Bottom line: The IMF has "discovered" that the Greeks will not meet the 2011 deficit targets. As the article says: "Greece blames a deeper-than-expected recession..."
You have to wonder where this people studied macroeconomics. Greece had a (known) deficit of 15% in 2009 which they aggressively cut to 10.5% in 2010 by implementing a tough austerity program during a deep recession. Apparently, however, nobody in the Greek government or the troika considered the possibility that the economy would slow down, thus, pushing the targets further away. In addition, many of the so-called reforms, like selling government property for 50 billion euro seem right out of imaginary-land.
Although nobody knows the future, the most likely scenario is that the IMF team returns in 10 days and grants Greece a "waiver."
If you haven't read our back to the future link I suggest you do now. It will save you time.
No comments:
Post a Comment