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In Greece, the Conservatives Oppose Austerity

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Unlike in the United States, where many members of the Republican party have called for reducing the budget deficit, on Tuesday, the leader of Greece's conservative party opposed a new austerity plan, according to Reuters.

That plan was put forward by Greece's Prime Minister George Papandreou and his Panhellenic Socialist Movement party.

The Associated Press reported that Jean-Claude Juncker, chairmen of the eurozone finance ministers, stated that privatizations in Greece will have to go beyond what was originally planned.

The rejection of the plan by one of Greece's major parties may signal weakness in the euro currency. If Greece is unable to get its fiscal house in order, it could require further bailouts or may even abandon the euro. Either scenario might prove disastrous for the European currency.

Traders looking to play euro weakness might consider a short euro ETF such as PowerShares UltraShort Euro (NYSE: EUO). EUO attempts to return a value inversely correlated to the strength of the euro.

It will be interesting to see how the Greeks resolve their political budget dispute. Especially for investors in the United States--a country which is suffering from its own budget battles.

 

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