Another 100 billion € necessary to rescue Greece

[Deutschland]

According to the German Spiegel magazine i have read today Greece will need another 100 billion euro to escape bankrupcy... Unfortunetly the article isn't online but the calculations are serious. The article also states even many Greeks don't believe their country could be saved from insolvency anymore. Calls for an " end with horrors" get louder every day. I wonder why it has taken the Europeans so long to accept the reality namley that a debts cut is inevitable. What do you think? Can Greece be saved by guaranteeing them another 100 bio € by the esf or will it have to revert back to the drachme?

[Exarch]

get it from france; deutschland's paid more than their fair share

[priam11]

I need rescuing. Please make your cheques payable to.......

[Eofor]

At this point it might just be cheaper to kick them out and let them fend for themselves.

[skh1]

They might as well restructure their debt now rather than later and just get it over with. That's what Germany wants though France disagrees.

http://www.euronews.net/2011/06/08/g...restructuring/

Also, it looks as though bondholders will be asked to cough up this time.

Consider —

New figures showed how desperate Greece’s situation is. Unemployment hit 16.2 percent in March from 15.9 percent in February and has now risen by more than a third since the same month a year ago, and industrial production tumbled 11.3 percent year-on-year.
Tens of thousands of Greeks continue to hold nightly protests in central Athens against the cut backs, complaining also of corruption and state mismanagement. [op. cit.]

How much longer can this go on before real instability threatens?

[Kanaric]

100 billion? How does such a small nation get into so much debt when other countries like Germany give their people the same benefits but bails them out as if its change?

[alhoon]

How did Greece get itself into the quagmire in the first place?
You guys aren't:
1. fighting foreign wars
2. buying / making kickass gimmicks

100 billion? How does such a small nation get into so much debt when other countries like Germany give their people the same benefits but bails them out as if its change?

I would say Germany gives more benefits. How we managed to do that? Easy.

Our politicians and the Unions stole/mismanaged the money for 40 years. Those that could evade taxes, be it billions or just not giving receipt for a can of honey they sold for 10 euros did so.
For all these decades there was some minor complaining from "we the people" but since we were getting payed and the heads were bought off, nothing came out of it.

Because Greece always spent more than it earned.
Greece was taking loans since the 70s in order to run the state and nobody bothered because Greece, prior to the international economic crisis, had a good credibility and would repay the older loans with new ones.

The above is an example of major mismanagement for 40 years.
"You owe us X" "Ok, we'll borrow 1,2X and pay you back" "Now you owe us 1,2X" "OK, we will borrow 1,5X and pay you back" ... add decades here.
Then, it was discovered that we were cooking books and somebody asked "You owe us 5X. With your current situation Can you get a loan to pay us back?" and the answer was "Well... not so sure." So EU had to step in so we would get the loan with 5.5% instead of 10%.
Not saving us, but buying us some time. Perhaps just prolonging the inevitable perhaps giving us breathing time in case something real happens and we start to make more money than we spend.

[Exarch]

halllooo, where's france when the bill's due eh?
where the is paris when they have to take on their responsibilities?

france, pay the ers, it's your turn

[Armenum]

So 100 billion dollars more has to be sent to this economic sinking ship? Unless visible government moves in ensuring a sounder financial environment by Greece aren't clearly made, than don't think such bailout should again be given so readily. They should be able to convince the wider community of sound economic plan with which they can move forward, rather than a sinking ship that needs x amount of money in order lengthen the amount of time it takes to sink.

[saglam2000]

Oi france, help... france.. yo france... where you at france... YOU FRANCE I'M MARCHING THE PANZERS ACROSS THE BORDER AGAIN

[-Conan the Barbarian-]

Regime Change in Greece Now!

[skh1]

That's 26 minutes long. A summary perhaps? And besides, how's a change in government going to help?

[-Conan the Barbarian-]

That's 26 minutes long. A summary perhaps? And besides, how's a change in government going to help?

Yeah so what?

They collaborated with the banks who fraudulently hid their debt for so long. They sold the Greek people out.

[Manuel I Komnenos]

Yeah so what?

They collaborated with the banks who fraudulently hid their debt for so long. They sold the Greek people out.

This is what the communists say. Seriously now, what's gonna happen if the new government refuse to pay off the debt? Bankruptcy, kicked out of the euro, lose a strong currency, return back to a weak one, huge inflation, Greece becomes like Somalia. Great. No, you know what? I pray that the debt will be payed off to whoever it is owned to (and I don't give a who it is).

So 100 billion dollars more has to be sent to this economic sinking ship? Unless visible government moves in ensuring a sounder financial environment by Greece aren't clearly made, than don't think such bailout should again be given so readily. They should be able to convince the wider community of sound economic plan with which they can move forward, rather than a sinking ship that needs x amount of money in order lengthen the amount of time it takes to sink.

This will be the debt according to the Ministry of Economics if the measures continue to be undertaken:
2011: 352.436 (millions of euros)
2012: 364.886
2013: 371.436
2014: 364.503
2015: 351.356

By 2015, the debt will start shrinking.

[Manuel I Komnenos]

I don't think that's news really. At least not for Greeks.
The current money pack is only enough to run the country and fill the state budget, it is not used to pay off the debt. The debt is in fact rising and has reached some 400 billion euros according to the Ministry of Economics. The measures currently undertaken are trying to cut the annual spending and raise new revenues. From 2015 and onwards, the debt will start getting lower. The problem though is that these measures need time and obviously Greece will be unable to reach international markets in 2012. Hence, a new package of money will be needed until economic growth returns again in the country. This is going well I suppose. The only problem is that the Greek state does not want to fire people for obvious political reasons. There are currently 500.000 people working as public servants, a number that is generally huge. The only measure currently undertaken for this matter is to get 1 person for every 3 people that retire in the public sector but it's still not enough. We definitely need to fire people, even if it sounds extremely sad.

@-Conan the Barbarian-
HAHAHAHA, is this really news?! Greece has obviously surrendered its national sovereignty since the IMF is responsible for running the country.

[Thorn777]

German minister of finances had to convince his party to say yes to the bailout by calling for a coupled "voluntary bank haircut". Sarkozy was even against that...and furious...

sigh

[John ''True Grit'' Wayne]

I think Greece should not be given any more cash as they will never pay this money back.The greek leaders that did this to greece should be killed by the greek people as traitors.

[white-wolf]

I need to buy a new big computer and I do not want to pay it from my pocket, help me EU please.

[a tw player]

If greece took another 100bn, they would be forced to undertake even stricter and more severe public spending cuts to pay it back correct? Given what I've been seeing on the news of the mass protests and riots based on the current public spending cuts, I do seriously doubt if they could take anymore without order breaking down completely.

[sughdihellis]

The EU functions by first crippling a target nation with debt, and then sucking them in, so complaining about debt is foolish.