Greece and Euro Zone debt have been in almost all media lately. On Monday, February 20, 2012, the Euro Zone finance ministers are getting together to decide whether to approve a second aid package to Greece which will be around 130 billion euros ($172 billion) since some austerity measures outlined by the Euro Zone have been adopted by Greece. Greeks were once again on the street revolting against recent additional spending and budget cuts and higher taxes imposed by its government.
Germany is working hard to keep the Euro Zone together by heavily subsidizing Euro Zone nations in trouble including Greece, Portugal, and Spain. The latest proposal to provide additional funds to Greece will enable it to pay bond redemptions due on March 20, 2012 but may not be enough to prevent Greece defaulting on loans.
Euro Zone is not the only supporter of Greece. The International Monetary Fund is also assisting Greece to address its immediate fiscal issues.
Greek election may come as soon as April 2012. Some say that Greece’s agreement to additional austerity measures may not survive beyond the next election. It may mean that Greece may even consider exiting Euro Zone and defaulting on Euro Zone as well as private lenders.