Greek authorities admit major problems
The Greek authorities have today admitted there are major problems within the Greek economy and the Greek budget deficit has the potential to drag down the country and its people. As a consequence, it seems likely that the Greek authorities will make use of the international bailout package which has been on the table for some time but until today remains untouched.
While no specific timescale is given with regards to a potential drawdown of funds from the EU/IMF bailout fund, it seems almost certain this will happen in the very near future. The authorities issued a rather downbeat and apologetic statement regarding the state of the Greek economy and admit that past mistakes have caught up with the country and its budget deficit. This is a very different tone from the one just seven days ago when the authorities appeared determined to go it alone without assistance from the European Union or the International Monetary Fund.
However, European debt markets remain unmoved in the short-term as they have heard these promises before with very little action after the headlines have been grabbed. Markets and investors are now awaiting concrete confirmation that financial assistance has been drawn down by the Greek authorities and the rescue program is well and truly underway.
Share this..
Related stories
Authorities looking at alternative to taxpayer bailout
Governments and regulators around the world are set to discuss future banking bailouts which will not depend upon taxpayer money to support the system. When you consider that the UK banking bailout alone has literally cost hundreds of billions of pounds there is a need to put safeguards in place to cover any similar situations in the future. But what are the options? The UK government has stepp...
Read MoreIs the UK government reducing UK competitiveness by increasing taxes?
A survey by accountants MacIntyre Hudson has confirmed that three quarters of businesses in the UK believe that the UK government is seriously risking the short-term recovery in the UK economy because of its punitive tax regime. This particular point has been reiterated by the two pence a litre increase in fuel tax just today which is the latest in a long line of subtle yet very effective tax incr...
Read MoreWillie Walsh attacks plans for increased tax
Willie Walsh, the chief executive of British Airways, has today attacked government plans to increase air tax in the UK under the "green" banner. Like many people in the industry he believes that after a period when growth was encouraged by governments around the world the airline industry is now being penalised for this investment by the very governments which pushed the issue in the first place....
Read MoreCan we expect a reduction in UK VAT?
The Centre for Economics and Business Research has come forward with a very interesting idea to help refloat the UK economy and put money back into the pockets of consumers. The Centre is suggesting a five-point reduction in the rate of VAT in the UK bringing it down from 17.5% to 12.5% for a two-year period. This is the first time a reduction in VAT has been suggested by a serious economic party...
Read MoreUK budget back in the black
The public sector purse showed a surplus in April as a growth in value-added tax (VAT) payments helped shift the UK's finances back into the black during the first month of the new fiscal year.Figures released by the Office for National Statistics (ONS) showed a surplus of £0.2 billion on the current budget, compared to a deficit of £0.9 billion in April 2006.Meanwhile public sector net borrowin...
Read More