Greece Purposefully Inflated Its Deficit Numbers To Get EU/IMF Assistance

Tyler Durden's picture

In news that will likely not surprise many, Greek newspaper Eleftherotypia reports that according to a just terminated member of the Greek Statistical Authority, Greece artificially misrepresented its 2009 15.4% deficit number to Eurostat in order to obtain aid from the EU and IMF. Per professor Zoe Georgantas "The deficit was artificially inflated in 2009 to show that the country had the largest deficit across Europe, including that of Ireland was 14% in order to justify all these severe measures against the country. And we presented in the Eurostat 15,4%." While there appears to be a substantial political back story here, and we would be careful at taking these claims at face value, the last thing Europe needs is for its people to realize that they have been duped (and continue to be so), by the PIIGS countries, which as we pointed out before on several occasions, have figured out that the balance of power in capital extraction is entirely in their favor, and paradoxically see their position strengthened, the weaker they are, as the Eurozone has no alternatives but to keep ploughing ever more capital into these bankrupt nation. As such it would not be surprising if Italy's official deficit has also, like in Greece, been substantially misrepresented in an adverse light recently,after being shown to be far better than reality for years, simply to have a stronger political case for demanding more EU and IMF funding. 

More from the article, google translated:

"The deficit target for 2009 appeared deliberately to 15.4% from Eurostat. I had to look bigger than Ireland, which was 14% in order to pick unaffordable measures against Greece "reveals the 'E' Professor, University of Macedonia and committee member of the Greek Statistical Authority, Georganda.

 

But five of the seven committee members dismissed from their duties as announced yesterday by the House, Evangelos Venizelos, and only the President (!), Because " problems in personnel and administrative level. "

 

These problems, however, reveals today the 'E', ranging from the "isolationist, anti-democratic, authoritarian" function of President Andrew George, as has been terminated and the association of workers in ELSTAT and reached up to the systematic exclusion of members of than to express a view on serious issues such as scientific accuracy of statistical methodologies followed the regulations of the Authority, the regulation of undertakings made to the Authority, other government agencies and others.

 

The conclusion of Mr. Georgantas denies another committee member, saying that science can prove that "public bodies, not publicly funded and were entered in this list, it can affect so much the final configuration of the deficit" . In any event, in this sense a high level of political and judicial intervention in complaint as regards the most important politico-economic issue in recent decades with Greece at the heart of the biggest crisis and the society in total economic bleeding.