Financial Crisis in Greece

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  • Thorvald
    Member
    • Jan 2009
    • 145

    Financial Crisis in Greece

    The current dispute over Macedonia, says Greek sociologist Michael Kelpanides, is a convenient tool for politicians in Athens to attract voters and divert attention away from the country's real problems. Twenty-eight years after joining the EU, Greece is still the union's biggest net recipient of cash, and its national debt as a percentage of GDP is second only to Italy's. The average wage in Greece corresponds to the average wage in Poland, and when it comes to corruption and illiteracy, the Greeks are near the bottom of the heap of EU countries.

    Interesting article, please read both pages in full:

    Greece has blocked the NATO and EU ambitions of Macedonia for the past 18 years over a bizarre name dispute. The ongoing controversy threatens the very cohesion of the diminutive Balkan republic, which holds presidential elections this Sunday.


    Greece has blocked the NATO and EU ambitions of Macedonia for the past 18 years over a bizarre name dispute. The ongoing controversy threatens the very cohesion of the diminutive Balkan republic, which holds presidential elections this Sunday.
    https://germanictribes.proboards.com/
    European preservation
  • Dimko-piperkata
    Senior Member
    • Sep 2008
    • 1876

    #2
    hallo Thorvald...

    if grease recognizes the all their minorities and therefore exept the macedonian causa, that will be the begining of the end of that artificial state...btw, the splitting has already begun...

    hast du schon das buch der mazedonische knoten gelesen ?
    1) Macedonians belong to the "older" Mediterranean substratum...
    2) Macedonians are not related with geographically close Greeks, who do not belong to the "older" Mediterranenan substratum...

    Comment

    • Struja
      Member
      • Sep 2008
      • 206

      #3
      Financial Crisis in Greece

      Greece has been told to pull its socks up and sort out its problems by one of the EU's longest-serving politicians, Luxembourg's Prime Minister and chairman of the eurozone's finance ministers, Jean-Claude Juncker.

      There's been lots of speculation about the eurozone flying apart, or at least the weaker members being forced out. I am pretty certain the eurozone countries would move heaven and earth to prevent what they would regard as a political disaster.

      But the CER think-tank has come up with a fascinating report on how to create a new currency overnight, which apparently could include burning holes in euro banknotes with lasers, or stamping them to turn them into punts, drachmas, or whatever.



      If anything greece is now falling apart!

      Comment

      • Risto the Great
        Senior Member
        • Sep 2008
        • 15658

        #4
        Greece, pull your socks up .... then put your pants back on. Germany is looking for a new "boy".
        Risto the Great
        MACEDONIA:ANHEDONIA
        "Holding my breath for the revolution."

        Hey, I wrote a bestseller. Check it out: www.ren-shen.com

        Comment

        • Venom
          Member
          • Sep 2008
          • 445

          #5
          Like I said, when the weight of the so called credit crush gets too heavy for the powers like Germany and France, they will have to toss some baggage. Greece will be first out the window.
          S m r t - i l i - S l o b o d a

          Comment

          • osiris
            Senior Member
            • Sep 2008
            • 1969

            #6
            and i am sure your heart bleeds for the motherfuckers venom.

            Comment

            • Spartan
              Senior Member
              • Sep 2008
              • 1037

              #7
              Maybe not first, but second or third if it comes to that.
              No way they'll get rid of us before the Bulgars, lol

              Comment

              • Struja
                Member
                • Sep 2008
                • 206

                #8
                Originally posted by Spartan View Post
                Maybe not first, but second or third if it comes to that.
                No way they'll get rid of us before the Bulgars, lol
                just an update spartan, bulgaria isnt in the euro zone! sorry but the greeks will be the 1st to go...

                Comment

                • Daskalot
                  Senior Member
                  • Sep 2008
                  • 4345

                  #9
                  Originally posted by Struja View Post
                  just an update spartan, bulgaria isnt in the euro zone! sorry but the greeks will be the 1st to go...
                  Struja is correct, the Bulgars are not Eurofied..... but the Greeks are.... only one way.....
                  ||
                  VV






                  Macedonian Truth Organisation

                  Comment

                  • Spartan
                    Senior Member
                    • Sep 2008
                    • 1037

                    #10
                    oops
                    i thought they were in ...

                    Comment

                    • Spartan
                      Senior Member
                      • Sep 2008
                      • 1037

                      #11
                      Originally posted by Struja View Post
                      just an update spartan, bulgaria isnt in the euro zone! sorry but the greeks will be the 1st to go...
                      Originally posted by Daskalot View Post
                      Struja is correct, the Bulgars are not Eurofied..... but the Greeks are.... only one way.....
                      ||
                      VV
                      Im a bit confused here
                      This site says Bulgaria has been in the EU since 2007....
                      How Bulgaria is represented in the different EU institutions, how much money it gives and receives, its political system and trade figures.


                      Am I missing something?
                      Is it because they dont have the EURO yet?

                      Comment

                      • Struja
                        Member
                        • Sep 2008
                        • 206

                        #12
                        Originally posted by Spartan View Post
                        Im a bit confused here
                        This site says Bulgaria has been in the EU since 2007....
                        How Bulgaria is represented in the different EU institutions, how much money it gives and receives, its political system and trade figures.


                        Am I missing something?
                        Is it because they dont have the EURO yet?
                        Spartan,

                        The “euro zone” is referred to the nations that have the Euro currency.

                        Bulgaria is apart of the EU but isn’t in the euro zone.

                        Greece falsely entered the euro zone by misleading the European Central Bank (ECB), now the ECB is asking whether to keep Greece apart of the euro zone.

                        Cheers,
                        Struja..
                        Last edited by Struja; 03-29-2009, 04:41 PM.

                        Comment

                        • Spartan
                          Senior Member
                          • Sep 2008
                          • 1037

                          #13
                          Capiche paizan

                          Comment

                          • Bratot
                            Senior Member
                            • Sep 2008
                            • 2855

                            #14
                            Greece can expect no gifts from Europe

                            After Dubai, will Greece be next?

                            This question is technically a category error, since Dubai World is not a state but a state-owned company. But many investors rightly do not care about the difference. Last week investors started to fret about sovereign default in earnest. So what about Greece?

                            We were already wondering about a Greek default at the beginning of this year, when eurozone bond spreads suddenly widened. In February Peer Steinbrück, the former German finance minister, abruptly ended the speculation by saying the eurozone would act if someone got into trouble. There was no concrete action plan. No work had been done to amend European treaties. There was no budgetary appropriation. Just a sentence. Investors believed him and all was well – for a while.

                            The speculation is now back, but there is one difference. The eurozone will not come to the rescue this time, verbally or otherwise, unless Greece meets a number of conditions the European Union is likely to impose in the coming months.

                            The EU’s authorities, rightly or wrongly, are more afraid of the moral hazard of a bail-out than the possible spillover effect of a hypothetical Greek default to other eurozone countries. If faced with a choice between preserving the integrity of the stability pact and the integrity of Greece, they are currently minded to choose the former. To safeguard what is left of the stability pact, they are determined to link any help to a country’s willingness to comply. Otherwise the EU fears it might lose all leverage over budgetary processes elsewhere in the eurozone. And no country in the eurozone has flouted the pact more than Greece.

                            Here are the numbers. This year, the budget deficit will rise to 12.7 per cent of gross domestic product – and this assumes there are no further accounting tricks to be uncovered. Deutsche Bank calculated in a recent research note that the country’s public debt-to-GDP ratio is headed for 135 per cent. Gross external debt – private and public sector debt owed to foreign creditors – was 149.2 per cent at the end of last year. The real exchange rate has gone up by 17 per cent since 2006, which means the country is losing competitiveness at an incredible rate. Had Greece not been in the eurozone, it would be heading straight for default.

                            The government’s 2010 draft budget foresees a deficit reduction to about 9.1 per cent of GDP. But the number is misleading. The lion’s share of the total deficit reduction effort is earmarked to come from tax measures, and most of those from the fight against tax evasion. Tax evasion is always the item first on the list of desperate governments. The European Commission and Europe’s finance ministers, who have heard this story before, are rightly asking for genuine deficit reduction. So is George Provopoulos, the Greek central bank governor, who demanded that two-thirds of the entire deficit reduction effort should come in the form of spending cuts. If the Greek parliament confirms the government’s soft budget next month, the European Commission will almost certainly judge the effort insufficient and demand a supplementary budget. It might also ask for structural reform, including pension reform.

                            If the Greek government refused to comply, which is quite possible, the next step could be the penalty procedure under the stability pact. So instead of helping Greece, the EU might be asking Greece to pay a penalty. This in turn would aggravate Greece’s financial position in the unlikely event that the government would agree to pay it.

                            The current strategy of the EU is to raise the political pressure – perhaps even provoke a political crisis – with the strategic objective that the Greek government might eventually relent. It is a dangerous strategy that could easily backfire. Even if George Papandreou, the Greek prime minister, were sympathetic to the EU’s demand, he would face enormous political headwinds if he tried to implement draconian austerity measures. This would be the very opposite of what he promised during the recent election. The real problem is that the Greek people have not been prepared by their political leaders for what lies ahead.

                            So what happens if Greece cannot meet a payment on its bonds, or fails to roll over existing debt? About two-thirds of Greece’s public debt is held by foreigners. According to calculations from Deutsche Bank, Greece is looking to raise some €31bn ($46bn, £28bn) in new borrowing and €16bn to roll over existing debt next year. In the absence of help from the eurozone, the Greek government would have to resort to the International Monetary Fund if it were to encounter difficulties refinancing the debt. Unlike Argentina, Greece cannot devalue, and leaving the eurozone is not a realistic policy option either. Latvian-style austerity could thus come one way or the other, with or without default. But it might be politically easier for the present government to have austerity imposed on it from the outside than from the inside. This is another reason why the EU would be happy to let the IMF take a lead.

                            Just as the Greek people are unprepared for austerity, investors are unprepared for what awaits them. I would still bet that outright default is unlikely. But I wonder whether the current Greek bond spreads reflect the true risks.

                            [email protected]
                            More columns at www.ft.com/columnists/wolfgangmunchau
                            Last edited by Bratot; 11-30-2009, 03:58 PM.
                            The purpose of the media is not to make you to think that the name must be changed, but to get you into debate - what name would suit us! - Bratot

                            Comment

                            • Wanderer
                              Junior Member
                              • Nov 2009
                              • 48

                              #15
                              I dont think this can be done.You see,many countries depend on Greece's economy and something like that would be catastrophic

                              Comment

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