EU JUNK BONDS TO SOLVE GREEK CRISIS ?

Creating "Junk Bonds" by reducing the interest rates and lengthening the repayment periods of loans to up to 30 years, does nothing to solve the Greek economy.  Neither does it do anything to protect the EURO itself !!!

The first thing politicians should ask themselves is how did the Greeks get into this mess in the first place. The very simple answer is that previous Greek governments overspent. The economic structure of Greece is wrong.

In fact 25% of employees work in the "civil" service !!! Civil servants are highly paid, overpaid in fact.  They also benefit from indexed pension schemes and early retirement !!!  Added to this there is unemployment in Greece. 

This situation guarantees two things.  Inspite of huge loans at low interest rates, Greece cannot become profitable and will need more loans next year !  There will be social unrest again in the near future.

Added to this the EURO will be downgraded on the financial markets, which is exactly what President Sarkozy and Chancellor Angela Merkel did not want, and why ?  Both are facing elections in their country and want to avoid unpopular reactions !!!

Finally, the basic reason for their actions can be put down to the absence of any rules concerning EURO countries which become "insolvent".  That is the problem which all the EU burocrats have never imagined !!!  That is also the first problem which must be solved.

Mr Barroso, the president of the European Commission, should have been alerted to this gross omission in the EU treaty when his country, Portugal, had to be rescued  last year !!!