PRLog (Press Release) -
May 11, 2010 -
“SunWorldwide”
analysts believe that the Europeans Union’s vow to defend the euro against what it has dubbed “the wolfpack” is ill-advised. The firm’s view is that, regardless of how much money is available to those countries facing prohibitive yield demands from so-called “bond vigilantes”, without concrete and aggressive austerity measures that can actually be implemented, the problems would be likely to persist.
Sources close to “SunWorldwide”
say the markets were spooked by the reaction in Athens to the EU/IMF support package. The consensus is that Greece’s government, with the best intentions in the world, will simply not be able to make the austerity measures work especially as tax evasion is something of a national sport in the country.
http://www.imf.org/external/index.htmMany Greek businesses offer two prices for goods and services; a cheaper one for cash with no receipt and a pricier one for traceable payment and a receipt and “SunWorldwide”
said that this is at the heart of investor concerns.
In addition, Greece, for all its woes, represents only 2% of the EU’s GDP while Spain generates far more. Given that Spain already suffers from unemployment in the region of 20%, “SunWorldwide”
said it was difficult to envisage the implementation of austerity measures to reduce the country’s budget deficit and debt-to-GDP ratio.
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