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| Europe |
| All the Really Sophisticated Countries [gag] do This .... |
| 2004-11-15 |
| Greece has admitted it joined the euro in 2001 on the basis of figures that showed its budget deficit to be much lower than it really was. Eurozone states are expected to have deficits below 3% of gross domestic product but revised data show Greece has exceeded that limit since 1999. The figures are being discussed at a meeting between EU finance ministers. Greece's membership of the single currency would not, however, be questioned, the EU has said. Greek press reports suggest the country's budget deficit in 1999 was 3.38%. Greece had already said that its public deficit breached the European Union cap between 2000 and 2003, as the cost of hosting the 2004 summer Olympics reached 7bn euros (£4.8bn). But Greece's finance ministry had claimed that the country's 1999 deficit, on the basis of which Greece was allowed to join the euro in 2001, was below the limit. "It has been proven that Greece's budget deficit never fell below 3% since 1999," finance minister George Alogoskoufis admitted on Monday. Katinka Barysch, chief economist at the Centre for European Reform, said the announcement would not be a surprise for Brussels insiders. "Quite a few member states did something similar because of the political imperative to join the euro as soon as possible. Greece has just gone a bit further," she said. France and Germany have previously defied the 3% limit. With the European Central Bank (ECB) currently telling East European member states that want to join the euro that they must strictly adhere to the 3% rule, the EU risks being accused of double standards, Ms Barysch said. "These countries will say the ECB wants them to be holier than the Pope," she added. A decision on possible disciplinary action against Greece is not expected until December. If then .... |
| Posted by:anon |
| #9 Try Google, Goodnight. |
| Posted by: Heysenbergwashere 2004-11-15 5:45:30 PM |
| #7 Apples and oranges, #6. I'm rereading the article, and am confused. I'm talking about budget deficit, you're talking about gross national product defict. Obviously, the second number would be much lower. The confusion is this: in the article, they don't seem to be able to figure out which one they mean. sometimes it's budget deficit, sometimes it's GNP deficit. Do you know which one thye're really talking about, or don't they know themselves? In which case the article is so much crap. |
| Posted by: Weird Al 2004-11-15 5:28:28 PM |
| #6 At 20 September 2004 the current account deficit was equal to 5.7% of gross domestic product in the second quarter the Commerce department stated |
| Posted by: Heysenbergwashere 2004-11-15 5:13:15 PM |
| #5 How are you coming up with a deficit of 5.7%? The federal budget is around three trillion (with a T) or so, and the deficit is about five hundred billion. My math says 16%. Roughly. Actually, if you don't count the money raided from social security and paid for with paper IOU's, it's even higher. |
| Posted by: Weird Al 2004-11-15 5:06:05 PM |
| #4 Nothing in the federal government is a capital investment. It is either expensed immediately (as Shipman stated), or ignored until it happens (Social Security, flood insurance). That is a problem I have with a BBA. (The "deficit hawks" are a different problem, in that the deficit is only a concern at tax time, never spending time.) States and local governments have to run a "balanced" budget but are allowed to issue bonds for capital improvements. Of course, governments can play games (NYC in the early 70s, California today), so maybe we don't want the federal government to issue bonds for "investments." After all, paying the salaries of teachers and social workers is "an investment in the children's future." |
| Posted by: jackal 2004-11-15 4:51:46 PM |
| #3 And if the US had a clue about capital budgeting it would be half that.... The interstate system was expensed over a given projects construction period, not amortized over the lifespan of the project. AzCat, is that correct? |
| Posted by: Shipman 2004-11-15 4:07:17 PM |
| #2 Make that 5.7%. |
| Posted by: Heysenbergwashere 2004-11-15 3:47:44 PM |
| #1 So what's our budget deficit? I'm putting it at about 17% or so.. |
| Posted by: Clans Angereck9543 2004-11-15 3:27:26 PM |