Tensions Rise in Greece as Austerity Measures Backfire

walkerscott


Joined: 13/08/2009
Posts: 901

Message Posted:
20/08/2010 10:28

this tension could spread everywhere else and end up as a second, more severe financial crisis:



http://www.informationclearinghouse.info/article26197.htm



Now, isn't it nice to be living in North Cyprus?

ilovecyprus


Joined: 08/05/2007
Posts: 2880

Message Posted:
20/08/2010 10:50

It would seem that Greece is in a mess.



From what I understand, Greece cant take advantage of the Euros currency weakness, as only 5% of Greeces GDP is based on exports. This is unlike Germany whos exports account for 35% of it's GDP. It's exports are booming as a consequence of the low Euro. Hence it's economy grew by 2.2 % in the last quarter.



Greece, Portugal and Spain can't recover by stimulating domestic demand because of their budget deficits. Looks like they are in trouble. Lets not forget that the UK is not out of the woods by a long shot. Thousands of people are going to be made redundant and it's not really clear where the growth is. The government do not even know where the new jobs are going to come from. All they know is that if they create the right conditions jobs will emerge, but it is dicey. Britain has made deficit cuts to stop it losing its triple AAA credit rating. Moodys now say they might reduce our credit rating because they dont know where our growth is

ilovecyprus


Joined: 08/05/2007
Posts: 2880

Message Posted:
20/08/2010 10:54

going to come from.



So supposedly, the Euro was designed to create higher living standards by stimulating trade, reducing transaction costs and allowing consumers to compare prices across borders.

You do not need a Eurozone to create the above. Ideology has trumped reason.