Greek economy implodes further (Q2)

[Landslide Lyndon]

The problem is twofold.

1)The recession is much deeper than anticipated even by IMF/ECB, thus causing a collapse in revenues.

2)The government is exhausted after waging for two years a brutal war on two fronts: an external one with our debtors and an internal one against a unified and stringent opposition (where you can barely distinguish conservatives from communists, they use the same pro-bigger government rhetoric) with the help of the most reactionary and statist elements of PASOK.

There are many people in the government, fortunately Papandreou is among them, that refuse to capitulate and continue to fight for reforms, ignoring the (often violent) protestations of powerful unions. But as long as some parts of our society sabotage them (like our IRS agents who refuse to collect taxes or make audits because their wages have been cut) it will be very hard to stay afloat without external help.