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• Greece does not need a Marshall Plan for more lending
Monday, March 5, 2012
Ibrahim Mohammed *
Related Nodes:
Lugo economy
How can Greece, which does not exceed its gross domestic product 200 billion euros, that the debt service increase to 350 billion euros? Question does not seem at the moment at the top of the agendas of decision makers in the euro area, who are seeking to provide more loans to the State of Greek, provided implementation plans austerity include the demobilization of tens of thousands of public sector institutions and reduce the salaries, wages and social guarantees to rates of up to 25 percent or more. This means the implementation of these plans in light of economic recession a local and global, undermining domestic demand and investment movement, in addition to the possibility that popular protests similar protests by Arab spring up to fire most of the euro area. Greece will mean the inability to meet debts and the threat of social and political stability on the European continent as a whole.
Country can in the case of economic service good loans ranging between 50 and 60 percent of its GDP. In the case of Greece, which economic sectors experiencing deflation and recession, I mean that in a good economic growth of between 4 and 6 percent, the ability to service loans of less than 100 billion euros. But the question is how can the transfer of the Greek economy from recession to growth?
Sees a number of experts, led by director of the Institute Evo German IFO famous for the economy in Munich, Hans-Werner Sinn, that the provision of Troika comprising the European Union and European Central Bank and the International Monetary Fund loans, an additional $ 130 billion euro, will not help Greece to reduce their debt, but will enable the creditors in banks, notably the French, German, British and American, to recover part of their countries and to avoid financial collapse difficult to control. Even the idea of exempting half of the country's debt will not work because it is in fact bankrupt, and to provide more loans does not lead only to postpone the announcement of bankruptcy, with the implications of the consequences. But the question that arises here is how the state can avoid the Greek economic collapse and political and social consequences potentially disastrous without these loans?
Professor Sen supports the idea of providing loans, but not for payment of installments to creditors, but in order to regulate the output of Greece, the euro zone and return it to handle the previous national currency, drachma. The country's entry to the European currency will loose its economy, its competitiveness in the European and world oceans due to the high price and the inability of Greece to control this price in order to reduce production costs and services to attract investment and increase exports. This situation will change with the return to Greece drachma where can through financial and economic policies, reduce the price of its currency and with it the production costs by 30 percent. As a result, will restore the vital sectors, namely tourism, agriculture and maritime transport, their competitiveness and export during the period ranging from two to five years.
And go commentator German Christian Ricans on the site «Spiegel Online» most prevalent in Germany to the extent claim exemption Greece of the entire debt, and provide loans and technical support to be able to its economy to stand on his feet in the framework of the implementation of what he calls others «Marshall Plan» new. And must for this plan, which calls for its extension to some economists over two to three decades, bear in mind that the restructuring of public sector investments and pumping re-tourism, agriculture and industries Greek competitiveness. The concerns that go to the warning limit of financial disaster, economic, and political will catch up in the euro zone in case of Greece out of them, sees the two experts and the age of exaggeration Ricans and others stand behind the financial lobby, fearful on its loans more than anything else.
The political elites of the European ruling, it became known in the gut that provide more loans postpone bankruptcy problems than it solves. She hopes through the provision of loans or to avoid the worst fall of the dominoes on the financial sector in their countries, because of the involvement of many of the large banks to provide huge loans to Greece. And do not forget also that these elites take this behavior also for political reasons lie in its quest to win the forthcoming parliamentary elections in their respective countries.
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Monday, March 5, 2012
Ibrahim Mohammed *
Related Nodes:
Lugo economy
How can Greece, which does not exceed its gross domestic product 200 billion euros, that the debt service increase to 350 billion euros? Question does not seem at the moment at the top of the agendas of decision makers in the euro area, who are seeking to provide more loans to the State of Greek, provided implementation plans austerity include the demobilization of tens of thousands of public sector institutions and reduce the salaries, wages and social guarantees to rates of up to 25 percent or more. This means the implementation of these plans in light of economic recession a local and global, undermining domestic demand and investment movement, in addition to the possibility that popular protests similar protests by Arab spring up to fire most of the euro area. Greece will mean the inability to meet debts and the threat of social and political stability on the European continent as a whole.
Country can in the case of economic service good loans ranging between 50 and 60 percent of its GDP. In the case of Greece, which economic sectors experiencing deflation and recession, I mean that in a good economic growth of between 4 and 6 percent, the ability to service loans of less than 100 billion euros. But the question is how can the transfer of the Greek economy from recession to growth?
Sees a number of experts, led by director of the Institute Evo German IFO famous for the economy in Munich, Hans-Werner Sinn, that the provision of Troika comprising the European Union and European Central Bank and the International Monetary Fund loans, an additional $ 130 billion euro, will not help Greece to reduce their debt, but will enable the creditors in banks, notably the French, German, British and American, to recover part of their countries and to avoid financial collapse difficult to control. Even the idea of exempting half of the country's debt will not work because it is in fact bankrupt, and to provide more loans does not lead only to postpone the announcement of bankruptcy, with the implications of the consequences. But the question that arises here is how the state can avoid the Greek economic collapse and political and social consequences potentially disastrous without these loans?
Professor Sen supports the idea of providing loans, but not for payment of installments to creditors, but in order to regulate the output of Greece, the euro zone and return it to handle the previous national currency, drachma. The country's entry to the European currency will loose its economy, its competitiveness in the European and world oceans due to the high price and the inability of Greece to control this price in order to reduce production costs and services to attract investment and increase exports. This situation will change with the return to Greece drachma where can through financial and economic policies, reduce the price of its currency and with it the production costs by 30 percent. As a result, will restore the vital sectors, namely tourism, agriculture and maritime transport, their competitiveness and export during the period ranging from two to five years.
And go commentator German Christian Ricans on the site «Spiegel Online» most prevalent in Germany to the extent claim exemption Greece of the entire debt, and provide loans and technical support to be able to its economy to stand on his feet in the framework of the implementation of what he calls others «Marshall Plan» new. And must for this plan, which calls for its extension to some economists over two to three decades, bear in mind that the restructuring of public sector investments and pumping re-tourism, agriculture and industries Greek competitiveness. The concerns that go to the warning limit of financial disaster, economic, and political will catch up in the euro zone in case of Greece out of them, sees the two experts and the age of exaggeration Ricans and others stand behind the financial lobby, fearful on its loans more than anything else.
The political elites of the European ruling, it became known in the gut that provide more loans postpone bankruptcy problems than it solves. She hopes through the provision of loans or to avoid the worst fall of the dominoes on the financial sector in their countries, because of the involvement of many of the large banks to provide huge loans to Greece. And do not forget also that these elites take this behavior also for political reasons lie in its quest to win the forthcoming parliamentary elections in their respective countries.
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