Eurozone finance ministers green-light Greek plan

20/01/2010

ATHENS, Greece -- The finance ministers of eurozone nations backed Greece's anti-crisis plan Tuesday (January 19th), but warned that the country must take urgent measures to reduce its public debt and budget deficit. The ministers added that unless Athens acts quickly, it may face the first ever EU penalty over budget policies.

Also Tuesday, the rating agencies Standard & Poor's and Moody's echoed that sentiment, saying it is crucial that Greece implement its plan quickly. A Standard & Poor's executive told Reuters that the agency might lower the country's debt rating if the government scales back its plan amid fierce public and political pressure. Moody's announced it is maintaining its negative outlook of the country's credit rating due to uncertainty about authorities' ability to implement spending cuts.

The GSEE, one of the two biggest trade unions in Greece, announced on Tuesday it will call for a 24-hour strike next month against planned austerity measures, as has the other big trade union, the ADEDY. (Reuters, Capital.gr - 19/01/10)