Whatever the Greeks are doing, let’s do the opposite. The country notoriously close to economic failure doesn’t appear to be making a recovery any time soon. The draft budget was submitted to the Greek Parliament on Monday shows that the economy is predicted to contract a further 3.8% and unemployment expected to rise to an extremely high 24,7%. Despite Greece’s massive budget cuts, the country is expected to continue to run on a deficit budget, which is more bad news for the country, and the whole Eurozone.
The unbelievably large unemployment rate is contributing to this downward spiral, as people who have no income pay no taxes, therefore the Greek government is consistently short on money to aid the country through their economic troubles. This is extremely taxing on other countries in the Eurozone, particularly Germany and France who will be forced yet again to bail out their Greek counterparts to keep the Eurozone afloat, which will lead to further devaluation of the Euro and further troubles for the continent. Time will show how the European financial catastrophe will respond to further bad news from their friends in the Aegean, and hopefully Greece will be on the road to recovery on the 2014 financial report, because 2013 appears to be another write-off.
Tags: No Comments
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.