Massive Greece bail-out deal gets green light

[Ghost Dog]

Source: BBC

18:21 GMT, Sunday, 2 May 2010 19:21 UK

Eurozone members and the IMF have agreed a 110bn-euro (£95bn; $146.2bn) three-year bail-out package to rescue Greece's embattled economy.

In return for the loans, Greece will make major austerity cuts which Prime Minister George Papandreou said involved "great sacrifices".

The EU will provide 80bn euros in funding and the rest will come from the International Monetary Fund (IMF).

...

Mr Papandreou told a televised cabinet meeting that active and retired public sector workers would bear the brunt of the new wave of budget cuts.

Read more: http://news.bbc.co.uk/2/hi/business/8656649.stm

[DJ13]

1. budget cuts

Its never tax increases on the wealthy, just cuts to the workers and the poor.

[Cleita]

2. The IMF tied strings to the bailout to weaken the social programs and

with the intent of promoting Friedman style privatization economics. Poor Greece will be another experiment in a failed economic system. Maybe it's time for the USA and European Union to start focusing their attention on investigating the IMF and their agenda.

[DissedByBush]

5. Um, Greece IS a failed economic system

Thus the reason we see posts like this.

[Unvanguard]

6. It is partly their fault, but partly the combination of the euro and the recession screwed them.

If Greece were able to implement an independent monetary policy, it probably wouldn't be in this mess.

[anigbrowl]

14. if it wasn't for the euro they'd have gone bust years earlier

Devaluation sucks. It's the ultimate regressive tax.

[earthside]

3. My prediction ...

... the Greek people will not go for this deal.

[Lucky Luciano]

4. Yea...I'll stay short the Euro. nt

[CountAllVotes]

7. Aid plan for Greece worth $145 billion

Source: Associated Press

BRUSSELS — Finance ministers from the 16 countries that use the euro agreed Sunday on a financial rescue for Greece that will loan the struggling country euro110 billion over three years to keep it from defaulting on its debts.

The loan package is also aimed at keeping Greece's debt crisis from spreading to other financially weak countries such as Spain and Portugal just as Europe is struggling out of a painful recession.

In return, Greece had to agree to an austerity program that will impose painful spending cuts and tax increases on its people for years.

The plan will still need approval by some countries' parliaments. But the head of the eurogroup, Luxembourg's Jean-Claude Juncker, said Greece will get the first funds by May 19, when Athens has euro8.5 billion worth of a 10-year bond maturing.



Read more: http://www.chron.com/disp/story.mpl/ap/top/all/6986288.html

---

Will this rescue the entire EU from going down? Time will tell no doubt. I hope the rioting in Greece has ceased and that things are looking up for our friends abroad.

[Mojambo]

8. And all they had to do in exchange was dive head first into neoliberalism

I'm sure that will work out real well for them in the long run...

:eyes:

[Zynx]

9. I'm not sure what the solution should have been.

It wasn't that Greece had a short term liquidity issue, but rather that they were fundamentally insolvent.

[anigbrowl]

15. correct

For yeara Greece has had a culture of cronyism and tax evasion. I'm european BTW.

[dipsydoodle]

10. The overall problem now

is that 15% interest the interest payments themsleves may mean they'll never be able to pay the loans back.

[CHIMO]

11. EU debt crisis: Greece granted €110bn aid to avert meltdown

Source: guardian.co.uk

European countries stepped into uncharted territory tonight, deciding on the first bailout of a single currency member state by agreeing a three-year package worth ¤110bn (£95bn) to rescue Greece from financial meltdown in return for pledges on the most drastic overhaul of a European economy ever attempted.

Finance ministers from the 16 countries using the single currency – the eurogroup – met yesterday in Brussels to seal the pact following months of sitting on the fence and two weeks of tough negotiations in Athens involving the International Monetary Fund, the European commission, and the European central bank, which concluded on Saturday night.

José Manuel Barroso, head of the European commission, described the bailout as decisive in preserving "the stability of the euro area". The guardian of the euro and head of the European central bank, Jean-Claude Trichet, said the package was needed to shore up the single currency.

Heads of government from the 16 countries are to gather for an emergency summit in Brussels on Friday to throw their weight behind the deal, after months of procrastination during which the crisis has deepened and spread.



Read more: http://www.guardian.co.uk/world/2010/may/02/eu-debt-crisis-greece-aid-meltdown

[Bonhomme Richard]

12. I wonder what they really had to give up?

I can't help but think that the other countries and the IMF where like people outside Filene's Basement right before the wedding gowns went on sale. Chapping at the bits.

[kirby]

17. "Chapping at the bits."

I have never heard that one before. The expression I am familiar with is Chomping at the bits, which I think traces back to impatient horses chewing on the bit in their mouth.

[Po_d Mainiac]

13. Not exactly a done deal

Fifty-six percent of Germans oppose giving Greece aid, calling such support “wrong,” Bild am Sonntag reported, citing an Emnid survey. Germany hopes to secure parliament’s approval for the plan by May 7.

http://www.bloomberg.com/apps/news?pid=20601087&sid=alJWdKeR1TDU&pos=1

[kirby]

16. 55% of Americans opposed Wall Street bailout, so?

And that did not derail anything.

Source: http://www.latimes.com/media/acrobat/2008-09/42527811.pdf