Germany to consider assistance to Greece out of Euro or 10-week losing streak shadow.

<P> Debt problems of countries such as Greece, tailored to the EU special summit in Brussels today kicked off. .Before the meeting, has reported two good news: on the one hand, self-help measures will be implemented in Greece, the government announced that it will implement a 9, a major reform of the tax system, wants to reduce the budget deficit; the other hand, there is news 10 ., Germany and the euro area the government has agreed in principle to the Greek rescue. .Always seems to be rather pessimistic, "Dr. Doom" Roubini on the intention of other European countries, expressed appreciation for the rescue, in his view, the European officials to consider to help Greece out of the woods is "a step in the right direction." .</ P> <P> the support of the good news, the 10 euro extended gains the day before; 9, the euro rose was hovering around 1%. .Analysts believe that if Greece were rescued, the euro rebounded from the lows for months, Citigroup believes that the euro's decline to 10-week losing streak come to an end. .</ P> <P> Greece announced a major reform of the tax system </ P> <P> end of last year, three international rating agencies have lowered the Greek sovereign credit ratings. .Since then, the Standard & Poor's sovereign credit rating outlook to Spain, down to "negative", Ireland, Portugal also received lower ratings or were the warning. .Another rating agency Moody's by the "slow death" to describe the economic outlook for Portugal and Greece. .In all walks of life whether you want to Greece, the euro-zone countries in trouble when you come to the rescue argue, first to the Greek government has begun to help themselves. .9, the Greek government announced a tough high-profile tax reform, trying to take advantage of the name of broadening the tax reduce the budget deficit. .</ P> <P> tax reform, aimed primarily at high-income groups, low-income people have little effect. .Under the new tax system, the maximum threshold of 40% tax rate will be reduced to € 75,000 € 60,000; dividend tax from 10% to 40%; providing employment is expected to decline in corporate tax, corporate tax rate will gradually drop from 25% .20%. .</ P> <P> Greek Finance Minister George Papa Constantine the day, said the reform of the tax increase of 1.1 billion euros. .He also said the market had a positive response to tax reform and non-salary decisions. .In addition to the tax reform policy, the Government last week announced an immediate hike in fuel tax, this tax year can bring the country about 934 million euros in revenue. .Earlier, European Commission, the Greek government has submitted a plan to cut the deficit in the country: the Greek budget deficit in 2012 gross domestic product (GDP) will increase from 12.7% in 2009 to 3%. .</ P> <P> normally holds four times the EU summit, the first annual summit was held in March, usually around economic issues. .Alleged that the emergency meeting may focus on the recent increase in Greece owned by the debt crisis. .European Central Bank President Jean-Claude Trichet will also be premature end of their trip in Sydney, returned to Brussels to attend the special summit of EU 11. .</ P> <P> rumors boost the confidence of the German rescue </ P> <P> 10, according to The Wall Street Journal quoted people familiar with the case said, Germany is considered along with the EU Member States to Greece and other eurozone members of the troubled .States loan guarantee program and hoped to dispel the market potential of these countries, debt default fears. .</ P> <P> reported that German Finance Minister Wolfgang Schäuble has recently with the European Central Bank President Jean-Claude Trichet exchange of views on this idea. .Observers pointed out that once the euro reached an agreement on assistance to Greece, it will be the euro since the advent of the euro area member states for the first time in 11 years to accept other members of rescue. .</ P> <P> 10, citing people familiar with Reuters as saying that Germany is currently considering several options, and did not decide which option chosen, but most likely is Greece "bilateral aid", that is provided directly by the German .payments, paid or unpaid, technology, equipment, supplies, etc., to help develop the economy of Greece, or through temporary difficult period. .In addition, European governments have agreed in principle to help Greece. .</ P> <P> analysts believe that given these words is by far the strongest rescue signal, suggesting that economic power in Germany, the EU may be ready to intervene to curb the euro's debt crisis. .</ P> <P> Although the market or get help on the Greek increasingly strong expectations, but the German government spokesman Weier Mu 10, carefully denied. .He said the assistance has been made in Germany reported that the resolution was "baseless." .</ P> <P> However, the German rescue of the talk will still Greece lifted the market. .9, the financial market risk appetite, the dollar and the yen and other safe-haven currency down, it also makes test a low days of the euro edged up, or was hovering around 1%. .10, the European currency, the euro continued to rise, but gains have narrowed the previous day. .As at Beijing at 19:46 on the 10th, the euro-dollar exchange rate reported $ 1.3790, up 0.11%. .</ P> <P> "If they do to help Greece, which will help the euro rebounded from the lows for months." Tan Pasi senior vice president of Advisory Capital Markets Caravaggio Gesar Gray said. .10, while Citigroup recommended investors buy the euro at around $ 1.3737, the Group believes that the trend of the euro fell 10 weeks may have ended. .</ P> <P> "Dr Doom", said the rescue was the right choice </ P> <P> 10 days, that is, the day before the EU summit, Greece within Europe on how to deal with the issue of debt crisis, serious differences .. .In the United Kingdom and Sweden, led by non-euro area countries, with Germany, France and other euro-zone different positions. .Britain, Sweden and other countries claim that if Greece to seek help, the International Monetary Fund (IMF) is the most suitable body to provide assistance, rather than the euro area member states themselves. .What it means to save Greece needs IMF to foot the bill, rather than the euro area member states out of their pocket. .</ P> <P> but known as "Dr. Doom" Roubini said the U.S. economist, 9, said European officials consider the relief of Greece is "a step in the right direction." .However, he also said the loan from the IMF is more beneficial in the long run. .</ P> <P> Roubini said the problem in Greece is only "the tip of the iceberg", the same high level of fiscal deficit and the weakening of external competitiveness, but also Spain and Portugal, and to some extent also includes Ireland and Italy. .Roubini said: "The problem of sovereign risk in the next few years will become a critical issue, the issue will not only Greece and the euro zone." </ P> <P> and share the same view also Roubini .with the EU Economic and Monetary Affairs Commissioner Joaquin Almunia, who also made the Greek words are the expected warming rescue. .He called on European leaders on Thursday a special summit to reach a consensus on aid Greece in exchange for the Greek radical fiscal reform. .</ P>.