Of Greece re-tightening

 The European Union and the International Monetary Fund Group 27, went to Greece once again to consider the Greek government to deal with the debt crisis, austerity policies implemented by the latest progress, with its new round of talks.

Group will directly determine the results of the audit in March of Greece can continue to receive from the European Union and the International Monetary Fund released the fourth installment of the total loans of 150 million euros. According to reports, the European Union and the Group of Experts on the International Monetary Fund is likely to exert greater pressure on Greece to promote the loss of the Greek state-owned enterprises to accelerate the privatization process and the pace of opening closed industries.

Greece in May last year sovereign credit default risk facing serious, the European Union and the International Monetary Fund decided to spend 110 billion euros, to help them deal with the debt crisis. As a condition, the Greek government must be strictly implemented within the specified time of fiscal austerity. International Monetary Fund, the European Central Bank and the European Union will regularly assess the status of policy implementation in Greece to determine the loan time.

the day of arrival in the group of experts, Greek Prime Minister Andreas Papandreou in the will be reorganized. In his view, the European Union and the International Monetary Fund rescue loan period will be gradually extended, debt interest payments will decline. He also hoped that this year may return to the Greek capital market funding.

But some trade union organizations of the Greek government does not seem to go for a series of reform measures, have announced a protest against the boom set off again. Private Enterprise Association of Greece 24, announced that it will be held February 23 24-hour strike. Greek public transport sector will continue to organize this week suspended the protests, a pharmacy also announced that starting from 26 consecutive 72-hour strike held to protest against the government to open up the market reforms of the industry. Association of Greek public last week, has announced it will be held in the Feb. 10 nationwide strike to protest against the Government to increase taxes, privatization of state-owned enterprises reform. In addition, the management station announced that the Greek Highway 24 began to increase fees and charges from the amount of Greek farmers protest at the national meeting on the highway, forcing vehicles to pass toll stations free of charge to protest against the current policy has resulted in their purchasing power decline.

>;>; Comments

the debt structure is irrational, the Greek government in 2010, face enormous pressure of repayment. According to the Greek Ministry of Finance statistics, from April 2010 to 12 months, require the return of Greek government debt 39.7 billion euros. Meanwhile, the Greek government financing environment facing the market is quite bad, hair refinance old debt debt management is limited. Therefore, Greece will have access to credit in a considerable part of the funds used to repay maturing debt. Greek 2011 budget with the adoption and implementation of the program, the Greek government will get the loans are mainly used to support the financial expenses in 2011.

Although Greece and the euro-zone countries to rely on the IMF loans barely survived, but the need for fiscal austerity and a series of large-scale structural reforms to meet the stringent loan conditions. Greece in 2010 introduced a series of financial expenditure reduction programs carried out structural adjustment, the scheduled completion of deficit reduction plan, the 2010 budget deficit to GDP ratio from 15.4% in 2009 to about 9.4%. The next stage will be in control of the Greek government spending to combat tax evasion, government restructuring, labor market reform to reduce the loss of state-owned enterprises to address the health situation in the field of waste of money and achieved new progress in 2011 for reduction of 50 billion euros in fiscal deficit, the fiscal deficit to GDP ratio decreased to 7.4%. Although basically meet the EU and Greece the IMF reform under the conditions, but the International Monetary Fund is still pointed out that the Greek budget problems still exist, including local government budget in particular.

fact, solve the problem of the Greek sovereign debt key lies in Greece's own economic growth. Greece imposed a series of reforms such as fiscal tightening on domestic demand had a destructive effect, short-term is not conducive to economic growth, but optimize the economic structure, reducing the labor costs in the long term conducive to economic development. According to EU forecasts, the Greek economy will continue to shrink in 2011, 2012, in order to restore growth.