Just read an interesting piece in Forbes. Panos Mourdoukoutas argues that Germany has failed to use accepted standards when calculating Greek debt. He writes that Greece’s net debt is actually 18% and not 175% of their GDP as some apparently claim. All the while, of course, Germany continues hammering away on Greece for being fiscally irresponsible.
Others have chimed in with similar concerns about the Greek debt issue. An analyst on Euronews the other day claimed that Greece’s total debt amounts to only 2% of the Eurozone’s GDP, making this not an economic issue, but a political one. There is also the most interesting factoid Greek PM, Mr. Tsipras, brought up with regard to the world’s powers affording Germany 60% debt relief in 1953, following the devastation of WW II. Greece, it seems, was among those forgiving the German debt.
One wonders how the Germans would feel now, if Greece began producing cars, major appliances and other products to compete with German goods on the world market – or will it be better for Germany if the Greeks stick to olive oil and tourism?
H/T Ethan Anthony