April 14, 2024

News Cymru

Two sides to every headline

Samaras Wants An Extension On The Bailout Terms – The Fantasy Continues

I am detailing constantly the completely fantasy that the Greek government is living in and today brought another example.

Athens News is reporting that Samaras is asking for a two-year extension to the Troika’s bailout terms.

This is absurd for so many reasons

Samaras - Sticks to his principles even in the face of international pressure
Samaras – Sticks to his principles even in the face of international pressure – Not anymore, how things have changed

First of all everyday that the Greek government does not balance its books it gets into more debt, or to put it another way, everyday that goes by where the government is overspending means that the debt burden on the Greek taxpayer increases so why on earth would the Greek government want a two-year extension?

Second, a two-year extension will mean the government will not only be getting in debt through spending, it will also have greater interest payments at the end meaning the government position becomes even more unsustainable.

The Greek government’s position is already unsustainable, in the long-term or the short-term. For the government to be coming out and effectively asking to be allowed to get into even more debt is beyond reason.

In short, asking for a two-year extension is completely contrary to common sense.

The number one priority should be to balance the books immediately if the government has any chance of coming out of this without defaulting.

Of course there is no chance of the Greek government avoiding default but it can be equally argued that every day that it takes the government to balance its books the more certain a default becomes.

I would love to hear Samaras or any member of the Greek government explaining why they think it is better to carry out the reforms in two years time rather than now.

Of course they never will come out and say this because there is simply no justification for an extension.

If the Greek government is kept on life support for another two years the only thing that will be left operating in Greece will be the public sector economy. The only businesses left will be those that supply the government with products and services. In short, the EU is paving the way to a communist economy in Greece.

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