The atmosphere in Greece and particularly in Athens was fraught, as measures including cut backs on pensions and decreases in salaries were put into place. This created a massive uproar in the country, which is already in turmoil, with ever rising unemployment and business closures adding to it’s woes.
The European economy, International Monetary Union (IMF) and the major banks will all be concerned as to whether Greece can stay focused on maintaining the austerity measures and if so, for how long. They will be hugely optimistic as they have continuously come to the rescue via wiping debts and increasing borrowing.
Whilst the Greeks will disapprove of this, it comes as great news for Brussels and the Eurozone, which has felt the brunt of the crisis as the credit ratings of major European banks have been downgraded and as the euro weakened against its major counterparts.
This allowed EUR to see a steady rise against GBP and USD, as the dollar was previously at a weekly high against the euro in mid-January. US Stocks closed higher after trading closed on Monday 13th due to the austerity measures being approved.
The UK, France and Austria may see its top rated credit agency on a negative outlook due to US credit agency Moody’s, while other European countries including Italy, Malta, Spain, Slovenia, Slovakia and Portugal have already been downgraded. This comes as they believe that the UK will face concerns over growth and will be directly impacted by possible woes in the Eurozone.
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