Let’s talk about default again

Will the Greek economy tilt or stand? It’s time for another round of default-talk. (Photo by Purplemattfish, on Flickr)

Once again negotiations in Greece pulls out.

Greek workers yesterday announced another 48 hours general strike after the government outlined the new austerity measures, that they’ll need to implement in order to live up to demands from their eurozone partners, and in order to get their next tranche of money released.

The revised 2013 budget will be up for voting in next week, and at the same time the general strike will be held.

According to the Greek daily, Ekathimerini, the new budget include a 4.6 billion euro cut in pensions and a 1.17 billion euro cut from salaries. Healthcare spending will be trimmed by a further 455 million euros.

Yesterday the finance ministers of the eurozone had a conference call, and short after the meeting ended, they published a statement saying, Greece must undertake further economic revamping before they will receive the next tranche of money.

That’s a hardline for the Greek government. On one hand angry workers and unions, on the other hand the guys and girls with the check that will prevent them from a default.

So far they have chosen the last option, and for sure they’ll do that again.

But until the gordian knot will be solved, it will be in everybody’s interest to again talk about the possibility of a Greek default.

It’s in the the Greek government interest to secure it can get the revised budget trough the parliament. For the eurozone finance ministers, to secure that Greece will make drastic cuts to the budget. After these cuts are made, they can begin talking about an extended deadline for Greece to get their budget balance in order.

Welcome to a new season of default-talk. It will end in around two weeks.

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