What’s the Latest Development?
Following secret talks betweens Athens and key European Union member states on the topic of Greece’s debt, it has emerged that the country is failing to meet the terms of the financial bailout it received last year from the European Financial Commission. The leader of the hushed discussion, Prime Minister of Luxembourg Jean-Claude Juncker, said that the Greek bailout would need to be renegotiated amid alarmist reports that the country was contemplating leaving the Euro currency behind it and reintroducing the drachma. British representatives have been the most vocal about refusing to finance any further plans to relieve Greece’s debt.
What’s the Big Idea?
Greece’s economy, and Europe’s along with it, appears to be more damaged than initially thought, at least according to terms set forth last year when Greece received a donation of €110 billion ($157 billion) from the European Union so that it could remain afloat. News that Greece will be unable to meet those terms has sparked a division among E.U. nations, with Britain refusing to take part in any further bailout. Politicians are expected to push hard to privatize Greek industry currently held by the socialist government—many already see Athens’ plans for fiscal consolidation as draconian. The coming weeks will further determine the long-term stability of the Euro currency.