Wednesday, February 17, 2010

Greece is Probably Regretting Joining the Euro Now

Besides losing control of its monetary policy, it looks like Greece is on the verge of losing control of its fiscal policy as well:

The council of EU finance ministers said Athens must comply with austerity demands by March 16 or lose control over its own tax and spend policies altogether. It if fails to do so, the EU will itself impose cuts under the draconian Article 126.9 of the Lisbon Treaty in what would amount to economic suzerainty.
Greece was only able to join the Euro in the first place by counting prostitution towards GDP (in order to make their deficit as a % of GDP meet requirements). I guess they shouldn't have tried so hard and kept the dinar.

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