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Greece, Eurpean Union and the Euro

What to say, the European Union and the Euro have an immense crisis for quite a long
time now. Fights here, financial cuts there, failing agreements there, all in all no unity
at all. Greece, actually the biggest debitor in the European Union seems not to agree to
the planned big payment cuts that Greece should do in order to “survive”.

On the other hand, Germany and France make this mandatory for the next credit payment of the IWF. It is for sure understandable that payment cuts are not a nice thing, as well as job stops and cuts. No one likes them. But when it comes to money, they are necessary.

For decades has Greece lived the easy way: A big bloated state apparatus with a real big amount of employees that also tend to work on two positions, thus gathering twice the money but paying only once. Even corruption has ruled Greece for quite a long time. Many retirees are aged no older than 50 and enjoying a big retiree salary.

All that can’t work when the fiscal budget has only a small income where taxes build the biggest part of all incomes. And here are many citizen of Greece cheating. That’s why the economical situation of Greece has become a big fire burning for a long time. Even when Greece entered the Euro zone to have the Euro, the annual figures have been “cosmetically” threatened to fit the Maastrichter Convention.

This cheat should cost Greece now a lot of money. And also the Euro zone has to pay a big school fee for not checking the fiscal figures of Greece thoroughly of correctness. Germany, France and all other Euro zone countries had to pay billions of euros to rescue Greece not to fail entirely. Yet Greece needs lots of money to fill all the fiscal holes, the poorly balanced finance system has caused there. All in all, 200 billion Euros seem to have flown already into Greece. That’s nearly 4% of the annual GDP of Germany! And yet there’s more to come!

The european adminstration also seems too bloated to cope with such immense missmanagement.

I’ve read a good citation that describes it well how complicated the european administration authorities can be:

The ten commandments contain 279 words, the United States Declaration of Independence contains 300 words and the act of the european community for the import of caramel bonbons contains 25’911 words

Impressive and yet frightening!


November 1, 2011 Netspark - 1475 posts - Member since: May 9th, 2011 No Comments »

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