EU: New Greek Deal Will Work
Markets rise after fresh deal to keep country afloat
By Rob Quinn, Newser Staff
Posted Nov 27, 2012 3:39 AM CST
A European Union flag billows in the wind in front of the ruins of Parthenon temple in Athens yesterday.   (AP Photo/Petros Giannakouris)

(Newser) – European Union finance ministers and the IMF have hammered out yet another deal on Greek debt and they say this one is going to work. The euro and Asian markets rose after the announcement of the latest deal on the three-year-old crisis, which will cut the rates on bailout loans, allow Athens to suspend interest payments for a decade, and give the country more time to repay, Bloomberg reports. The deal will allow the release of $44 billion in bailout funds next month to allow the Greek government to continue functioning.

The deal will cut Greek debt to 124% of GDP by 2020, and ministers signaled for the first time that some loans will need to be written off, Reuters reports. "This has been a very difficult deal," Luxembourg's prime minister told reporters after chairing the 13-hour meeting. "All initiatives decided upon today will bring Greece’s public debt clearly back on a sustainable path." Greek Prime Minister Antonis Samaras said the deal would usher in "a new day for all Greeks," though the opposition Syriza party said it wasn't enough to make the country's debt load sustainable.

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Imhotep
Nov 27, 2012 9:06 AM CST
It will not work because the negative is greater than the positive. This is the fundemental problem with the world. People can not stop spending more than what they bring in. Governments do it, people do it. That's it in a nut shell. These countries that are in such dire straights are living on credit. Someone has to support the government and it's expenses. Is it the rich or is it the middle class and the poor. It will not work in Greece because they don't have enough money coming in and do not anticipate some windfall that will boost their historically crummy economy. It is a welfare state. The US is heading down the same path. That's why Germany is the most economically powerful country in Europe. They work hard, produce , and export. Just like all prosperous countries. When was the last time you bought something made in Greece. Okay, olive oil and small sculptures of the Parthenon.
No-Left-Turn
Nov 27, 2012 6:55 AM CST
" this one is going to work." No, it won't. And as an extra little point, if the current trend continues, the U.S. will have a debt to GDP similar to that of Greece by 2020. You may wish to tell your kids to get a good education, and then move to Asia.