Monday, May 30, 2011

Troubles in Greece Get Worse; Greek Default Will Create Mayhem

Somebody once said that one people lend you money, they are stuck lending you even more money, in the hope that they pay back. This seems to be what is going on in Greece indeed and Europena banks desperate try to gve Greece more money. Trouble is, the Greeks want none of it.

While the EU desperate wants to save the greek loan and the bailout and are demanding further cuts in budget deficits (thus, tax hikes), opposition Conservative leader Antonis Samaras called for a flat 15%corporate tax, rejecting government plans for hiking taxes.
Samaras: "You want to raise taxes and reach consensus with us, who have set reducing taxes as a priority? Don't even think about it,"

"Lower tax rates are the key to starting the engine of the Greek economy," "If you raise taxes, there will be no room for consensus or for renegotiation."

The European Central Bank says a Greek default  would create mayhem in the banking system.

Lenders want all leading parties to support the austerity which they have set as a condition for loans.

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