What does Greece produce? What are their natural resources? What is their economy built on? Greece was apparently listed number 22 in the world for standard of living in 2010, ahead of Austria and the UK. I would think standard of living has to be linked somehow to GDP and total national productivity. Having the government pay somehow for a higher standard of living than a nation can afford might work for awhile, but ultimately you have to balance the checkbook.
“What does Greece produce?”
Olives and debt
I was going to make a point about what the article itself, and many other articles on the PIIGS have missed, but your question presents a more specific opportunity.
The article states: "Less competitive nations such as Greece suffer particularly from sharing a currency with highly productive nations such as Germany, because it takes away the option of using currency depreciation to make one’s exports more attractive on world markets.
This is true, but consider that much of the economy of the PIIGS, particularly Italy, Spain and Greece, is based on tourism. The "capital investment" for Italy's major tourist economy is the beauty, climate and ancient structures of the country, not primarily machinery as in Germany. Tourists are not an export, so just as "currency depreciation" ("depreciation" from a German economic perspective) makes one's exports more attractive for Germany, France and other more industrial countries, the Euro is "currency appreciation" from the PIIGS perspective, thus making their countries less attractive to tourism. If Italy still had the Lira, the Lira-USD rate would no doubt spur greater tourism and higher employment and revenue for Italy (as would be the case with other tourist oriented PIIGS.
I often wonder why Italy, for instance, doesn't make a greater issue of this problem. My best conclusion is that the Italian politicians from the industrial north, i.e. Milan, Turin are in control. (If so, no wonder Italy is having north-south issues.)
There is oil in the mediteranian.
They do still have a shipping power but the greek owners do not use greek flags or yards.
they also have oil refineries which other countries do not want.
This is not really about Greece, this is about Germany controlling the EU.
The EU only matters to the USA because we trade with them for about 20% of our trade.
Greece does not control, the EU is upset that Greece was unwilling to be a sacrificial lamb to protect everyone else.