Greece In Eurozone

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Greece In Eurozone

European Commission, European Central Bank and the International Monetary Fund officials are about to visit Greece to see if the Greek government has been able to implement the debts levels. Their report is referential for the bailout money Greece must receive in order to avoid the default. The discussions with the Greek government are expected to happen on Thursday.

The Greek Prime Minister George Papandreou said on Tuesday that his country has undertaken “superhuman” efforts to cut the budget. The European community is split on whether the support for Greece should continue.

Some eurozone countries consider that the bailout effort should go on, in order to save the eurozone and consequently the entire continental political construction. German government went through a trail at the Constitutional Court to find out if the bailout is legal and won.

The risk of the continental currency collapse was underlined by a Polish official, who said that should the euro currency fall, the European continent could find itself at war in about ten years. Poland holds the rotating presidency of the European Union.

There is another school of thought which advocates the idea of creating a multilevel eurozone. In their opinion, countries like Greece should exit the eurozone and return to their national currency, so that the euro be sustained only by the most powerful European nations.

As for the bailout effort, the 17 European countries that are members of the eurozone want to give the private investors more room to invest in the aid fund. They are in the process of ratifying proposals made in July, but it is expected that the private investors may cut their contribution by 20%.

Germany is about to vote on the plan on Thursday. The European Commission said that Greece would not leave the eurozone, infirming rumors that said that it would be forced to default on its debts, which would trigger an inevitable exit of the bloc.

In his annual address about the State of the Union, Jose Manuel Barroso stressed out that Greece is and will remain a member of the euro area.

The monetary bodies are about to decide on releasing some 8 billion euros from a 110 billion euro package agreed last summer.

In the meantime, the Greek parliament passed on Tuesday a controversial new property bill, by which the new tax will be included in the energy bill. In case the people do not pay the tax, their electrical power will be cut at their residence.

The tax was criticized by some international monetary organizations, which advised the Greek government not to get it voted in the parliament, because at a time of crisis raising taxes and creating new taxes is most detrimental for the economy.

Germany said that it would fulfil its obligations to Greece, while the Greek PM said that it was very important that Greece appeared as supported by its European partners, because that would give a very positive signal to investors.

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