It Is A Farce That Greece SAVED The Euro

Published / Last Updated on 20/08/2018

Greece Financial AdviceAs Greece officially today came out the other side of the ‘troika’, three way financial assistance scheme provided by the European Central Bank, the European Stability Mechanism (European Commission) and the International Monetary Fund and is now officially able to borrow money again on the open market, many are hailing it as Greece is safe now and Greece saved the euro.

Reality:

  • Greece has received a record €260bn in bailout funds – they still owe it and it must be repaid at some point.
  • Greece still has major austerity measures in place with huge pay cuts, extended state pension retirement ages and reduced state pension amounts.
  • Greek economy is still much smaller than it was, around 25%.
  • Greece has finally started to have a trade surplus, i.e. it is receiving more revenue than it is spending.
  • This will take at least one generation to resolve.

Comment

People claim that by avoiding Grexit, Greece saved the euro.  There are both pros and cons to Europe.  Both Brexiteers and Remainers will fight their corner but the ‘dream’ of an equal rights, equal wealth distribution system across Europe are exactly that … ‘pipe dreams’.  It is interesting that when Greece was in trouble, Germany continued to prosper and there was no “we’re in this together” it was still austerity and loans that will have to be repaid.  Add to this Greece’s near neighbour, Turkey is now in financial crisis, what the repercussions are, only time will tell.


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