How much additional money Greeks need, should the bailout program be extended for two years? On Monday, German weekly DER SPIEGLE claimed that the Greek budget shortfall was 20 billion euro. On Tuesday, German daily Sueddeutsche Zeitung claimed the shortfall is even bigger and ‘stamped’ the shocking number: 30 billion euro.
Giant Hole in the Water – Not in Greece!
While I was thinking that tomorrow some other German newspaper could talk of 40 billion euro and on Thursday a fourth German reporter would claim 50 billion euro, I recalled that several weeks – or even months – ago, there were indeed circulating scenarios claiminig a third bailout of 50 billion euro… hm… an amount to keep in mind…
Even IMF head Christine Lagarde see a gap in Greek finances:
“Greece faces a financing gap that won’t be solved by budget measures being discussed because a weak economy and delayed privatizations have worsened its fiscal situation, International Monetary Fund Managing Director Christine Lagarde said.” (ekathimerini)
However, later on Tuesday, Greek Finance Minister Yiannis Stournaras told Reuters that in case of a program extension, “Greece would need 13-15 billion euro”.
Clear, is whether with bailout extension or without, the budget and finances holes are here and will most probably stay, should one just think of the recession, the uninsured work, the tax evasion, the untrimmed public sector, the salaries of 3,000-4,000 euro in some state-owned organisations and the absolutely zero-measures for growth and development.
Hopefully, we won’t fall into these deep holes and disappear…