Financial Crisis in Greece

[Soldier of Macedon]

Good on the Slovaci.

As a Macedonian, my concern with the recognition of Kosovo as a 'state' rests not with Serbian sentiments, but with separatist extremists who want to replicate the Kosovo 'project' in Macedonia. It has set a dangerous precedent in the Balkans.

[Coolski]

It is fantastic to see such boldness. It's a pity it took them until after entering the EU and Eurozone to realise what they got themselves into.

[Bill77]

It will be interesting to see the reactions of the head honcho's such as the Germans and the Frogs.

[fyrOM]

Bad News for Greece: Economy Shrinks Further...

http://macedoniaonline.eu/content/view/16245/46/

Thursday, 12 August 2010
The Greek economy shrank by a further 1.5% in the second quarter of the year, Greece's statistics agency has said.

That adds to 0.8% decline in GDP recorded for the first three months of the year, suggesting that the decline in the economy is speeding up, BBC reports.

Greece's GDP has fallen 3.5% since this time last year.

The country has been forced to bring in severe public spending cuts since it sparked a Europe-wide debt crisis earlier this year.

Greece's statistics agency Elstat said the "significant reduction" in public spending had contributed to the deepening of the country's recession.

Economists said they were not surprised by figures, and blamed the "uncertainty" surrounding the government's austerity measures for the falls in GDP.

"Economic activity seems to be declining at an accelerated pace due to high uncertainty and the gradual implementation of austerity measures," observed Nikos Magginas, senior economist at the National Bank of Greece.

The total decline in GDP during 2010 is forecast to hit 4%, according to the European Union and the International Monetary Fund.

A raft of austerity measures has been announced by Greece since December last year.

They include a pay freeze for public sector workers and reform to the tax and pensions systems.

[Mikail]

I can confirm he economy in Greece is very bad. Businesses in Lerin are facing closure as cash strapped families are choosing to go to Bitola to do their shopping and fill their cars up with Petrol.

The price of fuel within Greece is at approx. euro1.75 per litre and is looking like hitting he euro2.00 litre very soon.

It's not like our people haven't paid enough over the years to a corrupt Albanian backed Athenian government, they are now expected to pay even more.

It's good to see Lerinci are supporting Bitola now and are getting more in touch with who they really are.

A shame that Macedonian business owners in the area have to suffer and face bankruptcy while the criminals who embezzled billions of euro are allowed to roam free.

Greek news reports they know who these people are and Athens says they can do nothing about getting the money back.

[Bill77]

It's good to see Lerinci are supporting Bitola now and are getting more in touch with who they really are.

Sega muzika treba da jachi so cel glas po korzo (Shirok sokak) i po pazaro so pesmi "kade sve Makedoncina" za da se razbudat.

ako ne se za zalat i ne pulime solzi,

setne klocite po gas i nazat.



By the way, welcome back Mik.

[Prolet]

Bill, Eve ti ja pesnata za merak

1.75 euro a liter petrol my god what a rip off, thats like $2.50 imagine filling up a truck or a bus you'd go bankrupt.

I guess its only 20km away from Bitola and Lerin its not far at all, Dandenong is further away for us.

Mikail, Whats the feeling like in Egejska Makedonija? Surly our people there are doing it very tough, food prices are rising through the roof. We still have the cheapest tobacco though.

YouTube - Kade ste Makedoncinja

[Currency Trader]

Spiegel: "Tensions Rise in Greece as Austerity Measures Backfire"

08/18/2010

Entering a Death Spiral?

Tensions Rise in Greece as Austerity Measures Backfire
By Corinna Jessen in Athens

The entire country is in the grip of a depression. Everything seems to be going downhill. The spiral is continuing unabated, and there is no clear way out. The worse part, however, is the fact that hardly anyone still hopes that things will improve one day.

Menelaos Givalos, a professor of political science at Athens University, has appeared on television, warning viewers that the worst times are still to come. He predicts a large wave of layoffs starting in September, with "extreme social consequences."

http://www.spiegel.de/international/europe/0,1518,712511,00.html

[makedonche]

I'm starting to believe in Karma more & more!

[Frank]

And our Country is in negoation with this lot in thier position

[Onur]

The article mentions about the upcoming difficulties of 2011 but for Greece, 2012 is the key, because thats when they will start to pay back most of their 600 million Euro debt.

"If you take away my family's bread, I'll take you down -- the government needs to know that," Meletis says. "And don't call us anarchists if that happens! We're heads of our families and we're desperate."

He predicts the situation will only become more heated. "Things are starting to simmer here," he says. "And at some point they're going to explode."

Well, ordinary citizens of Greece have a right to complain about this situation but there is one thing; They had to question their governments about where all this money was coming from and why. What happens if these EU funds stops to flow into the Greece(like the current situation).

Imo, Greeks are get used to the flowing of EU funds and they thought that was their real economic situation but it was an illusion created by EU funds. Now they are in crisis because the dream is over and they turned back into the reality.

I am sure this will be difficult for them but they have to learn to stand up with their own legs and live a life according to their real economical situation. They have to accept the reality or a chaos awaits them.

[fyrOM]

Greece: Tax Evasion "national hobby "

http://www.makfax.com.mk/_home/home#114323

August 20, 2010 , 13:39

Payment of tax in Greece to avoid almost all - of the owners of hotels, bars, restaurants , yachts , luxury cars, expensive houses with swimming pools to ordinary citizens. Since the beginning of the year are set out half a million cases of irregularities.

tax evasion in Greece is almost a national hobby, and even the IRS can not estimate how much money owed to the state and entrepreneurs and individuals.

Since the beginning of the year , the Greek financial police carried out more than 22 thousand checks and found nearly half a million cases of irregularities and violations of tax liabilities which were called over 9,800 legal and natural persons, carries SMedia .

Tax inspections for the year designated penalties totaling 2.5 billion euros which is significantly more compared with 2009 , when the total value of fines reached 1.7 billion euros.

Aim of services , such as transmitted, is the end of 2010 to be collected about five billion euros in penalties for unpaid taxes.

tax evasion and losses suffered because the state is one of the factors that greatly affect the economy with the financial crisis in Greece - as experts.

The government in Athens is considering how to reduce that trend , and strict penalties are not always the best solution. Therefore used other measures, the publication of names of those who avoid to pay danokot.

[Mikail]

Typical. I hope the Germans are paying attention to this.

[George S.]

The Eu has lost so much money from countries like greece that's not funny.I'm not surprised
if some of the countries are not opting out.The eu will simply get itself more & more into debt.How much the individual states have to payback is unknown & at what rate?I would say that the germans would be looking at it as the debt is escalating.

[Onur]

Jobs Crisis Grows as Greece Falters

Greece's deepening recession is driving joblessness steadily higher, feeding discontent with the government's austerity program and dragging on the broader economy.

Greece's gross domestic product contracted by 3.5% in the second quarter from a year earlier, hitting retailers hard and sending unemployment rates to above 12% of the work force, according to data released last week.

Forecasts vary on justhow bad unemployment could get. The International Monetary Fund predicts the jobless rate will reach 14.8% by 2012. But some labor experts fear that before long, one in five Greek workers could be without jobs.

A big worry is that the coming end of the tourist season, a major strut for the Greek economy, looms as the next threat to Greece's struggle back to solvency and economic growth.

"We expect real unemployment to top one million workers by the year's end, which is a rate of 20%. We warned the government early on that their policy mix was flawed and would lead to this," said Stathis Anestis, spokesman of the private-sector umbrella union GSEE.

Unemployment, rising prices and an increasing tax burden could spell social unrest in the months ahead, Mr. Anestis said. "I fully expect a social explosion and riots in autumn after summer vacations are over."

Store closings nationwide have risen 14.8% between mid-2009 and mid-2010, according to a survey by the National Confederation of Greek Commerce, ESEE. The situation is exceptionally dire in the center of Athens, where the overall economic woes as well as recurrent street protests have forced between 20% and 25% of the area's shops to close, according to ESEE.

"Greek retail has been going through a strong crash test for a year, and the collapse of economic activity threatens businesses survival and is imposing additional serious pressure on employment," said ESEE Chairman Vassilis Korkidis.

The job crisis is especially acute in northern Greece, where the Macedonia and Thrace regions see jobless rates of near 16%. After the tourist season draws to a close, the Ionian and Aegean islands are expected to match those levels.

Job losses are hitting all age groups, but people fresh out of school and young people in services-related or part-time jobs are the most vulnerable. One in three 15- to 24-year-olds who have left school and are in the labor force looking for work can't find jobs, according to Greece's Ellstat statistics agency.

Thanasis Alexopoulos has been relying on his parents for support since leaving university with a degree in German literature two years ago. The 24-year-old from Athens has spent a few stints waiting tables, but mostly has been sending out résumés without success.

"I am seriously thinking of leaving Greece, because we need a revolution in this country to have hopes for a better future," he said.

http://online.wsj.com/article/SB10001424052748704476104575439330354012798.html?mod=WSJEUROPE_hpp_MIDDLESecondStories