Wednesday, May 11, 2011

Greece Beset By Second Round Of Widespread Strikes

Those strikes, mainly by government employees, were largely peaceful but some turned violent.
The Associated Press reported that all train and ferry services were suspended, while a strike by air traffic controllers was expected to ground flights in the afternoon. Public transport workers in Athens also began walkouts.

Radio and television programs were blacked out as Greek journalists joined the strike, The Wall Street Journal reported.

The strike comes ahead of the government’s plan to introduce a further 29 billion euros ($41.76 billion) of austerity measures consisting of tax hikes and spending cuts that are part of an effort to avoid defaulting on debt.
The reason why rumous have been swirling about a default is because the interest rates on Grecian sovereign debt are now above where they were when the bailout package was announced.

Yep, the Grecian government is between a rock and a hard place. As confidence decreases, the interest burden on newly-issued debt becomes more onerous. So far, it's the only Eurozone nation to go through that wringer on a sustained basis. So far...

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