This is part of a series of blog postings from Europe at a critical time by peregrinating Ben Warwick, regular blogger for AdvisorOne and contributor to Investment Advisor. Ben is an investment advisor and author of the Searching for Alpha monthly newsletter.
By the end of June, the Greek government is supposed to specify a further round of budget cuts, worth roughly 5.5% of GDP. These are to occur in two tranches—the first in 2013, the second a year later. This is necessary to fulfill the requirements of the roughly $250 billion bailout package from the IMF. Angela Merkel, Germany’s chancellor, is talking a tough game, saying that the cuts are necessary to keep Greece in the common currency.
There is hardly a consensus within the troubled country’s borders. Presently, there isn’t even a Greek government. Although two-thirds of Greek voters want to stay in the euro, about the same number refuse to accept further austerity.