The austerity measures the package pushes, as well as other provisions within the deal, could cause civil unrest. This became obvious today as protesters took to the streets to express opposition to the aid package presently on the table for Greece. Among other things, the package requires tax hikes and cuts to pension packages, neither of which are popular even in the ruling party.
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On Tuesday, the International Monetary Fund published a study showing that Greece would need far more aid than was being offered to survive in the long term. In essence, the package offered merely kicks the can down the road to a future juncture when similar problems will be faced again.
Panagiotis Lafazanis, the Greek Minister of Energy, did not have much faith in the bailout measure as it stood. In a statement, he expressed his discontent.
The deal is unacceptable. It may pass through parliament, but the people will never accept it and will be united in their fight against it.
According to a recent study by the IMF, Greece’s debt will be 200% of its economic capability within a couple of years. Even with temporary aid packages, the country could face a long-term struggle to become financially solvent if it does not find a way to increase revenue and reduce its debt obligation.
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