Monday, 20 August 2012
Greece - lack of joined up thinking
On Radio 4's World at One today I heard one Michael Fuchs of Germany's CDU party argue that one reason it was futile for his Government to keep bailing out the Greeks was that Greece has become uncompetitive. He pointed to tourism to the country, noting that it was 14% down in recent months. Why does he think that is? Apart from the fact that tourism generally has been hit by a global economic downturn - and that they have no right to expect the Greeks to provide them with bargain basement holidays in any case - it has been suggested that some German holidaymakers have been avoiding Greece because they are worried they might receive a frosty reception. And why might that be? Because Berlin has been decidedly sceptical about propping up the Greek economy. I don't have any hard evidence to back this up but my my surmise is surely more credible than that of Herr Fuchs.