IMF and eurozone fly to the aid of Greece
In Brussels
The epilogue finally began in the Greek crisis. Emergency Meeting in Brussels on Sunday, finance ministers of the euro area have decided to implement a massive rescue plan: 110 billion euros in loans over three years (80 billion from the states in the area, the rest from the IMF). From never-seen in the recent history of finance. "There is no question of going back on it", insisted the president of the Eurogroup Jean-Claude Juncker. The Extraordinary Summit of Heads of State and Government, convened Friday should be a formality. For its part the IMF managing director Dominique Strauss-Kahn, said that the agency would approve a loan of 30 billion "in the week."
To convince its European partners, Greece on Sunday presented a plan of unprecedented sacrifices.The goal: save 30 billion euros over the next three years (or 11% of the GDP of the country!), In addition to 4.8 billion euros announced for 2010. For the people, the bitter potion looks, since it will give up the 13th and 14th month of salary for civil servants and swallowing up of one to two points in the VAT, which already stands at 21%. Taxes on fuel, alcohol and tobacco would be increased by 10%. Public investment will fall 1.5 billion over two years. The duration of pension contributions from 37 to 40 years. But is the price to pay to bring the deficit below 3% of GDP by the end of 2014 – against 14% in 2009. "These are tough sacrifice, but necessary," without which Greece would "bankrupt", said Greek Prime Minister George Papandreou.
The bill also promises salty for Europe and the IMF.The money lent by the Europeans will be distributed among them in proportion to their participation in the euro, or 21% for France and 28% for Germany. But "it's give and take," assured Christine Lagarde just before the meeting. The French Minister of Finance have no doubt: "The French and European citizens will review course their money, and loans will be repaid, principal and interest payday loans with no fax. "
Banks asked to put their hands in the pocket
Banks should also be tapped. "I would expect that the financial sector also look what he can do," warned the French minister, citing "an exercise of solidarity."For his part Jean-Claude Juncker, has assured that "all ministers have agreed to do with their respective financial and banking sectors which voluntary contributions could make the banks. Already, Deutsche Bank, Allianz and reinsurer Munich Re would pay 1 billion euros to Greece under the same conditions as for the States of the European Union, said Sunday night the Financial Times Deutschland.
Europeans paying dearly for their procrastination – "I acknowledge that I too almost lost patience along the way," admits Jean-Claude Juncker. But they had no real choice. The markets, which have been flying yields Greek beginning to wonder if Portugal and Spain since Standard & Poor's downgraded their rating."It is not only Greece but also help the rescue of the euro," said Belgian Finance Minister Didier Reynders. We must avoid the contagion. Even Germany had overcome its hostility to the idea of saving Greece from its own mistakes. "It is our duty to defend the stability of the euro area as a whole," assured the Finance Minister, Wolfgang Sch?uble.
With this plan, the financing needs of Greece are insured for 100% during the first two years and a guarantee fund for banks with 10 billion euros, has also been established. It was time for Athens was important to begin to touch the money before May 19, to pay 9 billion euros maturing at that date.
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