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Greece is entangled in a life-and-death struggle to avoid bankruptcy caused by crippling debt. Greek Prime Minister George Papandreou announced on March 2 that Greece’s debit is now over US$400 billion – a staggering 125% of Greece’s gross domestic product (GDP).

Papandreou is under pressure to introduce austerity programs to show potential creditors that Greece is serious about getting its financial house in order. For example, Papandreou’s government may impose higher tariff duties on imported alcohol, tobacco, luxury goods and fuel. This would both generate revenue and reduce Greece's trade deficit.

The Greek Prime Minister is visiting Germany on Friday, March 5 to ask other European Union leaders for financial aid.

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