Tuesday, December 30, 2014

Greece remains Europe's problem child

Seems that its cattle-masses are frustrating attempts for the welfare state on the Mediterranean to begin the trek towards fiscal sanity:

ANTONIS SAMARAS, the centre-right Greek prime minister, lost one election on December 29th. Now he will have to fight another. His New Democracy party’s candidate for president, Stavros Dimas, fell 12 votes short of the required three-fifths majority in a third and final ballot by Greece’s 300 MPs. As the constitution demands, a snap general election will now be held on January 25th. ND is trailing the far-left Syriza opposition, according to the opinion polls. Once again, the prime minister’s chances of victory look slim.
What they appear to be keen on is the redistributionist sweet nothings of the radical left's charismatic leader:

 Alexis Tsipras, Syriza’s radical leader, calls Mr Samaras “finished”. He plans to renegotiate Greece’s bail-out. Although he no longer threatens to halt debt repayments unilaterally if his party comes to power, he still wants to secure a big write-off. Greece’s creditors would oppose that, and also Mr Tsipras’s proposals to reverse other reforms and launch a €11 billion ($13 billion) welfare package, to be financed by better tax collection. With more than €7 billion of lending suspended until Athens reaches agreement with its “troika” of creditors on more tax, labour and pension reforms, Greece will soon run into trouble. Hard-pressed taxpayers are already struggling; more than €1 billion of income and property tax goes uncollected every month. Mr Tsipras’s promises sound alluring to angry, impoverished Greek voters.
The continent's northern, productive folk will surely tell them the gravy train stops here.  Then what?


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