March 04, 2010

How to handle Greece's financial crisis

One suggestion is to sell off some islands…
From German news outlet The Local:

German MPs suggest cash-strapped Greece should sell islands
Greece should sell some of its uninhabited islands to raise cash to avoid bankruptcy, two German parliamentarians from Chancellor Angela Merkel's centre-right coalition suggested on Thursday.

“The Greek state must sell stakes in companies and also assets such as, for example, unpopulated islands,” Frank Schäffler, a member of parliament for the pro-business Free Democrats, told the Bild daily.

Marco Wanderwitz, an MP for Merkel's own conservative Christian Democrats, said Athens should provide collateral for any money it receives from the European Union to help it out of its debt crisis.

“In this case, certain Greek islands also come into question,” added Wanderwitz.

“We give you cash, you give us Corfu,” the Bild commented.

What a stupid, non-reversible boneheaded idea. Greece is in trouble because it is spending too much — giving Union members guaranteed pensions; pensions worth far more than the Union member paid into through ought his career.

It needs to cut spending, not dip into its principal. Greece's islands and corporations are its principal and you never ever dip into your principal…

Posted by DaveH at March 4, 2010 06:47 PM | TrackBack
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