Greece imposed a deeper contraction

Greece has reportedly agreed with its EU and IMF lenders, to impose deeper austerity measures and speed up the state's asset sell-offs, in exchange for fresh funds. The country has promised to privatize at least 50 billion dollars in state holdings in actual estate and corporations to help close funding gaps and meet its deficit targets. But privatization is facing strong opposition from workers in Greece.

One more day of protest in Athens, this 1 over Greek government plans to further privatise parts of the country's largest telecommunications business to a German firm.

Christos Aspridis, Employee of O.T.E. Organization said "Our greatest concern is which you can't sell an organisation which has been built by Greek citizens and is a national asset of the Greek folks. All of Greece is being sold off."

But the Greek government argues such sales are necessary as it tries to dig the country's shattered economy out of crippling levels of debt.

A fresh austerity plan is expected to be revealed on Friday.

A government official told Reuters that it's likely to include greater privatisation.

It's also expected to include nearly $10 billion in new savings, including tax rises.

Greek Prime Minister George Papandreou will present the details to Luxembourg's Jean-Claude Juncker who chairs the group of euro zone Finance Ministers.

The euro rose in the marketplace in response to the news.

Earlier German Chancellor Angela Merkel voiced her confidence within the European widespread currency during a visit to Singapore.

Angela Merkel, German Chancellor said "I would like to clearly state: we have no dilemma using the euro as such. The euro can be a stable currency. Compared to the US dollar it's strong, at times extremely strong, which does not necessarily enhance our export strength. However, we have a debt issue in some member states. Not just a debt difficulty, but also a competitiveness difficulty which will be the core issue of the debt issue."

As the austerity measures bite, many Greek unions have promised more demonstrations and more strikes.

Greece signed on to a 110 billion euro bailout from the European Union as well as the IMF last year.

It's at present in discussions to obtain the newest portion of that money, also as a second rescue package which could total a further 65 billion euros.

That's not been helped by ratings agency Moody's as soon as once more slashing Greece's rating, taking it deep into junk territory.

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