Forex news. International financial plan on improving Greek debt situation does not satisfy the leader of the main opposition party of the country; he also demands its reconsideration. Instead of strangling the country’s economy by increasing taxes, EU and IMF have to let Greece lower taxes in order to stimulate its growth. This was announced by Antonis Samaras, the leader of center-right New Democracy party, who may become the country’s next prime minister.
Greek austerity program, in his opinion was “unsuccessful”, as amid recession large tax receipts are not likely to be expected. He hopes that external creditors will finally alter their policy in order not to completely throw the country into the chasm; however, few share this opinion on international level.
Resulting from enquiries, Mr. Samaras’s popularity among Greek population keeps increasing. Many experts predict that current government is unlikely to take hold of power for the whole term, till 2013; new elections are expected this autumn. This means that Europe and IMF may in short-term perspective deal with new politician, who, as far as it is known, has a reputation of tough and self-confident person. There is no doubt that he will raise the question of the country’s rescuing program.
Mr. Samaras’s warns that in current political situation Greece will not be able to reach its goal and will have to ask for bigger help in three-month’ period. Increasing taxes and cutting down state expenses will only worsen economic contraction, which is predicted to reach the level of 4% after a 4.5% cut down in 2010. Unemployment rate has increased twice within two years and currently amounts to 16%. Bankruptcy of enterprises has rapidly increased; economic climate of population or businesses come down rapidly.
However, the so-called trio of EU, IMF, and ECB, which supervises Greek reforms, claims that Samaras’s plan will lead the country to even worse consequences, which in their last report were called “unreal and inconsistent with the general aims of improvement program”.
In the mid-term Euro rate strengthens at Forex market. However, the experts of the Department of In-Depth Trade System Study of Masterforex–V warn that the currency pair has broken a bullish sloping channel and has formed the bear’s one, a potentially turning impulse, as well as “the moment of truth” of H1 wave level. The further downward movement happens in wave A (C) or С of the same wave level. The support is at significant levels of correction and impulse networks; namely, the first is at 1.4443 point and the second is at 1.4395 point.
Continuing the upward movement is possible in Н4 wave level figure while continuing “Elder’s Masterforex Hound of the Baskervilles” trend; however, this can only be spoken about after the price breaks a bear’s sloping channel, which forms resistance on this way.
