Andreas S. Koudellou

Effort = f(volume, distance, friction)… The Fiscal Crisis in Greece.

In Uncategorized on January 22, 2010 at 8:51 pm

The fiscal crisis in Greece is deepening, today she stands at a budget deficit of almost 13% of GDP.

I fear that the longer Athens waits to adopt a credible solution to deal with the country’s economic  troubles the worse it will get. The cost of Greek debt has already been blamed for the currency decline of the Euro since its $1.51 high in November 2009, today it is barely over $1.40.  

To explain the title, I refer to the story of “Sisyphus,” a character of Greek mythology who because of his misdeeds was sentenced by the gods to roll a huge stone up a hill for eternity.  This act was futile as Sisyphus would work hard to see it roll back. Lets hope Greece is not condemned to a similar fate.

Yesterday, Finance Minister George Papaconstantinou stressed that the country was capable of dealing with the crisis.

“We’re not expecting anyone to come to our aid,” he said during a conference in Athens. “Greece has neither asked for, nor is it expecting, anything of the sort.”

Advertisements
  1. Greece will begin taking investment orders for the sale of five-year government bonds this comming Monday. It will be interesting to see how the crisis plays out.

  2. […] is gradually becoming a financial pariah in the European monetary zone. For the past few weeks, capital markets have not seemed convinced one bit about the feasibility of the mix of measures taken by country […]

  3. Greece’s fiscal issues are simply the “tip of the iceberg” and fighting bureaucracy and lack of transparency are the real problems.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: