This week, a secret report came out from the EU/ECB/IMF. The troika report was about Greece and showed that even with the best scenario for the country will soon be announcing its filing for bankruptcy.
Recently, the news reported a bond swap in a bailout that would kick the can down the road and resolve Greece’s long-standing debt problems. According to the secret troika report, all of this is for nothing as the bankruptcy filing is becoming more and more inevitable. In the report it shows the Greek government has approved austerity measures with drastic budget cuts to try and fill the funding gap. With all the cuts it only totals €325 million a year and doesn’t come close to filling this giant hole.
The British newspaper, the Telegraph, reported today that Germany is currently drawing up plans to remove Greece from the Euro zone. The European Union is finally facing the facts that there is no way to stop the Greek debt from spiraling out of control even with throwing more money at it through bailouts.
At this time, the German finance Ministry is pushing for Greece to announce its filing for bankruptcy and wipeout the bulk of its debts held by banks. The finance ministers for the Euro zone are going to meet Monday to discuss loans they stopped the national bankruptcy filing and help put the Greek government back on track.
Severe austerity measures have been met in the streets of Greece with rage and rioting. Many people believe that the government will not be able to implement these measures against the people.
If the Greek government completed the austerity measures and everything else that they promised to the EU, they still not would be able to bring their debt down to 120% of the GDP by 2020.
With the bankruptcy filing of Greece being inevitable, the rest of the world looks on to see how it will affect other economies worldwide.