Greek Economy could affect travel plans

With Greece on the verge of bankruptcy, strikes are breaking out around the country. Workers are protesting possible job and pay cuts as Greek officials try to reduce the budget. Customs Officers are walking off the job which could close the ports. Airline workers are walking out too. Here's a link.

"As Greek strikes grow, customs officers in walkout"

...The three-day customs strike will affect imports and exports, with a skeleton staff processing only certain items such as perishable goods and pharmaceuticals, and could affect the supply of fuel....

... Last week, striking civil servants workers shut down schools, grounded flights and walked out of hospitals in a 24-hour protest. A broader strike is planned for Feb. 24....

http://www.businessweek.com/ap/financialnews/D9DTGSDO0.htm

Hopefully things will stablize in the summer when we visit Greece. Let's hope for the best for all the cruisers who will be visiting Greece.

I wouldn't be disappointed to see the US Dollar rebound against the Euro, as I would love nothing more to be able to shop while we are there in the Fall. I am not about to part with my hard-earned money for stuff that costs 1.5 times what I can buy it here for, nor splurge on things, particularly the Greek gold and jewelry, which is crafted like nothing else in the world! As much as I love it, if I can not get the things I want at a "reasonable" price, I have to pass, as we are cutting back like everyone else.

The closing of ports and general strike situation, however, is indeed bad news, and based on the EUs decision to block them from voting until the economic situation is fixed, this is likely going to get worse before it gets better IMHO.

From what I am reading, other member countries (Spain, Portugal, possibly a few more) aren't that far behind. It seems nuts to me that all this "wealth" in the global economy somehow just disappeared in the last two years - maybe there will yet be some sanity on the horizon...

Even if the strikes stabilize, there are other disturbing possibilities for visitors. I have been reading for some time now of reduced hours at various tourist sites, and in particular at museums. On the Tripadvisor board, I recently read that the National Archeological Museum in Athens, for example, has temporarily closed its entire second floor due to staff cutbacks.

For sure it's not a big deal compared to widespread strikes and disruption of business. Nevertheless it would sure put a damper on my upcoming stay in Athens if cultural funding continues to dwindle....

Even if the strikes stabilize, there are other disturbing possibilities for visitors. I have been reading for some time now of reduced hours at various tourist sites, and in particular at museums. On the Tripadvisor board, I recently read that the National Archeological Museum in Athens, for example, has temporarily closed its entire second floor due to staff cutbacks. For sure it's not a big deal compared to widespread strikes and disruption of business. Nevertheless it would sure put a damper on my upcoming stay in Athens if cultural funding continues to dwindle....

Excellent comments and background by Cynthia and others for is happening and how it could impact visiting tourists. The financial problems facing Greece are huge with other countries (Portugal and Spain) getting close on this scale of "BAIL OUTS" being sought. Greece has been running a government debt that equals 13% of their total GDP/Gross Domestic Product. Euro rules only allow a maximum yearly over-spending at only 3% or less. These many fiscal problems in Greece has been created over many years and are hard to cover-over or ignore.

It could get lots worse with more strikes, wage cuts, etc. Not many of us could run our home budgets by over-spending to this large of a scale, year after year!!!

THANKS! Enjoy! Terry in Ohio

Hi,

Yes the situation in Greece is dire and wil take some time to sort out. Hopefully, some sanity will prevail as strking at airports/ports in a tourist driven country is only going to cause more hardship for the Greeks (lost income, unemployment etc) and not fix the problem.

It's getting ugly. Now they have fuel shortages.

Fuel Shortage Hits Greece as Strikes Grow

Fuel shortage hits Greece as strikes grow against austerity measures to cut debts

"The fuel shortage was the first serious consequence of growing labor protests against the Socialist government's emergency spending cuts program, aimed at easing the debt crisis in Greece and shoring up market confidence.

Customs workers have extended their strike against salary freezes and bonus cuts through next Wednesday, when unions across Greece will hold a general strike that is set to bring the country to a standstill.

http://abcnews.go.com/Business/wireStory?id=9884978

Hi, Yes the situation in Greece is dire and wil take some time to sort out. Hopefully, some sanity will prevail as strking at airports/ports in a tourist driven country is only going to cause more hardship for the Greeks (lost income, unemployment etc) and not fix the problem.

Very well summarized and stated. They have built a financial "House of Cards" in Greece and other countries (including ours). Countries with the money now (like China and the Middle East) don't want the western world to collapse economically, but they will not keep throwing more money down a fiscal rat hole. Not a good situation as Greece tries to tighten it belt and battle the employee unions!!!

From Business Week/Bloomberg News this am: "Germany’s Finance Ministry said it has no specific plans for helping Greece combat its deficit crisis, denying a magazine report that euro-area governments may offer as much as 25 billion euros ($34 billion) in aid. European Union leaders ordered Greece on Feb. 11 to get the bloc’s highest budget deficit under control and promised 'determined' action to protect the euro."

THANKS! Enjoy! Terry in Ohio

Yes, things are looking bad over there. Yesterday, there was a large strike with no flights at all into or out of Athens!

I also have read about the second floor closures at the National Archaelogical Museum, so no access to the wonderful Akrotiri artifacts exhibit.

If it is a strike day, stay clear of Syntagma Square in front of the Parliament meeting, where the rioters like to create havoc.

I feel sorry for the Greek people AND for the tourists who will be arriving there soon.

For the everyday person, this sounds like a lose-lose situation

does anyone know how things are on the islands? We are doing a greek isles cruise including athens in May. All but two of our 7 ports of call are in Greece. It would completely ruin our vacation if we were not able to stop there. Would a cruise be cancelled or re-routed in this case?

Also, with things so bad, crime is most likely to increase. I hope things get better. Closing our tourism cannot help their situation.

does anyone know how things are on the islands? We are doing a greek isles cruise including athens in May. All but two of our 7 ports of call are in Greece. It would completely ruin our vacation if we were not able to stop there. Would a cruise be cancelled or re-routed in this case?

 

Also, with things so bad, crime is most likely to increase. I hope things get better. Closing our tourism cannot help their situation.

The cruise line contracts says they can skip or swap ports. If the itinerary were significantly different, they might offer a OBC or something else as a goodwill gesture but they don't have to.

I hope things improve. We were on a Med cruise with 4 stops in Greece in November and loved it.

http://news.google.com/news?q=greek+strikes&rls=com.microsoft:en-us&oe=UTF-8&um=1&ie=UTF-8&hl=en&ei=9_mGS6CvMdPVlAe8nYgI&sa=X&oi=news_group&ct=title&resnum=1&ved=0CAsQsQQwAA

It seems at least for now that the problem is centralized in Athens, but with a gas shortage that may have a ripple effect. I can't find much on Mykonos, Santorini, Corfu, etc., and it is hard to determine whether or how much the islands have been affected by this.

It is indeed a sad situation and I pray it will be able to be resolved peacefully and soon.

Cinti Pam is correct-on our last visit to Athens a few years ago there was a strike, all public transportation was stopped in the afternoon (we used ship bus transport) and there were large demonstrations in Syntagma Square. We couldn't wait to leave, and said we wouldn't be back to Athens again...but we booked a cruise for this fall that starts in Athens. So, I guess I spoke too soon! :rolleyes:

I hope the situation improves soon and not escallate to further transportation disruptions. Couple of years ago anti-government protesters shutdown Thailand's main airports for a week, we were unable to even begin our holidays during what should be the peak tourist season.

An interesting story highlights some of the problems with a corrupt political system run by self serving trade unions. Basically, lower paid union workers have become accustomed to perks generally reserved to higher wage earners in other countries. And it cannot continue. Here's a highlight.

Economic crisis

Greece, you had it coming

"...It is all our fault: a homegrown product of a corrupt political system, self-serving trade unions, a parasitical business class, and a predilection for clientelism and fraud. Greek consumers will now have to accept reality, and give up childish dreams. We cannot expect to own luxury cars and the latest mobile phones, or to take skiing holidays in fashionable resorts and summer vacations in Mykonos, if we only declare 20,000 euros in annual income. Nor can we expect to retire at 50. For most of us, this kind of lifestyle will necessarily remain beyond our reach."

http://www.presseurop.eu/en/content/article/198001-greece-you-had-it-coming

The Greek are always on strike and always have been. Nothing new there. Every year at the start of the European holiday season, Greek air traffic control goes on strike. It is just receiving more attention this time round. Tax evasion is the national sport, nobody in the Eurozone was surprised that the Greek government had fiddled the books themselves for years. The Greek will find a creative solution, they always will. I would not worry too much for the moment. Certainly not if your ship does not go to Athens.

Economic crisis

Greece, you had it coming

 

"...It is all our fault: a homegrown product of a corrupt political system, self-serving trade unions, a parasitical business class, and a predilection for clientelism and fraud. Greek consumers will now have to accept reality, and give up childish dreams. We cannot expect to own luxury cars and the latest mobile phones, or to take skiing holidays in fashionable resorts and summer vacations in Mykonos, if we only declare 20,000 euros in annual income. Nor can we expect to retire at 50. For most of us, this kind of lifestyle will necessarily remain beyond our reach."

 

When you read stuff like this, you see where a corrupt (socialist) government leads. It is certainly a view into the future for just how bad that brand of politics ultimately is. Folks in the US should take note...

Actually, the right wing conservative party was in office there until just recently. Things got so bad there that they were finally booted out of office. The party that just took over is the socialist party

When you read stuff like this, you see where a corrupt (socialist) government leads. It is certainly a view into the future for just how bad that brand of politics ultimately is. Folks in the US should take note...

Please don't turn this into a political discussion.

FYI, 'Socialist', across Europe, can have different meanings which all more or less denote that the party in question is a 'working man's party' which has more of a social agenda than the Liberals.

What in the US is known as 'Socialist' we call 'Communist'... you were apparently confused by this, as well as not being familiar with the recent Greek political history.

To add to the confusion, 'Liberals' in Europe more or less equate to Republicans in the US.

'nuff said:cool:

From this morning's Wall Street Journal, here is more on the "showdown" that is getting closer in both Greece and Europe. The WSJ lead story says: "Greece prepared additional austerity measures Friday and its prime minister met with the head of Germany's top bank, as the country raced to soothe international concerns over its debt crisis ahead of a crucial bond sale it may hold next week."

It was also detailed in this story: Mr. Papandreou told Greece's parliament Friday that "brutal steps" were needed to repair the country's public finances. "We must do whatever we can now to address the immediate dangers today," Mr. Papandreou said. "Tomorrow it will be too late and the consequences will be much more dire." The WSJ story also noted: "Berlin and Paris have avoided any explicit promises of aid so far, keeping the pressure on the small Aegean nation to fix its own problems."

Clearly the unions and people in Greece will not like this "belt-tightening", meaning more strikes, disruptions, etc. Cynthia and others have noted how these can impact tourist in a negative manner. If you are planning on a summer trip in Greece, there is still some time for this to "settle out" and stabilize before your trip. It is not good news for Greece and certain of these other Europe countries that have had lagging economies and/or vast over-spending. Don't want to get into the "politics" of whose fault it might be and whether liberal is socialist or Republican. That's for a different discussion board.

As of this morning, the euro cost equals $1.3622.

THANKS! Enjoy! Terry in Ohio

This morning it was anounced here that Germany is going to help Greece.

This morning it was anounced here that Germany is going to help Greece.

Financial details and exact terms make a big, big difference! From what I have read, your German leader is being very careful, with good reason, on those terms as she and Germany cannot afford to bail out all of the financial debt in Greece, Spain, Italy, Ireland, etc. There's lots and lots of "red ink" to be covered. It won't be easy to fix all of these various financial messes in Europe and around the world. Tighten the financail belts can be tough.

THANKS! Enjoy! Terry in Ohio

I was reading the same article when I saw your post. It seems that the EU and the Greek government is doing all they can to try to correct the problem.

Greece is an amazing country, and the people have survived so much over thousands of years.

I have to believe they will find a way to get through this, and hopefully soon...

I was reading the same article when I saw your post. It seems that the EU and the Greek government is doing all they can to try to correct the problem. Greece is an amazing country, and the people have survived so much over thousands of years. I have to believe they will find a way to get through this, and hopefully soon...

Agree that Greece is amazing with great people. BUT, this current economic situation is deeper and complex than just finding a way "to get through this".

Coming in Sunday's Washington Post is this financial analysis written with by line from Berlin. The opening part of the story says: "Greek extravagance touched off the biggest crisis in the 11-year history of the euro. But the world's most ambitious monetary union faces a less obvious problem that might be even harder to lick -- German frugality. Adoption of the euro a decade ago ushered in an era of cheap credit, soaring salaries and big government in nations like Greece, Spain and Portugal. Their debt-fueled splurges are now coming home to roost, with Greece the first to come close to running out of cash to operate the government, raising fears of a default."

You can read the full article from this website:

http://www.washingtonpost.com/wp-dyn/content/article/2010/02/27/AR2010022701421.html

The article details the relationship between richer counties like Germany with higher savings rates versus those with less-robust economies such as in Greece. One sentence notes: "The economic imbalances in Europe underscore a broader global problem." Another key part of the article is: "In recent years, Germany has made painful cuts in social services even as countries like Greece had an explosion in government spending. Not surprisingly, resentment is running high here, with polls showing almost 70 percent of Germans opposing a Greek bailout even though most analysts believe it would be a German-led intervention involving other European nations and/or a consortium of banks."

This economic challenge is a long ways from being completed or solved. This Washington Post piece helps better explain its various aspects. THANKS! Enjoy! Terry in Ohio