PRLog (Press Release)
- May 3, 2010 -
Greece has finally sealed a deal with the European Union and IMF that allows it access to a multi-billion euro financial bailout but it will require significant sacrifices on the part of the Greek people, Prime Minister George Papandreou said on Sunday.
Those sacrifices will take the form of budget cuts of 30 billion euros over three years, on top of measures already implemented and geared towards cutting a colossal budget deficit back to the EU limit of 3% of GDP from its present 13% by 2014.
analysts say that the Greek people will find the austerity particularly difficult to adjust to but warned that default and, perhaps, exit from the European Union would cause deep rifts among the countries using the single currency.
The firm believes that markets will begin to focus on Spain and Portugal before moving on to Ireland or Italy and this would place additional pressure on the EU members to find even more money. “Zen International”
added that it was not beyond unreasonable to think that certain countries, most notably Germany, may simply refuse to bail out any other nations if the situation were to develop along similar lines to that of Greece.Photo: