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**beonecenry** · 02-26-2010, 07:31 AM

'Massive Recession'

Greece is under mounting pressure from markets and EU policymakers to cut its public debt. Athens is hoping to persuade Brussels that the public-sector pay freeze, tax increases and raising of the retirement age will be enough to cut the budget shortfall by 4 percentage points to 8.7 percent of gross domestic product.

The GSEE union says these measures will cause unemployment, which hit a five-year high of 10.6 percent in November, to skyrocket. "Our country will enter a massive recession and unemployment will reach a Europe-wide record," GSEE spokesman Stathis Anestis told the Associated Press, adding that this would provoke "social unrest."

A man stands in front of a closed subway station in Athens. Schools, government offices and courthouses remained closed Wednesday, while public transport, banks, hospitals and state-owned companies suffered major disruptions on the day of the protest.

A demonstrator walks past riot police. Police said at least two people were detained, while several storefronts were vandalized.

The violence on Wednesday lasted for about 30 minutes as the march to the parliament in Athens was finishing up.

Revelations that the country's deficit was three times higher than originally forecast has plunged Greece into a debt crisis and undermined confidence in the European common currency, the euro. The crisis has in turn hiked the country's borrowing costs.

Adding to the country's woes, the ratings agency Fitch on Tuesday reduced its credit rating on Greece's top banks. It was the last thing Athens needed as experts from the European Commission, the European Central Bank and the International Monetary Fund arrived to assess whether it is on track to cut its double-digit deficit ahead of an EU-imposed March 16 deadline.

The European Commission also announced on Wednesday that it was taking Athens to court for its failure to recover money granted to hundreds of companies in the form of illegal tax exemptions. "The recovery of illegal aid is about restoring a level playing field in the single market," said EU Competition Commissioner Joaquin Almunia in a statement, according to Reuters.

02-26-2010, 07:31 AM	#3
beonecenry Join Date Oct 2005 Posts 492 Senior Member	'Massive Recession' Greece is under mounting pressure from markets and EU policymakers to cut its public debt. Athens is hoping to persuade Brussels that the public-sector pay freeze, tax increases and raising of the retirement age will be enough to cut the budget shortfall by 4 percentage points to 8.7 percent of gross domestic product. The GSEE union says these measures will cause unemployment, which hit a five-year high of 10.6 percent in November, to skyrocket. "Our country will enter a massive recession and unemployment will reach a Europe-wide record," GSEE spokesman Stathis Anestis told the Associated Press, adding that this would provoke "social unrest." A man stands in front of a closed subway station in Athens. Schools, government offices and courthouses remained closed Wednesday, while public transport, banks, hospitals and state-owned companies suffered major disruptions on the day of the protest. A demonstrator walks past riot police. Police said at least two people were detained, while several storefronts were vandalized. The violence on Wednesday lasted for about 30 minutes as the march to the parliament in Athens was finishing up. Revelations that the country's deficit was three times higher than originally forecast has plunged Greece into a debt crisis and undermined confidence in the European common currency, the euro. The crisis has in turn hiked the country's borrowing costs. Adding to the country's woes, the ratings agency Fitch on Tuesday reduced its credit rating on Greece's top banks. It was the last thing Athens needed as experts from the European Commission, the European Central Bank and the International Monetary Fund arrived to assess whether it is on track to cut its double-digit deficit ahead of an EU-imposed March 16 deadline. The European Commission also announced on Wednesday that it was taking Athens to court for its failure to recover money granted to hundreds of companies in the form of illegal tax exemptions. "The recovery of illegal aid is about restoring a level playing field in the single market," said EU Competition Commissioner Joaquin Almunia in a statement, according to Reuters.
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