The Greek Parliament passed austerity measures that were a crucial step to getting a €130 billion eurozone bailout yesterday. However, the country isn't out of the woods yet. Eurozone financial leaders will meet Wednesday to discuss the logistics of the bailout, which won't get approved-if it gets approved-until March. The austerity package, which includes wage and pension cuts and reduces the government payrolls by 150,000, passed by a 199-74 vote, but was accompanied by mass protests leaving forty buildings in Athens aflame.
The rest of the eurozone applauded the move, seeing as the fate of the rest of the global economy rests in part on Greece's shoulders. Angela Merkel's spokesperson said the vote "shows the will and the readiness of the Greeks to undertake major efforts of their own, including tough cuts to put their country on a good path." Although the bill is only a first step, Greece "will be saved in one way or another," said German Finance Minister Wolfgang Schaeuble yesterday, adding that the country must "do its homework."
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Chart of the Day
Greece has tried many different solutions to fix its debt problem, but as this chart shows, it hasn't been working. The austerity measures passed yesterday are a last-ditch effort for the flailing country as they try to avoid default.
-The Economist
Reason to Get Out of Bed in the Morning
Need some ideas for Valentine's Day? The meme #fedvalentines may be able to help. Because really, what's more romantic than telling someone, "I'd like to borrow you overnight and then hold you to maturity?"
