THE INDEPENDENT: The scale of Greece's problem is simply stated: her national debt will approach 160 per cent of GDP on current trends. Here in the UK we are supposed to be in crisis because that ratio is heading for about 75 per cent.
Unless the Greek economy grows at an astonishing rate, the interest on that debt simply cannot be paid out of any conceivable tax take, while the spending cuts and austerity packages are conspiring to push the economy into depression (though official figures, viewed with some suspicion, suggest the Greek economy is managing to grow, despite everything).
In terms of timing, the end could come very rapidly. The IMF's acting managing director, John Lipsky, has threatened the eurozone (in reality that means Germany) with no further instalment of the soft existing agreed loan to Greece unless Germany guarantees it and the Greeks start to behave. Read on and comment » | Sean O'Grady, Economics Editor | Saturday, June 18, 2011
