It’s not like the hapless Greeks—and by extension their foreign sponsors—don’t already have enough problems on their hands. Now comes the Hellenic Statistical Authority with its just released Labor Survey that showcases a job market and unemployment issues that were the ugliest ever. And within this sobering picture there was one number that knocked the breath out of hope itself.
Europe – Greece
Greece: Even Corruption Is In A Deep Recession
by Wolf Richter • • Comments Off on Greece: Even Corruption Is In A Deep Recession
Transparency International just published the results of its National Survey on Corruption in Greece, which tried to sort out the kind of bribery and petty corruption that households had to deal with in their daily lives. The results were sobering, as they tend to be with corruption surveys—but in an unexpected way: for those asking for bribes, an outright depression has commenced.
Greece: They’re Not Even Trying Anymore
by Wolf Richter • • Comments Off on Greece: They’re Not Even Trying Anymore
Italian Prime Minister Mario Monti, while in Japan, summarized it eloquently when he said, “The financial aspect of the crisis is over.” The ECB, despite apparently fake German reservations, has jumped with both feet on the money printing bandwagon where it happily joins the Fed, the Bank of Japan, and other central banks. The endless flow of money has started in the Eurozone, and Greek politicians have figured this out.
“A harder Default To Come”
by Wolf Richter • • 11 Comments
“We owed it to our children and grandchildren to rid them of the burden of this debt,” said Greek Finance Minister Evangelos Venizelos about the bond swap that had just whacked private sector investors with a 74% loss. While everyone other than the bondholders was applauding, the drumbeat of Greece’s economic horror show continued in its relentless manner.
Final Spasm: Greco-Teutonic Tax Wrestling
by Wolf Richter • • Comments Off on Final Spasm: Greco-Teutonic Tax Wrestling
In Germany, the top personal income tax rate is 45%. People in religious organizations pay an additional “church tax.” Other taxes are piled on top. And when the hapless taxpayer spends money, a 19% value added tax comes due. Hence, tax fraud is a national sport. Yet, 160 Ministry of Finance employees are supposed to fix the Greek tax collection system—which will endear the already reviled Germans even more to the Greeks.
Greece, “The Bottomless Barrel,” As Germans Say
by Wolf Richter • • Comments Off on Greece, “The Bottomless Barrel,” As Germans Say
In Greece, three-quarters of the independent doctors, lawyers, and engineers declare taxable income below the existential minimum. Tax fraud amounts to €20 billion per year (8.5% of GDP). And tax dodgers owe €63 billion in unpaid taxes (27% of GDP). The country is bankrupt and has been kept afloat by the Troika (EU, ECB, and IMF), of which Germany is by far the largest contributor. But there is a plan. And it’s not an endless bailout.
Firewalls In Place, Markets ready: Greece Can Go To Heck
by Wolf Richter • • Comments Off on Firewalls In Place, Markets ready: Greece Can Go To Heck
Luxembourg’s Finance Minister said it out loud: “If the Greek people or the Greek political elite do not apply all of these conditions, they exclude themselves from the Eurozone.” All of these conditions. And there are a lot of them. Then he added crucial words: “The impact on other countries now will be less important than a year ago.”
Greece at the Point of no Return
by Wolf Richter • • Comments Off on Greece at the Point of no Return
“The European Union is suffering under Germany,” said Georgios Karatzaferis, president of the right-wing LAOS party. He accused German Chancellor Angela Merkel of trying to “impose her will on Southern Europeans.” He called the Netherlands, Austria, Finland, and Luxembourg “satellite states” of Germany. And then, with a few words, he pushed Greece a step closer to bankruptcy.
Now Even Greek Politicians Are Taking Cover
by Wolf Richter • • Comments Off on Now Even Greek Politicians Are Taking Cover
Greeks yanked €65 billion out of their bank accounts since 2009, the Finance Minister told parliament. “Of that, €16 billion was legally taken abroad,” he said. The rest? Stashed under mattresses or hauled to Switzerland via the land route. A whopping 20% of GDP! Capital flight of massive proportions. They see a forced conversion of their euros to drachmas. And politicians are planning for the “afterwards.”
Exodus from the Eurozone Debt Crisis
by Wolf Richter • • 1 Comment
Unemployment is a staggering problem in Eurozone countries that are at the core of the debt crisis. Spain’s jobless rate jumped to 22.8%. Among 16-24 year-olds, it’s an unimaginable 51.4%. In Greece, youth unemployment reached 46.6%. In Portugal, it’s 30.7%, in Italy 30.1%. But highly educated young people are leaving in massive numbers—with harsh long-term consequences for their heavily indebted countries.