Greece is likely to get an additional 8bn euros ($11bn) in bailout money, most likely by early November, according to the EU, IMF, and European Central Bank. Nearly seventy-five percent of this cash will come from EU member states, and the remainder from the IMF.
The objectives for this money are to implement economic and financial reforms to stabilize this country’s economy. These reforms include ensuring that the privatization fund remains independent, ending sector-wide collective labour agreements, and negotiating pay and terms at a company-level rather than across whole industries.
However, this bailout – the sixth such distribution of aid – comes despite the financial inspectors’ conclusion that Greece’s fiscal target for 2011 was not achievable because of both a further drop in GDP and slippages in the implementation of some of the agreed measures.
This bailout comes as other countries in the EU are facing severe economic hardship. With Greece getting so much financial support, will other countries get similar assistance? How will these bailouts be sustained?