Ignis' Thomson: Greece default a virtual certainty

Ignis' chief economist Stuart Thomson has said it is a "virtual certainty" Greece will default despite its move to implement the latest austerity plan.

Greek ministers are poised to approve drastic austerity measures today focusing on raising taxes, in order to secure €14.09bn over the next five years and slash €14.32bn of public spending. The €28bn package is expected to be approved by the Greek parliament by a narrow margin, and should ensure the European Union releases €110bn to the country as part of its bail-out package for the cash-strapped state. However, Thomson said the austerity plans were flawed and would not solve fundamental problems in Greece. "The package is the worst of its kind, focusing on tax hikes rather than s...