Thursday, 25 February 2010

Greece and it's debt crisis...

There sure enough is no finer or unmistakable example, for the moment at least, of what happens when workers put their faith into the hands of the so-called (missed named) socialist parties, than the volatility of what is occurring in Greece. Yesterday (Wednesday) some two million Greek workers having arrived at boiling point co-operated with each other and participated in a second day long general strike. The mass one-day action was called in response to the austerity measures being imposed by the Panhellenic Socialist Movement (PASOK) government of Prime Minister George Papandreou.

Elected last October on the basis of populist appeals to working class anger over the policies of the previous conservative government, Papandreou quickly bowed to demands from the European Union and the international banks to impose drastic cuts in jobs, wages and social programs in order to stave off a default of government debt by slashing Greece’s soaring budget deficit.

Whilst Tens of thousands of protesters from both public and private sector unions brought much of the country to a standstill as they voiced opposition to the government's austerity programmes. The Greek government was negotiating even tougher budgetary measures with a visiting international financial delegation. George Papandreou, prime minister, has announced a freeze on civil servants' wages and a 10 per cent cut in salary allowances.

The government's room for manoeuvre may be restricted by a threatened downgrade to the country's credit rating. A possible downgrade to triple B minus on its long-term credit ratings - one notch above junk grade and the same as Hungary. This could make it difficult for Greece to tap capital markets for loans. It has to refinance €25bn (£21.2bn) of debt in April and May.

In what can only be described as a move of desperation and the possible start of fallout amongst EU member (joke) nations and leaders as the capitalist crises deepen. Greece touched Germany's rawest nerve by accusing the EU powerhouse of not fully compensating it for gold stolen by the Nazis during the Second World War. Ha… Ha… Ha…

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