Blog Assignment 2

Corruption and bonuses behind the Greek financial crisis

I have chosen to write about the Greek financial crisis that constantly colors my day and the net capital inflow into the stock market.

Lack of transparency and a state appartus dominated by generous bonuses and services has opened a corruption culture that has made Greece dangerously dependent on debt. An international study shows that the Greek financial crisis can partly be explained by corruption, since it only in 2009, disappeared around 790 millions euros in bribes. In particular hospitals, municipal adminstration and tax offices are steeped in corruption.

The corruption has been going on since the 80th century. The 80-and 90-century was marked by a series of scandals involving the use of agricultural subsidies from the EU to buy luxury cars and refurbishment of houses and employment of relativs. For several years, it was revealed that many public institutions are really hollow edifices that cost taxpayers millions. But it is not only illegal bribes that swallows money in Greece. Greece has also developed a comprehensive set of generous bonuses and services that provide public employees with generous payroll checks. All public employees get a halv mont extra salary paid in easter, one in the summer and a lot of extra wages in July. Totallys the public Greeks employees gets a yearly salary that equals 14 months. Public employees enjoy a strict protection against dismissal, but they can retire in 40 years of age. Consider this facts, it is not a surprise that this land can`t pay their own bills.

As a condition for getting emergency help and avoid bancruptcy Greece has finally been forced to promise EU and the IMF a cleanup of all the generous programs, so that the budget deficit may eventually be reduced to EU standards (below 3 % of GDP). But Greece is not alone. At the same time we have larger economics as Spain and Great Britain that have have large deficits, huge unemployment and a very low growth in GDP. The financial crisis is not over and we will see other countries that will get a lower credit rating from Standard Poors and create disturbance in the financial market.

Blog Assignment 1

Right now I live with my grilfriend in Oslo. Within five years it is possible that we still live here but maybe I would like to move to a larger city in Europe or America. It would have been really cool to live in New York or London a few years. But probably we will return to Sweden in six or seven years when its time for raising a family. Probably the family life and work situation affect my daily life the most. I therfore hope that my family will be healty and happy, and my work situation always is stimulant.

A little dream I have is to run a buisness again, be able to retire me early and to relax more. In 50 Years I want to have one house in the south and maybe a winterhouse in the Norwegian mountains..