Washington Times
January 6, 2012
Doctors and pharmacists went on strike in Greece last week to protest planned spending cuts. These public employees are furious they may have to shoulder some of the burden of the austerity measures put in place to qualify the debt-wracked country for more European Union (EU) and International Monetary Fund (IMF) bailout cash.
If these self-serving civil servants get their way and Greece loses this $169 billion in funding, the nation could default as early as March. The Greeks would then have no choice but to pull out of the EU - and that might be the best outcome.
Later this month, inspectors from the EU, IMF and the European Central Bank will descend on Athens to decide whether enough of an austerity show has been put on to merit cutting the big bailout check. Among the proposals generating outrage is the elimination of the two extra months’ salary bureaucrats receive. (Yes, Greeks are paid for 14 months of work each year). The government must sharply reduce its budget deficit, and private bondholders must accept a cut of up to 50 percent in the face value of the debt they hold, though bond negotiations have been stalled for a while. Greece has $18.4 billion in bonds maturing on March 20, and the country cannot meet this obligation without a write-down and a second bailout. A Greek government spokesman admitted the country would have to leave the EU if it isn’t bailed out again.
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