A world in economic crisis

Greece gets downgraded to a CCC credit rating and their unions go on strike

Posted in Greece by Aussie on June 15, 2011

Greece is a financial mess, and there does not seem to be a real willingness to deal with the problem. The Marxist Papandreau has to introduce austerity measures that will no doubt hurt a lot but it is necessary if Greece is to avoid total bankruptcy. Greece is in this mess because of all of their double dealing they did to get into the Euro zone, as well as the ridiculous welfare measures that exist in that country. They have to face the fact that a retirement age of 45 is contributing to the killing of the Greek economy.

Instead of dealing with the mess, the unions are preparing for yet another general strike. It seems that they do not comprehend that general strikes make matters worse, not better. The BBC reports the following:

Activists and unionists plan to gather at Syntagma Square on the front steps of the assembly in central Athens on Wednesday.

Mr Papandreou faces the risk of a backbench revolt over the plans.

One MP defected from Mr Papandreou’s PASOK party defected on Tuesday, leaving it with only 155 of the chamber’s 300 seats.

“You have to be as cruel as a tiger to vote for these measures. I am not,” George Lianis, a former sports minister, said in a letter to parliament’s speaker announcing his departure from the parliamentary group.

At least one other Socialist MP has threatened to vote against the new programme of cuts and privatisation of state assets.

The government has appealed for consensus over its proposals, which would see 6.5bn euros (£5.7bn; $9.4bn) worth of tax rises and spending cuts this year.

“Every Greek, particularly the new generation, demands that we fight the battle with all our power, a battle to avoid a disastrous bankruptcy which will undermine the future of the country,” government spokesman George Petalotis told reporters.

“We are fighting the battle to serve the common good, in the most crucial moment in the country’s modern democracy.”

The EU and IMF is demanding the measures in return for the release of another 12bn euros in aid next month which Athens needs to pay off maturing debt.

The welfare state in Greece is contributing to this situation. There is no way that any state can survive when a majority of the population is on welfare, and it is left to the minority to pay the taxes to keep the majority on welfare. It is not just the native Greeks who are at fault, it is also the migrants from Middle Eastern countries who have flocked into Greece and who have helped to overwhelm the system.

This is a case of where the State must get rid of those enterprises that do not need to be state run, because these are costing money. Greece needs to return to being a free market economy, and it needs to learn to be entrepreneurial.  Greece also needs to become a producer of goods, rather than a “taker”. There are plenty of things that can be made, especially things like cotton, that can be exported to overseas countries.

Greece needs to offload the Socialists and they need to boot the Anarchists in the backside, telling them to go get a job and stop being spongers on society!!!!


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