More Time for Greece to Meet Budget-Cutting Goals?

By: Ian Campbell | Fri, Oct 12, 2012
Print Email

Following release of its updated economic outlook earlier this week, International Monetary Fund (IMF) Managing Director Christine Lagarde today reiterated statements made yesterday that Greece should be given more time to meet its budget-cutting goals. The German Finance Minister today expressed concern that to do such a thing would weaken credibility - also read 'possibly create bad precedent.

Ms. Lagarde's continuing commentary is reported to come on the heels of the IMF having now concluded that "aggressive fiscal consolidation crimps growth more sharply than previously thought". Whatever 'previously thought' means, it hardly seems rocket science to conclude without much pencil-pushing that assuming all other things equal austerity measures will curb what otherwise would be GDP growth.

As you consider the financial markets generally, and your own trades and investments specifically, you might want to read Growth Warning: Top German Economists Say Greece Is Lost. That article reports that yesterday (Thursday) several "top" German economic institutes warned that:

I believe that in the end Germany will:

Topical Reference: Germany holds firm on Greece as IMF pressure mounts, from Reuters, Emily Kaiser, October 12, 2012 - reading time 2 minutes. Also see Growth Warning: Top German Economists Say Greece Is Lost, from Spiegel Online, October 12, 2012 - reading time 3 minutes.



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

Copyright © 2011-2016, Business Transition Simplified, all rights reserved

All Images, XHTML Renderings, and Source Code Copyright ©