The financial rescue of Greece

Greece was in debt. Looming threat of default on the country's already half trembling nerves to the Government and people of the country. Problems of Greece and several other countries with a sizeable budget deficit, especially Portugal and Spain continue to weaken the euro. Investors are skeptical about the decision taken by the EU to allocate a record 110 billion euros in aid to Greece in an effort to prevent the growth of the debt crisis and undermining the European financial system.
Of the 110 billion loan on the shoulders of the European Union should form 80 billion euros, of which 23 distinguishes Germany, and the remaining 30 are for the International Monetary Fund.
Loan period is 3 years. During this period should occur reducing the budget deficit to 8% of GDP this year, to 7.6% - in 2011 and to 6.5% in 2012. Analysts predict that by 2013, Greece's budget deficit will be 4.1%, which is still more than the mandatory 3% of the euro area. To do this, the country will have to make unprecedented steps to stabilize the economic situation.
Already this year, should be an increase of VAT by 3%, the country will have to cut public spending by 24 billion euros to increase the average retirement age from 53 to 67 years, cut public sector wages and allowances to reduce by 5.5%. This will be done together with the total tax. For example, the government plans to Greece is a project of tax of 40% on the Greeks, receiving more than 60 thousand per year. Already 19 May 2010 Greece has to pay bond debt of $ 8.5 billion.
One of the major goals of Greece - the salvation of the largest banks and financial institutions, creditors and so the first € 15 billion will be spent on the creation of a so-called fund to support banks, whose assets are employed in the state. debt and loan company. Given the overall situation in the country, we can predict the massive growth of loan default, and the problem is just the fund will be to prevent bank failures and to create the necessary level of support for capital. Meanwhile, due to the deteriorating economic situation in the country Greek banks lost a lot of the financial strength rating on the results of analytical agencies, which also has a negative impact on the euro / dollar.
Yet, even these seemingly unprecedented measures can not solve the financial problems of the country. Experts say Greece's external debt will not decline until 2014, contrary to rise to 140%. Only in 2015, with all the cuts can be expected to gradually decrease.

In Greece itself, continue mass strikes and protests, unemployment rose to 10%, the inflation rate to 1.5%. State. employees are protesting against the anti-crisis measures, which is the hardest hit by it. Greek Prime Minister George Papandreou said in a televised address: "We have no choice and no time, I want to say to the Greek people that we face are the trials, the next few years will be difficult, but we can handle."

At the head of the leading EU countries in a rush trying to find a way out of this situation. It turns out that for the debts and problems of some countries meet the other, the European Union can not deal with its main task - the currency union. Paris fears repeat of the crisis and want to quickly give credit money scarce countries, Germany opposite - trying to reduce and delay the disbursement of funds. Chapter diligently seek compromise. Greece has become completely dependent on their neighbors in the Union. Difficult days, referred to by the Greek prime minister, has arrived.