Greeks face tough challenges in passing cuts
- 12 years ago
After narrowly winning a no-confidence vote in his leadership, Greek Prime Minister George Papandreou must turn to the formidable task of forming a coalition government if he is to succeed in passing a series of tough spending cuts.
The cuts are being imposed as part of Greece's multi-billion dollar bailout. Greece needs the next installment by mid-November to pay a round of debts.
If no reforms are in place before then, that means no bailout money and then Greece defaults.
If Greece is allowed to default, then this could cause a collapse in lending from banks across Europe - with countries like Italy and Spain also defaulting.
And ultimately, this could lead to another financial crisis that could be much worse than 2008.
Jonah Hull reports from Athens.
The cuts are being imposed as part of Greece's multi-billion dollar bailout. Greece needs the next installment by mid-November to pay a round of debts.
If no reforms are in place before then, that means no bailout money and then Greece defaults.
If Greece is allowed to default, then this could cause a collapse in lending from banks across Europe - with countries like Italy and Spain also defaulting.
And ultimately, this could lead to another financial crisis that could be much worse than 2008.
Jonah Hull reports from Athens.