Today is a new day dawning’ – the drastic spending cuts puts Greece in excess after the bailout shocks

  • Today is a new day dawning’ – the drastic spending cuts puts Greece in excess after the bailout shocks
    Independent.t. E.
    Prime Minister of Greece Alexis Tsipras said that the country had every reason to expect better days ahead after the official release of its latest financial crisis, putting an epilogue to the sharp nine years of the debt crisis.
    https://www.independent.ie/business/world/today-a-new-day-is-dawning-slashing-spending-puts-greece-in-surplus-after-bailout-turmoil-37235670.html
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Prime Minister of Greece Alexis Tsipras said that the country had every reason to expect better days ahead after the official release of its latest financial crisis, putting an epilogue to the sharp nine years of the debt crisis.

“Today begins a new day in our country, a historic day. Through the recession, austerrity, recession and social desertification, finally ended,” said Tsipras in a televised address to the nation from the island of Ithaca.

“Our country will not restore their right to shape their own future,” he told the hill overlooking the Bay to the island where Odysseus returned after a 10-year journey described by the classical poet Homer.

Greece ended his salvation – symbolic exit from the debt crisis that exploded eight years ago and turned the country’s economy and the livelihood of its people.

While the aid package may 2010 – the first of three politicians from the Eurozone countries, the creditor argued, the crisis was the result of chronic financial and economic discipline.

To justify the violation of the “point of salvation”, the loans were tied to strict conditions, covering everything from public spending, governance and justice.

In the accident in Greece has swept far beyond the country’s 11 million people, the impact of the house was especially dramatic.

Economic production declined by a quarter, and the standard of living collapsed after losing more than one million jobs pushed the unemployment rate at one point 28pc.

For the country’s creditors, that the costs of bringing economic growth on a sustainable basis. “The ultimate goal of the financial aid plan and reforms in Greece over the past eight years to create a new Foundation for healthy and sustainable growth,” Portuguese Finance Minister Mario Centeno, who heads meetings of Euro-area counterparts, said yesterday.

“It took longer than expected, but I think we are.”

The Greek leg of the global financial crisis was triggered when George Papandreou, the newly elected government revealed that the country has misled the world about its finances and in 2009 the budget deficit reached more than 15pcs of gross domestic product, five times the EU limit. In recent years, the debate over Greek finances came out with more amount of the state debt and the budget balance excluding the cost of servicing this debt.

This meant less attention to the fact that within two years, income exceeded expenditures, and the government to run a surplus.

This was achieved through sharp spending cuts while the holding company’s revenue more or less unchanged. But maintaining a regular income has meant a huge pressure on the middle class Greeks who have had to pay more and more taxes.

On the side of expenses, the financial problems of Greece was partly caused by the explosion of jobs in the public sector in the years leading up to the accident. Greece has reduced civil servants and 150 000 jobs only hire one person for every five departures and not to renew temporary contracts.

Still, the progress in improving the speed of resolving civil disputes in the judicial system, and the burden of red tape has become more difficult to attract investment.

Over the past eight years, constantly refrain from the Eurozone and IMF that Greece needs more structural reforms to make it more competitive. Three bailouts, it sold state assets, made radical changes in the electricity market and change the rules.

There is also a significant reduction of labor costs, especially after the reform of the rules of collective bargaining and minimum wages in 2012.

Along with increased taxes and job cuts, hit salary was one of the main reasons for the falling living standards in Greece.

Prime Minister Alexis Tsipras wants to roll back some reforms of labour after the bailout, including raising the minimum wage.

Greece has not experienced the type of exports is observed in other crisis countries like Ireland. But it virtually eliminated its external current account deficit and the growth of exports and the low share of GDP. (Bloomberg)

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