CNN: Greek Businesses Fleeing to Bulgaria

CNN: Greek Businesses Fleeing to Bulgaria

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    Greece’s economic problems may be having a negative impact across much of Europe, but one country could be benefiting from its troubles, CNN writes.
    Greek investors are said to be jumping across their neighboring border to Bulgaria, money in hand.

    “It’s a very sad reason but it is happening actually,” says Georgy Ganev, an economist from the Center for Liberal Strategies. “Even some Greeks are transferring their monetary balances from Greece to Bulgaria – obviously hedging the risk for Greece leaving the eurozone.”

    Leaving the eurozone is the solution to Greece’s troubles, according to markets analyst Louise Cooper, from BGC Partners. “Greece has to exit the euro, it has to get competitive, has to devalue currency and then almost needs a Marshall Plan,” she says. “Austerity has destroyed the country.”

    Tough measures brought in to rescue the Greek economy have seen a massive drop in the standard of living, and it’s brought pressure on the interim government. Whoever wins the national elections on May 6, the government needs to impose more austerity measures – worth 5.5% of GDP, or $14.4 billion, plus a further $4 billion in taxes – conditions of the EU/IMF bailout that is keeping Greece from going bust.