Prime minister of Greece has accepted his income loss to the union leaders. He also warned that the international rescue loans would not help if it is delayed. If delayed it would lead to an early default in March. It is also said by Lucas Papademos that visit of the debt inspectors in the month of January will decide whether Greece will continue with euro or will get back to its previous currency drachma. To avoid the exit of euro they must accept a short term loss of income. The GSEE, the labor union, has walked out stating that Greece has suffered a lot since two years and will not continue suffering any more.
Due to large cut down and recession the economy has gone down leading recession which is expected to continue till the end of 2012. Also the unemployment has reached 17.5 % already. Country’s debt ratio is currently the highest and also the write down of the euro can reduce it to a bit. The economy is to enter its critical period in 2012. The Institute of International Finance is also trying hard to find a solution along with the creditors of the Greece.
It is also said that the negotiations between the creditors on the write down is going smoothly will be finalized within fifteen days. However it may take a month’s time to implement it. Papandreou also has asked to increase the tax revenue. He believes that the money can be brought in by doing so and also by imposing huge tax on property.