Ti léne diáforoi ksénoi gia tin Elliniki krissi.

Prossékste tó parakáto (foveró) sxólio tou ypourgou oikonomikon Souidias (Sweden):

 

"I don't think we should consider that they are cleared of any problems, but I do think we've reduced the Greek problem to just a Greek problem.

It is no longer a threat to the recovery in all of Europe, and it is another step forward."

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http://www.commondreams.org/headline/2012/02/21-6

Published on Tuesday, February 21, 2012 

With Greece's Final Austerity Deal Reached, the 'Gruesome Bleeding Process' Continues

This morning Greece and its creditors finalized a $170bn bailout package for the country with further austerity measures already bringing calls for strikes.

Greece's bailout package means wage and pension cuts, as well as increased unemployment. (Milos Bicanski/Getty Images)

While Greek Finance Minister Evangelos Venizelos has said the bailout means a "nightmare scenario" has been averted, for many Greeks the further deep cuts mean the nightmare is unfolding.

The Guardian reports that the bailout package means wage and pension cuts, as well as increased unemployment:

Greeks will have to suffer further wage cuts than the 15% planned for the next three years in order to restore their country's competitiveness, senior EU officials have admitted.

The size of the IMF's contribution to the €130bn bailout – finally agreed on Tuesday after 14 hours of negotiations – has also yet to be decided, while the European commission will only present proposals for "an enhanced and permanent presence" of debt inspectors in Athens later this week.

Repeatedly conceding that their forecasts were subject to high risks, the officials said the Greek economy would contract by 4.5% this year after a fall of 7% last year and would stagnate in 2013 before growth resumed in 2014.

Unemployment, now running at more than 18%, is expected to remain above this level this year and next, be just below 17% in 2014 and remain above 15% in 2015. But wages will have to be depressed even further to reorientate the Greek economy towards exports.

The government of Lucas Papademos, or its elected successor, will also have to find savings equivalent to 5% of GDP by the end of 2014, with officials talking of stepping up the fight against tax evasion.

Greeks have already suffered a 30% cut in wages and can look forward to steep cuts in the minimum wage as well as pensions as the price for securing the latest €130bn bailout which, with €34.4bn rolled over from the original €109bn rescue package, gives €164.4bn available over the next three years.

Economist Mark Weisbrot says that the bailout package will likely make the economic crisis worse:

“The European authorities seem more intent on punishing Greece than helping the economy recover,” said Weisbrot. “For two years now they have been pushing the Greek economy into recession, and there’s still no light at the end of the tunnel.”

A leaked document reported last night by Reuters and the Financial Times contains a “sustainability analysis” prepared for the European Finance Ministers. It portrays a grim scenario with explosive debt and Greece needing “about €245bn in bail-out aid, far more than the €170bn under the ‘baseline’ projections eurozone ministers were using.”

“Given the underestimation of Greek losses so far, and the recessionary impact of budget tightening, mass layoffs, a 20 percent reduction of the minimum wage, and other austerity measures – I think the pessimistic scenario outlined in the leaked document is a very plausible scenario,” said Weisbrot.

“The bottom line is that you can’t shrink your way out of a

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