Argentina defaults on debt and offers lessons to everyone living and investing in the US, Europe, and even Puerto Rico… Dateline: Kuala Lumpur, Malaysia Not even thirteen years ago, Argentina defaulted on its debt for the second time in the modern age.
This time the target was planned labour reforms aimed at making strike action by workers harder and mass sackings by employers easier, along with further austerity cuts.
The measures had been demanded by international creditors from the European Union EU and the International Monetary Fund IMF in the course of their current stalled bailout review — the second such review in an indefinite series of bailouts designed to keep the Greek economy afloat, and the Greek people in thrall to global capitalism.
Greece wants the review to be concluded rapidly. A parliamentary vote on the latest austerity budget was expected on the weekend following the strike. Inclusion would allow Greece to regain access to financial markets beforewhen the current bailout expires. The budget was passed by the Greek government on Saturday, 11 December, by votes in a parliament of seats.
The government said that the Greek economy had achieved a primary surplus equal to 1. In other words, the Greek economy is contracting but not as fast as its debt is shrinking.
Debt-to-GDP remains the highest in the euro zone. Between them, these two organizations represent aroundworkers in both the private and public sectors. The strike affected shipping, city transportation and local government offices.
The unions say hidden unemployment is far higher.
Greece signed up to a third international bailout in July after difficult negotiations that came perilously close to forcing the country out of the euro zone.
Since then, protests and general strikes have continued, but the mood is increasingly pessimistic. On the Monday preceding the strike, the euro zone granted Greece short-term debt relief, which the Syriza-led government welcomed as a success.
The government needs successes since its popularity has been falling for months after it accepted the last austerity measures imposed by the EU and the IMF. But this short-term measure did not impress most Greeks. Thousands of jobs have been lost and incomes have declined by an average of around a third sincewhen the crisis began.
The euro zone finance ministers also said on the Monday that the current bailout review should be speeded up. The proposed new budget includes provisions to plug a projected fiscal gap inwhen the current bailout programme expires.
This will involve raising one billion euros of extra taxation on cars, fixed telephone services, pay TV, fuel, tobacco, coffee and beer; cutting public spending by nearly six billion euros on salaries and pensions; and a substantial privatisation programme.
This would help Greece re-enter the financial markets, for the first time sinceand should reduce its dependence on bailout loans, which provide temporary relief at the cost of increasing long-term debt.Gallery 5e: Greece debt. Greece debt Comment: World financial crisis: The financial crisis of in the U.S.
has had In this case, the words do not describe exclusive sorts of sovereignty, but different aspects of sovereignty that are coexistent and omnipresent. Greece’s continued suffering Greece is once again back on the agenda in the European financial markets and we are once again talking about Greek default and even about Grexit.
There seems to be no end to the suffering of the Greek economy and the Greek population. Though it became gospel around the globe, euro-enthusiasm was always misguided.
The crisis currently facing Greece shouldn't come as a surprise, writes Matthew Dal Santo. 'A case of misdirected adventure': Tribesmen kill American Argentina's capital operates a sort of "hospital" to restore and repair damaged monuments.
Crisis confuses Sri Lankans. 2 prime. Dec 20, · The immediate danger, of course, is that Argentina defaults on its debt and creates a crisis in the international financial system. That would certainly hurt investor confidence in emerging markets, particularly during a global slowdown or recession.
Greece’s creditors are paying the price for not relaxing their conditions prior to the election Greece’s creditors are paying the price for not relaxing their conditions prior to the election By failing to do so in the Greek case, the foundations were set for Syriza to come to power on an anti-austerity platform, making a.