A world in economic crisis

A kick in the pants for Greece

Posted in European Union, Greece by Aussie on May 19, 2011

The IMF has warned Greece that its plans for budget reforms fall well short of what is required. At least the rhetoric is a good kick in the pants for the lazy Greeks.

The BBC reports:

Greece must cut its budget deficit to 7.6% of GDP this year to meet the terms of its EU and IMF bail-out.

Poul Thomsen told a conference in Athens that it would struggle to get the deficit below 10% at the moment.

Greece is attempting to raise money to pay off the debt via the sale of state assets, which includes assets such as gaming, telecoms, water management and electricity.

At the same time, it seems that the socialists in Europe continue to not understand that their solutions are a real disaster. However, there are others who have seen the light:

The EU and IMF are waiting for Greece to give further details of its plans before paying the next tranche of cash.

Mr Thomsen said: “The programme will not remain on track without a determined reinvigoration of structural reforms in the coming months.

“Unless we see this invigoration, I think the programme will run off track.”

‘Recipe for catastrophe’

There has been much response to Tuesday’s comments from the head of the eurozone finance ministers Jean-Claude Juncker, when he said that a “soft restructuring” of Greece’s debts was a possibility.

The European Central Bank’s chief economist Juergen Stark said restructuring the debt would be a “recipe for catastrophe”.


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