Today’s Greek Bailout Will Cost £9 BILLION | Britain are to Blame & We Should Be Penalized According to EU Bureaucrat’s

EU bureaucrat’s claim the £9 BILLION loans for the latest Greek Bailout will not go far enough – and that Britain should be penalized for Greece’s financial instability.

Sarah-Jayne Clifton, Director of the Jubilee Debt Campaign said: “A significant amount of debt needs to be cancelled, not just rescheduled, if the Greek economy is going to have the breathing space it needs to recover

“And the costs of cancelling the debt should be recovered from the real beneficiaries of bailout loans, including the German, French and British banks that lent recklessly to Greece in the first place.”

Less than a year after the country’s third international bailout, Greek lawmakers on Sunday approved another round of painful tax hikes and spending cuts in hopes of securing more cash from its skeptical European neighbors. The infusion is needed to help Greece make good on bond payments due in July.

The measures approved over the weekend include tax hikes on consumer goods like fuel, alcohol and tobacco — to 24 percent — and a provision that will force further spending cuts if the government fails to meet budget targets.

Hundreds of demonstrators gathered outside parliament to protest the latest round of austerity measures. European finance ministers are set to meet Tuesday to review the plan and decide whether to extend Greece further debt relief.

But the measures offer little hope of reversing Greece’s downward economic spiral. Less than a year after implementing a package of reforms and relief designed to revive growth, Greece’s economy continues to contract.

Last July, a relief round of 86 billion euros ($96.4 billion) was intended to buy Greece’s government time to implement reforms and revive growth. But less than a year later, the plan’s targets were apparently far too optimistic, according to Carl Weinberg, chief economist at High Frequency Economics.

“Even if the adjustment program agreed upon last summer were implemented — it was not — economic performance is sufficiently short of the unrealistic assumptions in the program that a cash deficit is inevitable.”

But the measures offer little hope of reversing Greece’s downward economic spiral. Less than a year after implementing a package of reforms and relief designed to revive growth, Greece’s economy continues to contract.

Last July, a relief round of 86 billion euros ($96.4 billion) was intended to buy Greece’s government time to implement reforms and revive growth. But less than a year later, the plan’s targets were apparently far too optimistic, according to Carl Weinberg, chief economist at High Frequency Economics.

“Even if the adjustment program agreed upon last summer were implemented — it was not — economic performance is sufficiently short of the unrealistic assumptions in the program that a cash deficit is inevitable.”

But the measures offer little hope of reversing Greece’s downward economic spiral. Less than a year after implementing a package of reforms and relief designed to revive growth, Greece’s economy continues to contract.

Last July, a relief round of 86 billion euros ($96.4 billion) was intended to buy Greece’s government time to implement reforms and revive growth. But less than a year later, the plan’s targets were apparently far too optimistic, according to Carl Weinberg, chief economist at High Frequency Economics.

“Even if the adjustment program agreed upon last summer were implemented — it was not — economic performance is sufficiently short of the unrealistic assumptions in the program that a cash deficit is inevitable.”

The failure of last year’s plan has many observers, including officials at the International Monetary Fund, skeptical that a repeat of last year’s bailout will produce any meaningful improvement in Greece’s economic future without debt relief.

But bond holders and EU officials remain reluctant to lower interest payments or restructure Greece’s debt.

“Greece’s debt is unsustainable,” said Weinberg. “If the EU governments balk again at doing this right, then Greece will be back at center stage the same time next year.”

 

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