Greek unemployment passes 25% mark

11/10/2012

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The Greek economy is spiralling out of control. It is in a caught up in negativity and there will be no easy way back to economic stability. Financial bail outs for Greece are vital yet they are self destructive. The way money is being handled in Europe lately is undermining its worth. We are now running a serious risk of devaluing our assets.

Today Greece has received more bad economic news. Firstly there are the unemployment figures. Greece has had record high levels of unemployment for some time now. If you thought these figures coulkd not get worse then you were mistaken. In July 2012 thelevel of unemployment  in Greece rose to 25.1% from 24.8% More than a quarter of the working age population of Greece have no job and few prospects for the foreseeable future. As we all know the devil makes work for idle hands and such high levels of unemployment will lead to trouble.

Here are some of the shocking statistics:
  •  During the past year more than one thosand jobs were lost each day.
  • Sadly young people are the worst hit group with the 15-24 age group accounting for 54.2% of all unemployed.
  • Yet in Greece and other countries of Europe the retirement age is increasing, meaning less jobs are available for the young generation of workers.
  • 1.26 million Greek people were unemployed in July 2012.
  • In July 2008 only about 364,000 Greeks were registered unemployed. A nassive increase then in just 4 years.
  • Greece faces another year of recession in 2013.
  • Greece is caught in a web of bailojts with strict austerity strings attached.

Reporting on these latest shocking figures some in the media have stated that more people in Germany want Greece to stay in the EU than want the country to leave. Perhaps more to the point should be what the Greek people want. They are being treat as the whipping nation of the EU and sooner or later they woll have had enough. What have they got to lose from an exit?

Germany and other EU countries of course wiill have a lot to lose should Greeve exit the Eurozone. The best bet would surel;y be scrapping the EU and starting again from scratch. Somethings break and are not able to be repaired. Fact. Sometimes it is time for a more modern model.

Rubbing salt into the debt wound of Greece Coca Cola Hellenic has announced today that it is moving ots operations from Greece to Switzerland. CCH was Greece's largest bottling company and its exit from Greece will herald more job cuts. Some have claimed however that this will have a limited impact on the Greek economy. CCH have said that plants will still operate as normal in Greece and ot is more about the companyand its tax burden.

It will however be another pyschological blow to Greeks and their economy.
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George Papandreou wants Greek referendum

31/10/2011

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Just when the big countries of the Eurozone thought they had it all sewn up the Greek Prime Minister George Papandreou has called for a referendum.

The Greek Parliament passed the necessary austerity measures needed to secure further loans to prevent the country falling into bankruptcy, but now it will be up to the people.

The Greek people have constantly shown their displeasure at such austerity measures. Greece and its Prime Minister is in a Catch 22 situation.
Without the austery measures the EU will not keep bank rolling Greece and without these cash injections tthe Greek economy will fail. In what will be a domino effect it is easy to see how the whole of Europe could tumble.

It is obvious when you think about it, that EU countries have a vested interest in Geece staying solvent. If they did not they would probably have already given up the ghost as far as Greek economic woes are concerned. The EU has been bailing Greece out on a monthly basis and each month Greece looks as if it will be unable to pay its debts.

If Greece were a person who was struggling to stay financially solvent there could be a time when bankruptcy was the only option. Sadly that could be the case in the future for Greece. Bankruptcy would chaos in Europe but why delay the inevitable? If it is to be then to keep bank rolling Greece is pointless.

One thing that will bring Greek debt to a head is a referendum. The Prime Minister is to let the people decide. In a move which the UK government would not dare leave to the UK people, Papandreou said, if Greek people do not want the deal that is designed to slash the country's mountain of debt by nearly a third, it will not be adopted. Strong words which could spell disaster for many countries around the world.

As yet the Greek PM has given no further details of the proposed referendum. It will have to be held soon for Greece to either secure further bail outs or default on loans and go into bankruptcy. He said, "This will be the referendum: the citizen will be called upon to say a big 'yes' or a big 'no' to the new loan arrangement. This is a supreme act of democracy and of patriotism for the people to make their own decision ... we have a duty to promote the role and the responsibility of the citizen."

Well said but many EU leaders will be taking a sharp intake of breath right now. Hold onto your hats it looks like we in Europe could be in for a bumpy ride.
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