Greece warns it may have to abandon euro - Macleans.ca

Greece warns it may have to abandon euro

Government spokesman says Greece needs new multi-billion dollar bailout

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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.

The Star

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