A Greek Tragedy in the Making

Sally McNamara / May 05, 2010

The proposed €110 billion ($140 billion) Greek rescue package announced on Sunday may well not survive the week. Watching public sector workers storming the Acropolis in protest at proposed government spending cuts and tax increases, raises the question of whether the Greek Government itself can survive.

Eurozone countries have agreed to provide €80 billion in emergency loans over the next three years for Greece, with the rest coming from the IMF. In exchange for avoiding bankruptcy (at least for the next couple of months), Greece has agreed to pass a series of austerity measures and reduce its budget deficit by more than 10 percent. The Greek parliament will vote this Friday on a series of measures including a three-year public sector pay freeze, a VAT increase and increasing women’s retirement age. Communists and Trade Unionists are behind tomorrow’s planned general strike, following several demonstrations which have already taken place. (more…)