Athens News reports that Venizelos is “confident” that Greece will return to the financial markets in 2014. Again I ask, what figures is he looking at that gives him this idea?
The ECB is already, in June 2011, under pressure to raise interest rates. The Bank of England has also hinted that it will be raising in interest rates in 2013.
Greece cannot service the old debt it had, let alone the extra 220 billion Euro of debt it now has. But it is worse than this, interest rate will almost certainly be higher in 2014 which means Greece will have the same issues as it has now, possibly worse.
On top of that, there is a falling GDP in Greece, with falling tax revenues with no sign, no indication AND no reason why this trend will change. (This link is one of the best articles I have read re Greece)
For a finance minister of a country to be saying a country will be able to go back to the financial markets in 3 years time when the finances of the country will almost certainly be worse raise doubts over the minister’s competence and/or motives.
Every economic indicator is pointing to Greece defaulting well before 2014. If this is what Venizelos means, ie that Greece will have defaulted well before 2014 and by the time 2014 comes Greece will be ready to enter the markets again, then he may be on to something.
But there is NO indication that he believes Greece will default which takes me back to my original point, the finance minister is either being economical with the truth or he has no idea what he is doing.
I will leave it to you to decide but bear in mind that Venizelos over saw the Athens Olympics which cost double what was originally planned and he has no background in economics
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