Second bailout for Greece

29th July 2011

Among the commentators on this news, Hamish McRae says in the Independent: "Maybe it takes a crisis to lead to real change; but if the crisis results in a short-term patch rather than fundamental reform maybe that is the worst outcome of all. We know that the second bailout for Greece solves nothing but we don't know whether that particular patch will hold things together for three months or three years."

But what do people on the ground see as the real situation in Greece? asks Mindful Money economist blogger Shaun Richards of his commenters. What impact are these bailout packages having on the population?

Vassilis_101, from Greece, comments on Shaun's blog: "No-one I know cared about financial developments. The recent deal was a very low priority point of discussion. Complaints about austerity yes but all places overbooked and people having fun and good time, sun, beach, swimming, sunbathing etc.

"Of course the new deal for Greece is not adequate, in fact totally inadequate, but the proverbial can might have been kicked enough to meet the inevitable fiscal union. There's no way out now as the alternative would cost even more."

What is the view on the Greek economy now? Do people feel that it is still shrinking fast or do they feel that there might be some hope at last? asks Shaun.

Vassilis_101 replies: "Of course this is only my personal opinion and perception: People stopped caring too much about the big picture, about the 'solutions' and 'packages', there is the underlying suspicion that they solve nothing in the end and we are in the same position yet again soon enough after the 'solution'. So, stopped listening to the news and do not care any more. They have seen too much of this and they trust neither their politicians nor EU politicians. The message is everyone for himself. They feel that they are punished unjustly while the banking sector is saved."

"…Black economy is thriving even more, tax evasion also, even more now as the taxes have gone up and up and up and the income down down down. Greece becomes more dysfunctional not less.

"This is not working. People concentrate only on finding ways to diminish their cuts that they consider completely and utterly unfair, everybody has a good story to say about how much she/he has worked hard for years for relatively low salary (true) that has become smaller now. So black economy and tax evasion are thriving. Services have deteriorated even more, people do not see any return for the taxes they pay." Read more here.

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