Greek austerity plans threaten growth

[alp227]

The degree of financial pain confronting the Greek population is twice as severe as that in Ireland and Portugal, fuelling concerns that the drastic austerity programme imposed by lenders could smother growth in the eurozone’s weakest economy.

Research by the Financial Times shows that planned tax increases and spending cuts for 2011 are equivalent to about 14 per cent of average Greek take-home income – or €5,600 ($7,707) for every household.

The impact is double that brought about by austerity measures in the other two eurozone countries subject to international bail-out programmes, Portugal and Ireland, and nearly three times that of Spain.

Emerging just days before European officials are due to unveil their latest plan to tackle the eurozone sovereign debt crisis, the figures demonstrate the dilemma facing Greece’s international lenders, who must balance the need for reform against the knowledge that too harsh an adjustment could crush the Greek economy.

(Don't click on the Financial Times link!) Google the title for the full article.

[marmar]

1. From the Water is Wet files......

nt

[Warpy]

2. Well, duh, you can't starve people into prosperity

The way to achieve that is to expect the rich to support the country and since they won't ever do that voluntarily, you have to tax them into it.

[craticdemo]

3. Always.