Greece is paying a high price for its national debt.Interest on one bond rose from 6.2 to 6.6%in three or four days.If unable to pay the interest,Greece would go into default.Nonetheless,Prime Minister George Papandreou denies Greece will have to be bailed out by the European Union.
In a TV address,Mr.Papandreou warned of massive budget cuts and higher taxes.There will be cuts in wages and spending in the public sector.Greece is under heavy EU pressure to defend the euro by reducing its deficit.It needs over 50 billion euros just to finance its deficit.One citizen remarked that people are angry and anxious about what will happen tomorrow.So are the governments of Spain,Portugal and Ireland,which face similar,if lesser,budgetary dilemmas.
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