Greece's financial plight

[mickydripping]

Just returned from two weeks in Plakias, and one in Ayia Galini. In ntwo weeks in Plakias the only greek waiter I met was Nikos... every other one was either a proprietor or originated from Bulgaria, Albania, Latvia, Moldova ect. And I thought there was reputedly unemployment in Greece!... wonder if the minimum wage is to blame. As an aside, Ayia Galina is quite a lot cheaper, both for rooms and eating out... but not aas wide a choice or as good a beach. Had a great time, weather was best I have ever had in spring.

[Voloudakis]

Just returned from two weeks in Plakias, and one in Ayia Galini. In ntwo weeks in Plakias the only greek waiter I met was Nikos... every other one was either a proprietor or originated from Bulgaria, Albania, Latvia, Moldova ect. And I thought there was reputedly unemployment in Greece!... wonder if the minimum wage is to blame. As an aside, Ayia Galina is quite a lot cheaper, both for rooms and eating out... but not aas wide a choice or as good a beach. Had a great time, weather was best I have ever had in spring.

Crazy for all the foreign workers when youth unemployment in Greece is now 51.5% and 20.7% over all. Perhaps employment is much better on Crete because of high tourist numbers.

[Voloudakis]

Election results and what happens next.

The ten-day search for a coalition government begins today 7th of May after the electoral upset that saw Pasok and New Democracy sink to record lows, even as left wing Syriza soared in support.
 
New Democracy leader Antonis Samaras, whose party placed first with 18.8 percent of the vote and 108 seats, is scheduled to receive today from President Karolos Papoulias an exploratory mandate to form a government.
 
The first three parties – ND, Syriza and Pasok - each get an exploratory mandate for three days, to see of they can form a coalition. If all three fail, the president holds a conference with all party leaders, for a last try to form a government, before repeat elections.

Source  http://www.athensnews.gr/portal/8/55390

Greece must stick to the reform path it agreed as part of its bailout package with international lenders, a German government spokesman said on Monday after pro-bailout ruling parties lost their majority in parliament in Athens.

Source  http://www.reuters.com/article/2012/05/07/us-greece-germany-idUSBRE8460B620120507

Greece might run out of cash by end-June if it does not have a government in place to negotiate a next aid tranche with the EU and the IMF and projected state revenues fall short, three finance ministry officials told Reuters on Monday.

Source  http://www.reuters.com/article/2012/05/07/us-greece-cash-idUSBRE8460LG20120507

We are living in very interesting times.
Will Greece be able to form a new Coalition Government or will there be a fresh election called?
Will the new Government reject the austerity measures and default on EU and IMF loans?
Is this the end of Greece being in the single currency and the return of the Drachma?

[nora]

Yes there are so many questions and possible outcomes isn't there. Whatever happens I hope Greece do whats best for the majority of ordinary people. Let this act as a warning to  western europe ,bankers and indeed our awful coalition govt  in the uk - you can't bully the people and bleed them dry - there is a limit to how much we can take. 
Nora x

[Voloudakis]

Yes there are so many questions and possible outcomes isn't there. Whatever happens I hope Greece do whats best for the majority of ordinary people. Let this act as a warning to  western europe ,bankers and indeed our awful coalition govt  in the uk - you can't bully the people and bleed them dry - there is a limit to how much we can take. 
Nora x

We see our pensions getting worth less and less with the financial crisis and recession in the UK.
Our standard of living has plummeted and bus services, Hospital are at risk or no longer exist.
Price of fuel and food climbing and to make matters worse there is no sign of Spring or Summer on the West coast of Wales.

The Greeks now look very unlikely to be able to form a Government and a fresh election will have to be endured.
When will the mess ever end. At least they have the Sunshine to make things a little bit more bearable.

Update....All in tatters as Greece fails to form a Government. New election called and the Greek people will go to the Polls probably in early June.
The Euro continues to plummet against Sterling.

[Voloudakis]

So the Endgame finally begins.
A caretaker government is being put into place until early June when a new Election will take place.
Will it mean that Greece defaults and returns to the Drachma?
The upheaval will be massive whichever way it goes. The Greek people cannot afford the austerity measures but without the bailout the country will default.
Worrying times.
New Greek elections as coalition talks fail - Venizelos
Party leaders had a final round of talks on Tuesday, but did not agree on a new government
Greece is set to go to the polls again after days of coalition talks failed to produce agreement on a new government, says the leader of the Socialist Pasok party, Evangelos Venizelos.
http://www.bbc.co.uk/news/world-europe-18076757

[Voloudakis]

An article that is doing the rounds on German media.
I am taking that it is from some of the more extremist wing of German media and Government but it is a worrying read.

During the past hours, the Greek media has been circulating a shocking German article from www.german-foreign-policy.com that argues than in Berlin, authorities are considering coup scenarios and other ways to use armed forces to impose their will on Greece.

In the run-up to new elections in Greece, the German elite is discussing various scenarios involving the use of force to ensure control over Athens, including the establishment of a protectorate or the deployment of “protection forces” in that southern European country. The German austerity dictate, pushing Greece into destitution, is provoking growing popular resistance, which, apparently, can no longer be suppressed with democratic means. Berlin has failed in its efforts to force Athens into subordination by threatening to withdraw the Euro, as much as with its demand that Greece combines its parliamentary elections with a referendum on the question of remaining in the Euro zone. Berlin categorically rejects the option of retracting the austerity dictate and replacing it with stimulus programs, as is being demanded by leading economists worldwide, even though the exclusion of Greece from the Euro zone threatens to push the currency itself, into an abyss.

Full story here http://greece.greekreporter.com/2012/05/27/shocking-german-article-in-berlin-they-even-consider-military-coup-scenarios-for-greece/

[Mike G]

An article that is doing the rounds on German media.
I am taking that it is from some of the more extremist wing of German media and Government but it is a worrying read.

During the past hours, the Greek media has been circulating a shocking German article from www.german-foreign-policy.com that argues than in Berlin, authorities are considering coup scenarios and other ways to use armed forces to impose their will on Greece.

In the run-up to new elections in Greece, the German elite is discussing various scenarios involving the use of force to ensure control over Athens, including the establishment of a protectorate or the deployment of “protection forces” in that southern European country. The German austerity dictate, pushing Greece into destitution, is provoking growing popular resistance, which, apparently, can no longer be suppressed with democratic means. Berlin has failed in its efforts to force Athens into subordination by threatening to withdraw the Euro, as much as with its demand that Greece combines its parliamentary elections with a referendum on the question of remaining in the Euro zone. Berlin categorically rejects the option of retracting the austerity dictate and replacing it with stimulus programs, as is being demanded by leading economists worldwide, even though the exclusion of Greece from the Euro zone threatens to push the currency itself, into an abyss.

Full story here http://greece.greekreporter.com/2012/05/27/shocking-german-article-in-berlin-they-even-consider-military-coup-scenarios-for-greece/

I think some sort of military intervention in Greece is just about possible (remember 1967-74) but it would be a military coup by the Greek army not the Germans.

It was reported in today's Telegraph that pro-austerity (i.e stay in the €) parties are now leading in the latest opinion polls

Mike

[Voloudakis]

Squeeze Greece or find funds yourselves, euro chief warns
 A top EU bailout official warned the eurozone Thursday that it must order Greece to make fresh budget cuts or raise more taxes, or eurozone members will have to cough up more cash themselves.
As a new Greek government takes office, the country's second bailout which was stuck in limbo as voters challenged European Union and International Monetary Fund austerity measures in two elections, is «totally off track, months behind schedule,» Thomas Wieser told AFP.

Wieser, head of the key Euro Working Group, said the choice facing currency partners was stark.

Either you «stick to the fiscal targets and then you need additional measures» from Greece, the Brussels-based official said, or you change deadlines, in which case «you need extra money."
Full story here...http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_21/06/2012_448279

[Voloudakis]

Little Support for Greece.

A poll of a total of just under 4,000 people in Germany, France, Spain and Italy published Sunday showed 78 percent of Germans and 65 percent of French people wanted Greece to leave the eurozone, with 51 percent in Spain and 49 percent in Italy also backing a Greek exit.

In all four countries, majorities said that loans to Greece will never be paid back, even as most said that not saving Greece would increase the euro region’s difficulties “dangerously.”

full story http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_24/06/2012_448718

Greece's new government should stop asking for more help and instead move quickly to enact reform measures agreed to in return for previous bailouts from its European partners, German Finance Minister Wolfgang Schaeuble said on Sunday.

"The most important task facing new prime minister (Antonis) Samaras is to enact the program agreed upon quickly and without further delay instead of asking how much more others can do for Greece,» said Schaeuble, a close ally of Chancellor Angela Merkel and Europe's most powerful finance minister.

full story http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_24/06/2012_448706

What a pity and Germany and France have very short memories as they were the first Countries to breach EU rules but they got away with it.

With the new Greek government still full of Corrupt politicians especially within New Democracy, there still seems to be a black future.
I hope I am wrong.