Greece coalition to soften austerity measures

[nadinbrzezinski]

Greece's new coalition government said Saturday it will seek to repeal some taxes, halt layoffs and extend by two years the deadlines for tough austerity measures imposed under its international bailout agreement.

The policy statement issued by the three-party coalition came as the country's new Prime Minister Antonis Samaras successfully underwent eye surgery and his finance minister, Vassilis Rapanos, remained hospitalized after collapsing Friday.

"The general aim is no more cuts to salaries and pensions, no more taxes," the statement said, adding that it would not carry out any public sector layoffs.

Samaras, whose conservative New Democracy party came first in June 17 elections but did not win enough votes to govern alone, heads a government that includes his party's long-time socialist rivals, PASOK, and the small Democratic Left party.

http://www.cbc.ca/news/world/story/2012/06/23/greece-austerity.html?cmp=rss

I know, I expect, the answer from Berlin will be NEIN...

But the new coalition realizes that the austerity measures could bring them down.

Expect fireworks...

[dipsydoodle]

1. Not so much a matter of nien

more a matter of the less they keep to the terms agreed for the most recent bailout the less the chances of further bailouts. They are in a self made sad situation for which there is no easy solution.

[nadinbrzezinski]

2. Long term the Euro won't make it

If Germany does not become flexible. It will not be good for Germany, nor us.

This austerity is hooverian.

[FarCenter]

3. Greece doesn't matter much to the Euro -- they are in a spiral of collapse

Saving Spain and Italy would be the important tasks.

The Greek banks are likely to collapse soon.

Banks sweating over recapitalization terms

By Yiannis Papadoyiannis

The next few days will determine the future of the local banking system, a top official at a Greek lender told Kathimerini, as the new government will have to determine the details regarding the recapitalization process as soon as possible.

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_23/06/2012_448626

[BOG PERSON]

4. yeah, greece is just digging itself into a deeper hole

the deeper it digs, the harder its going to be to climb out once its "partners" stop throwing it bigger and bigger shovels... so to speak.