vr94ss
walks barefoot
- Joined
- Feb 4, 2009
- Messages
- 80
- Reaction score
- 7
- Points
- 8
- Location
- Lismore, NSW
- Members Ride
- VR SS '94/Subi B4 TT '01
Greece also doesnt have control of its currency like we do. They cant devalue the currency or lower interest rates to provide economic stimulus, that's all decided by the ECB in Frankfurt.
In the end, the huge public sector cuts then reduce revenue, and they just get into an ever deeper hole.
I can see the logic in the Eurozone, but for some countries, particularly Greece with an aging population and excessively generous social security scheme, its just not going to work. Borrowing cash is an incredibly expensive exercise for them, due to their trashed economy nobody will lend them money at a reasonable rate. Can't say I blame the investors for that of course, you would have to consider them a high risk investment.
I think the best thing Greece could really do is get out of the Euro, default on its debts, and try to start again. It couldn't be much worse than whats happening now.
I'm just happy to be Australian.
I'm not against European Union, in fact I think it's a great idea. The problem arises when they are not a union of states as we have with a national government with any clout to make decisions. "We'll build warships in Greece to help her out" won't happen as it would in a federation. It's still nation against nation and forcing them to use a currency that doesn't fit their domestic economy that ruined them.