The Greek government is set to unveil a new round of austerity measures on Wednesday at 10:30 CET. The package will likely consist of additional tax hikes along with wage cuts.
These new steps will be on top of the previously announced tax increases and salary freezes that have already provoked massive strikes across the Mediterranean nation.
The decision comes after the European Union Commissioner for Monetary Affairs, Olli Rehn, pushed Greece to take further steps in order to reach the goal of cutting it's 12.7% budget deficit by four points come year's end.
The Greek government hopes this fresh budget-reduction plan not only placate Brussels but also pave the way for a successful bond auction that was postponed last week due to market uncertainty.
In-Depth Analysis
- EUR rebounds strongly on talk of a Greek austerity plan by Saxo Bank
- Greece - From Hard Money to Fool's Gold by Merk Hard Currency Fund
- New Greece measures expected on Wednesday by TradeTheNews.com
- An Attempt to Think Through the Greek Crisis by Millennium Wave Investments
- Euro Looks at Losses as Confidence in Greek Turnaround Shaky by DailyFX
- Euro Falls as Uncertainty remains over Greek Bailout Package by ForexHound.com
- USD higher, UK debt woes, uncertainty about Greek aid by Easy Forex
- More talk of Greece Bailout by Easy Forex
- Dollar Falls on Possible Lifeline to Greece by CMS Forex
- CEE currencies weakened on rising tensions in Greece by KBC Bank
- ForexHedge » California is a greater risk than Greece ! by Ron Schelling
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Analysts Comments
- David Forrester, currency economist at Barclays:
"While these articles are good news for the euro, we caution that it is early days for these proposed solutions, so any positive impact on the euro is still subject to the ebb and flow of the politics surrounding them." - MarketWatch - Michael Hewson, market analyst at CMC Markets:
"This weekend's news of a prospective Greek bailout plan ... may well go some way to soothe investor concerns about a sovereign default in Europe. However there will be onerous strings attached as the Greeks will have to make up to an extra €4 billion worth of cuts in public spending, which could well prove to be the tricky part of the equation, given some of the social unrest seen last week." - WSJ
