In 2004, the EU Commission found that Greece had hugely underreported its budget deficit between 1997 and 1999. In the same year, the former Greek minister of finance George Alogoskoufis assured the EU partners that, ‘The newly elected Greek government will persist in the policy of transparency and credibility of fiscal data with a view to complete the effort that began after the March elections’. However, a report published by the EU Commission in January 2010 found that Greek authorities had again misreported figures in 2009.
It is now public knowledge that Greek politicians have more than once understated the dire condition of their economy over the last 15 years. But what about the statements from other EU governments since the start of the economic crisis? For instance, in January this year George Osborne said that, ‘Britain can be confident about its economic outlook this year, with inflation falling, interest rates low and plans in place to deal with a record budget deficit’. Similarly, the Italian prime minister, Mario Monti, declared that, ‘the eurozone is no longer in the midst of the crises but heading towards a solution’. Do politicians believe in what they say or are they misleading financial operators, businesses and the public in general? Would it not be better to tell the truth, however bleak it is?
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
