Forex news. On Monday Poland was visited by Finance Ministers of European countries in order to find a way to solve common financial problems. Greece was waiting for the meeting results with a sinking heart, as Shakespearian “to be, or not to be” concerns it in the first place. The destiny of EU single currency is up in the air, and this summit may give it a footing.
The presence of Timothy Geithner, American Finance Minister, at the meeting proves its importance. US concern about debt problems was demonstrated by the desire to encourage European colleagues to seek for constructive measures, which will help to find effective outcome from current “standoff” situation. It is most important that they are not half-made and one-day measures, which have immediate effect, but global and systematic approach, allowing to feel confident about future.
Discussing the terms of providing (or not providing) another tranche to the government of Greece, which is planned for the end of September, was the key topic of the meeting.
The implemented economic measures have been monitored during the meeting. The measures concerned budget cut, enterprises privatization, and other reforms that are held implemented at the expense of donor countries. In order to get another financial “oxygen bag”, Greece is to fulfill its obligations according to the terms of receiving additional financial support, which amounts to more than 100 bln. Euro.
If Greece does not receive money by mid-October, the country will face default because of national debt. Such scenario spreads havoc among forum participants, who thoughtfully understand that if Greece does not get support timely, it will later “cost much more” to the entire European Union.
In such condition, all optimistic predictions, like “things will work out”, disappear in an instant. It is rather evident, as there is still no certainty whether Athens can guarantee to pay out the debt. This leads to negative reaction of financial management of Finland, Netherlands, and Austria. These countries are at the point of refusing to share Greek payments.
This is not the end of Greek economic hardships. Two weeks ago inspectors have revealed that Athens cannot manage even planned budget expenses; as a result, the government had to “invent” a new tax, which will close the gap.
Current debt crisis has resulted from drawbacks of financial systems in America and Western Europe. The majority of European countries are in utmost secrecy preparing personal scenarios in case of Greek default.
As admitted by the analytics of Masterforex-V Academy Department of Volume Analysis, during the last quarter ASE index has been under pressure, demonstrating steady ascending dynamics and having reached point 809.10:
