Site icon The Punching Bag Post

New Bailout Deal May Temporarily Save Greece

<p>Greek officials have passed new reform laws that will impacts taxes&comma; pensions and labour rules&period; These new reforms motivated&nbsp&semi;a response from international groups like The European Central Bank &lpar;ECB&rpar;&nbsp&semi;and the Eurogroup to extend Greece new loans &&num;8211&semi; bailing them out&nbsp&semi;just in time&comma; or at least before they get kicked out of the EU&period;&nbsp&semi;<&sol;p>&NewLine;<p>Chancellor Merkel&comma; who has been deeply involved in the Greek crisis&comma; stated Friday&&num;8221&semi; we would be grossly negligent&comma; indeed acting irresponsibly if we did not at least&nbsp&semi;try this path&period;&&num;8221&semi; New reform laws are tough and will affect all citizens&period;&nbsp&semi;<&sol;p>&NewLine;<p>The new reform laws include a raise in taxes&comma; from 13&percnt; to 23&percnt; on restaurants food and drink items&comma;&nbsp&semi;taxi fares&comma; and a few selected supermarket products&comma; public transportation&nbsp&semi;and plane and ferry tickets&period;&nbsp&semi;<&sol;p>&NewLine;<p>The bailout is occurring quickly&comma; allowing Greek banks to &nbsp&semi;reopen starting Monday&period; Greek citizens&comma; after 3 weeks of no banking service&comma; will now be able to make withdrawals from their accounts&comma; however&comma; there&nbsp&semi;will be limits to how much can be withdrawn per day&period; Monday&&num;8217&semi;s limit is 60 Euro per day&semi;&nbsp&semi;Tuesday&&num;8217&semi;s is 120&semi; Wednesday&&num;8217&semi;s is 180&period;&nbsp&semi;<&sol;p>&NewLine;<p>Prime Minister Tsipras&comma; however&comma; had stated that the deal is one in which he does&nbsp&semi;&&num;8220&semi;not believe in&period;&&num;8221&semi; Tsipras went along with the deal in order to prevent&nbsp&semi;further damage to the country&period;<&sol;p>&NewLine;<p>PBP note&colon; &nbsp&semi;Unless the EU comes through with another round of bail out funds&comma; this is a continuation of the death spiral for Greece&period; &nbsp&semi;Even with another bailout&comma; Greece will not survive without serious restructuring away from the socialist policies it is addicted to&period;<&sol;p>&NewLine;

Exit mobile version