icNorthWales - Default will cause chaos, warns PM
icNorthWales logo
icNorthWales Daily Post Motors Homes Jobs Wales Dating Yr Herald
Search icNorthWales for:


Default will cause chaos, warns PM

20:05, Feb 10 2012

 

Greece's future in the euro grew increasingly precarious as violence erupted on the streets of Athens and dissent grew among its lawmakers after European leaders demanded deeper spending cuts.

The country's beleaguered coalition government promised to push through the tough new austerity measures and rescue a crucial 130 billion euro (£109bn) bailout deal, as six members of the Cabinet resigned.

Prime Minister Lucas Papademos promised to "do everything necessary" to ensure parliament passes the new austerity measures that would slap Greeks with a minimum wage cut during a fifth year of recession.

"It is absolutely necessary to complete the effort that began almost two years ago to consolidate public finances, restore competitiveness and economic recovery," Mr Papademos told an emergency Cabinet meeting.

Debt-stricken Greece needs the bailout money before a 14.5 billion euro (£12.14bn) bond deadline on March 20 and strike a vital debt relief deal with bond investors.

He said the bailout and a related debt-reduction deal with private creditors would return Greece to growth next year, and deliver 4.5% primary surplus in 2012 - better than an earlier official prediction of 1.1% of gross domestic product.

"A disorderly default would cast our country into a catastrophic adventure. It would create conditions of uncontrollable economic chaos and social explosion," he warned.

"Greeks' standard of living in the event of a disorderly default would collapse, and the country would be swept into a deep vortex of recession, instability, unemployment and penury. These developments would lead, sooner or later, to exit from the euro."

Earlier, a small right-wing party in Mr Papademos' coalition said it would not back the new measures and four of its officials in the cabinet resigned, including the country's transport minister. Two Socialists cabinet members have also quit.

Violent clashes broke out in front of parliament earlier amid mass protests organised by unions, which launched a 48-hour general strike.

 

Top Top | Back Back |

E-mail to a friend | Printable version

 
Top North Wales headlines

  • Sickening
  • £100m complex is criticised
  • Labour's control dwindles
  • Man guilty of harassing wife after separation
  • Protest group aim to stop lorry park site
  • Site bid will 'go a long way' to help
  • Anger as arsonists destroy classroom
  • Appeal blow for furious villagers
  • Armed raiders wield knives in pub attack
  • Children's group loses funding
  • Top UK and world headlines

  • Consultant jailed after woman dies
  • Lawyers clash at McAreavey trial
  • Heatwave will last into weekend
  • Ex-detective on misconduct charges
  • '60 stone' woman still in hospital
  • Hunt 'told special adviser to quit'

  •  

    Copyright and Trade Mark Notice
    © 2012 owned by or licensed to Trinity Mirror North West & North Wales Limited.
    icNorthWales™ is a trade mark of Trinity Mirror North West & North Wales Limited.
    Please read our Terms and Conditions and Privacy Statement before using this site.
     

    Choose from 1000's of properties on our database

    Find a car or view the latest Road Tests

    Choose from 1000's of vacancies on our database

    ALL the latest from the world of business

    Farm and Country For farmers and everyone who cares about the countryside

    Welsh National Team Logo ALL the latest news from the Welsh National football team