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Austerity Destroying Greek Lower And Middle Classes

Published 17/07/2015, 13:13

George Georgakopoulos, business editor of leading GreeeKathimerini, spoke to Nick Batsford, and explained how the typical Greek person has been hit hard by the austerity measures, which began in 2010.

The most vulnerable Greeks suffering most

The results are that disposable income has fallen, particularly impacting the lower and middle class families., leaving Greece at an economic standstill.

Georgakopoulos continues by portraying the Greek picture over the last two and a half weeks, with capital controls and banks being shut, and any single person only being able to withdraw 60 euros a day. Moreover, he explained that despite banks potentially reopening on Monday, the stock market is unlikely to start trading in the near future.

Status Quo unsustainable

Most Greeks want to stay in the Euro, but Georgakopoulos recognises the current agreement with the EU is unsustainable. He argues that the Greek recovery will rely on the performance of the economy over the next few years.

Impact on the EU

The impact of Greece on Spain is likely to be minimal, and if Greece did leave the EU, Georgakopoulos shows how the risk of contagion has fallen since 2012, with the effects to the Eurozone also being minimal.

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