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Decisive week for Greek Economy
Source: WSJ Market Watch
16 March 2010

LONDON – A meeting of euro-zone finance ministers this week is unlikely to produce details of plans to ensure that Greece can meet its debt obligations, ministers said, amid signs that officials are near agreement on a support plan.

"At this point in time, [Greece] does not need help," said French Finance Minister Christine Lagarde, the Financial Times reported.

Greece's 10-year bond sale earlier this month showed that the market has appetite for its debt, she said.

Wolfgang Schaeuble, Germany's finance minister, echoed this sentiment, telling the Bild newspaper that there was no need to present an aid plan at the moment, reports said.

Any plan appears set to be implemented "only if and when needed," said Marco Valli, economist at UniCredit Bank in Milan. "Accordingly, any concrete announcement seems unlikely."

Ministers from the 16 nations that share the single currency are set to hold a monthly meeting Monday night in Brussels. Ministers from all 27 European Union nations meet Tuesday.

The Greek government has implemented austerity measures designed to slash its deficit from 12.7 per cent of gross domestic product to 8.7 per cent in 2010 as it aims to bring the gap to less than 3 per cent -- the E.U. limit -- by 2012.

The measures, which include public-sector wage cuts, increased fuel taxes and a higher retirement age, have met fierce opposition from the nation's unions, which have conducted two general strikes and a number of smaller protests.

Members of Greece's militant power workers' union, Genop, staged a series of demonstrations around the country early Monday as they prepare for a two-day strike to protest the latest austerity measures. The 48-hour strike is set to begin at midnight local time and could lead to rolling blackouts around the country if Genop strikers leave the power plants short-staffed--a tactic the union has followed in the past.

Greek nurses are also due to hold a 24-hour strike Tuesday, while on Thursday owners of gas stations have declared their own one-day strike.

 
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