Greece has been the talking point for the European economists and politicians for the year 2011/12, with one of the worlds largest financial deficit. Action has been taking to try and sort out this huge financial mess the Greeks have got into, having to pay a maturing debt of €14.43 billion by 20th March.
This pressure to repay its debts, has led it to turn to extreme ways to scrap the money required. Greece are at their knees, and now take commands from the eurozone minister’s and the IMF. This means that a €130 billion bail out package has been passed, to sort out the Greek deficit.
The bailout package means that there will be less power for the Greek government (led by Mr Papademos), with management and regular check-ups of the Greece economic mangers from the euro ministers. The private bond holders of the Greek debt will loose too, up to 70%.
The bad side of the bailout package is dramatic – neglecting the private sector, which will lift the economy out of this economic downturn. But also that the Greeks have lost all power over their country, and will be a puppet to the euro minsters.
Of course there are some good policies of the bailout, with a separate pot of money which will always contain enough money for the repayment of a up-coming debt.
But when is it going to hit the euro minsters that you can not save Greece – and anything that you do will slow the growth of successful countries e.g. Germany and push the weaker countries into the black e.g. Spain, with the massive amount of inflation these bailout packages cause.
Instead, two tiers of eurozone countries should be set up, the rich and the poor. This will keep inflation low and make the eurozone stable again.
Greece leaving the eurozone is the only way that they will be able to leave a failing economy and will be able to grow and develop on its own success. This will be better for the people of the bailout countries like Germany and will ‘unleash the eurozone debt shackles’.
But not doing anything is what should not happen, a leader needs to rise out of the Greek economy’s ashes, taking control of the rising threat of strikes and further debt repayment defaults.
