Euro rises as Greece announces fresh measures

The euro has risen against the dollar today after the Greek government revealed fresh austerity measures to combat their level of debt.

Amid continued concerns over Greece's debt crisis, Tuesday had seen the euro fall to its lowest level against the dollar for 10 months, but today the euro has risen again after the Greek government approved 4.8 billion euros of austerity measures.

The hope is that the new proposals will help to convince financial markets that the struggling nation can pay off its debts and persuade European leaders that it is doing enough to overcome its debt woes.

In fact, according to BBC reports today, Greece officials have now pledged to reduce its deficit from 12.7 percent - a total that is as much as four times more than eurozone rules - to 8.7 percent during 2010.

The new measures that have been announced by Greece's Prime Minister George Papandreou today, include raising VAT to 21 percent from the current rate of 19 percent, and cutting civil servant bonus payments during holidays by 30 percent - which has annoyed union leaders.

Assistance

What's more, the austerity measures proposed so far - such as freezing public sector pay, raising taxes and changing the pension system - have already provoked huge street protests.

Meanwhile, Papandreou is due to visit German Chancellor Angela Merkel in Berlin on Friday, in what could be a key meeting to decide what, if any, European assistance Greece will now receive.

Matthew Buttell

Matt Buttell graduated from Bath Spa University in 2006. Since then he has written for several publications, before moving to the web. He now writes solely for the internet, continuing to cover key business issues while managing his own personal blog.

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