European leaders are helping Greece’s economy

The European leaders will try to convince Greece and the financial markets that they have a functional plan for helping Athens to avoid a new fall out in the crisis’s battle, according to Reuters. The officials are ready to speak with Prime Minister George Papandreou about the launching of a new bailout of 12 million dollars that will help Athens, with the only condition of starting the economic reforms of the country.  The German canceller, Angela Merkel, said in the European summit that there will be no formal decision taken about Greece’s situation, but all the officials will have appointments with the financial market representatives in order to see if there is indeed a plan for Greece.  The President of the Federal American Reserve said on Thursday that is not in danger only the Greece’s destiny, but the global financial system with the political union of Europe too.

In this summit, the officials will talk about raising the helping funds, the extension of the Euro zone and Libya, Syria and Croatia too. The President of the European Committee, Jose Manuel Barrosso had a message for Greece’s people. He assured them that Europe will help them go through those difficult times, but they have to prove that they are able to start the reforms quickly. Meanwhile, Greece’s political life is resting now after the reformed Government of Papandreou had the confidence vote of the Parliament, gesture that proved the country’s intention to go on with the reforms and to avoid a possible bankrupt. On June 28, the Parliament will vote the cutting costs package of laws, the taxes rising and the new privatization measures.

If all the points are approved, the finance ministry of the Euro zone will provide the country the 12 billion Euros bailout. A Greek official, Costas Panagopoulos, said that the real opposition is not in the Parliament or among the political life, but in the society. The Greeks are disappointed, very angry and they have no hope into a recovery. In May 2010, Greece approved a 110 billion Euros bailout from IMF and Europe Union and the 12 billion Euros that are in steak this time is the fifth trance. The Euro zone’s states, having Germany as leader, wants for the second bailout to include the private sector also, but any movement of this kind should be voluntary one. On the other hand, the rating agencies thinks that any measure of that kind would mean a failure and this will have a bad impact on the global financial markets.

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