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700 billion Euros were lost in the years of the Memorandum

700 billion Euros were lost in the years of the Memorandum

The cost of the memorandum for the Greek people is beyond imagination - A monstrous amount that cannot be covered in any way, despite the development that we may achieve in the next decades.

The numbers are astronomical. After four years of the Memorandum in Greece, the cost paid (and still pays) by the real economy and ordinary people, is really shocking.

With the cuts, taxes, the PSI and the deposits that were send abroad, was "lost" from the real economy over 700 billion, about three times the Greek debt. And yet the country remains mired in the bottom.

It is not only the cuts in wages and pensions, but also the knock-on effects that operate like dominoes. All this happens in a country that feels that there is no future or something on the horizon that will bring salvation. There is no matter how much growth we will succeed, or the primary surpluses that we may succeed, since they all go directly to cover debt.

If we attempt to cost, (based on the available data and estimates), the money that were paid by the ordinary people, in order to save mostly the banks, then we end up talking about a collapse of the society and of the Greek economy.

According to the data we conclude that over three (!) GDPs were lost in these years. Why the State on the official data, measures the reduction of GDP with other parameters and not in terms of the real economy?

With the choices of the memorandum governments and lenders nothing was left standing. The "shock doctrine" in all its glory. The result of all these actions is that there is no cash in the market. The money is collected at specific centers and off-center ... and the Greek market is alive-dead.
Consider that according to official figures of the BoG, the average earnings of the Greek people in period 2009-14 decreased by 21.7% when the memorandum's target was...6,7%!

But let's take it from the beginning. From 2009 to 2014:

* Were lost deposits of more than 70 billion (from households and firms). Several of them went to taxes, while most remain abroad.
* Were lost 30 billion from permanent jobs.
* The taxes increased by 6.5 billion. This money was taken from the real economy in order to cover the hole in the barrel of the state.
* Were lost 4.5 billion of insurance contributions. How to cover the contributions when there are 1 million jobless and salary of workers is 500 Euros?
* Created a gap of nearly 50 billion in pension funds (deficits + losses from haircut of bonds in 2012)
* Banks and bondholders lost 50 billion from the haircut. (The banks were covered by loans that the state took from lenders). The bondholders lost about 620 million Euros.
* 17 billion were lost from the stock market (by market capitalization)

Up to this point the "cost" is more than a GDP. Recall that the GDP in 2013 was close to 186 billion Euros.
The real estate became a "ticking bomb"

The assessment might be theoretical, but is more than true, for anyone who wants to optimize his real estate.

According to estimates, just before the crisis the total property of the Greeks calculated over 1.5 trillion. In 2011, Venizelos has put one more tax in properties, which is the most basic and most profitable for the state and budget.

The real estate market during the crisis lost 30-35% according to official data from the Bank of Greece. In other words, lost about 500 billion! The amount may be much larger if one considers that in market prices, the decline in value of property is over 40%.

However, the property taxes are calculated based on the values of 2007, before the crisis!

Overall, the years of the Memorandum have cost so far in the real economy over 700 billion Euros; a monstrous amount that cannot be covered in any way.

Source: With information from "Eleftherotypia" newspaper