Quote:
Originally Posted by chemgear
It's a vicious cycle. Cut to get budgets back on track because you have been overspending for years and people won't bail you out if you keep overspending. But when you cut you drive people out of the country, destabilize the government and you slow/get negative growth. That then reduces what you get in revenue so you have no hope to get enough money to pay back the bailout terms and you fall further behind.
It'll be very interesting to watch these next few years. At some point, I can see the German government doing a lot of navel gazing as these countries keep missing their targets - Merkel has a good majority so far but I recall it getting more and more strained as this spiral continues.
|
I would agree, but at some point the governments in Greece need to simply tell people that your going to pay taxes, the retirement age has to go up and you need to contribute more to the pension plan, and that the government can no longer be a employment service.
If they keep ignoring those three problems it doesn't matter short term of long term Greece will be boned.
This is the one point where any Greek government has to be strong enough to do what's best for the country and not what's best for this generations voters.
You can't dig yourself out of a hole by digging deeper, and you can't continue to beg for money from other companies without becoming a slave to those other countries and losing their national identity.
Plus there's no way that Germany will keep funding Greece if they don't make these changes and without Germany's help those pay checks to their civil servants are going to bounce.