Saturday, April 24, 2010

News: German parties wants Greece out of the eurozone. Bad times for Greek government

Christian Social Union of Bavaria, sister party of Angela Merkel party (CDU), wants to expel Greece from the eurozone, as Greek Prime minister asked for €45 bn in help from EU and IMF

Christian Social Union in Bavaria (CSU), sister party of Christian Democratic Union (CDU) stated that Greece should abandon European Monetary Union (EMU), as the financial crisis they have makes them inappropriate to belong to the Eurozone.

Hans-Peter Friedrich, member of CSU's executive, said today at Der Spiegel newspaper that Athens authorities should study the possibility of leave the Eurozone.

Werner Langen, head of Christian Democrats group, said aid isn't a lasting answer to crisis and Greece only alternative is leave the Eurozone and recover capacity with big structural reforms.

Germany's finance Minister Wolfgang Schaeuble rejected any suggestion.

On the other hand, some part of Greek population don't think that IMF help will be nothing but a future burden to their economy, as the "IMF go home" posters at Greek streets manifest.

Greek protestors can be found today marching against IMF 'aid' at Athens streets.

Greek analysts said that Greek market is waiting for the aid asked, even if will be too short, and European Central Bank (ECB) believe that Greece financial needs are €80 bn, not 'just' €40-45 bn.

'Greek aid will spike the Dollar up, making exports more expensive for the US', said Alan Valdes floor trader



Tomorrow we'll post a summary all Goldman Sachs latest news with explanations for newcomers to the Economy Field. Stay with us.

See also: Yahoo News - Greek PM defends EU-IMF debt plea

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Special: Greek crisis

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2 comentaris:

Tommy said...

Uh oh - Greece is getting worse and worse. I'm extremely curious to see what ends up happening. If they leave the Eurozone, I can't imagine what that would do to the strength of the Euro.

Economy Lessons Blog said...

Greece will not fall....right now, probably. Aid will improve Greek economy, but how will last Greece? They'll recover their economy strenght AND will pay the interests? Will Greece recovery once Europe bail out them out the Eurozone? How?

Too many questions in this 'Greek tragedy'. Only time will tell.

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