Greece: Corruption, Nepotism and the Wellfare State

[pscot]

http://www.spiegel.de/international/europe/0,1518,669235,00.html

The Greek government has pushed the country to the brink of national bankruptcy, threatening the whole euro zone as a result. But the elite believes that other members of the EU's currency union will pay up -- despite widespread inefficiency and corruption

For years, the conservatives and socialists who took turns running the country borrowed as if there were no tomorrow. Through mismanagement and nepotism, they drove their country to the brink of bankruptcy. Citizens, for their part, reacted by engaging in corruption and fraud.

With the euro in place, this sort of situation is no longer merely the problem of a small country with a population of 11 million, but affects all of Europe. A national bankruptcy in a euro country could do tremendous damage to the currency. Moreover, a bailout of the Greek government could trigger a domino effect, with other shaky economies like Italy, Spain and Portugal opting for a "soft landing."

Last week, German Finance Minister Wolfgang Schäuble attempted to bring calm to the situation when he told the tabloid Bild that although Greece has lived "well beyond its means, we cannot pay for the Greeks' mistakes." It was the kind of thing someone says when they know this is precisely what could end up happening.
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By now, says Kyrtzos, the economy is no longer capable of financing the state's institutions, which are "completely out of control." According to Kyrtzos, Papandreou, like his conservative predecessors, lacks the power to trim government spending. In the end, Kyrtzos believes, the rich countries will be forced to pay up.

Conjuring Trick

Piraeus is a case in point. In recent months, China's Cosco Pacific Ltd. acquired a large share of the central port near Athens. But the workers at the port are too expensive for the Chinese, which is why they are to be employed elsewhere, where no one needs them -- or eliminated completely with severance pay or early retirement benefits.

The early retirement option is attractive to Greek workers. According to 2007 figures from the Organization for Economic Cooperation and Development (OECD), the average Greek retiree continues to receive 95.7 of his former wages, while German retirees collect only 43 percent (more)

[unhappycamper]

1. I suspect our Iraq and Adghanistan adventures will do the same for us. n/t