In a hard hitting recent
interview with the Guardian, Christine Lagarde, head of the IMF
insists its payback time for Greece and makes it clear that the IMF
has no intention of softening the terms of the country’s austerity
package.
She says Greek parents
have to take responsibility for their children being affected by
spending cuts. “Parents have to pay their tax” she says.
Greece, which has seen
its economy shrink by a fifth since the recession began, has been
told to cut wages, pensions and public spending in return for
financial help from the IMF, the European Union and The European
Central Bank.
“I think more of the
little kids from a school in a little village in Niger who get
teaching two hours a day, sharing one chair for three of them, and
who are very keen to get an education. I have them in my mind all the
time. Because I think they need even more help than the people in
Athens”.
“As far as Athens is
concerned, I also think about all those people who are trying to
escape tax all the time”.
Legarde says she thinks
equally about Greeks deprived of public services and Greek Citizens
not paying their tax.
In recent days the
caretaker Greek Government has met to discuss sharp fall in tax
revenues – down by one third in a year. Under the terms of the
country’s bail out, Athens has agreed to improve Greece’s poor
performance for tax collection in order to reduce its budget deficit.
These comments come at a
time when most recent polling in Greece is pointing in favour of the
anti-austerity parties.
Tim Corfield comments
‘all the problems of Greece were known before the Euro adventure
started. Politicians have a lot to answer for here – and what about
Spain?.’
Straightalkdebt.com
