Looks like the issue of Greece’s debt and economy has been pushed back for a little while longer.
After months of acrimony, Greece finally clinched a bailout agreement with its European creditors on Monday that will, if implemented, secure the country’s place in the euro and avoid financial collapse.
The terms of the deal, however, will be painful both for Greeks and their radical left-led government, which since its election in January had vowed to stand up to the creditors and reject the budget cuts they have been demanding.
I wonder how the people who suffered from the banking restrictions, the unrest feel about their leaders making essentially the same deal that was offered months ago.
Does anyone really think the latest round of bailout will make a difference?
Greece had requested a three-year, 53.5 billion-euro ($59.5 billion) financial package, but that number grew larger by tens of billions as the negotiations dragged on and the leaders calculated how much Greece will need to stay solvent.
Greece has received two previous bailouts, totaling 240 billion euros ($268 billion), in return for deep spending cuts, tax increases and reforms from successive governments. Although the country’s annual budget deficit has come down dramatically, Greece’s debt burden has increased as the economy has shrunk by a quarter.
They’ve already did the same thing twice already. Starting to look like a bad real life version of “Ground Hog Day” without the principals actually learning anything.
Not in Greece, not in the Eurozone, not in America or China. No one seems to be taking the issue to heart and making actual reform or changes to stave off disaster.
I hope that I’m just being alarmist here. What do you think about the state of the economy?