IMF Terms for the Bailout

Greece has come to an agreement with the International monetary Fund to take on a new austerity plan in order to obtain financial assistance. This new austerity measure is expected to yield 23 billion Euro in pension overhauls, wage cuts, the abolition of bonuses paid civil servants and tax raises.

The cut of bonuses is estimated to produce 1.4 billion Euro, while the tax is expected to raise from 21-23%. Greek labor Unions responded to previous Austerity measures with violent strikes in Athens. Prime Minister George Papandreou met with the heads of business and labor groups to gain support for the measures, but they still believe they are unfair. The unions are planning a 24 hour nationwide strike for Wednesday.

Though the conditions are harsh this is seen as Greece's only way out. A Greek official told the Wall Street Journal, "This is the way the IMF works--if you want the money, you go by their terms."