- April 24th, 2010
- Posted by EUEditor
The Greek Prime Minister, George Papandreou, has called for the activation of prepared financial aid for the country, from the European Union and the International Monetary Fund.
Financial markets have continued to squeeze the deficit-laden Greek treasury, insisting on higher interest rates for new borrowings and pushing down itscredit rating to compromising levels.
Mr Papandreou surrenderd (23.4.10), saying Greece had become a “sinking ship”.
The EU and IMF are certain to impose steep budget constraints on the country, enforcing an austerity policy already mapped-out, against strong resistance from the workforce, unions and political organisationsÂ there.
They have had on stand-by, combined assets of EU 60-billion (A$85.5-billion; dcerates.com, 24.4.10), to lend to Greece at moderate rates; hoping the buffer will prevent the crisis spreading to other countries exposed to heavy debt, beginning with Portugal or Spain.
See also, EUAustralia Online: EU Summit 28.3.10; Greece Germany Brussels …, 18.2.10; Greece Crisis Moves 6.3.10; EU moves on Greece crisis …, 12.2.10.