WHY MERKEL AGAIN????
Angela Merkel have played enough and now it
might be time for her to move ahead since she is just getting austerity gifts
every year for the troubled Euro-zone countries. The economic situation at the
macro level has destroyed whereas the number of growth might be deceptible. Being an Economist all I can she doesn’t underrated
the subject any more. Greece economy is just under the period of World WAR 1 currently.
40% of retail business closed down between 2014 and 2017. The birth rate has
dropped to World War I levels because few couples can afford children. Overall,
GDP has dropped by 27%. Well Greece is not the only member in this club.
Countries like Spain, Portugal and Italy also reporting dangerously low rates.
Low birth rates means low consumption ,low economic growth as the economy will
lag hugely in getting young generation in work over the next 20 years and hence
the economic slow growth will be fearful.What she is doing is just keeping her position alive at the cost of Austerity.Time and Economic Theories have changed and now its time for some revolution to get growth.
Unemployment is the most important reason and the
devil behind is Austerity measures imposed, discussed and implemented by heads
of the Euro-zone decision makers who themselves have less at stake. Merkel
did a fantastic job by going for austerity measures and saving the Euro-zone
from collapse but what she has done and the effect of the same will be
dangerous and she will not be at that point of time manage anything. The common
people of Greece and other member states are the prime suffers of the dramatic
fall of life. Unemployment is Greece is around 23% where as for men it counts
to 20% and for women it’s hopping 27%. Youth unemployment which is big damage
for the long term growth of the economy is a whopping 48 per cent.
Low birth rates and poor economic conditions provoke people
to opt for crime which is another big threat to the society. In French its
being found that birth rates have fallen to the lowest level in 40 years. No
jobs, no earnings, no future so why to get child land upon such a state of
economy. Economist will find its hard to dig into the depth of pain and mentality
ruling the people in these states where such dramatic step have been taken forward.
Austerity have never been solution which many economist cried but all
in Vain as Merkel was more focused in playing her flute. I don’t find any reason
for re appointing her and getting the whole of Euro zone will be escalated to a
further long term slow growth in macro levels which will not get captured in Manipulated
economic numbers. Those who are betting on Greece Economic growth numbers well Greece's
budget had a primary budget surplus but that
is, excluding debt repayments which is estimated at as much as 4.2 per cent, and
that’s too depending upon the depending on accounting procedures. If there
is a change in accounting procedures then debt might not reflect whole of it
now which pushed the GDP numbers.
More austerity is in the wings to come as Greece's
debt burden has actually got worse. It is at 179 per cent of GDP compared with
around 109 per cent in 2008. Another
round of debt funding will come and this story of debt will keep revolving
followed with Austerity. What Greece needs is write off the entire debt or let
Greece be out of Euro zone.It time for Merkel to leave the position and let some new blood come up to look over the same subject from a different perspective.