Saturday, March 13, 2010

Greece Bailout

The EU have agreed to a bailout for the Greece economy. The UK will not be involved.

The EU have hinted at a stricter implementation of fiscal rules. The EU used to have the Growth and Stability Pact, which limited government borrowing to 3% of GDP. But, countries have routinely ignored this. (Greek borrowing hit 12% of GDP)

However, a strict implementation of the growth and stability pact could have damaging consequences for countries who don't have their own monetary policy.

The bailout doesn't mean the end of the problems for the Greek economy

Drastic Economic Measures

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