Tuesday, April 20, 2010

What do you think of the current situation in Greece?

Obviously our country is facing major economic problems in much the same way as the rest of Europe has been witnessing recently. I believe it is the result of bad management of funds by government for many years. In addition, our public administration must be modernised and streamlined to work more efficiently.

I think that the government has to put more effort into catching tax evaders and making them pay what they owe. I saw recently that in Greece there are less than 5 000 people who declare incomes over Euro 100 000. This is obviously not the reality in Greece and something must be done about it.

The current economic crisis and the resulting austerity measures, i.e. the rise in VAT, in income tax and the tax on other products, will really hit the economy. I am afraid we can expect rising prices and greater unemployment in the coming months. I personally see no option to the measures the government has taken. The fact is as a country we have been spending and borrowing too much. This had to end some time. All we can do is try and save funds through government cuts and through creating a more efficient and prosperous economy.

To conclude, in my opinion, the whole crisis in Greece has done nothing to strengthen European cohesion. It has obviously damaged relations between Greece and Germany and has created a picture of a European Union which only speaks of mutual support but when one country is in trouble the others think they should sort out their own problems and not rely on help from other European union members.

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