http://www.reuters.com/article/2015/04/11/us-eurozone-greece-germany-idUSKBN0N20JA20150411
At talks in Brussels, Greece failed to outline its plans for structural reform to help move itself back into the global economy. In fact, to the Germans especially it seems like they are doing nothing to help get themselves out of their economic crisis. After Greece's demand for war reparations, which they recently put a number on (€279 billion!; see http://www.bbc.com/news/world-europe-32202768), this is just causing the world to take them even less seriously. (The amount they are asking for is, incidentally, greater than the IMF-EU bailout they received last year even.) All in all, as has been said many times, Greece is in need of some serious reform.
5 comments:
The first time I read about Greece asking for war reparations, I thought it was a joke. I think this signifies the level of desperation of Greece at the moment, because they don't have too many options. A Euro exit isn't really plausible, and no European country seems to be in the mood to do charity. I think Greece's recovery will be a slow one, and they have to make sacrifices, especially the people of Greece.
I think Greece's actions are little ridiculous. They demand war reparations from a country that has already provided them with plenty of bailout money. Greece is on a thin line and needs to watch every move carefully. If Greece doesn't start taking initiative on their own to fix their economy, then it will take a very long time for the economy to recovery. The rest of Europe is quite fed up with Greece's shenanigans.
I think as Greece knows that it won't be removed from eurozone, it is creating this ruckus to push the limits of the member countries so that Greeks can grexit.
Erica, your comment is very interesting. I think Greece is very desperate. Borrowing money got them into this mess, so why are they trying to dig an even deeper hole for themselves. Greece's government needs to come up with a more feasible plan for paying back their debts and restructuring their nation.
I tend to agree with Erica: a Greek exit would basically terminate any Greek economic growth for at least the next decade as the Euro provides Greece with monetary supply stability and the ease of credit associated with being a member of the EMU. SYRIZA's attempts at scaremongering are likely empty, but are causing substantial reputational harm to the Euro and to Greece.
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