Greek Prime Minister Yorgos Papandreu warned against the danger and consequences of an possible “disordered bankruptcy” for the credibility of Greece and its finance institutions.
With its coffers almost empty, Greek people protesting and its political system under unprecedented diatribe, Greece stands on the brink of crisis as European officials prepare for a week of crucial meetings to hinder economic collapse.
Greece Budget Crisis will lead to a catastrophe
Prime minister Papandreu asked the parliament to support his unpopular plan of additional budget cuts, after warning that the country was at a critical crossroads and bankruptcy would cause a catastrophe.
“Divisions do not help,” the prime minister repeated, calling on the Greek people to be united and accept the austerity measures demanded by the European Union (EU) and the International Monetary Fund (IMF).
Papandreu, whose administration will be a parliamentary confidence vote, which he himself requested, defended the intervention of the EU and the IMF in Greece’s economic recovery.
Without the assistance of those two organizations, the country’s cash reserves would be exhausted soon and Greece has no alternative but to accept the severe measures in exchange for financial assistance, he said.
Greece economy collapses
The new austerity package will lead to more privatization and unemployment and higher taxes, and has been widely rejected by Greek trade unions and political forces.
Papandreou travels to Brussels today to meet European Union President Herman Van Rompuy and European Commission President Jose Barroso. The confidence vote is scheduled for late tomorrow. The Greek crisis is set to dominate an EU summit in Brussels on June 23-24.
