Greece Austerity Package

June 22, 2011

By Padmini Arhant

Greece faced with fiscal challenges is considering further austerity measures targeting the mainstream population.

The decision has triggered public anger and frustration in disagreement with the government’s economic policy.

In an effort to comply with ECB, IMF and EU terms for the previous bailout euros 110 billion of which, financiers have conditionally withheld remaining euros 12 billion demanding the government to streamline spending cuts alongside tax hikes to avert potential default predicted to cause ripple effects among the euro zone nations.

Greece is also hoping to secure additional loan euros 100 billion to meet financial obligations with creditors while attempting to pass the austerity package worth euros 28 billion in Parliament

The Socialist government under familiar leadership of Prime Minister George Papandreou has been struggling to survive the worst financial crisis emanating from –

The hedge fund debacle combined with weak fiscal policy lacking in checks and balances,

Asset mismanagement, monetary and economic policies deficient in goals and preparedness with respect to the then looming global recession leading to prior administration failure exacerbated by the common corruption problem that has brought the Mediterranean country on the brink of economic collapse.

As a result the vulnerable demography in the society are forced to bear the brunt with workers in both public and private sector not paid for their service or labor over six to fifteen months.

Notwithstanding a vast majority bereft of job opportunities and economic growth… left at the government’s mercy for existence.

The dire situation is the culmination of complacency to deteriorating economic conditions, financial prudence and ethical efficacy debilitating national creditworthiness.

From the creditors perspective, caution exercised in lending to a nation perceived as fiscally irresponsible and therefore stipulations beyond economic viability is maintained despite the drastic constraints proved detrimental to the borrower and lender more likely precipitating the anticipated delinquency on loan repayment.

Although fiscal management is vital to emerge from the burgeoning economic meltdown, it is equally important to be diligent in protecting the mass being the workers, employees, consumers, taxpayers and the electorate determining the political fate in a democratic society.

Austerity aimed at the essential services and programs for citizens would be counterproductive.

Instead reviewing the national budget and eliminating wasteful expenditures like disproportionate defense appropriation with Greece being a NATO ally and trimming bureaucracy in the government portfolios could improve efficiency in the public sector.

Private sector could be invigorated with tax incentives to retain and create desperately required jobs.

Simultaneously closing tax loopholes with tax reform is yet another revenue source possibly reversing the rising national debt.

Investments to promote small-medium businesses are typically the desirable economic pursuits to expedite recovery.

Identifying redundant holdings and undertakings contributing to national deficit could ease the burden with divestments in job sector to increase productivity.

Agriculture, Industrial expansion utilizing innovative technology and focus on green jobs would immensely boost GDP enhancing exports in the global economy.

Hence every step towards alleviating public plight by restoring health, education, housing jobs and environment would guarantee exponential returns for any economy especially the nations dealing with fiscal woes need economic stimulus to revive the job market and consequently consumerism.

Human capital is a valuable resource instrumental in economic, social and political development.

The government efforts on austerity slashing critical programs that could deprive people from basic living standards are not in  national interest.

Greece is urged to implement robust economic policy built on political transparency and accountability effectively addressing corruption to reflect integrity and credibility in national affairs.

Parliament vote in Greece could perhaps follow a road map prioritizing citizens’ economic and social empowerment with precise immediate and long-term objectives consisting emergency plan through financial reserve held in future savings for foreseeable or unexpected events.

Hopefully the lenders IMF, EU and ECB would kindly approve the necessary funds to Greece on the premise to become solvent besides fiscally strong in the tough economic climate setting a precedence for others seeking financial rescue.

Wishing the people of Greece and Prime Minister George Papandreou success in nation building.

Best Wishes to European Union members in providing meaningful financial assistance to enable nations like Greece and others in similar strife to strive for rapid growth resumption.

Thank you.

Padmini Arhant


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