Greek authorities announce further spending cuts
In exchange for a bailout package totalling EUR120 billion, the Greek authorities have confirmed multi-billion euro spending cuts in the national budget over the next three years. An additional EUR30 billion in spending cuts has been announced this weekend as the deep and lengthy discussions between the IMF, European Union and Greek authorities come to a conclusion. So what does this mean for the Greek authorities?
Finally the Greek authorities will have around EUR120 billion to draw down from over the next few years to ensure that the country does not go bankrupt and is able to fund reduced public sector investment. Aside from the additional EUR30 billion in cuts announced today it is believed that the Greek authorities have agreed to allow overseas companies to operate more freely within the Greek public sector.
While this is the end of the negotiations between the various parties, this is only just the beginning of a long drawnout acclimatisation period for the Greek government and the Greek population. There is no doubt we will see further industrial action, riots and unrest across the country but unfortunately there is no way around the current situation which many believe has been brewing for some time.
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