Greek debt crisis rages on
In 2010, Greece underwent a severe debt crisis and received a bailout along with conditions that they stick to strict austerity policies. Greece recently elected an anti-austerity government which has laid out plans to overhaul austerity and instead policies such as raising the minimum wage and increasing the threshold of tax-exempt income. The new government’s plans won a vote of confidence in the Greek parliament on Feb. 10.
Tensions are high in Europe as government officials in Greece struggle to obtain a new debt agreement from Eurozone—the monetary union of European states that share the euro currency.
“What we want is a deal,” Greek Defense Minister Panos Kammenos said according to ‘Financial Post’. “But if there is no deal and if we see that Germany remains rigid and wants to blow apart Europe, then we have the obligation to go to Plan B.”
However, Eurozone members have held strong in their requirement that Greece enact austerity policies such as deep budget cuts. Germany stands poised as one of the most opposed to a compromise.
“The [bailout] conditions with Greece were generous, beyond all measure,” German Finance Minister Wolfgang Schaeuble said according to ‘BBC’.
If the Greek government fails to get a deal, Greece may leave the Eurozone, thus placing profound stress on the world economy. The US treasury has sent a team to Athens to help negotiate a plan that helps everyone involved.
“Do we really want Europe to break apart? Anybody who is tempted to think it possible to amputate Greece strategically from Europe should be careful. It is very dangerous. Who would be hit after us?” Greek Finance Minister Yanis Varoufakis said according to ‘The Telegraph’.
