Greece claims it wont default on its debt

Bill Spartin
January 28th 2011
2:32 AM


Prime Minister George Papandreou said in a recent press release that Greece will not default on its loans, despite deep public spending cuts that triggered waves of protests last year.  He states that it is not official or "on the books" but they are talking about other measures they can put into place.  They believe that these measures are enough to make things within the country sustainable.  Last year, trouble in greece sparked waves of panic regarding debt payment all across Europe, especially in countries such as Ireland, Spain, and Portugal.  This wide spread panic was the reason for the drop in price of the Euro.  A poll released earlier this week showed that 59% believed at least one or two countries will drop the Euro, three fourths of those polled also believed Greece would default on its loans.  Papandreou firmly believes that Greece will not default on its loans or drop the Euro as its monetary system.  Papandreou's sentiments were echoed by French President Nicolas Sarkozy who stated "We will never abandon the euro. Never! Euro spells Europe, the euro is Europe. Europe has meant 60 years of peace on our continent. We will never abandon that."  The problem with the Euro and the current economic bailout of Greece is the burden placed on larger countries by smaller ones such as Greece.