Foro forex diario italian
Greece is dying a slow death, says Jens Bastian50, economist, born in Germany and living in Greece since 13 years. The present program inspired in IMF core ingredients foro forex diario italian cost 1. In the domestic front, the socialist government has a complex political problem: The government must establish new alliances, hold its ground and above all explain towards an unconvinced population why it is necessary to urgently change course.
Born in Germany, he is living in Greece since 13 years. He holds a Ph. Why Greece surges foro forex diario italian the critical point in the Eurozone regarding the risk foro forex diario italian sovereign default?
The macro and microeconomic indicators for speak volumes. Foro forex diario italian budget deficit reached Foro forex diario italian unemployment was above nine percent, and youth unemployment surpassed 20 percent. GDP contracted 2 percent in Foreign Direct Investment declined 21 percent. Public sector debt corresponded to more than percent of annual GDP. Tourism foro forex diario italian 13 percent and shipbuilding suffered heavily from the global economic crisis, declining 7.
The depth of the current crisis has revealed how paper-thin the image of the robust, growth-driven Greek economy was during the past decade. But what have the previous government of Kostas Karamanlis done with all that money? Indeed many citizens and observers are now asking themselves, where has all the money gone.
To illustrate, in public expenditure reached Inonly three years later, public expenditure had risen to 52 percent of annual GDP, while tax revenue remained at the same level as in In other words, the difference in expenditure levels relative to annual GDP corresponds to a 9.
Prime Minister George Papandreou addressed the nation on February 2 nd and announced a sweeping package of austerity measures that were adopted by Parliament in early March. These measures deserve credit for their courage. For once during the past six years a Greek prime minister delivered the bitter medicine without any attempt to sugarcoat the magnitude of the problem and the common effort required.
It is essential for Papandreou that the economic and fiscal crises do not deteriorate into a wider political crisis the country cannot afford. The effect of the proposed austerity measures is clear: At a time of economic crisis, when deficit spending would be needed to stimulate growth, the Greek government has its hands tied behind the back. Whatever its usefulness, and whenever it may come into existence, it will already have been too late to foro forex diario italian Greece. Furthermore, the question of funding such an EMF has yet to be addressed.
What currency unit would be used, according to what parameter of contribution by individual member countries?
What kind of geopolitical consequences, if any, we can expect if the IMF comes officially to Athens? The IMF is already in Athens since January providing technical expertise to the Greek government in areas such as budgetary planning, tax revenue capacity and statistical reporting requirements. In many ways, the austerity program that the Papandreou government has passed in March is a program that has all the ingredients of IMF requirements without having the title IMF, nor the resources from the IMF to support these measures.
Do you think the Greek government has foro forex diario italian capacity — like the Irish for instance — to implement those hard policies to curb the high public deficit until and to calm the debt foro forex diario italian Amid popular discontent and anxiety there appears to be one common thread of reasoning within Greek society, namely that the moral bankruptcy of the country has already arrived.
The end of an era or the model of doing things Greek style foro forex diario italian no future. Put bluntly, the Greece of yesteryear is bankrupt. What way forward then? And with whom, since many of the political and economic elites in the country are rather discredited? Greek society is not yet prepared for nor convinced about the merits of this odyssey.
Papandreou cannot be held responsible for the exorbitant fiscal deficit. But like it or not, the prime minister now owns this deficit. He must tailor its solution and cannot be seen as wavering on the deficit reduction objective. A multi-year program, not stop-gap measures, is the order of the day. Greece urgently needs to reform its nearly bankrupt pension system. At the same time, it requires comprehensive tax reform, including new sources foro forex diario italian tax revenue and instruments to widen tax compliance among its citizens.
Papandreou must show political acumen and leadership. This will require tenacity in the face of mounting social protests and entrenched special interests.
Decisive and binding decisions to confront the challenges at hand are necessary. Whatever the final outcome, the issue of helping Greece is not at the heart of the matter anymore. Rather, we are witnessing a situation where deep differences in substantial matters of EU policy coordination, what instruments to use and who should apply these are coming to the surface. The Greek crisis is only a symptom of a much larger and deeper crisis of the EU integration process, and its most important achievement foro forex diario italian date, the common currency.
How you evaluate the decisions from the European Council March 25 and 26 regarding the Greek crisis? The decisions communicated at the European Council meeting in Brussels are a mixed bag, with something to cheer about for everyone. First for Greece, because a combination of EU and IMF assistance has been put on the table, albeit with foro forex diario italian strings foro forex diario italian conditions attached to it. Furthermore, the EU Commission can claim that the package keeps the Commission in the lead and underlines elements of European Solidarity.
Moreover, the introduction of more stringent means to avoid in the future similar fiscal and public debt crises opens a window of opportunity towards what will become known as European economic governance. Finally, the German Chancellor A. This is a wishful thinking or a credible scenario? That scenario is neither credible nor feasible. It now also has a mandate to provide financial assistance when requested.
The Brussels meeting yesterday established a roadmap for such assistance if and when needed and requested by Greece. This is the type of information that should be shared around the web. Shame on the search engines for not positioning this post higher! Email foro forex diario italian published Required. Notify me of followup comments via e-mail. Editado por Jorge Nascimento Rodrigues. The reaction from the new government leaded by the socialists was adequate?