Yet another Greek bail out deal was reached:
Euro region finance ministers agreed to a 110 billion-euro ($146 billion) rescue package for Greece to prevent a default and stop the worst crisis in the currency’s 11-year history from spreading through the rest of the bloc.
This is to prevent a sovereign default, which was causing contagion throughout Europe.
The New York Times is reporting larger bail out amounts of €120 billion.
Bloomberg has some horrid numbers in their report:
Greece’s main sales tax rate will rise to 23 percent from 21 percent.
28% of the European contribution is from Germany. Squishing workers:
Other measures include abolishing the 13th and 14th wage payments that civil servants get annually for workers earning more than 3,000 euros per month, he said. Payments for those earning less than that will be capped at 1,000 euros.
Bloomberg seems to be getting the details of the deal right.
The financial lifeline will last three years and will force Greece to cut its budget deficit below the European Union’s limit of 3 percent of gross domestic product by the end of 2014, a year later than originally planned. The shortfall was 13.6 percent last year, the second-biggest in the region after Ireland.
Greece now expects its economy to shrink 4 percent this year and 2.6 percent before returning to growth in 2012. The package will also set up a “financial stabilization” to help Greece with potential bad loans stemming from the austerity measures. The value won’t be made public, said Poul Thomsen, the IMF’s mission chief for Greece.
Hmmmm, financial stabilization, austerity measures, won't be made public. Why do I envision a huge screw through the middle of Greece? I'm sure the Germans are really thrilled for now being on the hook for another nation's problems too.
Yes, the term Greek was used instead of Greece to imply the bend over situation that nation finds itself in.