the biggest problem is that they can't afford they repayments they already owe, so how can offering them more loans help in the long run? Surely it is poring oil on the flames?
Certainly they will not get out of this hole unless the population (as opposed to the govt) actually get behind the austerity measures - which is so far out of character that it seems to me to be very unlikely to happen.
Either the Greeks pull out of the Euro (which would greatly reduce the credibility of the Euro) or the Euro will have to bail out the Greeks with a very much reduced interest rate (or better still a grant). The problem with a single currency an multiple different govt's with VERY different economic strengths is that the economies of the better govt's have to subsidise those who are not so hot, otherwise this situation arises. Basically if you want economic integration to this level you need to have far greater political unity - a united states of Europe - one VERY good reason for not being part of the Euro zone IMO!
Home
Search
Calendar
Login
Register