Terms:
International Monetary Fund: the international organization that promotes stability between international currencies. It also allows partner countries to borrow in order to balance deficit in their country. this organization was created by the United Nations.
eurozone: a geographic and economic region that consists of all the countries in the European Union. This countries also have the euro as their form of currency.
European Union: a coalition of European nations that was created in 1993 to have political and economic integration (EU).
Greece is facing very hard times right now. Greece has already put "measures into action such as cuts in servants' pay, freezing pensions ans hiking some taxes :sales, fuel, cigarettes, and alcohol". But the people are answering with opposition. Strikes and violent demonstrations have already started and two more are expected to happen on Thursday and March 16th.
With a 12.7% deficit to be reduced, Prime Minister George Papandreou sees no other options than to ask for help. He may even need to receive funding form the International Monetary Fund, and Papandreou has decided to seek EU and US support for the nation of Greece. He will do this with a series of meetings in which he will ask for support. His plan is to have countries "calm markets and reduce Greece's high borrowing costs".
Mr. Papandreou has already spoken to France and Germany about his plan. Germany did not mention any definite decisions about helping Greece. However French President Nicolas Sarkozy is willing to help and expresses "France is by the side of Greece." There are no specific plans yet, but Mr. Sarkozy expresses the plan is being drawn. Prime Minister Papandreou will be visiting President Barack Obama in Washington this Tuesday to boost support for Greece.
I am unsure whether or not President Obama will be willing to help bailout Greece from their deficit because the United States is in a recession of their own. I just do not think America will be able to help in the way Mr. Papandreou would like. However, President Obama will probably help in some way because the United States has a reputation for helping out other countries.
Links:
"France Offers Support to Greece". BBC News
http://news.bbc.co.uk/2/hi/business/8554754.stm
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment