Greece adding to the Mortgage to Pay the Credit Card
A fresh tranche of money for debt ridden Greece has been approved by the eurozone's bailout fund.
Anyone with half an economic brain knows you can’t have monetary union without fiscal union. It’s what we have here in the UK, we all share the pound and the facts show that south east aka London raises more in taxes than it gets back. So we pass the money around via health, education etc….it works.
Now we are back to the principal of borrowing money on your mortgage only to pay your credit card bill as Greece is in urgent need of the fresh money to service two debt payments to the European Central Bank next month. The amount of 7.5bn euros. Its been over six nows now and still Greece borrows money to meet its debt obligations, they are no where near being able to service their own debts.
The Eurozone isn’t working and until Germany accepts the UK model where the rich counties subsidies the poor one’s it never will. There will remain high levels of unemployment and immigration from the countries with no jobs to the richer one’s like the UK, should it vote to remain next week.
Greece owes its creditors more than €300bn - about 180% of its annual economic output (GDP), and currently no write off is being talked about. The IMF want debt write off to be talked about but Germany hasn’t put the country quiet on its knees yet.
Reform and privatisation, well you can only sell the family silver once, yet we doubt much of dent will be made in the €300bn Greece needs, even if it sold its islands, country and people!
Greece should leave the Euro, there will be pain for five years but after that they will be in much better position then they will be by staying with it unless the Germans accept a huge debt write off.
The EU model is failing to treat every country differently within the EURO project and its depressing growth across Southern Europe and we can’t see them putting up with