The International Monetary Funds (IMF) has issued a stark warning that the Greek economy will never recover unless a proportion of its debt is written off. The warning comes as a divided Greek parliament prepares to vote on a new bailout package demanded by their European leaders. In a leaked report the IMF confirmed Greece’s debts will remain unsustainable even if the government votes for another bailout.
Greek Prime Minister, Alexis Tsipras, is struggling to persuade his party to vote for further austerity measures. If the Greek parliament rejects the latest bailout proposals the country runs the risk of being forced out of the euro and their banks collapsing.
In a television interview the Greek premier said he did not believe in the new bailout deal but was willing to implement further measures to avoid an economic collapse. More worrying for democracy Tsipras said countries which accept a bailout deal might as well stop holding elections and hand over their sovereignty to their European creditors. Greece’s Energy Minister went further and called the proposals the actions of “economic murderers” intent on destroying the Greek people.
Despite the uncertainty surrounding today’s vote the gold price has fallen over 1% in the last 24 hours. Gold is currently trading at £738.04 per ounce, silver £9.80 per ounce, platinum £656.48 per ounce and palladium £417.84 per ounce.