Monday, September 19, 2011

What Greece can do to avoid default

According to Wolfgang Schäuble, German finance minister, made it clear for Athens. “Membership in a monetary union is an opportunity, but also a heavy burden. Measures for alignment are very difficult. The Greeks must decide whether they want to bear this burden,”(FT.com)
With this kind of intense pressure being put on Greece,
it  is currently toying and trying to employ following methods to appease and meet the demands of EU,so that it get the much needed 8 billion euros, of funds by the first week of October,else it certainly will default, and the situation is so grim that they might not even be able to pay for the pension and salary of its employees after 10th of October.They just don't have enough funds available with them.
  • Lay off, more than 10% of its work force.Greek govt employees, 1m, people out of a total population of 11Million.It needs to trim its work force.
  • Greek govt, is planing to go for salary cuts,of its employees.
  • Reduce the work of trade unions and device ways to collect more taxes, rather than rasie new ones.Infact, indirect taxes can certainly be raised.


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