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This plans doubles the interest rate for Greece debt owed to French and German banks under a French banking proposal. Sharp spending cuts and tax increases face opposition inside Greece and their negative impact on economic growth may leave Greece with a much larger debt to GDP ratio in 2011 than in 2010.
Greece and the euro: The abuses of austerity
Economist 07/02/2011
Move Buys Time for Greece, But Growing Debt Looms
Wall Street Journal 07/01/2011
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