Wednesday, June 15, 2011

Greek debt crisis deepens

















The debt drama engulfing Greece deepened as Euro group finance ministers met in emergency session to discuss ways of resuscitating the country's ailing economy and protesters in Athens tried to thwart passage of further austerity measures by blockading parliament on the eve of a mass general strike.

Tensions escalated as George Papandreou's socialist government confronted negative polls and a relentless stream of demonstrations initially inspired by Spain's peaceful indignados three weeks ago, but now showing signs of becoming increasingly explosive.
"All it will take is one mistake and the joviality that has marked the protests so far will end in a second," said veteran photographer Spyros Tsakiris, sitting in the heart of the tent city that has formed in central Syntagma Square, site of the Greek parliament.
"The mood has changed noticeably. I watch these people and honestly, I am afraid. At any moment things could go wrong and Greece could go up."
With Europe's debt crisis intensifying by the day, fear appears to be the single biggest factor motivating those in charge of policy on the common currency. But as finance ministers from the 17 euro countries debated how to bail out Greece for a second time in a year, before an EU summit on 25 June, the signs are not promising.


By Helena Smith
Guardian