Tag Archives: greek bailout

Greece is the clearest example that hostage to austerity cannot work in Europe.

Reuters reported earlier today that Greece and its European creditors agreed Monday to resume talks on what economic reforms the country must make next in order to get the money it needs to avoid bankruptcy and a potential exit from the euro this summer.

Greece has been trying to stay afloat ever since the financial crisis began in late 2009 as the government battled low growth rates, soaring inflation as well as high budget and trade deficits. That’s when the International Monetary Fund, the European Central Bank and the European Commission, also known as the troika of lenders, stepped in. But that came with a price. To date the government has had to slash spending by over 75 billion euros. Education, welfare and healthcare saw deep cuts.

The controversial and much discussed possible exit is often referred to as “Grexit”, a portmanteau combining the English words “Greek” and “exit”. The term “Graccident” (accidental Grexit) was coined for the case that Greece exited the EU and the euro without intention.

Starting from 2010, the seat of the Greek government was thus effectively transferred from Athens to Brussels, Washington and Berlin. Left in Greece itself was little more than the power to administer national policies and implement sovereign decisions made abroad.

People took to the streets as many lost their jobs, while others saw their pensions and salaries significantly decreased. To make matters worse Greeks were expected to contribute more since taxes and the overall cost of living went up. Homelessness and suicide rates skyrocketed as people couldn’t cope with their new reality. Greeks felt betrayed by their government for allowing the situation to get to breaking point.

In 2016 Greece has a new challenge – the refugee crisis. The country has shown great humanity to those who have lost everything despite the fact that Greeks are still suffering themselves. The Greek crisis doesn’t make international headlines the way it used to. Is it because the situation is improving or because people have lost hope that anything will change? After all, it was only a year and half ago when 61 percent of the population voted against the new bailout conditions proposed by the troika of lenders.

How do those people, the majority, who voted ‘No’ feel considering the prime minister ignored the majority and implemented even more austerity measures?

*With sources from RT.com

José Manuel Barroso : Goldman Sach’s, Hedge Funds, Lobbying and the City

The former Portuguese president of the European Commission, José Manuel Barroso, who was president of the Commission for 10 years until 2014, was named in July of this years as a chairman of Goldman Sachs International to assist the bank regarding Brexit issues. For BBC, Goldman Sach’s  is a powerful player in the City of London.

Continue reading José Manuel Barroso : Goldman Sach’s, Hedge Funds, Lobbying and the City

Financial Warfare and the Destruction of Greece as a Nation

Syria is destroyed by military means. Greece is literally destroyed as a nation, as a society and as a state, by its own “partners”, in alliance with international Finance and its representative par excellence, the IMF and with the consent of the USA administration (1) Continue reading Financial Warfare and the Destruction of Greece as a Nation

How the Euro caused the Greek Crisis

Greece is in a state of economic and financial crisis that’s dominated global headlines this week. Vox’s Matt Yglesias explains the real roots of the crisis.

As an economic policy,the Eurozone, is an idea with some serious flaws. The Eurozone is not what economists call an optimal currency area — its economies are too big and disparate.

One way this flaw plays out is that Europe has very limited labor mobility compared to, say, the United States. If the economy is strong in the Netherlands but weak in Spain, it’s difficult for Spanish people to simply move to Amsterdam where they don’t speak Dutch. European countries maintain separate welfare states, and have very different average living standards. Consequently, economic conditions can be very different in one part of the Eurozone than in another, making it difficult for the ECB to create policy that is appropriate everywhere.

The political meaning of the Eurozone and the European Project differs a bit from place to place. To France and Germany, it means the end of war. To Ireland, it means independence from the United Kingdom. To Finland and Latvia and other eastern states, it means independence from the Russian sphere of influence. For Spain and Portugal, it means the end of dictatorship and integration into the realm of democracies. For Greece, it means (unlike Turkey) certification as a real European country.

Source: Vox. Related :

  • Greek government-debt crisis
  • Greek withdrawal from the eurozone

  • The Euro Intercepts : WikiLeaks
  • Absolutely everything you need to know about Greece’s bailout crisis