The Economist Gives Greece Only Two Weeks Before Collapse
By Areti Kotseli on July 27, 2012 in News
British financial journal, The Economist, published an article under the title “Is “Grexit” at hand? Greece has only a couple of weeks left to convince its creditors” expressing doubts whether the Greek government can succeed in convincing Troika that the financial adjustment programme is no longer ‘off-track.’
“Greece has only a couple of weeks left to convince its creditors that it can put economic reforms back on track. Should its latest plans for making €14.5 billion ($17.6 billion) of spending cuts over the coming two years be judged unrealistic, the next €31.2 billion loan tranche will again be held back,” outlines the famous magazine.
In that case, “Greece would be unable to finish recapitalizing its big banks. Without credit, the economy will seize up. Pensions and public-sector salaries would not be paid.” The Economist also predicts that a “‘Grexit’ from the euro could occur within weeks.”
“The worry for Greeks is that with Spain and Italy coming under attack in financial markets, some euro-zone members may be tempted to sacrifice Greece,” outlines the article.
With “two previous Athens governments having failed dismally since mid-2010 to implement reforms agreed on with the Commission and the IMF”, The Economist finds our country’s future rather obscure.
http://greece.greekreporter.com/2012/07/27/the-economist-gives-greece-only-two-weeks-before-collapse/
the end is near...all the talk is about cutting...no mention of growth?...the greek government failed so far in not identifying and outling any future growth paths...
the eu should be concetrating in bailing the larger economies, which actually have heaps to offer translating to speedier recoveries...greece is a noose around the eu neck as it stands today...
on a side note, how are the cyprus banks holding?...no doubt they are in huge trouble...i heard there are talks amongst the population re-their savings...regarding peoples savings how serious is it?...
