Friday April 25, 2014 Search
Weather | Athens
22o C
12o C
Survival Guide
Greek Edition
Simple truths on Greece

By Nikos Xydakis

Commenting about Greece to the Financial Times newspaper earlier this week, Carsten Schneider, budgetary policy spokesman for Germanys Social Democrats, said, It is evident that there will be a new support program with conditions.

Its clear that Germanys new coalition government has something in the works for this country.

Schneider, who is allegedly interested in succeeding Wolfgang Schaeuble as Germanys finance minister, likes to promote the European face of the Social Democratic Party (SPD). But when it comes to dealing with the debt crisis in the southern eurozone states, his party does not stand far from Chancellor Angela Merkels Christian Democrats (CDU). During the coalition agreement between the two parties, the SPD abandoned the idea of euro bonds in other words the mutualization of European debts a proposal backed by prominent German figures including former Chancellor Helmut Schmidt and former Vice Chancellor Joschka Fischer.

But is giving Greece another loan as Schneider seems to suggest really a good idea when the country has already starved its economy in order to be able to pay off its debt? Over the next four years, the bonds held by the European Central Bank and other national central banks will suck about 30 billion euros out of the Greek economy. If this money were to stay in the country, with a temporary moratorium on debt repayment, it could be spent on public investment and development projects so as to finally put the brakes on the recession and rising unemployment. At the same time, the state would have greater room for measures that would protect the more vulnerable members of society and ease the tax burden on businesses.

The current target of the Greek program i.e. full repayment of debt combined with the creation of budget surpluses has proved unfeasible. The state is simply overtaxing a frozen economy and society for the sake of servicing its debt and posting a surplus that is mostly for show.

This, of course, is known to German officials. They have to acknowledge that a Greece standing on its feet is also in their own interest. , Friday December 13, 2013 (21:06)  
At the mercy of fools
Putting the party above the country
Strong card in debt talks
Its too soon for Europe to declare victory
Work at new Athens cultural center gathering pace
It was revealed on Thursday that the outer shell of buildings at the Stavros Niarchos Foundation Cultural Center should be completed by July 28. The planting of trees and shrubs on the 17-he...
Greece makes request for debt relief as loan tranche approved
Greece made its first official request on Thursday for further debt relief as the Euro Working Group (EWG) met in Brussels to rubber-stamp the 2013 primary surplus and approve the release of...
Inside News
Ellaktor lands major Doha metro project
Ellaktor subsidiary Aktor has secured the biggest construction project ever obtained by a Greek company abroad by signing the contract for the study and construction of the Gold Line Undergr...
World seeks produce from Greece
Honey from Greece is considered a worthy wedding present in Japan. Elsewhere in Asia, gifts of Greek melons are wrapped up in packaging normally associated with jewelry. This countrys fish ...
Inside Business
4,000 officers to police Greek Cup final
Police says it will ban mass gatherings in central Athens amid heavy security measures planned for Saturday's Greek Cup final between Panathinaikos and PAOK at the Olympic Stadium. More than...
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
Inside Sports
1. Ellaktor lands major Doha metro project
2. World seeks produce from Greece
3. Eurobank opens book for capital increase
4. Govt presents its growth model for the coming years
5. Work at new Athens cultural center gathering pace
6. Greece makes request for debt relief as loan tranche approved
more news
This Week
1. Ellaktor lands major Doha metro project
2. Putting the party above the country
3. Three missing from cargo ship that went down off Crete
4. Central Athens cleanup a sign of Greece's turnaround
5. Strong card in debt talks
6. Samaras meeting with Dimon key to Greek return to bond markets
This Week
1. Greece startup leaders say they cant break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Putting the party above the country
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
Find us ...
... on
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.