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 Greece's Economical Problems

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Germany_Nilo
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PostSubject: Re: Greece's Economical Problems   Thu Nov 04, 2010 9:22 pm

Quote :
Distinguished delegates,

The need to address a solution for the financial crisis in Greece which has already caused broad damages to the economic apparatus of pretty much every European Nation is a fundamental step to achieve economic stability in our continent. Despite not being a member of the European Union, Turkey is an associate member of this institution, and it’s under such status quo that we exhort the EU Member States that ,as previously proposed in this topic, measures such as the regrettable attempt on extruding Greece from the European Union, are legally unconceivable, regarding the current circumstances, as they violate international law.

The Republic Turkey believes that the only way to remediate this economical crisis is through multilateral cooperation among Member States, the EU, the IMF, the World Bank and the government of Greece. Increase taxation on luxury goods, alcohol and tobacco, in larger scales, and privatize of SOEs, are efforts which shall continue in even larger scales. Raising retirement age and decreasing of hourly working load are also reasonable measures curb the effects of this crisis.

Turkish delegate,

First of all: Welcome to the forum its nice to finally have another country in the European Caucus.

Second- Multilateral cooperation among the EU member states has already occured enough. The Greek economic crisis has been damaging the economy of all the memberstates, and the reason that Greece even had this crisis was because of the bad government, sadly inherited by Mr. Papandreou. Also, Germany has no more means to remove Greece from the European Union, and instead to return it to the drachma, which would obvously be a more "efficient" way to solve this worldwide issue. By the way, the Turkish delegate is forgetting that the Greek people DO have a say in this, and nowadays they form peaceful and violent protests all over Athens. Socially, the country is wrecked, and if the continuous strikes persist then we will be seeing a Greece that "collapsed under its own weight".

Third- Please inform me what is your question of because I'm a little curious. (I'm guessing that it has something to do with EU)
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PostSubject: Re: Greece's Economical Problems   Thu Nov 11, 2010 4:25 pm

Distinguished Delegate of Germany,

I truly appreciate your welcome.

As said before by our delegation “extruding Greece from the European Union, is legally unconceivable, regarding the current circumstances.” In response the delegate has mentioned that Germany will to no longer permit the Euro to be used as currency. Not quite a change delegate, well, that would require a voluntary withdrawn of Greece from the EMU or else the delegate would once again attempt to violate international law, because, taking Greece out of the euro zone requires an expulsion from the EMU.

We consider the reimplementation of the Drachma as Greece’s official currency, as the delegate seems to be suggesting, a valid option thus we recommend Greece’s voluntarily withdrawal from the EMU, but not from the EU itself. therefore revoking the Euro yet being an EU Member State. We also recommend the implementation of a fixed exchange rate, which would devalue their own currency to boost exports, as the only way to Greece escape their debt trap. Yet this would only happen, as said before, if and only if Greece voluntary withdrawals from the euro zone. We would like to point out that, despite being extremely necessary policies, the increase of the retirement age and by counterbalance the decrease of hourly working load, were not yet enforced in Greece.

The international community has to continue assisting Greece, being that trough financial packages or by advising authorities in Athens. A crisis of major proportions would not only affect the economic system of Greece even more, but would also increase unemployment rate and provoke a massive migration outflow. Delegates we have to be endeavoring to cooperate, thus maintaining unity within the European Nations.

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Germany_Nilo
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PostSubject: Re: Greece's Economical Problems   Thu Nov 11, 2010 6:21 pm

Delegate of Turkey,

I'm sorry that I was not clear before but what Germeny meant was to have Greece withdraw from the Euro but remain in the EU. Thanks for clearing that up. Changing into drachma would increase the credibility of the Euro and would help countries, like, Turkey exportation and importation, since it would be cheaper.

Also, please expand on how to implement a "fixed" exchange rate.
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PostSubject: Re: Greece's Economical Problems   Thu Nov 11, 2010 7:06 pm

Distinguished Delegate of Germany,

The main idea behind the reimplementation of the Drachma is helping Greece’s economy. Turkey is suggesting Greece to not adopt a floating exchange rate but a very low fixed rate, with periodic and direct interventions by the government, to devaluate its currency. It would not only make the national debt lose value, but it also renders imports more expensive and exports cheaper, thus creating enough momentum for a increase in the exports, what is great for reversing problematic deficits, like the one Greece has. If such reforms are not implemented, reducing public spending is pretty much all what Greece can do.
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PostSubject: Re: Greece's Economical Problems   Fri Nov 12, 2010 4:43 pm

Delegates,

As I previously stated, the best solution FOR THIS SPECIFIC MOMENT is to take out Greece from the Euro system, as the delegate of Germany just stated.

In order to this problem I would like to present a methafor: If you have a box with 99 perfect oranges and 1 bad orange, all the remain oranges will get as bad as the first orange, and in order to don't affect in a bad way the majority of the oranges you should take out the bad orange.

Think about it delegates!
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PostSubject: Re: Greece's Economical Problems   Mon Nov 15, 2010 11:13 pm

Delegates,

Why the discussion is even benn held over the removal of Greece from the European Union if the United Nations itself has no jurisdiction whatsoever over the European Union affairs. A resolution where it demands the removal of Greece has no point at all. Also, no EU has the power to remove any nation from the EU. If the nation wants to leave the Union it should resign its membership. But it seems that Germany doesn't desires any more the expel of Greece from the EU and decided to change to its formal currency but it again violates law. Therefore France only sees at the moment a political support as a solution and envisions the IMF loan as premature
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PostSubject: Re: Greece's Economical Problems   Tue Nov 16, 2010 10:01 am

Greece is suffering a big dept problem so "Greece must consider a fire sale of land, historic buildings and art works to cut its debts, two rightwing German politicians said today in a newspaper interview that is bound to exacerbate tensions between Athens and Berlin.

Alongside austerity measures such as cuts to public sector pay and a freeze on state pensions, why not sell a few uninhabited islands or ancient artefacts, asked Josef Schlarmann, a senior member of Angela Merkel's Christian Democrats, and Frank Schaeffler, a finance policy expert in the Free Democrats" In order to help their financial situation, as bad as it is.

http://www.guardian.co.uk/business/2010/mar/04/greece-sell-islands-german-mps

Best regards from:
Delegate of Germany
João Eça Pinheiro
Wink
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PostSubject: Re: Greece's Economical Problems   Tue Nov 16, 2010 10:09 am

Other temporary solution for Greece would be being temporaraly expelled from the Eurozone "The appeal of a voluntary departure is that a country would then be free to devalue its currency to improve competitiveness and to set its own interest rates.

That's not to say either expulsion or withdrawal is an easy way out. "

Best regards from the :
Delegate of Germany João



http://news.bbc.co.uk/2/hi/business/8496839.stm
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PostSubject: Re: Greece's Economical Problems   Tue Nov 16, 2010 10:14 am

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PostSubject: Re: Greece's Economical Problems   Tue Nov 16, 2010 6:43 pm

Are the delegates aware that all 15 countries in the Euro zone have agreed to help Greece with its bail-out package announced on May 2nd? The process of assisting Greece is slow ,however, the Russian delegation encourages the nation to continue with its original deficit cut plan. It must actually carry out the reduction to 8.7 percent by this year’s end and cut the GDP deficit by 9.1 percent as well. It cannot only rely on the assistance of neighboring countries.

Russian Prime Minister Putin and his Turkish counterpart Recep Tayyip have agreed to build the $2.5 billion Samsun-Ceyhan oil pipeline. Bulgaria is still uncertain about its participation in the project, but Russia agreed to help fund it and continue funding in case of emergency. The delegate has stated that Russia wants to depend less on oil, but it will do that by expanding other energy sectors, not by cutting back on oil, especially in this scenario. This will attract foreign investors.

In a final remark on public deficit which rose to 121%, the delegate will suggest Greece provides its own RABIT (rapid border intervention troops) to prevent illegal immigration. The EU RABIT is already overloaded and is responsible for 90% of the arrests of illegal aliens (in Greece alone). Illegal immigrants (2.5 million in the country) do not pay taxes and diverge income away from the country, as most of what they gain is sent abroad.
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Germany_Nilo
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PostSubject: Re: Greece's Economical Problems   Tue Nov 16, 2010 7:32 pm

Sorry delegate if I misunderstood, but I can't see how is the 2nd paragraph concerning Greece.
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PostSubject: Re: Greece's Economical Problems   Tue Nov 16, 2010 8:22 pm

Germany_Nilo wrote:
Sorry delegate if I misunderstood, but I can't see how is the 2nd paragraph concerning Greece.
Samsun-Ceyhan and Burgas–Alexandroupoli are pipelines to help Greece import fuel and attract foreign investors. The reason a Turkish minister is involved is because the first pipeline goes through Turkish land and the second one is a Turkish-Greek strait. Greece and Russia are eager to start, but Bulgarian and Turkish contributions are necessary. Its all part of an assistance program for Greece although only the second pipeline is physically in Greece. The first one, would ease the Dardanelles passage to the Aegean sea, making it possible for Greece to receive oil on the coast. Both shall be built, hence this is Vladimir Putin's response to Greek economic problems.
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