Shopkeeper pricing stock
Media playback is unsupported on your device

Greek austerity taking heavy toll on private business

Fears swept European markets on Thursday that Greece will soon have no option but to default on its debts.

The head of the eurozone finance ministers, Jean Claude Juncker, rattled nerves by warning Greece might not be solvent enough to qualify for the next slice of IMF aid due next month.

Greece's government is trying to push through another wave of austerity measures to satisfy the terms of its bailout.

But the effect of existing spending cuts, tax rises and job losses is taking a heavy toll on Greeks and could prove more devastating.

Nigel Cassidy reports from Athens.

  • 27 May 2011
Go to next video: Greece told to sell more assets