Monday, 7 September 2009

Greece in recession - tough times ahead

Although no one is saying it out loud, there is a general consensus that the Greek economy has entered recession. This has been partly staved off up to now due to the fact that the banking sector had not been contaminated with the toxic assets which took their toll in the USA and other EU economies. But the pillars of the Greek economy are shipping and tourism and here Greece is now feeling the pinch. With any global economic slump the shipping industry suffers as goods are not being produced or exported in the quantities they are during an economic upswing. Added to this the country so far this year has seen a 17% downturn in revenue from the tourist sector.
Prime Minster Karamanlis's speech at the Thessaloniki trade fair on Saturday launching the national election campaign is having a mixed reception. Some say why give him a third chance when he has been unable to launch the economic reforms desperately needed. he has admitted acting wrongly in connection with the high ranking New Democracy government officials involved in the Vatopedi land scandal.
PASOK of course is trying its very best to capitalise on the situation, claiming even that Karamanlis has been unrepentent for getting the country into the situation - economic and financial - that it is now facing. The far left spent the weekend in an Athens hotel trying to decide who would steer the party int he election period. They could nto come up with an answer which shows the deep rifts appearing in  the Coalition of the Radical Left (SYRIZA)which the press this Monday is calling headless. What a view of the current political scenery in Greece, wha can one expect - not a great deal.

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