Broadgate: Market News 10/2
10 February 2012
The European Central Bank’s has decided to effectively cut off Greece from support; relieving the potential burden threatened by Greece’s breakdown while tied to the rest of the Eurozone. After 4 days of discussions, Greek politicians accepted several strong austerity procedures in hopes to avoid total economic failure.
Also attending the meeting, several Euro Zone finance ministers also came to the conclusion that the budget would need to be cut by an extra 325 million Euro.
The rejection of the proposal to inject the Greek economy with a booster of 130 billion Euro is a sign of the Euro Zone’s impatience with the ineffective and argumentative Greek politicians and their inability to bring a fiscal policy into law.
Meanwhile, investors are likely to come to an agreement in the near future to take a loss of 70% on their Greek bond holdings; possibly helping the situation of the Greek economy.
Other Eurozone countries to receive bailouts include Portugal, which received 78 billion Euros.
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