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What if Greece says "Can't Pay, Won't Pay"?

April 18, 2011, 6:58 AM

What's the Latest Development?

Ordinary Greek citizens are becomingly increasingly vocal and pessimistic about their country's financial abyss and fears they have been forced into an era of futile austerity. There has been violence on the streets as the backlash grows. Last week, a man shot a bus inspector hired to crack down on fare dodgers. Hospitals have severe bed shortages, schools can no longer afford cleaners, wages and pensions have been slashed, taxes raised and unemployment stands at a record 15% as yet more cuts are called for to meet deficit-cutting targets.

What's the Big Idea?

The "can't pay, won't pay" movement and wave of civil disobedience comes amid speculation over Greece's ability to avoid default on its debt. A default is when a country misses a repayment on its debts. "But the most likely outcome for Greece is a 'restructuring', a negotiation between Athens and its creditors that would result in the owners of its bonds accepting that they won't get all their money back."


Image Credit: Portokalis/Shutterstock.com


What if Greece says "Can't ...

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