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Greece struggles to form government, unsure about reform

2012-05-11 16:03

 

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Greece struggles to form government, unsure about reform

This is the VOA Special English Economics Report.

The Olympic flame was lit in Greece Thursday.

(SOUND)

The ceremony marked the beginning of a long trip through Greece and Britain, which holds the Summer Olympics this year.

Greece has been at the center of a political and economic struggle that threatens many of Europe's economies. It remains unclear if Greece will continue using the euro or if its Eurozone partners can enact reforms needed to hold the currency group together.

On the day the Olympic flame was lit, Greek Socialist leader Evangelos Venizelos began an attempt to form a new government. It marked the third attempt to form a government this week after parliamentary elections last Sunday.

First, the conservative New Democracy party attempted and failed. Then the leader of the leftist Syriza coalition, Alexis Tsipras, also failed. He said that the election results showed the Greek people had rejected deep budget cuts required by international creditors.

Mr. Venizelos heads the PASOK party, which took third place in the elections. Experts have questioned whether he can form a government. That means the Greek President may ask parties to form an emergency coalition. If that does not work, new elections could be called.

But for Greece, that could mean pain from its Eurozone creditors. They could deny future payments from the financial rescue plan agreed to in February. The agreement is worth about 170 billion dollars in loans and cancelled debt. The rescue is the second and largest for Greece since its debt crisis began in 2009.

On Thursday, Euro-area governments released 5,500 million dollar loan to Greece. But Greek officials were reportedly unhappy that over one billion dollars was withheld. The failed efforts to form a government have raised concern that reforms can work in Greece. The country is now in its fifth year of recession.

German Chancellor Angela Merkel spoke to parliament in Berlin Thursday. The leader of Europe's biggest economy said borrowing to get growth would be a step backward.

ANGELA MERKEL (Translation): "Growth through structural reform is important and necessary. Growth through debt would throw us back to the beginning of the crisis."

And that's the VOA Special English Economics Report. For transcripts, MP3s and now PDFs of our programs for e-readers, go to voaspecialenglish. And follow us on Facebook, YouTube and iTunes at VOA Learning English. I'm Mario Ritter.

Related stories:

Flame for London Games lit in Greece

Greeks clean up after riots against austerity vote

Europe and the debt crisis in Greece

Greek protests intensify

(來(lái)源:VOA 編輯:旭燕)

 
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