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article imageGreece may leave Eurozone

By Amanda Payne     Jan 4, 2012 in World
Greece may be forced to leave the Eurozone if there is no agreement between its government and the EU and IMF over a further rescue package of 130 billion Euros, according to a government spokesman.
Government spokesman Pantelis Kapsis said in an interview on Skai TV that the situation "will be much worse" if the bailout agreement is not signed. He went on to say that Greece would be "out of the Euro".
According to the Daily Telegraph, Greece has until March at the latest to agree the rescue plan or a debt default will be inevitable
The Greek public are furious with the austerity measures that the government is trying to put in place, with strikes by doctors and pharmacists already haven taken place on Jan 2. They followed strikes by tax officials and museum curators and workers at archaeological sites the previous week, according to the BBC.
Among the unpopular measures being introduced by the government of Prime Minister Lucas Papdemos are reductions in pensions, job cuts in the public sector, privatisation programmes and health and social welfare cuts.
Greece has been insisting up till now that it will not leave the Euro zone, especially as if the country goes bankrupt, it will bring down other countries in the EU.
The Daily Mail reports
Until now, Athens has refused to countenance leaving the eurozone, and yesterday’s warning appeared designed to try to frighten Greeks into supporting public spending cuts and tax rises. Opinion polls suggest Greek voters want the government to stay in the euro even if they disagree with deficit reduction measures.
Whether it is an attempt to frighten the Greek citizens or a desperate plea to the IMF and EU to save the country from bankruptcy, this latest statement will lead to further economic problems as faith in the rescue plan is eroded and the world at large wonders whether the Euro zone can continue in its current form.
More about Greece, Greece debt crisis, Eurozone
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