Investing and Global Finance News

Greece and Europe’s Crisis

Violence Emerges in Athens

In an article by Louise Armitstead, it seems that Europe’s debt crisis is getting out of control in more than just financial ways. Just two days ago the Athens parliament was subject to a violent outburst while the capital’s politicians discussed “savage spending cuts.” The people outside were less than happy, resulting in “strikes, street fights and angry demonstrations.”

It certainly didn’t go unnoticed as shortly after, the country’s PM George Papandreou, offered his resignation. But this also could have been due to the fact that he had earlier pledged to deal with his country’s €340bn (£298bn) debt within the Eurozone. But Papandreou’s offer only met with “alarm across Europe.”

France and Germany at Loggerheads

Increasing tension between Europe’s “two key peacemakers,” France and Germany, is another subject being observed. It seems like the two cannot reach an agreement on “how to prevent the Eurozone's first ever default.” France is hoping Greece will “stick to the terms of its debt repayments, even if it means deeper cuts and asset sales at home,” a view also held by the European Central Bank (ECB). However, Germany’s Finance Minister, Wolfgang Schauble feels “bondholders should share some of the costs of the bail-out,” with debt maturities being lengthened for seven years. France gleaned the support of Belgium and Spain. At the end of the day though, irrespective of whatever in-fighting is going on, there seems to be no argument on the fact that “the future of the Euro and the Eurozone are at stake.”

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