Greece is in a mess. So are other countries in the EU. All too sadly the fall-out from the travails afflicting various countries in the EU have a knock-on-effect to the rest of the world. But what do the severe austerity measures now afflicting Greece mean in practical terms? This piece in The New York Times provides an insight in this piece "The Way Greeks Live Now".
Which pretty much sums up Greece. Everyone talks incessantly about the economy — about Merkel and Sarkozy and the E.U., about the tightly knit elite that has run Greece for so long and about their neighbors’ troubles and their own — but somehow everyday life rumbles on, in a collective trance, shot through with gallows humor.
By many indicators, Greece is devolving into something unprecedented in modern Western experience. A quarter of all Greek companies have gone out of business since 2009, and half of all small businesses in the country say they are unable to meet payroll. The suicide rate increased by 40 percent in the first half of 2011. A barter economy has sprung up, as people try to work around a broken financial system. Nearly half the population under 25 is unemployed. Last September, organizers of a government-sponsored seminar on emigrating to Australia, an event that drew 42 people a year earlier, were overwhelmed when 12,000 people signed up. Greek bankers told me that people had taken about one-third of their money out of their accounts; many, it seems, were keeping what savings they had under their beds or buried in their backyards. One banker, part of whose job these days is persuading people to keep their money in the bank, said to me, “Who would trust a Greek bank?”
The situation at the macro level is, if anything, even more transformational. The Chinese have largely taken over Piraeus, Greece’s main port, with an eye to make it a conduit for shipping goods into Europe. Qatar is looking to invest $5 billion in various projects in Greece, including tourism infrastructure. Other, relatively flush Europeans are trying to make “Greece the Florida of Europe,” Theodore Pelagidis, a Greek economist at the University of Piraeus, told me, referring in particular to plans to turn islands into expensive retirement homes for wealthy people from other parts of the continent. Whether or not the country pays its debts, he went on, other nations and foreign companies “now understand the Greek government is powerless, so in the future they will take over viable assets and run parts of the country by themselves.”
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