Greece Riots Follow Approval of Austerity Measures

According to CNN, Greece officials, under pressure from international lenders, agreed to austerity measures, measures which were required to clear the way for Athens to receive emergency loans.

Greece, who has debt payments due in mid-July needed international assistance to avoid a default on their loans which could have disrupted the European banking sector. Pressure from the European Union and the International Monetary Fund have forced Greece to make difficult cuts through a five year austerity package, cuts which had to be made to get $17 billion in emergency funds.

These measures were passed despite intense protests in the city of Athens. Crowds of protesters surrounded the parliament building as Greek riot police sprayed them with tear gas. The crowd grew as the vote neared with a small number of protesters hurling stones at the police as they waved a Greek flag and chanted. Dozens of protesters and 19 police officers were injured in the melee.

The demonstrations, which were part of a two-day general strike, were expected to continue on Wednesday. Major Greek unions are planning to march Wednesday on Parliament after the vote. The strike started Tuesday, crippling much of Greece’s transportation systems, including travel by air, sea and land.

The austerity measures, which included provisions for job cuts and new taxes, were passed by a 155 to 138 vote (with two members abstaining and five voting present). The international community, including German Chancellor Angela Merkel, called the passage of the austerity package “really good news.” Other supporters of the measures conclude that changes were needed to stabilize, not only Greece’s economy, but also the euro and other global financial systems.

This is not the first time Greece has faced an economic crisis. Last year Greece was given a $156 billion bailout package as its deficit soared, but the international groups were refusing to pay any additional installments until Greece made significant cuts.

Some Americans watch the Greek riots with little interest, not realizing that this could be the future of America if drastic cuts are not made to our own entitlement programs. Social Security, Social Security Disability, Medicaid, Medicare- all of these programs are promises made by the Federal Government to its citizens. Some of these programs, like Social Security, are initially funded by workers, but the funds are drained by other social programs or to pay current retirees.

Like countries around the world, some individuals and families are also facing a financial crisis. Whether you have suffered from a severe illness, high credit card debt, bad investments, divorce or a sudden death, you may need relief from your situation.

Filing for Bankruptcy

Filing bankruptcy may not solve all of your financial problems, but it may allow you to stop a home foreclosure, property repossession, bank account levy and wage garnishments.

Bankruptcy laws are complicated and bankruptcy is a serious financial decision. Filing Chapter 7 Bankruptcy may allow you to discharge most of your unsecured debts including credit card debts and unsecured loans. Not all filers will qualify for Chapter 7 Bankruptcy. Filers who do not meet the income requirements for Chapter 7 Bankruptcy may be able to file Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy does not immediately discharge debt, but it may allow filers to create a 3 to 5 year debt repayment plan to repay their debt, often with more favorable debt repayment options.

Contact a bankruptcy lawyer today and find out if bankruptcy is right for you. Keep in mind, not all debts are discharged by filing either Chapter 7 or Chapter 13 Bankruptcy.

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Beth

Beth L. is a content writer for Better Bankruptcy. Good content and information is one of many methods we utilize to bring you the answers you need.