More sacrifices are needed by the Greek society Prosperity Unbound

Greece suffers under austerity and citizens hope that the package of the austerity measures for 2013 and 2014 will be the last, because it is very difficult for them to handle with more sacrifices in order to secure their country?s position in the Eurozone.

The Greek Prime Minister stated that this austerity package will be the last and made clear that these measures are necessary in the government?s fight against Greece?s debt crisis. The purpose of these measures is to boost the economy through structural reforms and privatizations.

The proposed measures seem to be very hard and the cuts might be even harsher than Greek society could imagine. With the implementation of this austerity package, the majority of the Greek households will face lots of difficulties in order to manage to cope with his needs.

First of all, the government examines to abolish the traditional holiday payments for all pensioners. In addition, all pensions will fall above 800 Euros with cuts starting at 2% and are expected to reach the 20% for the highest levels. But there are more measures yet to come.

The Greek government examines cuts to healthcare and cutbacks in defense and to local authority subsidies. Special salaries of certain categories of civil servants are expected to cut by 12%. Finally, 35,000 to 40,000 civil servants are about to leave the public sector by 2014, through early retirement or because they failed to pass an evaluation. Another 110,000 employees will follow them by 2015 through retirement or because their contract will be terminated.

These measures have to be ready by next week because the Troika will arrive to Greece on September 5 and the Finance Minister Yannis Stournaras will meet the Troika officials on September 9.

Spain is about to make a very interesting move in order to find ways to fight its severe debt crisis. What Spain is going to do is to create a ?bad bank?. The purpose of this creation is that this bank will pay the other Spanish banks for their sour assets. In this way, these troubled banks will become viable without saddling the state with too much of the debt.

The creation of this bank needs the approval of the Spanish parliament, but this will not be a problem as Rajoy?s party has the absolute majority. The Spanish central bank is expected to take the responsibility for the management of this bad bank.

?

?

Drafted by Thanos Koulopoulos

?

10 year Bonds

Country	10 years Bond (current)
Greece	23.75
Cyprus	7.00
Portugal	9.47
Spain	6.67
Germany	1.33
Italy	5.80
United States of America	1.63
Australia	3.03
Canada	1.77
United Kingdom	1.46
Japan	0.81

Source:?http://markets.ft.com/RESEARCH/Markets/Government-Bond-Spreads

http://www.ecb.int/stats/money/long/html/index.en.html

?

?

More News

?

ECB to oversee all euro zone banks: report

The European Commission, the executive arm of the European Union, plans to give the European Central Bank oversight of all banks in the?euro zone, German paper Sueddeutsche Zeitung reported, citing EU Commissioner Michel Barnier?

http://www.reuters.com/article/2012/08/30/us-eurozone-ecb-banks-idUSBRE87T1J420120830

?

ECB?s Asmussen: IMF must be involved in conditions for new bond buys

The European Central Bank should buy sovereign bonds of troubled euro zone states only if the International Monetary Fund is involved in setting the economic reform programs that should be a condition for the intervention, a top ECB policymaker said?

http://www.reuters.com/article/2012/08/30/us-ecb-asmussen-idUSBRE87T19K20120830

?

Germany sees Greek, Spanish influx as crisis worsens

An increasing number of Spaniards and Greeks are working in?Germany?as their own countries, hit by the euro zone debt crisis, struggle with record unemployment levels, preliminary data from Germany?s Federal Labour Office showed on Thursday?

http://www.reuters.com/article/2012/08/30/us-germany-employment-crisis-idUSBRE87T0WK20120830

?

Sources:

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_30/08/2012_458934

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_23794_30/08/2012_458904

http://business.financialpost.com/2012/08/30/spains-bad-bank-faces-balancing-act-to-soak-up-bad-loans/

Source: http://www.prosperityunbound.com/more-sacrifices-are-needed-by-the-greek-society/

george zimmerman charged tony romo big sean sherri shepherd sherri shepherd arkansas razorbacks trisomy 18