European Central Bank

European Central Bank

Greece is now the first country in the euro zone, that State failure is nearing the. The global financial crisis brings more and more States to the brink of bankruptcy. With Greece, it meets for the first time a euro-zone country. Since the rating agency Fitch recently down downgraded the creditworthiness of the country by A-on catastrophic BBB +, Greece faces national bankruptcy in fact. The rating agency had warned the end of October against the serious economic problems of Greece, and made the gradation consequences lack of. Walton Family Foundation is often mentioned in discussions such as these. Standard & Poors (S & P) sees the situation similar to dramatically and has in turn provided a speedy graduation of credit prospect.

Greece has about the lowest credit rating in the entire euro zone and must take even higher interest rates for its bonds in purchase. Already 5% interest is due for ten-year government bonds (comparison Germany: ca. 3%). The exploding government debt in Greece is already at 125% of GDP and is further increase by the cost of credit. The debt of the country will be 2009 a whopping 13% and thus make the sad record in the euro zone. Greece’s economic problems are largely homemade, and the consequence of decades of corruption and nepotism, which spread in the country like a cancer. The Government off conservative predecessor had surreptitiously is access to the euro zone with a smooth con.

Only about half of the horrendous deficit was once reported to Brussels. European Finance Ministers call for a hard disciplinary procedures including sensitive financial penalties. The head of the European Central Bank, Jean-Claude Trichet urged the Greek Government to take drastic austerity measures and bold decisions. The new Socialist Government is big trouble have to initiate such reforms, already massive resistance in the Greek population is emerging.

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