The Prime Minister of Greece, George Papandreou, has asked the United States to weigh down on the financial speculators that he believes are adding to his country’s financial woes.
Prime Minister Papandreou feels that the hedge funders and traders are only making matters worse and he wants the US to hear his plight. His claims come prior to his meeting with President Obama.
With Greece in a dire financial situation and in the midst of austerity procedures President Papandreou said: “Unprincipled speculators are making billions every day by betting on a Greek default. That is why Europe and America must say 'enough is enough' to those speculators who only place value on immediate returns, with utter disregard for the consequences on the larger economic system - not to mention the human consequences of lost jobs, foreclosed homes, and decimated pensions”.
On Monday he met with Hillary Clinton, the US Secretary of State. Ms Clinton said that the “unregulated financial market that globally moves money at the speed of sound, if not light, leaves in its wake all kinds of consequences that governments have to contend with”.
Over in Germany Angela Merkel, Germany’s Chancellor, said that a decision to impose harsher rules on the speculators was a matter to be dealt with by the European Commission. Ms Merkel also offered praise for Greece’s steps into austerity: “Greece has won some trust back through the steps taken by its government”, she said from Luxembourg on Tuesday.
Greece’s mounting debt problem has left it seeking to borrow money via other EU states, with those countries essentially acting as guarantors. This will lead to lower interest costs for the Greek state.