DEBT FINANCING. Greece, a country divided

(CNN) - AthensAccording to them, that a crisis can bring the best or worst in a society of people, or on a continent. Seeing the situation unfold first hand and talk to politicians, business people and those in the streets, can witness how divided this country of 11 million people on the tip of the South of Europe becomes.
The Division is multilayer; everything first in the decision, Socialist Pasok party itself. On the left, members of the party yearn for the days of father of the current Prime Minister in the 1980s, Andreas Papandreou, when the State property was the call to arms, a large public sector provided employment and also safety net wide. On the right of the party, those who know that the country is living on borrowed time and money.
In Parliament, there is no sense of a common well. Prime Minister George Papandreou and the leader of the new democracy Antonis Samaras - despite being college roommates in the past - can rally their members from ranks of the party to finally deliver deep reforms, overdue.

More alarming as one which has taken over this country since the 1990s are the division among the Greek people. On the one hand, the members of the public sector, that make up a fifth of the active population (the largest in terms of percentage in Europe) and the private sector, on the other hand. The latest austerity plans call for a reduction of 20% of pension payments for those making more than $1650, a reduction of 40% for those who withdrew before 55 and 30 000 workers furloughed State. They will not be arrested but will see a reduction in their wages.
In the package, there is a new series of tax increases. Property taxes will be in place from 2011-2014, joining a handful of tax "improvements" introduced since the beginning of the crisis. The private sector, says that they are beginning to bear the brunt of the burden of revenue and State workers say that the rich have made tax evasion a form of art. Finally, there is a small, but vocal camp who said it is time to get out of the euro and the majority who still believe that the young currency can provide stability and discipline.
A single source in the ruling party described the current climate as a "frustrating mess" with complete nasty and uncertainty about the future struggles. This uncertainty has led to what can be described as a trap of austerity. Consumer confidence has plummeted since the country chalks up to its third year of recession. The numbers are alarming. Unemployment is at a record 16.3%; It is a frightening 40% among persons in their years of first use among 30-44, the Government. Second-quarter GDP fell by 7.3%.
While Greek society is torn apart by debts of the Government of almost one and half times their economy, a parliamentary complained about being a Guinea pig in the experience of the euro. As an industry leader Greek proposed today, the Greece a need to integrate more with Europe, not less. Governance is vital budgetary objectives, EU and mandatory reforms are what can keep the Greece and its neighbours on the path of reform and recovery. The problem is, with 17 members of the euro area, many with very different visions of a common market and of a unified Europe, which is difficult in the best of times and almost impossible during a crisis.
A decade ago, Greece was enjoying both the booms of massive spending on the 2004 Olympic Games. The structural funds of the cast EU build highways and bridges and the euro that resulted in record low interest rates consumers is gone on a spree of borrowing. In 2003, the Greece has increased by almost 6% and 4% the following year. It was time to move from labour reforms, restructuring of investment laws and to have a system at European level for budgetary controls.
It was a missed opportunity and now the Greek people is pointing the finger at the other and to Europe looking for a solution.

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