Greek government could capsize as early as July
Greece faces shortfall of 1.7 billion euros
Greece is apparently on the short road to insolvency. Some analysts say
that the Greek government could be without funds as shortly as this
coming July. This had led to some grim predictions, with Athens
suspending the payment of salaries and pensions, and the halting of such
vital and necessary items such as fuel, pharmaceuticals and food.
Tax collectors in Greece have a reputation akin to Wild West sheriffs set out clean up lawless jurisdictions. Nikos Maitos, a longtime official in Greece's financial crimes investigation unit, had recently trolled the recession-hit island of Naxos for tax evaders. A radio station on the island broadcast his license plate number to warn residents.
In spite of Greece's recent bailouts, to the tune of 130 billion euros, or $161.7 billion, the nation faces a shortfall of 1.7 billion euros. An overwhelming recession and drastic budget cuts have left businesses and individuals with far less to pay taxes.
The International Monetary Fund, the European Central Bank and the European Commission, referred to as the troika, are withholding 1 billion euros in bailout money earmarked for government financing. The three are holding their collective breath to see if Greece's new leaders elected June 17 will honor the nation's commitments.
A key to Greece's recovery plan has been to collect more taxes from a population that has long engaged in tax avoidance. The government is owed 45 billion euros in back taxes, only a fraction of which will ever be recovered.
Tax collectors in Greece have a reputation akin to Wild West sheriffs set out clean up lawless jurisdictions. Nikos Maitos, a longtime official in Greece's financial crimes investigation unit, had recently trolled the recession-hit island of Naxos for tax evaders. A radio station on the island broadcast his license plate number to warn residents.
"One repercussion of the crisis is that people are harder to find," Maitos, declared. "And when you do find them, they don't have money."
Greek tax collectors, who likewise have suffered large pay cuts, have found that budget reductions make it hard to pay for the gasoline needed to reach their targets.
"After two and a half years of austerity, it's really a difficult time to bring in revenue," Harry Theoharis, a senior official in the Greek Finance Ministry says. "You can't keep flogging a dead horse."
Salaries and pensions in the private and the public sectors have been cut by up to 50 percent, leaving Greece 495 million euros short of its revenue targets in the four months ended in April, according to the Greek Finance Ministry. Consumers have curbed spending, leading thousands of taxpaying businesses to fail.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Greece, austerity, troika, tax collectors, debt
NEWSLETTERS »
Rate This Article
Leave a Comment
More Europe News
- Pope Francis To G8 Global Leaders: Goal of Economics is to Serve Humanity
- Pope Francis Adds Name of St Joseph to Every Mass in the Eucharistic Prayer: What Does it Mean?
- St. John Paul II: Reliable Reports Affirm Second Miracle, Canonization This Year
- Fr. Pavone: Gosnell Babies are NOT Unclaimed and Deserve Burial
- Fall of the Wall of Silence: More on Pope Francis and Reports of a 'Gay Lobby' in the Roman Curia
- Pope Teaches the Faithful What it Means to Be a Part of the Church, the People of God
- Social networking taking off in BIG WAY in Europe - and many are senior citizens
- Pope Francis Preaches on the Beatitudes, the Holy Spirit and the Law of True Freedom
- Brother Benedict: Pope Emeritus Lives as a Monk in Prayer, Continuing the Work of the Church
Featured News
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Most Popular
No-one Can Change the Truth About Fatherhood. Love Your Father. Be a Good Father Read More
Courageous Cardinal George of Chicago Defends Marriage, Calls for Public Conversion Read More
Fall of the Wall of Silence: More on Pope Francis and Reports of a 'Gay Lobby' in the Roman Curia Read More
Pope Francis Refers to 'gay lobby' inside Vatican Read More
Why Catholics Have Failed Our Culture: The Bottom Line Read More
Daily Readings
Reading 1, Second Corinthians 8:1-9
Next, brothers, we will tell you of the grace of God which has ... Read More
Psalm, Psalms 146:2, 5-6, 7, 8-9
I will praise Yahweh all my life, I will make music to my God ... Read More
Gospel, Matthew 5:43-48
'You have heard how it was said, You will love your neighbour ... Read More
Saint of the Day
St. Gregory Barbarigo
June 18: St. Gregory Barbarigo was born in 1625, of a very old and ... Read More
Latest Videos
Pope Francis: Forgiveness enriches us View Video
Zanies Comedy Club - Comedian Sally Edwards View Video
Jun 18 - Homily - Fr. Benedict: St. Ephrem - Mary's Own Singer View Video
Jun 18 - Homily: Love those who Persecute us View Video
Pope Francis: Let us pray for our enemies! View Video
Marketplace
The Catholic Church: What Everyone Needs to Know Read More
Adoption Necklace. Catholic Jewelry. I Prayed for You. Hand Stamped Read More




Print















0 Comments