The EU will demand around double the budget cuts on the table from Greece, a senior government official told the WSJ:
“They [the EU] are telling us the current measures will only cut two percentage points. They are pushing very hard for another package of around €4 billion,” the official, who asked not to be identified. “Greece thinks a package of €2 billion to €2.5 billion will be enough to achieve the targets,” he said.
It’s an impossible situation for Greek Prime Minister George Papandreo, who literally can’t afford to stand up to the EU, and who also faces mass riots from Greeks who will suffer from the austerity budget. Wednesday’s riot required police intervention with tear gas and billy clubs.
Total default is looking more and more likely.
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