Greece, the new Iceland?

I read a very interesting article at the February 22nd Financial Times. Mr. Alan Beattie wrote of how the “…Parties of the centre- left are in retreat. What should have been opportunity to reorder national and global economies seems to have left many ideologically adrift”.

A good example of this is Greece, with the socialist Prime Minister George Papandreou the country is living the worse Debt Crisis in its history. This is not a serious problem to Mr. Papandreou, he has only been on the charge for a few months but he is not alone in the ineptness side of Europe´s worst leaders, this position is for my president Jose Luis Rodriguez Zapatero in power since 2004.

He couldn’t foresee the crisis when half of Europe was beginning to tighten their accounts and did little to prevent the house bubble that has punished Spain more than other countries. Instead he keeps talking on television trying to please the crowd with temporary social aids rather than work on a sustainable way to get out of the crisis without increasing dramatically Spanish deficit. The reality is that one out of five Spanish is unemployed and this figure appears to continue to grow. As seen below, Spain and Greece should pay special attention to their deficit to GDP above 12. Or their economy will suffer a downward trend in rating their debt bonds.


As the article also mentions Norway and UK seems to be another plummet in the Euro-Economy and this will become the biggest test for Europe since it was founded. €uro´s health is on the bench and I hope that Germany and France begin to pull the wagon of the 16´s. It is for sure that the European Union will not allow Greece or the others to collapse because the Central Bank will have to change the rules to provide guarantees or loans, if necessary to help the PIIGS (Portugal, Italy, Ireland, Greece, and Spain).