There was a change in government, a change in currency and life was good, so the Greeks believed. The government didn't manage its increased GDP well, it indulged and now the government has to rollback its generosity. It is not an inhumane thing as the benefits Greeks receive can absorb a decrease without putting lives in peril.
...Like any state (click title to entry - thank you) (or person, for that matter), it spent more money than it took in. After the switch to the euro, the traditionally strong Greek public sector saw wages rise to ultimately unsustainable levels. To compound this, the retirement age in the country is low (by Western standards) and benefits are generous.
But that alone is not enough to sink an economy....
The Greeks probably need to negotiate a higher income from its pipeline with Russia to assist with its debt. I don't know if Russia would be able to seek its way clear to assist Greece with an hike in income from the pipeline that traverses its land, but, Russia has a surplus of natural resources and perhaps they might carry empathy for the opportunity to be a hero.
The real problem is the austerity measures are slowing the Greek economy. The slowing of the economy has hurt its GDP. Since the GDP seems to be stabilizing, the Greek government may be able to survive austerity measures, stabilize the decreased spending and set a path of consistent GDP and reduction of national debt. I am optimistic this will work out. The people have to realize their government needs more insight to managing the country's GDP, but, I don't see why a population growth as steady as Greece can't predict its future deficit based upon spending before 2000.
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Greece, if properly managed will show a surplus in GDP before too much longer. I don't see why their culture has to change or sacrifices made by up coming generations in need of an educational system. There is reason to believe Greece will pull themselves out of this mess. The EU has its reservations, but, Greece had a currency change shortly before the global economic collapse. These things will happen.
...Like any state (click title to entry - thank you) (or person, for that matter), it spent more money than it took in. After the switch to the euro, the traditionally strong Greek public sector saw wages rise to ultimately unsustainable levels. To compound this, the retirement age in the country is low (by Western standards) and benefits are generous.
But that alone is not enough to sink an economy....
The Greeks probably need to negotiate a higher income from its pipeline with Russia to assist with its debt. I don't know if Russia would be able to seek its way clear to assist Greece with an hike in income from the pipeline that traverses its land, but, Russia has a surplus of natural resources and perhaps they might carry empathy for the opportunity to be a hero.
The real problem is the austerity measures are slowing the Greek economy. The slowing of the economy has hurt its GDP. Since the GDP seems to be stabilizing, the Greek government may be able to survive austerity measures, stabilize the decreased spending and set a path of consistent GDP and reduction of national debt. I am optimistic this will work out. The people have to realize their government needs more insight to managing the country's GDP, but, I don't see why a population growth as steady as Greece can't predict its future deficit based upon spending before 2000.
\
Greece, if properly managed will show a surplus in GDP before too much longer. I don't see why their culture has to change or sacrifices made by up coming generations in need of an educational system. There is reason to believe Greece will pull themselves out of this mess. The EU has its reservations, but, Greece had a currency change shortly before the global economic collapse. These things will happen.
