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Greece to privatise 50bn euros of state assets

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    Greece to privatise 50bn euros of state assets

    BBC News - Greece to privatise 50bn euros of state assets

    Pity the our government have already sold every last symbol of what makes britain britain, otherwise we might do the same thing.

    I can well imagine the tories scouring the land looking for the next bit of railway track or forest they could sell to a saudi prince.



    Greece has announced plans to sell 50bn euros (£44bn; $72bn) of state assets in a bid to get its finances back on track.

    Government stakes in the utility power company PPC, the telecom operator OTE and ATEbank will be sold off by 2015.

    The government's mid-term budget plan also aims to save 3bn euros, of which 2bn euros will come from cutting tax breaks.

    The moves will help it meet conditions of its 115bn euros bail-out.

    A document released by Prime Minister George Papandreou's office stated: "The size of the fiscal adjustment that needs to be achieved by our country in 2012-15 is about 23bn euros, or about 10% of GDP [gross domestic product]."

    The finance minister, George Papaconstantinou, said the cuts would keep the country within its targets.

    More details of its budget plans will be revealed after Easter, which falls on 24 April, to try to steady investors' faith in its solvency.

    Mr Papaconstantinou said: "The plan will be completed in the coming weeks. It will be then submitted to parliament. We are all determined to change our country in every possible way."

    He said the mid-term fiscal package would be designed to cut spending to 44% of gross domestic product by 2015.

    The country's creditworthiness has again come into question this week.

    Record
    Talk that it may not be able to pay back its bondholders meant that Greek government debt has been trading at record yields of more than 13%.

    A rise in the yield - or rate of return - on bonds, which are effectively IOUs, is an indication that investors are losing faith in the ability of the borrower to repay the debt.

    The ability of the weaker eurozone countries to pay their debts is constantly being questioned by the markets

    The record high rate of return reached on Thursday followed comments by the German finance minister Wolfgang Schaeuble that Greece may have to renegotiate its debt.

    But on Friday, Mr Schaeuble said his comments had been "somewhat erroneously" interpreted by English-language media.

    Also on Friday, Jean-Claude Juncker, the chairman of the eurozone finance ministers, said speculation concerning a restructuring of Greek debt was "totally unfounded".

    "This is not even an option," he told reporters.

    Greece received a bail-out worth 110bn euros from the European Union and the International Monetary Fund last year.

    In order to qualify for that support it has to raise 50bn euros from privatisations by 2015, a target many analysts and Greek politicians see as optimistic
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    This is just a natural consequence of financial mismanagement. Getting into unsustainable debt means you have to sell the family silver - and you never get that silver back.

    It was suggested that Greece should sell off all their mini-islands to meet the debts. It was met with horror and utter distain, but essentially they're doing the same - just with other state held assets.

    Is selling all these assets worth the 3-4 years of relative temporary boom that Greece experienced.

    If someone offered you to live in relative comfort (but hardly luxury) for 3-4 years, but after that, they would take your house off you and leave you peniless, you'd wouldn't touch it with a bargepole. Yet voters (in various countries) were quite happy for their governments to do just that.

    Comment


      #3
      Originally posted by centurian View Post
      This is just a natural consequence of financial mismanagement. Getting into unsustainable debt means you have to sell the family silver - and you never get that silver back.

      It was suggested that Greece should sell off all their mini-islands to meet the debts. It was met with horror and utter distain, but essentially they're doing the same - just with other state held assets.
      I think this is a very interesting point. It was not that long ago the tories were trying to sell the forests. The railway line between London and the rest of Europe is now in foreign hands. And yet some will argue the UK is in much better shape. We've sold everything expect he mother-in-law.

      Originally posted by centurian View Post
      If someone offered you to live in relative comfort (but hardly luxury) for 3-4 years, but after that, they would take your house off you and leave you peniless, you'd wouldn't touch it with a bargepole. Yet voters (in various countries) were quite happy for their governments to do just that.
      People are stupid, the individual is smart. I don't think it's a cycle that shall change any time soon either.
      "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

      Comment


        #4
        Originally posted by scooterscot View Post
        People are stupid, the individual is smart. I don't think it's a cycle that shall change any time soon either.
        Or as Dilbert said never underestimate the power of stupid people in groups, it's how political parties get elected
        Doing the needful since 1827

        Comment


          #5
          It is interesting though how those political parties that advocate state control spend also spend so much money that they then have to sell everything off.
          I'm alright Jack

          Comment


            #6
            Originally posted by BlasterBates View Post
            It is interesting though how those political parties that advocate state control spend also spend so much money that they then have to sell everything off.
            We can always sell our gold reserves.

            Britain has had tonnes of gold and the gold price is at an all time high.



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