The Greek Tragedy

July 5, 2015 by Andy @ Chorus Business Advisers

The Greek Tragedy

The situation in Greece is perilous. In its first major test, it appears that the combined intellects of European Finance Ministers and the IMF have not been able to solve the problem. The country is bankrupt, economic growth has collapsed; unemployment rate is 25% with youth unemployment at 50%. On top of this the banks are closed and running short of cash, 50,000 holiday bookings a day are being cancelled, imports of machine parts and fresh foods are running short.

The economy is imploding.

The Greek nation went to the polls on Sunday to vote Yes/Nai or No/Oxi – at least we have learnt a couple of Greek words – but it is total confusion as to what they have voted on. It is clear from recent polls in Greece that the Greek people want to stay in the EU and keep the Euro but cannot take anymore austerity – that is not an option on the ballot paper.

No matter which way the vote goes negotiations still need to continue and uncertainty will remain until creditors agree a package. Stock markets and exchange rates will remain volatile. Europe has boxed Greece into a corner and whilst it is only a small percentage (2%) of EU GDP the political implications of a GREXIT will have a lasting impact on the European Union. The Brussels intelligentsia need to take a long hard look in a mirror and ask themselves why it has come to this.

It is a worrying time and if you are doing business with Greece there are numerous official sources of advice from the UK government 

• https://www.gov.uk/government/news/greece-has-introduced-temporary-capital-controls-guidance-for-businesses
• https://www.gov.uk/government/news/greece-updates-advice-for-uk-citizens-and-businesses
• https://www.gov.uk/business-support-helpline
• https://www.gov.uk/government/organisations/uk-export-finance

As always Chorus Business Advisers are here to help. If you have any queries contact us on 0845 8671263 or email info@chorusadvisers.co.uk