Once again the US media turns its attention to Greek PM Lucas Papademos due to his latest statements regarding “the necessity to show fiscal discipline and implement the agreed measures to the letter, in order for Greece to remain within the euro zone and escape the default gloomy fate scenario”.
Among others, the media references to the Greek PM emphasize Papademos’ statements about new cuts in wages and salaries so that Greece can receive the new bailout package.
According to Bloomberg, the wage cuts and the new taxes of the past two years have only managed to decrease the country’s deficit by 1% (from 10.6% in 2010 to an estimated 9% in 2011).
Moreover, Bloomberg reports that the head of the main opposition party, Antonis Samaras, is pressuring the Papademou coalition government to conclude the PSI workings and call new elections.
The Wall Street Journal writes that the Greek PM has stressed to the representatives of labor unions and business associations that the country is threatened with default by March, if the negotiations for the new bailout package are not completed.
Lucas Papademos underlined that the next weeks and months are “extremely important” for the country, since it must secure its funding from the EU and the IMF.
On the same wavelength, the Washington Post and CNN refer to the developments and facts that will mark 2012 and probably result in new social turmoil.
CNN reports: “The 50% haircut on Greek bonds will prove insufficient, since the country’s deficit numbers are further deteriorating than improving. Greece is and will remain the weakest link in Europe. It will stay in recession, will not be able to pay back its loans, and will require more help from the countries of northern Europe”.
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