According to a report in the Associated Press this morning, The Fitch ratings agency says it has downgraded Greece further into junk status, from ‘CCC’ to ‘C’ following the announcement of the details of the country’s debt swap deal with private creditors. What does this mean in in “English”,  The agency said Wednesday the downgrade indicated “that default is highly likely in the near term.”

The AP went on to say, that the new austerity measures demanded by creditors in return for the rescue loans follow two years of deepening misery, with the Greek economy in free fall and unemployment at a record high.  Angry unions have called two separate protest rallies outside Parliament in the afternoon.  One is scheduled for 4:00 p.m. outside Parliament and a second by Communist supporters will hold a separate march an hour later.  Other supporters are planning a motorcycle rally in Athens.

Demonstrations were planned and executed around the world this past weekend as a show of solidarity with Greece.  There seems to be a global consensus forming that the austerity measures are going too far in Greece, especially on the working class.    Greece and other countries are receiving hundreds of billions in Support, but to what avail?

Countries like Greece need to have their tourism infrastructure further developed, which will bring about economic activity, growth and prosperity.  More austerity means more pain with no gain for now.  The only saving grace from a tourism perspective is that the prices of tourism services on the Greek Islands will continue to fall, and the hope is more will come to experience the amazing Greek Islands this summer.   Economic Activity and Growth is needed, not austerity and starvation.

click here to read a Great Editorial from the New York Times on the European Economic Situation