More austerity despite slashing of Greece debt

In the wake of the plan to reduce Greece’s debt by fifty per cent, the country’s government is moving forward with economic reforms that many Greeks feel are too harsh.

Prime Minister George Papandreou insists the changes are vital: “We must continue to work intensively. We have to change things day by day. Things won’t change in in an instant, and there’s no point in repetitive criticism. It’s in our hands to change all that is unfair and all that harms us, and to invest in what makes this country different,” he said.

Keen to make the best of the debt agreement made in Brussels, Papandreou addressed the nation, saying the plan would provide time for change, but the mood is pessimistic according to Athens resident Ioannis Balaskas: “The measures are unbearable. People have a lot of problems and I believe we will see worse. The worst is yet to come.”

Despite half of Greece’s 200 billion euro debt being written off, that will still mean the country owing 120 per cent of its annual income by 2020.

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