Greece says debt talks to avert default 'productive'

There is a concern among Greece's international creditors that it is not doing enough to get its spending under control. In order to warrant the next 8 billion euro of its rescue loan Greece must do so.

The problem according to the IMF, is that Greece is not doing enough when it comes to taxation. They should aim for a better taxation and deeper spending cuts. Instead Greece has gone higher with the taxation rate. In order to get the loan Greece should reduce the size of the state sector through redundancies, pay cuts and privatizations. Bob Traa The representative of the IMF in Greece said: "The public sector is very large. She also pointed at tax evasion and that the solution was not in property taxes or new taxes, the government should be focused in an efficient collection of taxes. Increasing taxes would only lead to more evasion and less consumption. That is the reason why Greece should speed up efficiency in this matter.

The IMF shows a clear neoliberal position towards Greece and so do the other institutions. They seek for a more competitive Greece by cutting on the huge public sector in order to avoid the block in enterprising. Greece has ben pressured to the point of privatizing everything. With it's neoliberal economic policies such as this one, the IMF expects Greece to reduce the debt. All of this circumstances fall hard to the people. The welfare state will be placed aside to achieve the goals imposed in Greece. So here the horrifying consequences of a terrible managing on the public finances.

With everybody putting it's hands on the situation, the greek finance minister Evangelo Venizelos said that Greece had been "blackmailed and humiliated" and that the european and international institutions were using Greece as a "scapegoat" to "hide their own lack of competence to manage the crisis". According to him to stop this awful situation Greece has to meet this three strategies:

•    -Greece achieving its 2011 and 2012 fiscal targets  
•    -Achieve annual budget surpluses "as soon as possible"
•    -Carry out structural changes to allow Greece to become more competitive and productive.

Its hard for the EU not to be digging since Greece has shown to be irresponsible on its debt, but hopefully the Greeks follow directions and get their monthly check to get out of this situation.  The economic and political pressures have ben a part of this painful process. The ideology now placed in Greece seems harsh and abruptly, but the world is suffering its horrible management and they have to confront its misleads to finally ride its own country.


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