The reports coming from Greece as she tries to come to terms with her economy do raise a smile. The IMF and the EU are encouraged by the 45% cuts in spending by central government, but the problem is that central government has little idea what goes on in local government. No one in Greece has any idea, for example, how many state employees there are, and the government has authorised that a count take place.
Nikos Magginas, a senior economist at the National Bank of Greece, said-
No one knows the exact number of public-sector workers in Greece. Until recently, finance-ministry officials estimated the entire public-sector work force, including central-government employees, local government employees and workers in state-owned companies, at around 700,000. But other estimates range as high as 1 million or more. Greece has a total labor force of about 4.5 million workers.
SEE Ambrose Pritchard Evans who points out that the stress test assumptions are based on fantasy, with property prices rising, despite collapsing credit.