Saturday 23 January 2010

Spartan solutions from Brussels will be fought by Athens

FT
"The Greek crisis goes back a long time. The country entered the eurozone in 2001 with the help of some creative accounting. These accounts suggested that the country met the various entry criteria for membership, when in fact it did not. Successive Greek governments, on the left and the right, have since misrepresented the country’s fiscal position. The reported 2009 budget deficit, a 12.7 per cent of gross domestic product, is obviously unsustainable. I say “reported” because I do not trust even this high number. As far as I can tell, nobody in Brussels does so either. This lack of trust has in itself become an obstacle to the resolution of the crisis."

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