On life support, and yet unable to die

[Lite Beer]

EDITORIAL
On life support, and yet unable to die
The Nation

Pulling the plug on Greece would be as much a political move as an economic one

Greece's trouble is deepening, this much is clear. Most aspects of the crisis - like the government and public's attitude toward a fresh bailout and how the European Union is coping with Greece's alternating ambivalence, rebellion and reluctant capitulation - are quite muddy now and will likely become more so. Many factors are combining to make the looming financial disaster a dangerous phenomenon, not just economically but also politically.

Fresh protests have erupted in the country that gave birth to democracy. Politicians have gone from the extreme defiance, which led to a national referendum aimed at snubbing the EU, to what could be viewed as a hesitant expression of remorse. The Greek parliament's acceptance of tough bailout conditions left observers wondering why politicians engineered the referendum in the first place. The messages coming out of Greece are confusing, although such can only be expected from a nation overwhelmed by debt and disgruntlement.

The parliament voted to accept strong bailout terms. The "rescuers" have called for reform of the tax code to raise additional revenue. This will make restaurant meals more expensive as sales taxes in the food and other sectors climb to as much as 23 per cent. Tax discounts on vacations among some Greek islands will be eliminated. Luxury taxes will rise on big cars, boats and swimming pools.

The bailout conditions cover more than just buying. The pension system will be overhauled, and the standard retirement age will be raised to 67 to discourage people from retiring early. Rules will be imposed to make sure the government meets budget targets, which could require additional spending cuts. Corporate tax will rise from 26 to 29 per cent for small companies.

What will happen next? Will protests spiral out of control? No one can dismiss the possibility of more cabinet resignations or the collapse of the entire government. If street and political turmoil come to an end, will Greeks be able honour the tough rescue conditions? Is the bailout money enough? What if there's another default?

No one knows the answers to these questions. Greece is like a person in a coma - long-term treatment is secondary to emergency measures. And if Greece is a man on life support, with major international political stakes in play, who will decide whether the plug should be pulled? With the "non-democratic" world watching, led by rich China and Russia, this patient can't die at the hands of the EU and its fiscal mechanisms.

Greece has become an ideological proxy for the world, not just a nation drowning in debt. Already, extremely hard questions are being asked about the EU, populist democracy and capitalism as a whole. The best the democratic West has done so far is to scold Greece, like any good parent would do to a stubborn child. When push comes to shove, however, money has to be found to help Greece, albeit with conditions attached, even if their ability to foster the necessary changes remains unknown.

Prime Minister Alexis Tsipras said he had had to choose between a deal he didn't believe in and a chaotic default.

He opted for the former, but Greece's problem is that both of these unfavourable choices are intertwined and one could easily lead to the other. Having seen Greece through its crisis thus far, Tsipras should know better than anyone that his country is stuck in a vicious cycle and needs all the help it can get to break free

Source: http://www.nationmultimedia.com/opinion/On-life-support-and-yet-unable-to-die-30264671.html

-- The Nation 2015-07-18

[NeverSure]

"The "rescuers" have called for reform of the tax code to raise additional revenue. This will make restaurant meals more expensive as sales taxes in the food and other sectors climb to as much as 23 per cent. Tax discounts on vacations among some Greek islands will be eliminated. Luxury taxes will rise on big cars, boats and swimming pools."

This will really hurt the economy - the place where taxes come from in the first place. People will stop buying highly taxed items which could make the change tax neutral while hurting businesses and therefore people. It will hurt tourism.

The whole thing is insane. It's just a matter of time and the Euro is dead.

[HerbalEd]

For many years Greece and Greeks lived way beyond their means, with unrealistically high wages and social and retirement benefits, and a too-early retirement age. This bankrupted the country and yet the people are crying foul and demonstrating over much needed austerity programs. Not only do they want their cake and eat it too, they don't want to pay the baker. I have little sympathy.

[stoneyboy]

For many years Greece and Greeks lived way beyond their means, with unrealistically high wages and social and retirement benefits, and a too-early retirement age. This bankrupted the country and yet the people are crying foul and demonstrating over much needed austerity programs. Not only do they want their cake and eat it too, they don't want to pay the baker. I have little sympathy.

Couple that with the fact that much business is conducted under the radar with very little tax being paid it is indeed no wonder they are in this turmoil.

Fakelaki = Little Envelope.

Edited July 18, 2015 by stoneyboy

[henry15]

In my country they have to pay 21 procent VAT, on almost all products and services,. like cars, restaurants, botled water, insurance policy''s; I pay about 55 procent for income tax and Social Security, We also have to work till 67. My country and many other EURO zone cpuntries pay a much higher intrests on there outstanding debt than Greece.

Countries like Ireland, Spain, Portugal who had the same and even tougher bailouts as Greece,, never complained about it. Ireland after 5 years of suffering is one of the best performing economy in the EU.

Greece, and Greek people are are spoiled children. The overwhelming majority of Europeans are sick of theire whining and complaining.. In fact the prefer is Greece left the EUROzone and in fact leave the EU completely.

Before the in fact communist government came to power, Greece was on the way to recovery, but that governmenyt stopped all reforms. Did uou know that children still got the pension of their father who was a civil Servany and died 20 years ago. About 15 pocent of Greeces Budget go to the payment of pensions. Greeces have the highest amount of over 100 year old people in the EU

The Greek left wing governments has been champions in sociak welfare with other peoples money, and making debts who they never paid back Well now its payback time

[darhut]

Greece has made an art out of defaulting on loans. They should be good at it as they have been doing it for the last 190 years, they think it is normal to just not pay any loans back. Maybe their party is over this time. They are acting like spoiled brats, and the world is watching.

[SOTIRIOS]

...sorry but this reads like the first draft of a school assignment...again....

[elgordo38]

"The "rescuers" have called for reform of the tax code to raise additional revenue. This will make restaurant meals more expensive as sales taxes in the food and other sectors climb to as much as 23 per cent. Tax discounts on vacations among some Greek islands will be eliminated. Luxury taxes will rise on big cars, boats and swimming pools."

This will really hurt the economy - the place where taxes come from in the first place. People will stop buying highly taxed items which could make the change tax neutral while hurting businesses and therefore people. It will hurt tourism.

The whole thing is insane. It's just a matter of time and the Euro is dead.

I agree and the IMF seems determined and at odds with Europe on the fact that Europe should take a partial hair cut on Greece debt before they open their pocket books. Maybe Greece should contact Argentina on ways to solve their financial problems. I am always an advocate of paying your bills but I love the way Argentina thumbs its nose at Paul Singer who bought their debt on the cheap and now wants payment in full. I hope they stiff/stuff this guy. They the EU and the IMF indirectly will run Greece anyways as the parliament cannot pass any laws without EU and IMF approval. They hold a veto over parliament. Retire at 67 why not make it 75 so they do not have to pay any pensions at all? I retired at 55 and never looked back. I agree that it is not fair to make the present generation suffer for poor decisions made decades ago by expensive political promises and gullible ancestorial voters. I shudder at the sacrifices that my grand children and great grand children will have to make in the future in their so called civilized Western country. What is playing out in Greece will eventually go world wide as all countries are broke to the tune of some 200 trillion dollars. I should Google that I think it is more. Quadrillion?

[henry15]

elgordo38

In belgium you pay

21 percent VAT on cars, Cosmetics, electric home apliances like laundry machines, coffeemakers, spare parts for your car, beer, wine etc on the majority of products and services you pay 21 percent VAT including restaurants and hotels.

12, percent VAT on cable television, margerine,

6 percent VAT on Taxidrives, Tickets publicv transport

In the Netherlands;, Germany, Belgium, Austria is 67 years, In some Scandinavian countries even 70.

Now the Greeks are almost (not yet) in line with other EU countries. Did you know that Greeks have by GDP the highest defence budget in Europe. That almost 50 Percent of the labour force are civil servants.

The Greeks only represents 2 percent of the EU GDP. In fact there never have been a real economy in Greece, the agriculture is for more than 100 percent subsidised by the EU, the even subsidized fields and harvest who even not exist.

The European citizens are realy fed up to pay for alle that, and I am one of them.

[hocuspocus]

"The "rescuers" have called for reform of the tax code to raise additional revenue. This will make restaurant meals more expensive as sales taxes in the food and other sectors climb to as much as 23 per cent. Tax discounts on vacations among some Greek islands will be eliminated. Luxury taxes will rise on big cars, boats and swimming pools."

This will really hurt the economy - the place where taxes come from in the first place. People will stop buying highly taxed items which could make the change tax neutral while hurting businesses and therefore people. It will hurt tourism.

The whole thing is insane. It's just a matter of time and the Euro is dead.

When I lived there up until four years ago most of the ex-pats already bought a lot of things from Amazon UK as it worked out cheaper than buying in Greece even when the shipping costs were added and the extra V,A,T to 23% was added. But I guess the Greeks got the V.A,T (presumably). but the situation certainly did not help the shop owners.During my recent visit there many of the ex-pats I know have already reduced substantially there eating out due to price rises.

[darhut]

...sorry but this reads like the first draft of a school assignment...again....

...sorry but that is funny.....

.....coming from someone....

....with such a strange writing... Style...

...lol...

[thaibeachlovers]

"The "rescuers" have called for reform of the tax code to raise additional revenue. This will make restaurant meals more expensive as sales taxes in the food and other sectors climb to as much as 23 per cent. Tax discounts on vacations among some Greek islands will be eliminated. Luxury taxes will rise on big cars, boats and swimming pools."

This will really hurt the economy - the place where taxes come from in the first place. People will stop buying highly taxed items which could make the change tax neutral while hurting businesses and therefore people. It will hurt tourism.

The whole thing is insane. It's just a matter of time and the Euro is dead.

UK VAT is 20% and they aren't in the poo like Greece. Why should Greeks pay less?

[DrTuner]

Well in the title's case, euthanasia would be in order. I'm sure the Turks would lend a helping hand.

[sdanielmcev]

Socialists, always needing capitalists to bail them out.

[ABCer]

Socialists, always needing capitalists to bail them out.

Capitalists, - always ready to sell the rope and soap to be hanged by socialists.

[Basil B]

“Only the stupid pay tax,” one eye surgeon told a Greek state radio.

Tax evasion is a way of life in an economy riddled with abuses, discrimination and corruption but changing habits and culture represents one of the biggest headaches for a beleaguered government trying to climb a financial Olympus in flip-flops.

Reducing the estimated €15bn (£13.2bn) that slips through the tax collection net each year is one of the conditions tied to a bail-out.

There have been some imaginative attempts to widen the collection pool. Helicopters have been hovering over plush suburbs in northern Athens in the search for swimming pools in the homes of professional people who claim they are living on only €35,000-€43,000 a year.

http://www.telegraph.co.uk/finance/financialcrisis/8585593/Greece-loses-15bn-a-year-to-tax-evasion.html

The article goes on to detail how rich people now hid their swimming pools under camouflage nets

Edited July 19, 2015 by Basil B