Prime Minister George Papandreou (George Papandreou) Monday said that unless the “unprincipled opportunism” and “poor supervision” financial market can be controlled, otherwise the financial crisis in Greece is likely to spread to areas outside of Europe.
Papandreou said in a speech today: “European countries and the U.S. government must return to those who focused exclusively on the speculative real-time activists say ’stop here’, these speculative activists and their actions will never disregard a wider range of economies in the consequences. the ongoing crisis in the euro area could lead to a ‘domino effect’, the other has a huge budget deficit and pushing up the cost of borrowing countries, and lead to global bond and currency markets into turmoil. ”
Data show that Greece’s public debt has reached 300 billion euros (about 410 billion U.S. dollars), far exceeding the total amount of its annual GDP, but Papandreou had promised the country would not default. This year the Greek government needs to borrow 53 billion euros (about 72.4 billion U.S. dollars), of which at the end of May before the need to borrow at least 200 billion euros (27.3 billion U.S. dollars) in order to repay existing debt and to fill its huge budget deficit.
The Greek government last week adopted a total of 4.8 billion euros (about 6.5 billion U.S. dollars) in deficit reduction plan, and the sale of 50 billion euros (6.8 billion U.S. dollars) in treasury bonds, allowing investors to their sovereign debt default fears have emotional The weakened. Prior to this, German Chancellor Angela Merkel (Angela Merkel) and the other leaders of EU countries have also indicated that a substantial increase in financing costs, Greece is mainly due to the impact of market speculation, not because the country’s inability to reduce its budget deficit.
Germany and European Union officials said earlier Monday, the leaders of the ongoing EU talks, plans to those who use derivatives to bet on bond prices will decline in Greece “speculative activists” restrictions, the plan will be 6 ready before the end.
Papandreou said that the credit default swap market is “troubled by the Greek as well as all of us,” the “scourge” and therefore the EU and U.S. regulators need to strengthen regulatory measures to limit such activities, or “a small problem may be by now have become unstable in the whole system of tipping point. ” Credit default swaps are derived from the credit card out of a financial derivative products, can be seen as a financial asset default insurance.