Greek cuts add pain

Unable to pay their national debt, Greece has approved another round of cuts to domestic programs and services amid large scale public protests. These cuts are a critical step to obtain the next installment of $17 billion in emergency funds from the International Monetary Fund and European Union.

LOS ANGELES (Catholic Online) - With rioters and police clashing outside the parliament building in Athens, Greece, lawmakers voted 155-138 in favor of additional austerity measures which include a combination of tax increases, privatization of national facilities and services, and $40 billion worth of additional cuts. Amid the riots, dozens of police and protestors alike have gone to hospitals with injuries suffered from the violent clashes.

The rioting comes as the Greek people, especially those belonging to the labor unions, resist the new cuts. Greece has already suffered deep cuts to social programs and increased taxation as the government tries to pay off debts largely incurred over the past decade as government officials spent irresponsibly. The national credit rating is now at risk of being reduced to "D" which means the nation can no longer pay its debts and is in default.

The cuts, while very unpopular, are a necessary condition to receive more aid from the IMF and EU, without which Greece would default and send a ripple effect through the world economy. In particular, the Euro and several European banks, depending on the Greek payments in mid-July, would be in danger themselves if Greece should default. The newly approved austerity measures should prevent this danger and ensure the next bailout payment for Greece. 

Experts agree that it will take yet more bailout money and several years before the Greek economy recovers and the nation is able to pay its own bills. More key government installations such as airports and ports will likely be sold or privatized to generate cash. In the meantime, difficult times will persist for the people of Greece who must make do or do without amid the severe austerity cuts imposed by the government that is simply trying to keep the nation afloat.

---

'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'