Up to eight billion euros have been paid in bogus pensions in the past decade, director of the Social Security Foundation (IKA), Rovertos Spyropoulos said on Monday.
Under immense pressure to cut spending and replenish empty state coffers, the Greek government has found out that millions of euros have been paid to deceased claimants. The money is often claimed by fraudulent relatives or, in some cases, it remains idle in banks.
“We are trying to cut back on waste,” Spyropoulos told Skai television on Monday adding that the cutback has already saved the foundation over 700 million euros.
Greece’s decision to call a referendum on its five-day-old bailout blindsided its European partners and placed another hurdle in the way of efforts to staunch the debt crisis.
“If the Greek people don’t see the necessity of backing Papandreou we have a whole different ballgame,” Otto Fricke, the budget spokesman in parliament for Merkel’s Free Democratic Party coalition partner, said by phone. “If he doesn’t get a majority, then there’s no second aid package, no voluntary haircut. We’d have a potentially explosive situation, one that leaves us today baffled as to what we could possibly do next.”
I don't know what the outcome will be. And given this morning's market drop (2% in the first hour) it seems most everyone else is not sure either.Shakespeare wrote:Greece opens a can of worms with its surprise referendum
So what happens if they vote "no", which appears very likely? Does Greece withdraw from the Euro, impose currency controls, and force conversion of in-country Euros to a drachma that will fall like a stone?
In the making maybe, but nowhere near good enough yet.May be a good buying opportunity in the making
Ironically, this was totally predictable. After all, we are taking about politicians!Shakespeare wrote:In the making maybe, but nowhere near good enough yet.May be a good buying opportunity in the making
tedster wrote:I tried to "search" but found no thread. I can't believe no one has an opinion on the topic.
Bylo Selhi wrote:tedster wrote:I tried to "search" but found no thread. I can't believe no one has an opinion on the topic.
ghariton wrote:What happens if the Greeks vote No? The country goes bankrupt, i.e. it defaults on its debt. (It will likely offer to pay in Drachmas, but that would be considered a default.) Likely it won't be able to pay many of its public sector employees, or pensioners, except in rapidly devaluating Drachmas. Then the real austerity starts.
Greek Prime Minister George Papandreou is backing off plans to hold a controversial referendum on an international bailout for his country, he told his Cabinet Thursday, saying there was no need for it given opposition support for the tough austerity measures that accompany it.
Papandreou's office is now denying earlier statements that he was going to meet the president of the country, news which sparked speculation about a possible resignation.
Descartes wrote:Choose one of the following to complete this sentence:
"Prime Minister Papandreou is..."
Stathis Kalyvas on FT.com wrote:Mr Papandreou was left with three options. The first was slow death: persist on his current path of political paralysis, dwindling popularity, and collapsing governing capacity. The second was immediate death: call for early elections that, all surveys indicate, would have resulted in an unprecedented rout for his party. The third was gambling for resurrection: call for a referendum that would give his government a new lease on life and salvage his political career. Seen from this perspective, his decision does make political sense.
Jubilation about the German deal to save the euro could prove short-lived if fresh news of Greek tax evasion gains wider currency. There are more Porsche Cayennes registered in Greece than taxpayers declaring an income of 50,000 euros (£43,800) or more, according to research by Professor Herakles Polemarchakis, former head of the Greek prime minister’s economic department.
While German car workers may take pride in this evidence of their export success, German taxpayers may be less keen to bail out a nation whose population appears to take such a cavalier approach to paying its fiscal dues. Never mind all that macroeconomic talk about deficit distress, many Greeks are still plainly riding high on the hog.
Something can’t be right when the modest city of Larissa, capital of the agricultural region of Thessaly with 250,000 inhabitants, has more Porsches per head of the population than New York or London.
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