What's On: Greek Social Tragedy

The Greek government acknowledged that it will miss its deficit target this year and move ahead with plans to slash thousands of public-sector jobs to meet creditor demands. 

What's the Latest Development?


There is no easy solution to Greece's sovereign debt crisis. The government announced yesterday that it will not meet its deficit-reduction goals this year even while it goes ahead with plans to cut thousands of public-sector jobs to meet its creditors' demands. "Greece also has agreed to take some $8.8 billion in new austerity measures in 2011 and 2012 to bring its budget back on track, but some economists warned that additional cuts will further weigh on the country's growth." Today, European finance leaders will discuss Greece's progress on reforms. 

What's the Big Idea?

The Greek government is caught in a terrible situation. In order to receive further economic assistance from the European Union, it must undertake economic reform which entails cutting many public-sector jobs. Without further bailout funds from the European Commission, the next slice of which is currently at stake, the government could run out of money by the middle of this month. The global economic slowdown has only complicated Greece's efforts to pay back its creditors, bogging down all of Europe in financial uncertainty. 

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