- Created: Wednesday, 12 May 2010 09:52
- Written by FRFI
For days now Greek workers have shown their contempt and anger at the austerity measures their government is imposing to meet EU and IMF requirements that it cut its public debt. In the words of the Prime Minister George Papandreou, Greece is ‘on the brink of an abyss.’ The Greek working class is telling the world that it will not pay for the country’s financial crisis. Its actions are showing the way for others: soon Spain and Portugal will also have to implement severe cuts in state spending and the revolt may spread to these countries as well.
On 27 April Greece almost defaulted on its debt as its public deficit rose to 13.6% of GDP, far higher than previously declared. Credit rating agencies downgraded its debt to ‘junk’ status, making it impossible for the Greek government to get further credit through the normal international markets to finance its debt as well as unable to get insurance against default. Papandreou was forced to ask the EU and IMF to activate a loan negotiated in April. On 2 May they agreed a bail out of 110bn Euros.