Friday, 24 February 2012

EU take control of the Greek economy

The Europeans weren't joking when they said that they wanted to take over the economic management of Greece. The FT reported on the extent to which the EU are micro-managing things in Athens.

European creditor countries are demanding 38 specific changes in Greek tax, spending and wage policies by the end of this month and have laid out extra reforms that amount to micromanaging the country’s government for two years, according to documents obtained by the Financial Times.

The reforms, spelt out in three separate memoranda of a combined 90 pages, are the price that Greece has agreed to pay to obtain a €130bn second bail-out and avoid a sovereign default that the government feared would throw Greek society into turmoil.

They range from the sweeping – overhauling judicial procedures, centralising health insurance, completing an accurate land registry – to the mundane – buying a new computer system for tax collectors, changing the way drugs are prescribed and setting minimum crude oil stocks.

A lesson here for Scotland perhaps?


Weekend Yachtsman said...

Well not until the Scots need a bailout.

It might take a few years - or less if they don't abolish all the "free everything for everybody" stuff once they lose the English subsidy.

Anonymous said...

I bet they now wish they'd gone to the IMF - at least your can keep your shirt with them.