Greece rescue deal

Greece will be finishing the terms of a €120 billion rescue loan to restore the country’s debts. Greece has reached an agreement with the IMF and other governments of the euro zone concerning the saving measures the European Union asked for. If the Greek government complies with these terms, they will get in exchange a financial ‘need’ plan from the IMF.

These measurements stirred up some commotions in Greece. Crowds have protested In Athens against the no indulgency measures attached to the loan and the increase in the retirement age from 53 to 67. There will be cuts in the public sector salaries as well. This Wednesday, a more substantial strike will be held in Athens.

Central banks and the European central bank are also working to restore the country’s significant debt.

These days, it’s all about the Greek crisis and whether or not the EU has to help the Greek government. There has been a lot of criticism about Greece influencing the European union’s prosperity. I personally think Greece never should had joined the European Union. They haven’t met the Maastricht criteria and because they are stuck to the euro they can’t devalue while the Greek economy is in a deflation. I think they should be allowed to leave the Euro to lower their debt before things really get out of hand.

Even though the Greek government will receive financial help from the IMF, they had to agree several measurements. These actions or measurements, which will be applied soon, aren’t positive for the Greek population as well. Salaries will be lowered and the retirement age is shortened.

In general, I am convinced that an exit from the euro is the most sustainable solution on the long run. Continuously bailing out Greece will only help them at short notice and eventually effect the European financials.

Source: http://business.timesonline.co.uk/tol/business/article7114070.ece