and strong national unity and trust, that with the help of God, the coalition will do whatever they can for the people to come out of this crisis. He says that on Thursday he will ask for hard work from the new government, so that it can give hope to his people. He then thanked the crowd.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">LONDON - Discussions on the lineup of ministers were expected to be completed by Wednesday night. And cooperation may be possible. All of the parties want extra time for implementing new cutbacks that were a condition for its second bailout. More and more people are suffering from lower incomes and higher taxes.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Wednesday in central Athens saw a reminder for the new government of the problems they face. Hundreds of Greeks lined up in a Central Athens park for free vegetables. Farmers from Crete handed out 27 tons of aubergines, peppers, tomatoes and other produce, with the help of the local government. Nikos Saprovalakis works for a food company helping out.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">He says they will not solve any feeding problems, but that is the start of solidarity, a display of Greek solidarity, that shows that during these times Greeks are united.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Spiros Kalamantis, one of those people lining up for a food rescue package, said the reason he is taking one is that he has been unemployed for several years now. Just because he is unemployed, he said, no other reason than that.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">The new Greek government may be in agreement that the austerity measures demanded by the International Monetary Fund and the European Union may need relaxing, but whether other European leaders agree to that is another matter.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">The German Chancellor Angela Merkel has given no indication that her country would sanction such a move. Germany’s parliament has not even signed off on the new Eurozone bailout fund to replace the existing smaller one.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Greece may have a new government, but its problems are not over. ---VOA News<o:p></o:p></span></div></div>

Greece Forms New Government

By Dominic Laurie LONDON - Ending weeks of political limbo, Antonis Samaras, the leader of Greece's New Democracy party was sworn in W...

New Elections for Greece as Talks Fail

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<div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;"> <span lang="EN-US">By Selah Hennessey<o:p></o:p></span></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Greece will hold a new election after coalition talks fell apart Tuesday. The fresh round of voting follows a May 6 ballot that failed to elect a clear winner. <o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Political leaders have been scrambling for days to form various coalition governments, but none have been fruitful.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">On Tuesday, Greek politicians conceded that a new vote is the only answer. The second election is expected to take place on June 17.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">In the May election, a majority of voters supported parties that oppose tough austerity measures in Greece. The measures are key to a bailout deal, funded by the European Union and the International Monetary Fund, aimed at preventing Greece from defaulting on its debts.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">According to polls taken during the past week, the radical left party Syriza, which took second place in the May vote, is now in first place.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">The party has taken a strong position against Greek austerity measures and wants to renegotiate the bailout package.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Vassilis Monastiriotis, from the London School of Economics, said the party is unlikely to win an absolute majority in parliament, but added it might get enough votes to steer Greek policy.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">"They may be able to form a coalition government being the strongest party in parliament so that the coalition government will be on their terms rather than them being the smallest party and having lower influence," he said.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">The party’s aim, renegotiating the terms of Greece’s bailout, is unlikely to make much headway, Monastiriotis said, because the European Union is unlikely to shift the terms of the agreement.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">"If they insist on what they have promised, it is quite possible that there is going to be a deadlock on the European level and this potentially could lead to the exit of the country from the eurozone," he said.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Syriza, along with the majority of Greeks, says it wants to remain within the eurozone. European leaders have also emphasized their commitment to keeping Greece within the union. But many analysts say the financially strapped country could well be on its way out in the coming years.  <o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Greece is in its fifth year of recession. According to figures published Tuesday, the Greek economy slumped more than 6 percent in the first quarter compared with a year earlier.<o:p></o:p></span></div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="tab-stops: center 234.0pt; text-align: justify;"><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">The president’s office said Tuesday he will hold talks Wednesday to set up a caretaker administration.</span><span lang="EN-US"> </span><span lang="EN-US" style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;"> ---VOA News<o:p></o:p></span></div></div>

New Elections for Greece as Talks Fail

By Selah Hennessey Greece will hold a new election after coalition talks fell apart Tuesday. The fresh round of voting follows a May 6 b...

Greek President to Try to Form Government

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<div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Greece's president has summoned leaders of the country's fractious political parties to a Sunday meeting in a last-ditch effort to form a new coalition government.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Greek President Karolos Papoulias said Saturday he would meet with conservative leader Antonis Samaras, radical left chief Alexis Tsipras and socialist leader Evangelos Venizelos after all three failed to gather enough support to create a new government. Mr. Papoulias' office also said he would meet separately with the leaders of four other parties that won enough votes in last Sunday's splintered election to gain seats in parliament.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">None of the country's political parties came close to winning enough seats to form a government on its own. Now, Mr. Papoulias has until next Thursday to broker a deal to create a coalition government. If he fails, Greece will have to hold new elections in June.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">The key point of contention centers on the debt-ridden Greek government's acquiescence to the demands of its international lenders and European neighbors to impose sharp austerity measures in exchange for approval of its second bailout in two years. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Samaras and Venizelos supported the social spending cuts, but Tsipras says voters repudiated the austerity agreement and that Greece is not obligated to carry it out. Greeks have frequently taken to the streets in massive, sometimes violent protests against the plan calling for higher taxes, reduced pensions and elimination of thousands of government jobs.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">But European leaders have warned the Athens government that it must carry out the austerity measures or they will not send it more bailout money. Financial analysts say that Greece could default on its financial obligations and become the first country to leave the 17-nation euro currency union. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">On Friday, Venizelos announced that the Radical Left Coalition, or Syriza, refused to join the Socialists and conservatives in a unity government. The Socialist and conservative New Democracy parties have proposed a gradual phasing out of the tough measures imposed by the European Union and International Monetary Fund.  The leftists want those measures canceled immediately.  <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">Greek voters punished both the Socialists (PASOK) headed by Venizelos and New Democracy led by Samaras for having pushed through the tough economic austerity measures. The two parties have traditionally won 80 percent of the votes in Greek elections, but last Sunday only collected 32 percent.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><br />
</div><div class="MsoNormal" style="text-align: justify; text-justify: kashida; text-kashida: 20%;"><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; line-height: 115%;">New Democracy won the most parliamentary seats in the voting, followed by the Radical Left and the Socialists. New polls show the Radical Left gaining strength since the voting a week ago. ---VOA News<o:p></o:p></span></div></div>

Greek President to Try to Form Government

Greece's president has summoned leaders of the country's fractious political parties to a Sunday meeting in a last-ditch effort to ...

Greek Political Turmoil Raises Concerns of Eurozone Exit

<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: 'Trebuchet MS', sans-serif;"><br />
</span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The political turmoil in Greece over the creation of a coalition government is raising concerns anew that the country could become the first to exit the 17-nation euro currency bloc.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The Athens government avoided a eurozone exit twice in the last two years as it negotiated billions of dollars in bailouts from its European neighbors and the International Monetary Fund to avoid a default. In exchange, Greece was forced to agree to impose severe austerity measures that have drawn widespread street protests.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">But in national elections last Sunday, voters overwhelmingly rejected candidates supporting the unpopular cuts in social spending. Anti-austerity political leaders are contending the country is no longer obligated to support the budget-cutting terms of the international rescue packages.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">As a result, financial analysts say the inconclusive results of the election and the difficulty in forming a new government heighten the possibility the country could exit the eurozone and return to the use of its former currency, the drachma. The effects of a Greek exit from the 13-year-old currency union could spread far beyond the borders of the Mediterranean nation, leading to worldwide economic uncertainty.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">One European financial analyst, Andreas Lipokow, said stock markets would fall with a Greek default and the bailouts would have proven to be pointless.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">"A Greek default would certainly lead to a drop in the markets. It would also serve as an example of what happens when negotiations fail and when, in the Greek case, the outcome [the implementation of austerity measures] was taken for granted. The IMF (International Monetary Fund) and the EU have brought a bail-out package into place which in the end would [in the case of default] have had no result and achieved nothing."<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">An economic analyst, Theodore Krintas, said Greece would have difficulty in financing its government if it abandons the terms of the bailouts and there would be shortages in basic commodities for its people.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">"You can not reject the austerity measures for simple reasons: if you do so you are going to be abandoned by the markets, so you are going to face directly between two and a half and five billion euros of shortage in fiscal, so you will need to find a way to cover the shortage," said Krintas. "And once you will have abandoned the measures on your own, you are going to face another problem, which is the balance of trade. Actually, there will be no one trading with you. As a result Greece will face severe problems with products of first need like food, petrol and et cetera."<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">The president of the European Council, Herman Van Rompuy, says European nations must remain united and that political leaders who claim their countries can act unilaterally are not telling the truth to their countrymen.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="line-height: 19.2pt; text-align: justify;"><span style="color: #333333; font-family: "Trebuchet MS","sans-serif"; font-size: 12.0pt; mso-ansi-language: EN-IN; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">"In order to convince European people we need to do more," he said. "Political leaders must tell the truth, they have to say what the truth is. Populism and nationalism are not appropriate answers to challenges we face today. Those who claim that their country can be successful in going it alone are not just deluding themselves, they are lying. If we did not have Europe the cost would be inconceivably high." ---VOA News<o:p></o:p></span></div></div>

Greek Political Turmoil Raises Concerns of Eurozone Exit

The political turmoil in Greece over the creation of a coalition government is raising concerns anew that the country could become the fi...

New Greek PM Says Country Is at 'Crucial Crossroads'

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<div class="MsoNormal" style="text-align: justify;"><span class="Apple-style-span" style="font-family: 'Trebuchet MS';"><br />
</span></div><div class="MsoNormal" style="text-align: justify;"><st1:place w:st="on"><st1:country-region w:st="on"><span style="font-family: "Trebuchet MS";">Greece</span></st1:country-region></st1:place><span style="font-family: "Trebuchet MS";">'s newly named caretaker prime minister, Lucas Papademos, says his country is at a "crucial crossroads" and it won't be easy to fix the huge problems facing the Greek economy.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">Thursday, <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>'s feuding political leaders named Papademos, a former vice president of the European Central Bank, to be the country's interim leader until a national election is held, likely next year. Outgoing Prime Minister George Papandreou handed him the responsibility for carrying out <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>'s hugely unpopular austerity measures demanded by its international creditors in exchange for more money to keep the country from defaulting on its debts.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "Trebuchet MS";">Stressing stability, unity<o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">Papademos, to be sworn in Friday, said "the course will not be easy." But he said the country's continued use of the euro currency is a "guarantee of monetary stability" and that Greeks "must all be optimistic about the final result" if they stay united.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">The U.S.-educated economist has never run for elected office and is viewed as a non-partisan personality. Analysts say he is well-connected in European capitals.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">His appointment came as the European Union voiced new concern about the continent's economy. Economic affairs commissioner Olli Rehn said "growth has stalled in <st1:place w:st="on">Europe</st1:place>" and that there is a risk of a new recession.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "Trebuchet MS";">Risk of recession <o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">The EU predicted economic growth in the 17-nation eurozone would amount to just five-tenths of one percent next year, plunging from an earlier 1.8 percent projection.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">With the Greek selection of a new leader, the focus of the European debt crisis again turned to <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region>. Italian Prime Minister Silvio Berlusconi, who has promised to step down after Parliament passes tough austerity measures, appeared Thursday to endorse the man widely seen as his replacement, leading economist Mario Monti.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><b><span style="font-family: "Trebuchet MS";">Focus on <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region><o:p></o:p></span></b></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">A former European Union commissioner, Monti could be named to head a new government that hopes to implement <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region>'s budget-cutting plan aimed at reducing the country's $2.6 trillion debt.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">German Chancellor Angela Merkel said it is important for <st1:country-region w:st="on">Italy</st1:country-region>, with <st1:place w:st="on">Europe</st1:place>'s third largest economy, to quickly push through its austerity measures and settle on its political leadership.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: "Trebuchet MS";">In the meantime, <st1:country-region w:st="on">Italy</st1:country-region>'s borrowing costs have soared this week above 7 percent - higher than the rate that forced <st1:country-region w:st="on">Greece</st1:country-region>, <st1:country-region w:st="on">Ireland</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">Portugal</st1:place></st1:country-region> to ask for bailout loans. The EU predicted that <st1:place w:st="on"><st1:country-region w:st="on">Italy</st1:country-region></st1:place>'s economy will only grow by one-tenth of a percent in 2012.---VOA News<o:p></o:p></span></div></div>

New Greek PM Says Country Is at 'Crucial Crossroads'

Greece 's newly named caretaker prime minister, Lucas Papademos, says his country is at a "crucial crossroads" and it won...

George Papandreou steps down as Greek prime minister

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<tr><td class="tr-caption" style="text-align: center;"><span class="Apple-style-span" style="background-color: white; color: #555555; font-family: Georgia, serif; font-size: 10px; line-height: 20px;"><h1 style="line-height: 15.6pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 7.5pt;"><i><span style="background-attachment: initial; background-clip: initial; background-color: #fefefe; background-image: initial; background-origin: initial; font-family: Arial; font-size: 7pt;">Greek Prime Minister <span> </span>©<a href="http://www.flickr.com/photos/worldeconomicforum/5393266681/" style="color: #333333; text-decoration: underline;"><span><span class="Apple-style-span" style="color: black;">flickr.com/worldeconomicforum</span></span></a></span></i></h1></span></td></tr>
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<div class="MsoNormal" style="text-align: justify;"><st1:place w:st="on"><st1:city w:st="on">MOSCOW</st1:city></st1:place> (RIA Novosti)-George Papandreou announced Wednesday he is stepping down as Greek prime minister to clear the way for a new coalition government. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">“I wish the next premier good luck,” he said in a televised address.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">He did not name his successor, but party leaders earlier agreed on house speaker Filippos Petsalnikos to head the country's new coalition government.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">"I believe the choice we have made is in line with the institutions and will boost the democratic institutions," Papandreou said.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> should stay in the eurozone and carry out the EU debt bailout deal, he said.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Papandreou said earlier this week he would go in order to help form a coalition government comprising his socialist PASOK party and the center-right New Democracy party.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">The new government is to hold parliamentary elections, set for February 2012.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">On October 27, the EU and IMF agreed to grant <st1:country-region w:st="on">Greece</st1:country-region> another 100 billion euros to stabilize its economy and reached an agreement with private creditors to forgive 50 percent of <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place>’s debt.<o:p></o:p></div></div>

George Papandreou steps down as Greek prime minister

Greek Prime Minister © flickr.com/worldeconomicforum MOSCOW (RIA Novosti)-George Papandreou announced Wednesday he is stepping down ...

Greek Prime Minister to Step Down, Unity Government to be Formed

<div dir="ltr" style="text-align: left;" trbidi="on"><span class="Apple-style-span" style="font-family: 'Trebuchet MS', sans-serif;"><span class="Apple-style-span" style="background-color: white; font-size: xx-small; line-height: 21px;"><b>By Suzanne Presto from Washington</b></span></span><br />
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</span></span><br />
<span class="Apple-style-span" style="font-family: 'Trebuchet MS', sans-serif;"><span class="Apple-style-span" style="background-color: white; line-height: 21px;">Political leaders in Greece reached an agreement Sunday night to form a new unity government, a move that will allow the debt-ridden country to secure a European Union bailout.</span><span class="Apple-style-span" style="background-color: white;"></span></span><br />
<div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: 'Trebuchet MS', sans-serif;"><span class="Apple-style-span" style="line-height: 21px;"><br />
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<span class="Apple-style-span" style="font-family: 'Trebuchet MS', sans-serif;"><span class="Apple-style-span" style="background-color: white; line-height: 33px;">In an effort to break the political deadlock, Greek President Karolos Papoulias hosted late, closed-door talks between Prime Minister George Papandreou and opposition leader Antonis Samaras.</span></span><span class="Apple-style-span" style="background-color: white;"></span><br />
<div style="line-height: 1.5; padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: justify;"><span class="Apple-style-span" style="background-color: white;"><span class="Apple-style-span" style="font-family: 'Trebuchet MS', sans-serif;">Throngs of reporters outside the gates of the presidential palace in Athens were on hand when word came a few hours later.</span></span></div><table align="right" border="0" class="promoFeature imgBg" style="background-attachment: initial; background-clip: initial; background-color: #fbfbfb; background-origin: initial; background-position: 50% 0%; border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-bottom-width: 1px; border-left-color: rgb(221, 221, 221); border-left-style: solid; border-left-width: 1px; border-right-color: rgb(221, 221, 221); border-right-style: solid; border-right-width: 1px; border-top-color: rgb(221, 221, 221); border-top-style: solid; border-top-width: 1px; font-family: Arial, Helvetica, sans-serif; height: 425px; margin-bottom: 15px; margin-left: 5px; margin-right: 0px; margin-top: 5px; padding-bottom: 5px; padding-left: 5px; padding-right: 5px; padding-top: 5px; position: relative; width: 275px;"><tbody style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">
<tr style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><td style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><div style="line-height: 1.5; margin-top: 3px; padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;"><i>Greek Prime Minister Papandreou took power in 2009 with promises to create jobs, help the poor and pump life into a sagging economy. Instead, he found himself fighting to keep the country from sinking into bankruptcy and taking the entire global economy down with it.</i></div><div style="line-height: 1.5; margin-top: 3px; padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;"><i>Mr. Papandreou's grandfather, George, and his father Andreas, also were Greek prime ministers who helped shape contemporary Greek history.</i></div><div style="line-height: 1.5; margin-top: 3px; padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;"><i>The current prime minister was born in 1952 in the midwestern U.S. city of St. Paul, Minnesota. Andreas Papandreou had fled there to escape a severe right-wing Greek dictatorship in the late 1930s.</i></div><div style="line-height: 1.5; margin-top: 3px; padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;"><i>George Papandreou studied in the United States, Canada and Sweden before moving to Greece when democracy returned in 1974. He followed his family into the Socialist Party, winning a seat in parliament and holding several government posts, including foreign minister and party leader.</i></div><div style="line-height: 1.5; margin-top: 3px; padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: left;"><i>He became prime minister when the Socialists won the 2009 parliamentary elections.</i></div></td></tr>
</tbody></table><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">Reporters from Greek national media read the statement from the president's office.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">The statement said Mr. Papandreou and New Democracy party leader Antonis Samaras had reached a preliminary agreement to form an interim government, and that Mr. Papandreou will not lead the new government.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div><div style="text-align: justify;"><br />
</div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">The state</span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">ment added that the two men are expected to meet again on Monday to discuss details of th</span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">e plan, including who will lead the government to early elections.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div><div style="text-align: justify;"><br />
</div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">Earlier Sunday, Samaras said the prime minister had to step aside. "He [i.e., Mr. Papandreou] is obstructing any solution.  And if he does not resign, he does not allow the constitution to operate properly.  So if he does resign, then things will go as they have to," he said.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div><div style="text-align: justify;"><br />
</div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">Mr. Papandreou agreed to step aside as long as Athens could secure a loan that would help Greece avoid bankruptcy.  The nation's finance minister has said Greece needs $11 billion in bailout funds in the coming weeks to stay afloat.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">Greek reaction to Sunday's developments are mixed.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">A 22-year-old Athens man said he is not optimistic about his country's future, while a 33-year-old woman said she is hopeful about the political agreement. "Yes, I do feel positive.  If they finally did it, then I do feel positive because the country has to be represented in a unanimous way," she said.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">The interim government is expected to get the Greek parliament and cabinet to accept the terms of a new European Union agreement, which requires Greece to raise taxes and make deeper cuts in government spending.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">Late last month, Eurozone nations agreed to provide Greece with additional loans.  Mr. Papandreou then announced that he wanted to put the debt deal to a referendum.  He later withdrew the plan.</span><span class="Apple-style-span" style="background-color: white;"><div style="padding-bottom: 15px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"></div></span><span class="Apple-style-span" style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 33px;">Eurozone finance ministers are set to meet in Brussels on Monday to discuss plans to release billions of dollars in bailout funds to Greece.---VOA News</span></div>

Greek Prime Minister to Step Down, Unity Government to be Formed

By Suzanne Presto from Washington Political leaders in Greece reached an agreement Sunday night to form a new unity government, a move th...

Greek Opposition Chief: PM Must Resign Before Coalition Deal

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</div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">Greek conservative opposition leader Antonis Samaras says the country's socialist prime minister must resign before the two sides can agree on a new coalition government that would secure continued bailout funds and avert a national bankruptcy.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">Samaras said Sunday “everything will follow its course” if Prime Minister George Papandreou resigns. The New Democracy party leader spoke after a brief meeting with Greek President Karolos Papoulias. But, members of the ruling Pasok party said the prime minister will not resign until after the government and the opposition reach a deal on a coalition, including how long it will lead the country before new elections.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">The ruling socialists say elections should wait until January or February, but the conservative opposition wants a vote by December.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">Mr. Papandreou was holding an emergency cabinet meeting Sunday to discuss his efforts to form a national unity government that would secure parliamentary approval of second European-led bailout package offered to <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place> last month. The deal requires the Greek government to make further increases to tax rates and deeper cuts in pensions and salaries.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">It was not clear if the ruling Pasok party was holding any talks with the main opposition New Democracy Sunday.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">European leaders have called on <st1:country-region w:st="on">Greece</st1:country-region> to approve the new bailout plan and implement the terms of an existing rescue package provided to <st1:place w:st="on"><st1:city w:st="on">Athens</st1:city></st1:place> by the European Union and International Monetary Fund last year. Some EU leaders have warned that <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> will not get any further aid if it fails to take those measures.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;"><br />
</span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-size: 11.0pt;">Greek Finance Minister Evangelos Venizelos is expected to discuss those issues with fellow euro zone finance chiefs in <st1:city w:st="on"><st1:place w:st="on">Brussels</st1:place></st1:city> on Monday. He has said <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place> needs the next $11 billion installment of its existing bailout by December to avoid bankruptcy.---VOA News<o:p></o:p></span></div></div>

Greek Opposition Chief: PM Must Resign Before Coalition Deal

Greek conservative opposition leader Antonis Samaras says the country's socialist prime minister must resign before the two sides can ...

Greek Cabinet Backs Papandreou Plan for Referendum on Debt Plan

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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMqs3pmUJzwTkzX0U18K3brw8klJmuxnMIJu4I_Bol8q9eqr8ZWDdcmjgWiGTkjHOZrvUrP8rBFAniYNdtrRu5b-3lKmGQjpGSZ-mxckdeyqp9qDCmbkprr0TZkn4Bf-rJQp3XsquFbLQ/s1600/papandreu.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><span class="Apple-style-span" style="color: black;"><img border="0" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMqs3pmUJzwTkzX0U18K3brw8klJmuxnMIJu4I_Bol8q9eqr8ZWDdcmjgWiGTkjHOZrvUrP8rBFAniYNdtrRu5b-3lKmGQjpGSZ-mxckdeyqp9qDCmbkprr0TZkn4Bf-rJQp3XsquFbLQ/s320/papandreu.jpg" width="320" /></span></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><h1 style="line-height: 15.6pt; margin-bottom: 7.5pt; margin-left: 0in; margin-right: 0in; margin-top: 7.5pt;"><i><span style="background-attachment: initial; background-clip: initial; background-color: #fefefe; background-image: initial; background-origin: initial; background-position: initial initial; background-repeat: initial initial; font-family: Arial; font-size: 7pt;">Greek Prime Minister <span> </span>©<a href="http://www.flickr.com/photos/worldeconomicforum/5393266681/"><span><span class="Apple-style-span" style="color: black;">flickr.com/worldeconomicforum</span></span></a><o:p></o:p></span></i></h1></td></tr>
</tbody></table><div class="MsoNormal" style="text-align: justify;">Greek Cabinet ministers are giving their support for Prime Minister George Papandreou's plan to hold a referendum on the European Union debt relief deal.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A Greek government spokesman said after a marathon Cabinet meeting early Wednesday that a public vote would come as soon as possible after the details of the latest debt agreement are worked out.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Mr. Papandreou's announcement stunned the world Tuesday and sent global markets plunging as investors reacted to a major jolt of uncertainty in the European economy. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">The prime minister told his Cabinet that Greeks would be asked whether they want to keep using the euro currency. He said any deal will only be implemented with the consent of the Greek people, and that he hopes any turmoil caused by his unexpected announcement will be only temporary. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">A number of lawmakers in the prime minister's Socialist Party oppose an up-or-down public vote. Some party members are demanding Mr. Papandreou's resignation, and his government faces a no-confidence vote Friday in Parliament. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Mr. Papandreou has strongly supported the European Union plan to cut <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>'s debt, which would obligate severe domestic spending cuts and tax hikes. It also would eliminate jobs now held by thousands of public employees.<span>  </span><o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Terms of the latest deal offered by the EU call for European banks to forgive 50 percent of <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place>'s debt. That appeared to calm nervous markets at first, but then Mr. Papandreou told Socialist lawmakers Tuesday that he will honor results of the referendum.<o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">EU leaders Herman Van Rompuy and Jose Manuel Barroso said they "fully trust" <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> to uphold last week's eurozone debt-relief agreement.<span>  </span>French President Nicolas Sarkozy said letting people vote is "always legitimate," but that a Europe-wide agreement is the only possible way to resolve the debt crisis. <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">World Bank president Robert Zoellick said that if voters reject the plan, "It's going to be a mess." <o:p></o:p></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;">Mr. Sarkozy and German Chancellor Angela Merkel plan to meet Wednesday in <st1:city w:st="on">Cannes</st1:city>, <st1:country-region w:st="on">France</st1:country-region>, with leaders from the International Monetary Fund and <st1:place w:st="on"><st1:country-region w:st="on">Greece</st1:country-region></st1:place> to discuss the latest snag in solving the continent's debt crisis. ---VOA News</div></div>

Greek Cabinet Backs Papandreou Plan for Referendum on Debt Plan

Greek Prime Minister © flickr.com/worldeconomicforum Greek Cabinet ministers are giving their support for Prime Minister George Pap...

Strikes Paralyze Athens amid Violent Clashes

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<div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';"><span class="Apple-style-span" style="font-size: x-small;"><b>By Henry Ridgwell from <st1:place w:st="on"><st1:city w:st="on">Athens</st1:city>,  <st1:country-region w:st="on">Greece</st1:country-region></st1:place></b></span><o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">   <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';"><span class="dropcap2">P</span>rotesters and police have clashed outside the Greek parliament as a massive protest and general strike shut down <st1:city w:st="on"><st1:place w:st="on">Athens</st1:place></st1:city>. Both public and private sector unions are backing the industrial action against the government’s plans to slash the salaries of public workers and raise taxes. The government says the measures are vital if it is to receive the next slice of bailout money.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span class="Apple-style-span" style="font-family: 'Trebuchet MS';">An estimated 70,000 people marched Wednesday, protesting against the government’s latest round of austerity measures. A small number attempted to break into the building - launching stones and petrol bombs at police - who returned fire with tear gas.</span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">This is the largest strike and protest <st1:city w:st="on"><st1:place w:st="on">Athens</st1:place></st1:city> has seen since June. Steel worker Thanasis Protellis said they will not back down.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">"This government must fall and all the parties that support these measures must fall with it,” he said. <o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><st1:city w:st="on"><st1:place w:st="on"><span style="font-family: 'Trebuchet MS';">Athens</span></st1:place></st1:city><span style="font-family: 'Trebuchet MS';"> is frozen operationally. The 48-hour strike by public and private sector workers has seen flights grounded. In <st1:city w:st="on">Piraeus</st1:city>, the <st1:place w:st="on"><st1:placetype w:st="on">port</st1:placetype>  of <st1:placename w:st="on">Athens</st1:placename></st1:place>, the ferries are anchored and going nowhere.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Schools are closed, while banks and shops will stay shuttered until Friday at the earliest.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Ilias Iliopoulos, general secretary of ADEDY, the public workers’ union, said the austerity measures are crippling <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">“<st1:place w:st="on">Normal</st1:place> workers are paying higher taxes, they’re getting lower salaries, lower pensions, resulting in the economy being literally destroyed,” he said. “This has led to 500,000 businesses shutting down, and this, in turn, to 1.2 million people unemployed who find it hard to live, let alone pay the state taxes.”<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Not all Greek workers want to strike. Stefanos Troupakis, a stockbroker with Piraeus Bank, said, "It’s a very difficult environment to get your job done every day. It just makes simple things more difficult, so let alone having to face all the problems that we’re all facing. It just makes things worse.”<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Politicians are voting on two bills, which would see 30,000 public workers put on reduced pay, taxes raised and pensions reduced further. It’s aimed at cutting the huge debt, now running at 162 percent of GDP.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">To receive the next $11 billion of bailout money, <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> must satisfy the IMF, the EU and the European Central Bank - the so-called troika - that it can slash spending.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">Political commentator Kostas Raptis said most Greeks believe the only way out is a default on the debt.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">“Things get even worse by applying the troika rules. It’s a death spiral. Austerity makes the GDP contract. So how could <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region> get out of this trap?” asked Raptis.<o:p></o:p></span></div><div class="MsoNormal" style="text-align: justify;"><br />
</div><div class="MsoNormal" style="text-align: justify;"><span style="font-family: 'Trebuchet MS';">It’s a trap that Europe’s politicians fear could ensnare bigger economies like <st1:country-region w:st="on">Italy</st1:country-region> and <st1:country-region w:st="on"><st1:place w:st="on">Spain</st1:place></st1:country-region>. Analysts say the consequences of that would be far greater than the fallout from <st1:country-region w:st="on"><st1:place w:st="on">Greece</st1:place></st1:country-region>. ---VOA News<o:p></o:p></span></div></div>

Strikes Paralyze Athens amid Violent Clashes

By Henry Ridgwell from Athens , Greece P rotesters and police have clashed outside the Greek parliament as a massive protest and gener...

Greek Debt Crisis Still Unresolved

<div dir="ltr" style="text-align: left;" trbidi="on"><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";"></span></div><span style="font-family: "Trebuchet MS";">European finance officials are still grappling with the Greek debt crisis after returning home from inconclusive talks at the International Monetary Fund in <state w:st="on"><place w:st="on">Washington</place></state> over the weekend.</span> <br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">The <country-region w:st="on"><place w:st="on">United States</place></country-region> and other nations are pressing European leaders to drastically increase the size of the continent's $594 billion bailout fund, perhaps by several trillion dollars. But there is growing opposition in <country-region w:st="on">Germany</country-region>, with Europe's strongest economy, and other northern European states to massive new assistance for <country-region w:st="on"><place w:st="on">Greece</place></country-region> and other debt-ridden governments.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">The issue may not be resolved until early November, when officials from 20 leading and emerging economies are set to meet in <country-region w:st="on"><place w:st="on">France</place></country-region>.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">But <country-region w:st="on"><place w:st="on">Greece</place></country-region> says it will run out of money in October to operate its government, and could default on its bailout loans from last year unless international creditors hand it another $11 billion portion of the bailout. Several Greek news accounts in the last few days said that under one plan, the <city w:st="on"><place w:st="on">Athens</place></city> government could default in an orderly fashion, with bondholders taking a 50 percent loss on their investments.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">Greek lawmakers have adopted a wide variety of spending cuts and tax increases, austerity measures that have proved highly unpopular. On Monday, transport workers staged a second strike in the last few days, snarling <city w:st="on"><place w:st="on">Athens</place></city> traffic, and are planning a two-day work stoppage later in the week. </span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">Greek police held their own protest, hanging a giant black banner from the top of a popular landmark, <place w:st="on"><placetype w:st="on">Mount</placetype> <placename w:st="on">Lycabettus</placename></place> that read, "Pay Day, Day of Mourning."<span style="mso-spacerun: yes;">  </span>On Sunday, police fired tear gas at protestors at <street w:st="on"><address w:st="on">Syntagma Square</address></street> in central <city w:st="on"><place w:st="on">Athens</place></city>.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">Aside from spending cuts and tax increases, the Greek government is seeking to sell rights to some of its state-owned assets to cut its deficits.</span></div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 0pt; text-align: justify;"><span style="font-family: "Trebuchet MS";">On Monday, the government said it likely will announce extensions of private leases this week for the operation of the <city w:st="on"><place w:st="on">Athens</place></city> airport and a sport betting monopoly and the sale of video lottery licenses.---VOA News</span></div></div>

Greek Debt Crisis Still Unresolved

European finance officials are still grappling with the Greek debt crisis after returning home from inconclusive talks at the International ...

Greek parliament adopts unpopular austerity budget

<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">Greek lawmakers voted in favor of an austerity package on Wednesday as protests against the unpopular policy gain momentum in the country.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">It was approved by the majority of 155 lawmakers in the 300-seat legislature, with 138 "no" votes.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">The package includes tax increases and spending cuts, intended to attract an additional 28 billion euro ($40 billion) to the budget until 2015.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">The program also envisages a major privatization program, which the government hopes will fetch up to 50 billion euro ($72 billion).</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">The measures are deemed crucial to secure international aid to stave off bankruptcy, which is threatening the stability of the eurozone. Greece's total debt has ballooned to $490 billion and the country may default on it as early as next month.</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;"><br />
</span></div><div style="text-align: justify;"><span class="Apple-style-span" style="font-family: Times, 'Times New Roman', serif;">The new measures were drawn up to meet European Union and International Monetary Fund conditions for further bailout support, after a 110-billion-euro rescue last year. RIA NOVOSTI</span></div></div>

Greek parliament adopts unpopular austerity budget

Greek lawmakers voted in favor of an austerity package on Wednesday as protests against the unpopular policy gain momentum in the country. ...