What austerity has wrought
Greece Warns of Going Broke as Tax Proceeds Dry Up
By LIZ ALDERMAN, NYT
ATHENS — As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money.
Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals.
Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled banks. Some are even suggesting doling out i.o.u.’s.
Greek leaders said that despite their latest bailout of 130 billion euros, or $161.7 billion, they face a shortfall of 1.7 billion euros because tax revenue and other sources of potential income are drying up. A wrenching recession and harsh budget cuts have left businesses and individuals with less and less to give for taxes — and growing incentive to avoid paying what they owe.
(More here.)
By LIZ ALDERMAN, NYT
ATHENS — As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money.
Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals.
Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled banks. Some are even suggesting doling out i.o.u.’s.
Greek leaders said that despite their latest bailout of 130 billion euros, or $161.7 billion, they face a shortfall of 1.7 billion euros because tax revenue and other sources of potential income are drying up. A wrenching recession and harsh budget cuts have left businesses and individuals with less and less to give for taxes — and growing incentive to avoid paying what they owe.
(More here.)
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2 Comments:
Austerity? It's the crushing debt and the promise of cradle-to-grave government cheese that has brought Greece to its knees. And when the government decides it has to remove its addicts from the crack-cocaine of government cheese, the addicts fight back.
Austerity has nothing to do with it.
To blame austerity for the fiscal problems in Europe is akin to blaming gravity for airplane crashes.
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