Debt crisis: Greek government will be forced to seek third bail-out

[FarCenter]

While Antonis Samaras, leader of Greece's New Democracy party, scrambled to forge a coalition with Pasok, his officials admitted their first task would be to renegotiate the €130bn (£104.4bn) bail-out agreed in May.

Dimitrios Tsmocos, a senior economic adviser, said Mr Samaras intends to "honour Greece's contractual obligations but will actively and aggressively renegotiate the memorandum". Another senior aide warned of a "social explosion" in Greece if the bail-outs terms were not relaxed.

Athens has to reduce its budget deficit to below 3pc of GDP by 2014 and find a further €11bn in public spending cuts from 2014 to 2016. But spiralling economic woes have already driven Greece off course.

However, experts warned Greece will need another cash injection if the terms are relaxed. Joerg Asmussen, executive board member of the European Central Bank, said: "If one is pressing to shift fiscal targets, one should be so honest to also say that as long as a country is running a primary deficit, extending the fiscal targets will automatically mean that there will be an additional external financing need."

http://www.telegraph.co.uk/finance/financialcrisis/9339904/Debt-crisis-Greek-government-will-be-forced-to-seek-third-bail-out.html

It's not likely that Germany, The Netherlands, Finland, Austria, Estonia and Slovakia will go along with another bailout.

[TheWraith]

1. Not really a "third" bail out, more like a renegotiated loan.

Which is okay as long as the rest of Europe doesn't crap their pants. The reality, other than worried articles from other countries, is that Greece was actually on the track to quick recovery before the whole double-election sideshow threw them into chaos. They'll recover, they'll pay back their loans, and hopefully they'll get their tax system straightened out too.

[sabrina 1]

2. What? Greece was on track to recovery before the election? You are not serious, are you?

They will get a bailout, just like Spain, and Ireland, and Portugal and everyone else and it won't make any difference to the economy because bailing out the banks is just that, it has nothing to do with fixing the economies they destroyed. Were the Spanish not paying their taxes also, are you blaming the collapse of their economy on not paying taxes, now the next in line, Italy, how about their tax system, Ireland, Portugal? None of this had anything to do with people not paying their taxes, except for the wealthy who we know do not pay taxes when they can get away with it as they did.

None of this is going to work, it has not worked, because it is not dealing with anything but saving the corrupt Banksters. The ONLY country whose economy is rebounding is Iceland, because they arrested and prosecuted their crooked banksters and politicians and nationalized their banks. They did get loans, but did not use them to bail out crooked banks, they used them for GROWTH.

Until all the Goldman technocrats and their sycophants are removed from the scene of their crime and replaced with people who are serious about restoring the rule of law and focusing on the PEOPLE, this will continue to fail.

Thankfully France has started the ball rolling, kicking out Sarkozy and now giving Hollande the Socialist backing he needs to have the power to fight off these Austerity lunatics.

[TheWraith]

3. Of course I'm serious.

If you hadn't noticed, their tax collections were up, exports were up, their deficit was trending downward, and they were about ready to pay out the tax refunds that had been frozen. Not to mention the crisis finally put some emphasis on reforms to limit corruption and tax evasion.

[sabrina 1]

4. No I hadn't noticed, neither had anyone else that I know of.

We KNOW the wealthy avoided their taxes. Are you saying they were ready to pay up finally? Were they prosecuted? When did the wealthy tax-evaders pay their taxes? That should have been a big story but I never saw it.

And what happened in Spain, the next domino falling, did the Spanish Working Class not pay their taxes either?

How about Italy, right in line behind Spain, same thing there, all those people caused the global collapse because they too were not paying their taxes?

And Ireland, Portugal, this Global Disaster was not caused by Wall Street Corruption despite all the expert evidence that it was, in your opinion, it was caused by lazy, working class tax cheats in Spain, Italy, Ireland, Greece, France, Portugal, Iceland? Odd that the only country on the rebound is the one that refused the Austerity/Bailout the Banks policies of the neo-liberals.

What caused all the unemployment in all those countries? Do you know? And what happens to tax revenues when unemployment reaches the levels it has in all those countries?

Greece voted for the austerity party a year before the recent elections. It failed, that is why, as in France, in the recent elections in Greece the Austerity Party lost so much support. You need to tell the Greek people they were on the road to recovery up to about a month ago.