Greece Gets 2 More Years To Figure Out Its Deficit Problem

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This Morning European fiance ministers gave Greece two more years to deal with it's budget deficit and you should take this free binary options signal NOW. This morning's meetings prevented another flareup in the debt crisis that has been going on for the last 3 years in Greece.Greece needs to cut the deficit by 2%, but this is very difficult when your citizens don't want to pay higher taxes.

Creditors this morning agreed to continue to finance Greece as the crisis drags on. "Greece has done a big part of what it was supposed to do, adopted an ambitious reform program and a budget for 2013 that's impressive," Luxembourg Prime Minister Jean-Claude Juncker told reporters in Brussels late yesterday.This morning we have seen the EURO slip to a two month low against the dollar all the way down to $1.2681. Remember, still questions go unanswered as to how the bigger European governments and the IMF will continue to keep Greece going without putting more money in.

This decision today to give extra time and money to Greece was triggered by the Greek Government promising to cut it's deficit to 2 percent of the GDP. The main issue that most European Governments are worried about right now is if the IMF will help to pitch in. If the IMF turns around and tells the EU that it won't help with Greece, than the European Union will have a major problem on its hand.

We still need to remember as traders that the European Union has three other countries in Ireland, Portugal and Spain that have needed international aid in the past. For right now these three countries are doing much better and probably will not need extra cash to stay alive. "The key risks concern the overall policy implementation, given that the coalition supporting the government appears fragile and some components of the program face political resistance, despite the determination of the government," said the report by the "troika" made up of the European Commission, European Central Bank and IMF.

In the mean time, while the Greeks are celebrating because they have escaped a default that was set to happen on November 16th,when 5 billion euros in treasury bills come due. Greek banks will be able to roll over their bill holdings, saving the country from default and the European Union from collapse. Greece sold 4 billion euros of bills today that will help the economy.

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