Government Worker Bailouts

Apparently the nations of Europe have committed their citizens to helping pay the inflated salaries of a bloated Greek public workforce to the tune of $146 billion.

The package is predicated on the Greeks getting their spending under control, which almost certainly will not happen since the bailout establishes the precedent that if Greece fails to act rationally, it will get bailed out.

  • gn

    This money is going straight to the EU banks that made the original loans. Not unlike our bailout of AIG counterparties at 100%. They dont even have to take a haircut on their bad loans. Sickening.

  • morganovich

    33% of greek workers are government workers.

    this is going to make actually pushing through any government cost savings very difficult. that's a helluva voting block to overcome.

  • me

    More like "German banks which are ultimately state backed already hold a bit more Greek debt than the total bailout would cost Germany" (http://www.nytimes.com/2010/04/29/business/global/29banks.html)

    Another bold step in the wrong direction. 🙁