No doubt, the Euro debt crisis will remain a tense topic during this week’s G8 meetings at Camp David. When the newly elected Greek Prime Minister was unable to form a coalition government, a temporary government was put in place that, according to the New York Times, is a “mix of veteran diplomats, academics, and economists.” On June 17, Greeks will vote for a new prime minister, and many are calling this more or less a referendum on whether or not to stay in the Euro Zone.

The Economist reports that a growing number of Greeks, 80%, want to stay in the euro zone. However, Greeks have protested the large increase in taxes and modest restrain in spending as conditions of the bailout.

As fears mount of a Greek exit, it becomes increasingly clear that if Greece leaves the Euro to form a new currency, it would be worth much less than the Euro. This fear has led to its citizens withdrawing money rapidly from European banks. On Monday alone over $894 million was withdrawn from Greek banks, a jump from the average of $5.1 billion per month that has flowed from the country since 2009 when the crisis began.

During the G8 summit, leaders will likely discuss the rigidity with which they will hold to the standards required of Greece for a bailout. Even Angela Merkel, who is Chancellor of Germany and been a lead negotiator in the Greek bailout is facing a tough reelection and has recently expressed increased flexibility over another stimulus. Many fear Greece leaving the Euro Zone could radically effect Spain and Italy and harm the European economy even further.BA

Bloomberg reports the House could vote as early as today on its $554 billion defense spending bill for fiscal year 2013.

House Speaker John Boehner reiterated his position that another increase in the debt ceiling must be combined with spending cuts. Roll Call has the details.

The Daily Caller reports the federal government has spent about $70 billion on “climate change activities” since 2008.

The Washington Post says Republicans want to reform the tax code next year.

The Wall Street Journal says leaders in Greece have said the country will stop paying its debts if the EU cuts off aid. The Washington Post looks at how continued strife in Europe  is affecting U.S. and world markets.

On the opinion pages: Matthew Philips argues the coming “fiscal cliff” will drive the U.S. back into recession.

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The Senate voted down five different versions of an FY 2013 budget resolution yesterday.  Politico, Roll Call, The Washington Examiner,The Washington Times have the story.

The Hill, The Washington Post report President Obama said yesterday that he wants a “clean” debt ceiling bill and will not tolerate a fight like last year’s.

The New York Times reports the number of depositors taking their funds out of Greece has increased as uncertainty about the nation’s fiscal status has also increased.

According to Reuters, the European Central Bank has stopped offering liquidity to some bank in Greece. The ECB says a lack of capital is the cause.

The Wall Street Journal reports that the Federal Reserve is wary about the economic recovery’s strength, while the Washington Post says the nation’s bank is considering new measures to stimulate growth if recovery worsens.

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According to the Economist, 63% of adults favor doing something now to address the budget deficit; 8% oppose doing something now; and 29% neither favor nor oppose.

According to Resurgent Republic, when asked how much of federal government spending is wasted, 4% of registered voters say less than 5%; 7% say between 6% and 10%; 16% say 11%-20%; 18% say between 21%-30%; 14% say between 31% and 40%; 11% say between 41% and 50%; and 22% say more than 50%.

According to Rasmussen, 61% of adults believe cuts in government spending would do more to improve the economic and financial situation in France and Greece than increases. 20% thought more government spending is the better way to go.

According to the Peter G. Peterson Foundation, 90% of registered voters agree the current tax system is unfair and too complex and needs to be reformed. 9% disagree.

According to Resurgent Republic, when given two choices, 64% of registered voters say if the federal government were to raise taxes the new revenue would go to increased spending. 28% think the revenues would go to reducing the budget deficit.

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The Washington Post says businesses are getting nervous about impending tax increases.

The Washington Free Beacon reports money from the 2009 stimulus went to study erectile dysfunction.

According to The Hill, Politico and Roll Call, the bill to reauthorize the Export-Import Bank is moving forward.

The New York Times and The Washington Post looks at how the crisis in Greece is affecting the European and world economy.

On the opinion pages: The Wall Street Journal looks at underfunded private pension systems.

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The Associated Press and Reuters report House lawmakers are poised to increase Defense Department spending while The Associated Press says the Senate majority leader supports going ahead with the automatic defense cuts set out in last year’s budget deal. Meanwhile, according to Reuters, President Obama will veto any attempt to stop defense spending cuts.

The Hill says the State Department wants more foreign aid for Arab countries.

CNN looks at the upcoming battle over extending tax cuts on investment income.

The Washington Post reports Fannie Mae, one of the two housing giants under federal conservatorship, posted a profit in the first quarter.

Europe’s debt problems continue: Bloomberg reports China has stopped buyomg some European debt; The New York Times looks at the debt crisis in Greece; and, according to The Washington Post, EU leaders may be willing to relax some of the debt deadlines it has imposed on Greece.

The Chicago Tribune says foreign investment in the U.S. is faltering.

On the opinion pages: Robert Barro argues Europe should stick with budget cutting while George Will looks at the consequences of high taxation.

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Starting with spending that outpaced revenue to create massive deficits and add to their national debt, Greece guaranteed that curbing spending would be a difficult road. It was not until late in 2011 that Greece and the rest of the world realized what was at stake when a national debt could compromise the borrowing ability of a country. Until this point there was very little discussion that Greece, or the United States, would not be able to continue to borrow while pushing debt further and further into the future. Not anymore.

With their debt at 160 percent of their economy, Greece was close to a default of its debt, putting the country’s financial system and the euro in jeopardy. Thus, the international community stepped in to provide a series of bailouts that were meant to relieve Greece’s financial strains, but at a cost. In order to meet the demands of the bailouts, Greece was required to restructure its debt, make significant tax increases and cut public salaries, jobs, and pensions, and put the country on the path to reduce its national debt to a sustainable level.

Unfortunately, short term promises or “pro-growth” spending sound better than cutting spending to an electorate. The main difference between Greece’s curb of spending and the one taking place here in the US, that most seem to miss, is that Greece’s cuts were forced by external politicians and bureaucrats that had nothing to do with the populace’s desire to maintain a stable financial system. They were a condition for the country to receive the needed funds to avoid a default on their debt, and have been considered a burden by Greeks since they were passed. Here at home, the majority of Americans want Congress to cut spending.

The sad part is, it was not the spending cuts that pushed Greece into a recession with 21.8 percent unemployment. It was the reckless and careless spending by its leaders that pushed the country to default, prompting a correction by Germany and the EU to keep the country from defaulting, a fate much worse than curbed spending and reduced entitlements.

But, if the Greek people would like to take a look at their future with short term “pro-growth” spending, they need look no further than right here in the United States. Here in the U.S. we have been using “pro-growth” spending in the form of bailouts and short-term patches. While we have yet to default, all we have to show for that spending is a slow and anemic recovery that has not come close to expectations and is pushing our country into trillion dollar deficits each year. Instead of us learning a lesson from Greece, Greece could learn a less from us.BA

MSNBC looks at the proposed growth of Medicare spending under President Obama and Rep. Paul Ryan’s separate budget plans.

According to The New York Times, President Obama will hand Congress an economic “to do” list later today.

The Hill reports Republicans are moving ahead with budget cuts. With one exception, it appears - The Washington Post says Republicans want to increase defense spending. Politico also says Republicans want to shield defense spending from cuts. Politico also looks at individual lawmakers’ defending home state military spending.

According to The Hill, negotiators working on the bill are pessimistic they will agree on a long-term plan to reauthorize highway spending.

The New York Times examines one city’s effort to cut spending.

The Washington Post says, with the new government in Greece, there is another chance the country won’t meet its deficit reduction targets and will be kicked off the Euro. The New York Times has more on Greece.

On the opinion pages: The Wall Street Journal says the House should vote against reauthorizing the Export-Import Bank while Ken Kamen takes a look at what Congress might get done in a lame duck session.

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Meanwhile in Greece the Nationalist and Paosk parties failed to garner enough votes to form a coalition, making the future of recently passed austerity measures uncertain. Greece’s ability to avoid default rests upon the measures and the second round of bailouts. Should Greece default or attempt to renegotiate the contact that put the measures into place, its place in the Euro-Zone may be threatened according to Michala Marcussen, global head of economics at Societe Generale SA in Paris, stating, “Failure to secure a political majority to meet the terms of the second Greek program could see the country inch toward euro exit.”

From start to finish the policies of spending, putting off deficit reduction, and kicking the can down the road have created enormous fiscal troubles in Europe. Unfortunately, short term promises of pro-growth and government aide can sound good when unemployment is above 20%. But, one thing is clear though, if Greece’s austerity measures are not maintained, its debt and deficit’s will push it closer to default, making the country’s fiscal future, and the Euro-zone’s, even more uncertain.BA

The Hill outlines the cuts House appropriators would like to make to labor, health care and foreign aid spending.

Politico and The Washington Post report that the Senate has passed new rules for the General Services Administration, including a rule that no conference cost more than $500,000.

According to Politico, senators are delaying work on a new farm bill. The Hill reports that CBO believes the bill “falls short” of reformers’ goals anyway.

The Associated Press says Democrats are considering new taxes on privately-held corporations.

The Daily Caller reports on new regulations on children working on their families’ farms.

On the opinion pages: Andrew Biggs argues a cut in the payroll tax for Americans nearing retirement age could help shore up Social Security while Wayne Allyn Root says Spain is the new Greece.

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