Over the weekend we have seen violent protests in Greece as the Greek parliment passed the necessary austerity measures that will allow them to receive €130 billion in bailout funds. Despite this meaning the debt laden country should now be able to avoid default the public made it very clear that they believe they are now having to sacrifice more than the bailout is worth. The protests illustrate that the public could be in favour of defaulting and leaving the Euro rather than have to put up with the severe austerity measures.

The measures passed by the Greek coalition government include:

  • 15,000 public sector job cuts
  • A reduction in the minimum wage by 20%
  • Liberalisation of labour laws

While the country was striking Greek PM Lucaas Papademos was asking for calm and told the country that this package would “set the foundations for the reform and recovery of the economy” only time will tell whether this is correct.

In the currency markets it is still unclear as to how this announcement will effect the exchange rates, some are suggesting that this could help Greece back onto the road to recovery and therefore will instill confidence in the Eurozone and strengthen the Euro, while others suggest that Greece are in so much trouble that this bailout is just more money to help a lost cause and therefore we are likely to see Sterling strength against the Euro. If you need to make a money transfer or are looking to buy Euros then speak to one of our experienced currency brokers today so they can discuss all the options available to you. In these uncertain times it is important to make as an informed decision as possible and at Foreign Currency Direct we can offer our clients a number of different options we can tailor to suit your specific requirements so call us today on 0800 328 5884 or email info@currencies.co.uk