Greece could be just weeks away from defaulting on its debt and sending the eurozone in to an unpredented period of financial uncertainty and unrest. The Greek government has promised to implement strict austerity measures as a means to receive more bailout money from its European neighbors and the IMF. The government is also partially along the way to get a new set of terms from its private debt holders–one which could reduce the value of those holdings by 70%.
The road to austerity reached a gate today as Greek unions rejected a deal to cut wages. This, in turn, could cause those who would provide bailout funds to reconsider whether Greece is willing to make austerity sacrifices.
According to The Washington Post
Greek unions and employers’ associations on Friday rejected private-sector wage cuts, as demanded by the country’s international bailout lenders if Athens is to receive a new rescue package and avoid bankruptcy.
The impasse appeared to be holding up final negotiations for massive new debt agreements — a eurozone finance ministers’ meeting, previously scheduled for Monday to back the new proposals, was postponed to later in the week.
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