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Empty Pockets: What Does the Greek Debt Dilemma Mean for the Global Economy?
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Empty Pockets: What Does the Greek Debt Dilemma Mean for the Global Economy?

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Fear is growing that Greece — one of 16 countries that use the euro as currency — may default on a massive pile of debt, creating a ripple effect of problems throughout Europe and beyond. Following pressure from the European Union and the European Central Bank, the Greek government on March 3 announced a new round of austerity measures — the third such package in the last six months. It includes a freeze on pensions and additional wage cuts for government workers. In addition, the top rate of the country’s value-added tax will be raised from 19% to 21%, and excise taxes on alcohol, cigarettes and fuel will be hiked for the second time in two months. Leaders of public-sector labor unions reacted with outrage to the measures, saying they will harm Greece’s economy; some unions vowed to stage strikes later this month. Meanwhile, Wall Street banks are again facing scrutiny — this time, for the complex financial instruments they used to allegedly disguise the country’s real debt.…

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