Debt Greece in No State to Pay. Greek debt is now out of control. This disturbing conclusion, issued by a parliamentary committee, comes from Athens itself.
Asphyxiated by a recession severer than expected and undermined by the black economy, the country looks unlikely to meet its repayment deadlines. The scene takes place in Hydra, an island in the Saronic Gulf, two hours by boat from Pireas, frequented by Greek high society, including Prime Minister George Papandreou.
On an August night, at the end of a dinner in a well known tavern, the owner brings out the bill for her ten guests: euros. The bill is handwritten, that is to say not registered.
There is no question of paying by credit card, there is no terminal. So it has to be cash. The tavern is not an exception, far from it. A typical example is a well-established guest house offereing seven rooms at a minimum rate of 50 euros per night, to be paid in cash with no bill supplied. The same applies to cafes and other businesses.
On Hydra alone, millions of euros of revenue are slipping through the tax net, while businesses that actually pay taxes, like the official hotels, have the uncomfortable impression of being fleeced — even more so, now that the rates they pay are increasing. In spite of all of this, the tax authorities receive relatively few tip-offs 18, in as opposed to 4, in For example on the Ionian island of Lefkada, most of the taverns now distribute receipts in accordance with regulations.
