Greek Demonstrators Rioted Following News Of Huge Cuts
Protestors in opposition of the huge budget cuts faced in Greece set fire to a bank in which three employees were killed. The Greek demonstrators rioted following news of huge cuts to be made by the government in order for the struggling European state to pull its way out of the huge financial crisis that it finds itself in.
A deal has been put forward by both the European Union and the International Monetary Fund to offer a €100 billion rescue plan to Greece but this deal not only needs to be agreed by the 15 EU member states but also the people of Greece, who will face huge cut backs to public services and a steep rise in taxes. This uncertainty has led to the Euro performing badly at Forex markets such as Forex WebTrader.
These huge cutbacks and tax hikes have been received badly by Greek citizens, with some protestors hurling petrol bombs at police officers and also at the Marfin Bank in Athens. This is the bank where three employees lost their lives as protestors set the building ablaze.
Some of the cuts to be faced by Greece include; public sector pay being frozen until 2014, public sector salary bonuses being scrapped for higher earners and capped for others, public sector allowances to be cut by 20%, state pensions frozen or cut, VAT increased from 19% to 23% plus taxes on fuel, alcohol and tobacco up 10%.
The civil unrest in Greece which followed news of these cutbacks saw a turbulent day of trading on Wednesday for the Euro currency pairs at Forex WebTrader and many other online Forex brokers, with the Euro plummeting to $1.2803, its lowest level since March 2009.
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