The agony continues in Greece. Wages and pensions have been cut, taxes have been raised. Unemployment churns higher, groceries continue to rise in price. Electric rates have been increased. The VAT now at 23%.
Protests turn violent in the streets and disunity continues in the government, with cabinet members now resigning.
2 days of strikes, 3 days of protest begin in Athens - over the austerity measures in the bailout program agreement. Demonstrators have tangled with riot police in Syntagma Square - and some have been detained by police.
• Demonstrations turn violent -Syntagma Square
6 cabinet members have resigned. Prime Minister Lucas Papademos has said any who object to the terms of the new bailout would be removed from the government.
Papademos said "We cannot allow the country to go bankrupt,” that a default would create conditions of uncontrolled economic chaos and a social explosion.
"The state would be unable to pay wages and pensions and cover basic operational costs such as those of hospitals and schools. It would make imports of basic goods such as medicines and fuel problematic and that businesses would close down en masse. The living standard of Greeks would collapse and the country would be dragged into a spiral of recession, instability, umemployment and misery. The priority now is to do whatever it takes to approve the new economic program and move forward with the new loan agreement.
http://www.ekathimerini.com/...
Papademos said that the new economic program would eventually bring the country back to growth.
Though I do not know how. Where is the hope that will be needed for Greeks to turn the country around? What is left to give the Greeks hope for a better life?
• Venizelos: Greece must decide whether to remain in the euro
• Papademos tells colleagues to back bailout deal or go
http://www.guardian.co.uk/...
Greece must back bailout or face catastrophe:
A former central banker, Papademos tried to raise Greeks' spirits as the nation enters its fifth year of recession, saying economic growth would return in 2013 despite accusations that the austerity is merely driving Greece into a downward spiral. Any alternative to the rescue would be much worse, he said in opening remarks using the word "catastrophe" four times. "The social cost that the program entails will be limited, compared with the economic and social catastrophe which would follow if we don't adopt it," he said.
http://www.reuters.com/...
Brussels warned there would be no immediate approval for the rescue package
Finance ministers of the 17-nation euro zone meeting in Brussels warned there would be no immediate approval for the rescue package and said Athens must prove itself first.
Jean-Claude Juncker, who chairs the Eurogroup, set three conditions, saying the Greek parliament must ratify the package when it meets on Sunday and a further 325 million euros of spending reductions needed to be identified by next Wednesday, after which euro zone finance ministers would meet again. "Thirdly, we would need to obtain strong political assurances from the leaders of the coalition parties on the implementation of the programme,» Juncker told a news conference after six hours of talks in Brussels. «Those elements needs to be in place before we can take decisions." "In short, no disbursement before implementation."
http://www.ekathimerini.com/...
Sat Feb 11, 2012 at 7:01 AM PT: Update Feb 11, 2012 - Papademos Gets Cabinet Approval for 2nd Bailout - approved unanimously.
Greek Prime Minister Lucas Papademos won Cabinet approval for deeper budget cuts needed to secure a second package of international aid, preparing the way for parliamentary vote in his race to prevent financial collapse.
The 287-page document was approved unanimously, said a government official who declined to be named. The backing means parliament will probably vote tomorrow on budget measures equal to 7 percent of gross domestic product over the next three years and a debt swap to cut 100 billion euros ($132 billion) off more than 200 billion euros of privately-held debt.
http://www.bloomberg.com/...