Guardian
February 22, 2012
Greece is safe from a disorderly default, but not out of the woods yet. The European Union and the International Monetary Fund approved Greece's second rescue package – worth €130bn – after 13 hours of difficult deliberations. This is the good news.
The bad news is that Greece is still wading neck-deep in murky waters. Worse still, the country's economic crisis (the worst since the second world war) can be transformed into a crisis of confidence between its people and the state – regardless of which party is in government.
Greeks are starting to question whether their economy can ever be revived. They are losing faith and growing increasingly pessimistic about whether the sacrifices they are making will be enough to end the crisis.
How possible is this? The real economic situation in Greece is worsening. The unemployment rate has hit a record high, currently 17.7% and close to 50% for young people. Pensions and salaries are being cut. Businesses are shutting down every day. New taxes are being levied. The "informal" labour market is swelling – it's pushing 50% of the country's potential workforce.
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