Greece Prepares to Vote on Final Austerity Measures
The euro slid to 1.2791 on Monday morning, a marked decline from Friday's price. The euro has been under quite a bit of pressure recently as the region's financial ministers and officials decide how to handle Greece's failure to meet its budget targets.
Businessweek reported that Greek Prime Minister Antonis Samaras presented the newest austerity measures, wage and pension cuts to lawmakers this week. He claimed that this would be the last of a series of tough cuts the country was forced to make in order to receive financial aid. The cuts will be up for a vote over the next few days.
The next few weeks will be crucial for the country, and also the eurozone. Greece, whose recession has continued into its fifth year, could create a domino effect with bigger economies like those of Spain and Italy.
A looming budget vote on November 11 is hanging heavily over lawmakers heads as they wait to hear the reply to their request of 31 billion euros worth of aid. The latest package comes at a heavy price as the country struggles to make up for missed budget goals. Many are speculating that Greece will receive a two year extension in exchange for its latest austerity measures.
As the week continues, eurozone officials are expected to make a decision about a Greek aid package. German Chancellor Angela Merkel has been very vocal about her concerns, stating that Germany won't provide more money without reform to ensure it will go to good use. Her dissent has sparked controversy and speculation about whether or not Germany will call for a Greek exit from the eurozone as they did one year ago.
In addition to decisions in Greece, the European Central Bank is also in the spotlight this week as investors will wait to hear if interest rates will be cut. Most are speculating that the ECB will leave the interest rate unchanged at its record low of 0.75 percent.
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