Greek official warns of return to Drachma unless stakeholders agree on solution to debt crisis
Athens, Greece (AHN) – A Greek official warned on Wednesday that the country might have to stop using the euro as currency and return to its old monetary system unless the stakeholders agree to a solution to the Greek debt crisis.
Maria Damanaki, who is a member of the Hellenic Parliament and also European Commissioner for Fisheries, said Greek officials have the choice of agreeing with creditors on austerity programs that would involve severe belt-tightening measures by Greeks or a return to the drachma.
Although the Greek government had strongly denied reports that the financially-embattled country would leave the eurozone, Damanaki said the country’s debt crisis had worsened to a point that the government has few options left.
To address the country’s ballooning debt, Greece agreed to start selling some of the government’s assets. Among the state-owned companies that the Greek government is considering for sale are the telecoms firm OTE, Postbank and the ports of Athens and Thessaloniki.
The government is also planning a drastic reduction in the number of public employees, but the move is expected to be opposed by Greeks, who have been protesting the cost-cutting measures put in place by the government since the financial crisis hit the eurozone member.
On Wednesday, thousands of Greeks held a rally in Athens to protest government plans to save by cutting costs. Government officials denied that there is a plan to hold a referendum on tougher austerity measures after they failed to get the opposition support for the cost-reduction initiative.
View full post on Economy, Business And Finance Stories
