Greece – Unions take Note. Government has little choice

On Thursday, Greek government bonds cost 8% at one point settling to 7.3%.

The Greek government also admitted that the GDP deficit in 2009 was 12.9%.

This makes the servicing of Greek debt almost impossible – Greece has to get subsidised loans from Euroland or else exit and devalue. The Financial Times reports that Greek banks lost €10 billion in deposits in the first two months of this year which means that the Greek people expect an exit and devaluation.

The relevance of all this is that Ireland may be next if Greece exits. So the government has no choice in the area of the overall aggregate public sector pay bill. So IMPACT and TUI and ASTI – COP ON please. At least Jack O’Connor puts the country first.