Posted on 10/02/2011 12:14:50 PM PDT by milwguy
Greece is likely to miss the deficit targets agreed as part of July's bailout package, which would cast further doubt on its ability to steer safely through its current financial crisis and will send new tremors through global financial markets.
As the country's cabinet agreed a controversial plan to begin laying off 30,000 state workers, its latest budget plan reportedly indicated a deficit of 8.5% of GDP this year, missing the 7.6% target agreed with the European Union and the IMF. In 2012 the deficit is expected to fall to 6.8% of GDP – above the year's 6.5% target. A recession that has been worse than expected is behind much of the increase. According to Reuters, Greece expects its economy to contract by 5.5% this year and 2% next.
But the deficit shortfall means Greece would need another €2bn finance this year. It will put more pressure on the prime minister, George Papandreou, as he meets inspectors from the European commission, IMF and European Central Bank – the "troika" – who are inspecting the country's books before deciding whether to approve the next $8bn of bailout money. Without the funds, it would struggle to pay state wage bills within weeks.
(Excerpt) Read more at guardian.co.uk ...
Richard Sulik, chairman of the Freedom and Solidarity party that is part of the ruling coalition government, said: "We will vote solidly against the EFSF." Opposition parties said they would also vote no."
The EU is a house of cards, built on a foundation of sand. In order for the EFSF to be put in place with the 440billion Euros, ALL 17 countries in the EU must approve it. It has been postulated that Germany was the main sticking point, and possibly Finland as well. The Germans approved the EFSF on a close vote, but it appears the Slovaks are prepared to blow up the Euro rather than bail out the prolifigate Greeks.
Stay tuned and watch the markets tomorrow. Could be a bloody day in the currency and equity markets. The Humpty-Dumpty EU may very well be broken beyond repair by Friday.
I suppose from their point of view they’re being asked to sacrifice to subsidize the sloth of a MUCH wealthier neighbor.
“The rescue fund is simply buying time in an incredibly costly way, but it’s not solving the problems,” Richard Sulik, Slovakia’s Freedom and Solidarity party leader, told German television.
Echoing views of scores of other MPs in other European parliaments who oppose the project, he said: “If the euro crumbles it will be because of said massive deficits in individual countries, not because we rejected the rescue fund.”
Perhaps the Slovaks are seeing an opportunity to bargain for significant concessions regarding their own economic situation...
Who could have foreseen such a thing?
Isn’t it true that Greece’s debt is nothing compares to obamma’s America debt?
GimmegimmegimmegimmegimmeOpa!Opa!Opa!What’stwobillioneurosbetweenfriends?PasstheUozoOpa!Opa!Opa!gimmegimmegimmegimmegimme
Yeah the Slovaks are going to take on the wrath of the rest of the EU elite alone? Doubtful.
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