The Syriza-led administration is making unrealistic promises while campaigning. Alexis Tsipras promised new jobs and a rise in minimum wage, while creditors are supporting bailout only if the country has reduced spending and increased revenues. Increase in wage will not do that. New forms address increased government revenues, but also extra spending. It is up to the creditors to decide if the reform proposals are satisfactory. Unsurprisingly, blame for Greece's inefficiency falls on poor politics.
There is consideration of departure from the eurozone, but it is still an ongoing debate.
5 comments:
I do agree that Greece's problems stem from a structural issue. Greece could've used the money they borrowed more efficiently, and build up their nation. This way Greece could have been standing on its own by now. However, Greece chose not to do so and faces a huge crisis. The question is how will they rebuild themselves, now that they have this huge debt over their heads.
I agree with Jonel. If Greece had used the money they borrowed more efficiently, they may have been able to build up their nation more, and not be in the current state that they are in. Although I feel as though it could be useful for creditors to bail Greece out, I feel as though it would be very hard for the nation to receive this bailout, as creditors want the nation to spend less and increase revenues. With the state of the economy currently, it would be very hard for the nation to increase revenues because this could potentially put the country in more debt.
Thank you for your comments. I hope the government can analyze the options with an objective perspective.
I always hoped the Greece could ease out of the Euozone, but after the explanation in class on why that would be a terrible move clears that up. I think the people of Greece will need to make sacrifices and significantly lower their standard of living. In addition, they'll have to expect less form the government and do more as a nation. I think once the country understands that they are all in it together, they will be fine in a couple of years. At least they're not Venezuela.
Honestly, the more I hear about Greece, the less I can take them seriously. Everything they have been doing recently seems ineffective or downright stupid and doesn't seem to have any real, definable motive... They're ruining their relationship with the rest of the world and for what?
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