Greek Financial Woes Spook Markets
Greece’s continuing and growing economic crisis has spooked the market this week with London, Paris and Frankfurt markets all falling following falling asian markets.
Investors are worried about events in Greece and the possibility that Greece will default on it’s debt. In order to stop a default the Greek government is in a position where it must implement large cuts in spending and sell off some of it’s assets.
Greece’s residents have other ideas however and have taken to the streets unhappy about fast rising unemployment and increased taxes, making it difficult for the government to do to carry out any of the necessary cuts.
The euro also fell sharply and France has warned that there has to be a compromise on the Greek debt if the eurozone was to maintain stability and achieve economic growth. France’s biggest banks are exposed to the Greek debt and are facing a downgrade of their credit rating.
Photo: Christina Kekka
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