Greece Warns of Going Broke as Tax Proceeds Dry Up

Eini Vourloumis for The International Herald Tribune
Nikos Maitos investigates tax evasion. He said one business owner attacked him with a whip.

ATHENS. (New York Times). — As European leaders grapple with how to preserve their monetary union, Greece is rapidly running out of money. Government coffers could be empty as soon as July, shortly after this month’s pivotal elections. In the worst case, Athens might have to temporarily stop paying for salaries and pensions, along with imports of fuel, food and pharmaceuticals. Officials, scrambling for solutions, have considered dipping into funds that are supposed to be for Greece’s troubled banks. Some are even suggesting doling out i.o.u.’s.

Greek leaders said that despite their latest bailout of 130 billion euros, or $161.7 billion, they face a shortfall of 1.7 billion euros because tax revenue and other sources of potential income are drying up. A wrenching recession and harsh budget cuts have left businesses and individuals with less and less to give for taxes — and growing incentive to avoid paying what they owe.

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June 06, 2012

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1. Constantinos E. Scaros wrote on June 06, 2012 9:54 AM	Greece has tax proceeds?

2. Nicholas Kostopoulos wrote on June 06, 2012 9:55 AM	Unfortunately all these corrections to their economy are too little to late. Greece will probably collapse sometime after July. The people's refusal to pay their taxes has doomed Greece from the start. This includes the mega-rich crooks who have never paid taxes. All this is Greece's fault. One can hope what comes out from its ruin, will be a wiser and more financially sound Greece.

3. Philip Vorgias wrote on June 06, 2012 10:15 AM	Alexis Tsipras says there is plenty of money for pensions and salaries, as soon as Greece gets out of the bailout agreement. Not to worry, Tsipras will make all the pain go away! He promised us, afterall.

4. Nicholas Kostopoulos wrote on June 06, 2012 1:01 PM	If anyone believes Mr. Tsipras will fix the problems with Greece, than they probably believe in the tooth fairy. The only thing Mr . Tsipras will bring to Greece is ruin and destruction. He knows nothing on how to fix this mess, than anyone else in the Greek Government. In order to have a government you must collect taxes, and all of the Greeks don't want to pay taxes. Mr Tsipras's government will collapse followed by the end of this present day Greece.

5. Philip Vorgias wrote on June 06, 2012 4:01 PM	I don't think Alexis Tspras wants to win the election, Nicholas. He doesn't want the responsibility of being PM and having to deliver on his promises. He'd much rather be a permanent far-left rabble rouser in the mold of Andreas Papendreou, although Andreas was PM for awhile. That would be ideal for a guy liks Tsipras, no responsibility to deliver and all the time in the world to castigate those who are trying to find solutions for Greece-all on the Government's payroll, of course. You dont' really think ANY of these folks actually work for a living, do you?!

6. Niko Seretis wrote on June 06, 2012 4:17 PM	People like Tsipras and Papariga are only good for styring up trouble by getting people to rally and cause property damage while they sit on the sidelines and poison the minds of the mindless.

7. Philip Vorgias wrote on June 06, 2012 4:22 PM	Excellent observation, Niko.

8. Nicholas Kostopoulos wrote on June 07, 2012 12:24 PM	To give ND and PASOK another chance, is like a victim of a crime giving the criminal another chance to assault him again with no consequences. Their governments (ND and PASOK) have ran this country almost into the ground. Do you really think they can change? Corruption is rap-ad with these 2 parties (ND & PASOK) they will never govern the right way.

9. Philip Vorgias wrote on June 07, 2012 6:39 PM	What's the alternative to ND/Samaras, Nicholas? Belive me, I don't care for that guy. But who else is out there? Tsipras will get Greece thrown out of the Eurozone to become the next Albania. Venizelos was an integral part of the PASOK which absolutely screwed Greece for decades. So, who's left? One of the minor party leaders? Doubtful, as they don't wield enough political power to force that to happen.

10. Nicholas Kostopoulos wrote on June 09, 2012 5:37 AM	Philip I can't give you a party who can get Greece this economic and political mess. Maybe the only way Greece will act like a capitalist country will be for them to really really surfer that near collapse, and than realize we have to deal with corruption, phony jobs, fair tax collections, etc. Maybe than someone from the outside of this mess can come in and have the political clout, and might to govern the right way. These present main parties (ND & PASOK, and lastly Tsipras's party must have no real power in any new Greek government, in order for Greece to survive economically, and politically,
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Saturday, May 18, 2013 Last Update: 10:38 AM ET

Greece Warns of Going Broke as Tax Proceeds Dry Up

June 06, 2012

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