Greece authorities confirm budget funded until mid-March
In a bid to silence concerns within the worldwide investment markets the Greek authorities have confirmed that their budget requirements are covered up until mid-March. However, in some ways this move has backfired and effectively created a timetable for change which is very short. It is no secret that the European Union has demanded massive budget cuts from the Greek authorities in exchange for potential financial assistance in the short to medium term, so what next?
While the situation in Greece has "gone quiet" over the last couple of days this is by no means the end of the situation and more choppy waters are certainly around the corner. The country is literally the verge of economic collapse and while the European Union cannot afford a collapse in the Greek economy, after initially reacted very quickly, there has been little in the way of solid financial assistance offered to date. There is a concern that the European Union could be struggling to fund not only the Greek issue but potential problems in Ireland, Spain and Portugal.
This is the first real test of the European Union and while so far there has been limited assistance offered, in many ways the EU has no choice but to bail out the Greek authorities and any other EU members experiencing similar economic difficulties.
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