THE GREECE BANKRUPT

Greece knows an awful economic situation today. Indeed, Greece needs a financial rescue from European Central Bank, International Monetary Fund and Eurozone members to finance her debt.

European finance ministers endorsed the draft deal to provide a €110 billion bailout loan. Two thirds of this amount of money will come from eurozone members and the rest from IMF. Greek finance minister, Andreas Papaconstantinou prepares the Greeks to make big sacrifices on the next three years to restore the economy. He said:"the choice is between collapse or salvation". The Greek Prime Minister announced budget cuts of €30 billion for the next three years. Besides, the country's deficit is about 14% of GDP, (10% more than ECB legislation) and the deficit is more than 150% of GDP.

The three-year programme would back the deficit to 2,6% by any means necessary. Salaries and pensions in the public sector will be frozen, VAT will rise from 21 per cent to 23 per cent and duties on fuel, cigarettes and alcohol will rise by 10 per cent. Early retirement will be curtailed. All these new austerity measures will enable "Greece not to go bankrupt" said George Papandreou.

The problem is the greek bankrupt could generate a financial firestorm across Europe: destroying confidence in the Euro, devaluation of this currency... Therefore all european countries are concerned to provide the market and the protection of the eurozone, Greece is not solely implicated in this problem. By the way, German Chancellor, Angela Merkel, said that "the loan was the only way to ensure the stability of the euro".

Portugal seems to be the other "pig" of the eurozone, according to anglo-saxon medias. But Portugese expenses are justified by the world economic crisis that made her economy plunge, contrary to Greece which disburses "illegaly".

As a matter of facts, European Finance ministers thought that Eurozone members that appear like a threat to the salvation and the prosperity of the Euro market, will be ruled out.

Nowadays, many states are in debt because they try to save their financial system. In the one hand, countries could be more connected and united by this european crisis, but in the other hand, it emphasizes the fact that we need a better economic and financial european governance.