Insight: Nov 8

Tomorrow night Insight looks at the economic woes of Greece and how it may impact the rest of the world.

And with the Greek PM George Papandreou to step aside the show is lucky that it is airing live to air. Otherwise it may have looked slightly dated.

Greece is in trouble – and the rest of the world is nervous.

The unemployment rate is over 16 per cent, and the youth jobless rate is 40 per cent – the highest in the European Union. Wages and hours have been cut, pensions are being reduced, and hospital budgets are being slashed.

Several bail-out attempts haven’t stopped Greece’s economy declining, and some say the current approach could put Europe in a negative growth cycle for decades.

As world leaders discuss austerity measures and bail-outs, Insight looks at what can be done, whether Australia could be impacted, and how ordinary Greeks and their relatives here in Australia are coping.

Guests include:

Chrysoula and John are Greek Australians living in Athens. Chrysoula is a public servant and has had her income cut by 1000 euros a month. Her husband is earning almost nothing. They are living in a half built house and have recently tried to borrow money but the banks aren’t lending. They now grow their own vegetables as shopping at the supermarket is too expensive. Chrysoula is worried about her family’s future if they stay in Greece.

Satyajit Das is a risk analyst and author, who accurately predicted that last crisis – years before it happened – with a paper titled ‘The Coming Global Credit Crash’ which said that toxic debts would poison the global financial system. Das says Australia – and the rest of world – is facing a worse crisis than the economic downturn in 2008, and that Greece is the first symptom.

Dr Oliver Marc Hartwich is an economist with the Centre for Independent Studies think tank, and a weekly columnist on European affairs with Business Spectator. He says Australia has relatively little exposure to European debt. He has also written about Europe’s economic, demographic and social problems.

Alessio Rastani is an independent trader in the UK who became the face of the European debt crisis and an internet sensation after a BBC interview where he said: “I go to bed every night and I dream of another recession, I dream of another moment like this.” He went on to say that “I’m a trader….we don’t really care whether they’re going to fix the economy, our job is to make money from it”.

Associate Professor Vrasidas Karalis is in the Department of Modern Greek Studies at the University of Sydney. He says state funded corruption is endorsed and promoted in Greece and is part of their current problem. Vrasidas also says Greece’s economy was ill-prepared when it entered the Eurozone in 2002.

Hosted by Jenny Brockie it airs Tuesday at 7.30pm on SBS ONE.