Greece Bankruptcy

The European Commission urges the government of Athens to take "additional measures" to reduce the deficit. In a statement on Economic and Monetary Affairs Commissioner EU, Jaquino Almunia said that "a difficult situation in a member country of the euro area is a source of concern 'for the Eurozone' as a whole."

Is clear - Almunia added - "that Greece is facing economic challenges are very important." The commissioner also said it is ready to help Athens to develop a rehabilitation program, stating that he had "taken note" of the fact that the economic situation of Greece "is beneath the attention of financial markets and the rating agencies' .

(messa sotto osservazione ieri anche da S&P), abbassandone il rating a BBB+ con outlook negativo a seguito dell 'innalzamento del debito pubblico del paese. Just today, the international rating agency Fitch has rejected Greece (also put under observation yesterday by S & P) lowered the rating to BBB + with negative outlook as a result of 'raising the public debt of the country. Fitch points out that cutting the rating reflects the negative outlook on debt Greek, but also "the low credibility of institutions, financial and political climate."

The agency expected that the greek government in January will launch a series of extraordinary measures in an attempt to bring the deficit within 3% to 2013. Fitch cut the rating is also motivated by the history of Greece in the field of public finances. According to the agency, in fact, it is doubtful that the government can launch a series of measures needed to balance the public accounts, in particular a reform of pensions and political containment of public spending and widening the tax base in order to reduce debt.

L 'Eurogroup, however, throws water on the fire: "There is no sign of bankruptcy in relation to Greece." This is the assessment of the President of the 'Eurogroup, Jean Claude Juncker. His spokesman confirmed that the position of Juncker has expressed the same after the meeting of finance ministers of 'the first euro zone last December. "As a seventh does not change that," stated the spokesman.

The decisions of the rating agencies have resulted in a very negative reaction to the Athens Stock Exchange. The composite index closed down 6.04% and the FTSE Athex 20, which brings together major titles, has yielded 7.07 percent. Weigh it was mainly the banking sector, which has done much worse than the sector in Europe. Bank of Cyprus has sold 10, 6%, Piraeus Bank, 8, 1%, the Marfin Popular Bank 9.96%, National Bank of Greece to 9.95%, EFG Eurobank and Alpha Bank 6.5% 7.8%.

Analysts speak of Greek overreaction of the market compared to downgrade the rating agencies and the news that the greek deficit will reach 12.7% in 2009, four times more than the 3% limit set by the Maastricht parameters. The market - accuse the Greek operators - is making little distinction between institutions also penalizes anyone who, like Bank of Cyprus has less than half of its activity in Greece.

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