European Union responds to Greece financial crisis
On Thursday, the European Union leaders met in Brussels, Belgium to discuss Greece financial debt situation that may damage the euro currency's reputation. EU President Rompuy said EU will do everything to reduce Greece's skyrocketing budget deficit
THE EUROPEAN Union on Thursday (February 11) met at a meeting of European leaders in Brussels, Belgium to solve the Greece financial debt situation which may damage the euro currency’s reputation. The EU President Herman Van Rompuy said EU will do whatever is necessary to reduce the Greece’s skyrocketing budget deficit. Greece's debt crisis has put pressure on the euro, causing it to lose value. European officials have forecast a 12.07 per cent budget deficit for Greece in 2010. This may damage the euro reputation and could lead to a substantial fall against other key currencies. Under EU rules, member countries' budget deficits should only be three per cent of the country's gross domestic product.
The EU President said that the European Commission will monitor Greece's progress together with the European Central Bank and will propose additional measures as needed, he also told the reporters after the meeting that EU commission will take determined and coordinated action if needed to safeguard financial stability in the euro area as a whole but, didn’t state any sort of deal to rescue Greece.
There are also fears that these financial doubts will infect other nations at the low end of Europe's economic scale, with Portugal and the Republic of Ireland coming under scrutiny. The European assessment of Greece's progress will be conducted next month.
There are also fears that these financial doubts will infect other nations at the low end of Europe's economic scale, with Portugal and the Republic of Ireland coming under scrutiny. The European assessment of Greece's progress will be conducted next month.
On Wednesday, thousands of public workers launched a one day nationwide strike in Greece in retaliation to governments’ effort to control the financial crises. The airport employees were on strike and the airport was closed, all the major airlines cancelled their flights from Athens. Government offices, courts and schools were closed, though public transportation largely continued to operate but on Thursday, private company employees as well as taxi drivers also went on strike.
To control this situation, Greek government plans to freeze the wages and the recruitment process for some time. Proposed cut in the pay and recruitment and tough new tax evasion regulations are the issues for the nationwide strikes. In Greece, the women can retire at 60 and men can retire at 65, so the government is planning to retire both women and men at 65 years of age. The workers are protesting government’s plan to raise the age at which workers can claim pensions. The government is also proposing cuts in workers bonus pay, which for many is a large percentage of their income, as well as freezing the hiring.
Greek Prime Minister George Papandreou met European Union members. Greece is a part of European Union. Ghristine Lagarg- the French Finance Minister said, “No bail out request from IMF, Greece is part of EU and we share the same currency and we all are working, we have to have patience.” PM Papandreou said in spite of the promised assurance for support, the delays and conflicting statements over the past few months had made things worse. He said there is no proper coordination among the EU institutes.
The Greek government has not requested for any financial support till now. EU Commission expects to implement all these measures in a rigorous and determined manner to effectively reduce the budgetary deficit by four per cent in 2010.
Greek Prime Minister George Papandreou met European Union members. Greece is a part of European Union. Ghristine Lagarg- the French Finance Minister said, “No bail out request from IMF, Greece is part of EU and we share the same currency and we all are working, we have to have patience.” PM Papandreou said in spite of the promised assurance for support, the delays and conflicting statements over the past few months had made things worse. He said there is no proper coordination among the EU institutes.
The Greek government has not requested for any financial support till now. EU Commission expects to implement all these measures in a rigorous and determined manner to effectively reduce the budgetary deficit by four per cent in 2010.
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