Euro Bailout Eurocrats Greece

MORE ON GREEK DEBT: EUROPE IS VERY VERY WORRIED…….

Better put, the Eurocrats are very very worried, and they should be, their prize political ‘leviathan’ of a non-democratic union hangs in the balance. KGS

Pressure for Deal at Thursday Summit

Berlin Working on Plans for Greek Debt Cut

The leaders of the euro zone are becoming convinced that the only way to save Greece is to restructure its growing mountain of debt. The only remaining question is how. The German Finance Ministry is analyzing a number of options, including the EU rescue fund purchasing Greek debt. The appeal was a dramatic one, but the situation warranted it. “The current mood is not helping us pull ourselves out of the crisis,” Greek Prime Minister Giorgios Papandreou said in an interview with the Financial Times Deutschland published last Thursday “This insecurity frightens off investors.”

Papandreou is undoubtedly right. As his country stands dangerously close to national bankruptcy, finance ministers from the 17 euro-zone countries remain divided on how to organize a second bailout package for Greece. Still, last Monday, they at least agreed on one thing: that, so far, all rescue efforts aimed at buying Greece some time to gain some control over its debt problems had failed. Indeed, Greece’s economy is on the verge of collapse, and its skyrocketing debt level has now reached 150 percent of GDP.

More here.

3 Responses

  1. I read recently that 25% of Greek employees are public servants.

    That means that 75% of the taxes paid by non-public servants in Greece goes to supporting public servants.

    It seems reasonable to assume that the bigger the percentage of workers in the public sector, the higher the level of stress being placed on the overall economy.

    Public servants tend to resist every effort to streamline the services they provide, and scream abuse at any government that attempts to reign in the ballooning costs they incur.

    I have some work related experience in dealing with public servants – many of them do not live in the real world, go on leave for trivial reasons that would not be tolerated in the private sector, and have an overdeveloped sense of entitlement.

    1. Everything you say is true, this is Europe’s waterloo, just wait and see.

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