The Greek budget for 2014 is starting to show light at the end of the tunnel. The Greek Government has predicted that there will be a slight budge surplus before interests are paid to its debtors. They have also announced that the economy is predicted to grow about 0.6%, mainly through exports, tourism, and a rebound in investments.
Now that the Greek crisis is showing slight improvements, the IMF and EU seemed to also open up to the possibility of further debt relief. However, critics continue to hold pessimistic opinions because the pension fund deficit is predicted to be higher than first assumed and tax revenues will be lower than first expected. These two points result in the Greek Government having less money to pay back their debts. They believe that Greece will never be able to recover from the debt they are in and rely way to heavily on aid from the EU and IMF.
The Guardian. 2013 October 18. Greece set to emerge from rescession next yea, says draft 2014 Budget. http://www.theguardian.com/world/2013/oct/07/greece-euro
Reuters. 2013 October 18. Greece at Odds with EU/IMF Lenders over 2014 Budget Gap. http://www.reuters.com/article/2013/10/18/greece-fiscalgap-idUSL6N0I827X20131018
The Greek people can give no more!!!
ReplyDeleteIn order to tap the bailout loans, the Greek government had to raise taxes while cutting benefits, wages, and jobs over the past three years. What have been given by IMF and EU for bailing out Greece virtually imposed pressure on Greece people, but austerity-hit Greeks have nothing left to give.