Asset stripping Europe.

I can not see how the bail-out of Greece will work.
How can they repay this “loan”, even if it was at zero percent interest rate?
Greece has effectively sold off all its state assets through the process of privatisation (aka asset stripping, beloved of maggie’s beloved entrepreneurs) and has little in the way of Family Silver remaining.
Its only real wealth production are via EEC-subsidised olive oil,its Maritime Fleet and  Tourism.
Its customers are mainly the other European countries, who are lending it the money and whose citizens are also having to curb their spending.
If Greece finds that it can’t raise prices and it can’t produce more, then it has to cut costs.
That means reducing wages and State provided services, much as we are doing.
However; as we are finding, that is self-defeating. Cutting State services means putting more people on the dole.
Cutting benefits to the unemployed means that they have to cut their costs but benefits are meant to only cover essentials such as food and shelter, so how effective can that be?
This might seem feasible in Sunny Greece but they still have harsh Winters, so sleeping in tents and feeding off the land are not really options, any more than in our colder Northern Winters.
Cutting wages is not a very effective solution.
Those who are overpaid, such as politicians, will not include themselves in this solution (our own MP’s being a perfect example) and those who are low paid will find that price rises and fuel costs (especially if they have an eco-friendly Minister like our own dear Mr. Huhne) will rapidly eat up the slight advantage in pay over state benefits.
With the majority having less to spend in the shops, Businesses will fold, as they are doing here, and the economy and its derived tax revenues will plummet.
Greece is not a profit making enterprise. It is a money pit and the rest of the signatories of The Lisbon Treaty seem doomed to be sucked in.
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