New Greek Austerity
Greece government introduced yesterday a new austerity package and a tax increases. The value of the package is 4.8 billion of EUR. Half is aimed at spending cuts and half on tax increases.
The tax increases will only ad to the dead spiral decreasing economic activity, and then again decreasing tax revenues… But that is the problem that will be dealt with further down the road.
Euro- Zone retail sales in January slipped by 0.3% from December and were 1.3% lower than in January 2009. Looks Europe is the place where the new set of problems arises first.