Greece warns it may have to abandon euro

Government spokesman says Greece needs new multi-billion dollar bailout

The Greek government said Tuesday that it will be forced to abandon the euro unless it receives another international bailout package worth $169 billion, The Star reports. Government spokesperson Pantelis Kapsis said negotiations between Greece and its euro zone counterparts will “determine everything” in the coming months, including whether the Mediterranean country will go bankrupt. “This famous loan agreement must be signed, otherwise we are outside the markets, out of the euro and things will become much worse,” Kapsis told Greek Skai TV. The transitional government in Athens, headed by former central banker Lucas Papademos, is considering more austerity measures—including tax hikes and spending cuts—like those that were already undertaken in exchange for earlier bailout money from the EU and International Monetary Fund. The Greek government has remained solvent throughout its debt crisis thanks to the May 2010 EU-IMF bailout worth $142 billion. There is also a national election tentatively scheduled for the spring.

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Greece warns it may have to abandon euro

  1. It’s time to cut the sinking Greek ship loose; before it drags everyone down with it. Greek union leaders do not want their people to have to work hard to earn a living; German handouts are much better.

    • So it’s the fault of Greek union leaders who consistently demand better for their workers (ie: their jobs), and not Greek management, that makes promises beyond their abilities to keep them? Really?

      Beyond that, I’d suggest it’s more the fault of the wealthy greek tax-dodgers, who feel that they deserve everything the government gives them, but don’t have to pay for it.

  2. How can a tiny impoverished country the size of Greece need $300 billion dollars to bail itself out of trouble? Who was in charge there? If Greece is basically bankrupt, how can borrowing $300 billion more improve that situation?
    Federal reserves? As once quoted by a very famous American ‘banking institutions are more dangerous than standing armies’, I think the world is finally beginning to understand why.

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