Italy’s austerity-fueled crisis is a warning to the Eurozone

Re:Italy’s austerity-fueled crisis is a warning to the Eurozone by despera on Saturday April 13, 2019 @02:38AM (#19651442)

Greek debt crisis begun when they had 160% of GDP debt, after years of recession, "bailing" packets and the heroic efforts by EU/IMF they now are at 190% of debt. Great success.

[ Parent | on HN ]

Re:Italy’s austerity-fueled crisis is a warning to the Eurozone by geezerjay on Saturday April 13, 2019 @03:34PM (#19655264)

You're somehow leaving out the fact that Greece's debt/GDP ratio went up in good part because the true extent of Greece's sovereign debt and structural deficit was uncovered after the inception of thr bailout program, which by itself led to a higher debt ratio.

Also, having to reign in a double-digit deficit by cutiting the state's chronic overspending also lowered the GDP that was kept artificially high by injecting into the greek economy all that borrowed cash.

So, it's disgenuous to insinuate that Greece's bailout program caused any problem when you're actually referring to the natural consequences of:

1) finding out the true extent of Greece's overspending by fixing their accounting incoherences

2) the impossibility of continuing overspending well over 10% of the nation's GDP.

[ Parent | on HN ]