On the one hand the Papademos regime is saying that a chaotic default will have “ripple” effects throughout the global financial system and that a Greek default will lead to the collapse of the Eurozone and will also force Greece back to the Drachma.
And all this if Greek do not agree quickly to new austerity measures.
On the other hand you have the Greek government saying that there is no rush to cut costs. That the government overheads can be reduced slowly over a period of years.
Which is it?
Does the Greek government have all the time in the world or not?
Does the Greek government have time to cut costs or does it need to cut costs immediately?
There is one huge political game being played in Greece. On the one hand Greek are being told disaster is imminent while international investors are being told “don’t worry, everything is under control”.
Both stories can’t be right…
They are trying to reduce wages to synthesise the effect of the old exchange rates and save the euro. Will it work. What is differnce in average wages acrooss the UK . The “Sterling Union”.
“Save” the Euro. That is complete garbage straight from the mouths of the people who created the current problems. The Euro is not in “danger”, it is a hollow threat to enforce undemocratic austerity measures. The free markets will force all countries to run their economies properly but Barosso is saying they will not and it can only be done by the EU. It is all complete nonsense whose sole purpose is to manipulate public opinion in Europe.