[noemon]

I have been noticing several articles in the anglo-press lately about the latest fallout in negotiations between Greece and the creditors. It has come to this because the creditors were due to evaluate the progress of the Greek reforms, economic growth and debt sustainability before they release loans agreed upon in the previous bailout.

The conversation is as follows:

a) The IMF argues that Greek growth has not been sufficient and that its own projections are different from the EU's, to continue its participation, Greece has to take additional austerity measures equal to 2% of GDP and that creditors must grant debt-relief to keep the 2018 targets within its own models.
b) The eurozone headed by German finance minister argues that the EU's figures are correct and as such less additional austerity is required but still an extra 1% of GDP than previously agreed to cater for the IMF's demands but no debt relief.
c) Greece argues that no additional austerity is required but only what has been agreed upon, she also argues that 3,5% primary surplus is not required and that she would be better off with 2,5%, after that figure was rejected, Greece came back with 3% primary surplus instead, she also said that in case the IMF models are correct, she can pre-emptively legislate those additional measures now but not implement them in the present but only when & if the figures are proven correct.


Between the IMF, Eurozone and Greek disagreements, they are setting up a new standoff that to me personally looks quite silly and unnecessary. The new German social-democrat candidate accused the conservative finance minister of setting up the political theatre to use Greece in order to fish votes in the upcoming elections.

[fokker]

To me the strategy is clear - to force Greece to privatize what's still owned by the state so that Germany and France can buy it (in exchange for debt). Only then cancel part of the Greek debt. Greece should have prepared for bankrupcy long ago and not have accepted IMF and EU loans. It's a country dependent on tourism, it should be able to deal well with effects of bankrupcy.

[Decky]

Greece should just tell Germany to fuck off and mobalise its military in case the hun try to carve it out of them by force. It is time someone stood up the the Germans. Europe is not some personal store of cash for the Germany people to demand whenever they want some.

[noemon]

To me the strategy is clear - to force Greece to privatize what's still owned by the state so that Germany and France can buy it (in exchange for debt).

A lot of people thought that this were the case but Greece has been fire-selling properties and still no-one is buying. And that is because of the extreme taxation(currently standing at around 60% for businesses, professionals and pensioners) and national insurance contributions(around 30% of the salary for workers, over 60% for directors and self-employed), with non-taxable income only up to €7000 and now the IMF is asking for the threshold to be further reduced to €6000. With such a punitive taxation, people are not very inclined to buy businesses even at fire-sale prices. House properties have also seen a huge decline making it easy to buy good properties at exceptionally good prices but still house tax makes people think twice buying and the people who have more than one properties are becoming more and more inclined to sell them so they don't have to pay for these extra punitive taxes. The housing market is currently at a standstill. The supply is there, the demand is there but it's not happening because everyone is waiting for all these emergency-crisis taxes to wear off.