Greece in Turmoil

Greece is one of the PIGS (Portugal, Italy, Greece and Spain) the Souther European nations that traditionally have not always been economically strong.

Greece has found itself in major trouble... with massive national debt. The figure quoted recently was 12.7%, which is FOUR times more than the Euro nations allow! Greek spending has been wild, whereas tax coming into the Greek coffers has been dwindling.

Greece as a member of the Euro currency and the Single Monetary Policy are looking to nations such as France and Germany to bail them out. But they do not seem so keen.

Other commentators are wondering whether this crisis could see the eventual collapse or devaluing of the Euro itself.

The Greek Government is under intense pressure from the rest of the EU and naturally those EU members who are in the Euro.

They have come up with some ideas to help stem the rising debt:

1. Cut budget deficit below EU ceiling of 3% of GDP by 2012, from 12.7% in 2009
2. Freeze public sector salaries and cut bonuses
3. Replace only one in five of people leaving civil service
4. Raise average retirement age by two years to 63, by 2015
5. Raise taxes on fuel, tobacco, alcohol and property (Source: BBC Business News)

Perhaps even more draconian measures will be needed to save the Greek economy and indeed the Euro.