Saturday, September 10, 2011

Greek economy may be running short on time

Time seems to be running out for the Greek economy.

A year and a half after European officials began scrambling to avert a default by Greece on its unsustainable pile of debt, their efforts appear to be falling short. The growing worries over Greece and Europe in general contributed to a stock market sell-off Friday, with the Dow Jones industrial average shedding more than 300 points .

Europe's stronger economic powers — mainly Germany and France — have insisted that Greece get its budget under control as a condition of providing financial assistance. But Greece has been unable or unwilling to meet the "austerity" targets it agreed to. Last week, officials from the International Monetary Fund, one of the agencies Greece is depending on, broke off talks, saying the government had failed to abide by its budget-cutting promises.

On Friday, Britain's Daily Telegraph reported that Germany and Holland also said, in effect, "Enough." The newspaper reported the two countries have threatened to block rescue payments unless Greece sticks to its budget promises. more