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Greek Bailout Heralds A new Start
Can the new attitude towards the Greek bailout start a new contagion that positively impacts on the struggling economies of Europe.
By: Paul Stubbs
The climate within the financial community however seems to be shifting, with the French banks offering 30 year roll-overs and a far more realistic view of the future probabilities of Greece paying this money back.
As it stood before Greece had no chance of paying this money back, none. They would have defaulted and it is a considerable improvement that this is being properly recognised. But with more time to pay and a different attitude emerging, we may start to see more than just cuts.
Structural reform costs money, if all of the bailout goes towards paying back the Banks, Greece keeps cutting and therefore reducing GDP, then this just goes on forever until Greece falls over. There are a number of leading economists predicting exactly this.
So it is time for Greece to be given time to restart its economy, be a little less rigid in the implementation of the bailouts given by Europe and the IMF and ask Greece to reform the way it does business. In this way we may start to see growth within the private sector which in the end is the only way out of there current demise.
Of course they have problems with the economic elite in Greece, always snaffling up as much as their greedy little fingers can grasp, but if there is the political will to do so, this can be achieved.
So how does this effect the likes of Portugal, well of course Portugal has nothing at all like the same level of problems, nevertheless lessons can most certainly be learnt.
For more information about Portugal please go to http://www.perfectportugalproperty.co.uk
Again Portugal needs time to reform, it is already under way with some pretty radical labour and pension reforms that are long overdue. Social security is being addressed and a lot of efforts are being made to boost there high tech industries overseas with some success.
Given extra time and perhaps even a little extra money, Portugal could build a far more dynamic economy, it has good geographical position with plenty of coastline and ports, it also has a low wage economy and rapidly improving infrastructure.
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PPProperty is a registered estate agent in Portugal, they currently have two branches in Central Portugal. PPProperty already advertise property all over Portugal and plan to expand their network of branches when the business climate allows them to do so.