Can Greece pull down the entire European zone ?
The Greece debt problem was indicated at less than 60 billion dollars by the European Union at the beginning of April 2010 and the markets were not in a mood to believe the statement. So they went on hammering the Euro currency and also the Greece debt insurance cost to all time record on a daily basis.
The cost of Greece debt borrowing went up to as high as 12% i.e, twice the cost of German of UK debt. And the market’s understanding was absolutely right. Within three weeks, Greece indicated that it needs 150 billion dollars of debt support from IMF and EU that once again sent the markets shivering.
The talks are still on, and it seems that the Greece working class may not take the austerity measures easily. It would be very difficult for the Greece government to pass the austerity measures in the Parliament in the next few days as the Opposition within the ruling party is also going up with every passing day.
And time is running out for Greece and European Union as over 15 billion dollars of Greece debt would be due on May 19th which is just two weeks down the line. A default on these loans could well pull down the entire European Union to another disaster. So let us see whether Greece is going to affect the entire world or not.
