Greece is the most difficult member-state among the euro-zone nations, which has a different set of problems in comparison to other debt-ridden states, European Financial Stability Facility (EFSF).Terming the issue plaguing Greece as not that of liquidity but that of solvency, “Greece in the end has solvency problem, while all other nations have liquidity problem”.”The most difficult state we have is Greece, for several reasons. Greece has the most difficult fundamentals; economic situation was most serious, debt level was the highest, deficit was the highest, loss of competitiveness was the largest. So, they threw up the most difficult situation.”
Also blamed the Greek authorities for submitting false economic data at the timing of joining the 17-member monetary union. The political system in Greece is not delivering as in any other country. Ireland, Portugal and Spain had changed their governments in the last 18 months with a mandate to implement reforms and the Opposition is cooperating as well.Calling for stiffer remedies to tackle the Greek crisis, they are putting more than 100 billion euro for Greece, which is not needed for other countries. So, very special solutions are needed for them…Despite the adjustments Greece has taken in the last two years, there still remain a lot to be done”.Many of the 17-member euro-zone nations are facing a sovereign debt crisis with higher debt to GDP ratio, creating a downward spiral in growth, which is currently affecting the global financial system at large.
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