Posts Tagged ‘Financial crisis’


November 4, 2011

The global financial crisis left the Greek government, which had spent and borrowed heavily but had not collected enough tax, without sufficient funds to pay its bills.

Bail-out plans came with unpopular reforms;  some had feared a “No” vote on a proposed referendum would have forced Greece from the euro leading to another financial crisis.

Fortunately plans for the referendum have been abandoned.  But does it really matter one way or the other?  In either case the Greeks are facing a stark  choice.  They can say yes to the terms of the European bailout — in which case they face a life sentence of harsh austerity under the watchful eyes of European technocrats who will basically be telling the Greek government what to do.  Or they can say no – in which case they face a life sentence of harsh austerity but at least they’ll be in charge.

Today Greek Prime Minister George Papandreou will face a vote of confidence in parliament.  If he wins, he says he will voluntarily step down and let a new government be formed.

Will it make any difference whether the Greek prime minister bows out?

Will failure in Greece affect our financial recovery in Canada?

Can the Greek economy be saved?

What do you think?