Ravaged Europe in the sovereign debt crisis, the Greek statistical data due to false and have been the market punished, this became an important reason for aggravating the crisis, which also provided a wake up to the EU.

Consequences of false taste of the Greek data

Last year in October, led by current Prime Minister of Greece George Papandreou will be the new government took office, he announced an explosive message: Greek 2009 budget deficit is expected to reach 12.7% of GDP, instead of the previous government forecast of 5% . The new standard announced by the European Union deficit, “Stability and Growth Pact” to allow the 3% limit of four times.

Only after a general election, the Greek government’s financial situation deteriorated to such an extent on the statistics began to greet people false eye problems. The so-called ice three feet thick, cold day. Not such a huge financial hole in the formation of the short term, the old and the new government’s forecast is not so much difference between the statistical error can explain, the only explanation can only be the last government covered up the truth.

Eurostat said early, had received reports about the Greek statistical departments, said Eurostat submitted to the relevant financial data, subject to political interference, the Greek government to provide a range of statistical data there is “intentionally false.”

View of the sudden deterioration of the financial situation of Greece, the S & P and Fitch and other international credit rating agencies have cut in December last year, Greece’s sovereign credit rating, the Greek government financing costs climbing, thus beginning the prelude to the debt crisis. Since then, Greece has entered a “intensive care”, relying on euro-zone countries and the International Monetary Fund bailout of debt forgiveness only for the time being in danger of default.

Greece to join the euro then once done in the hands of financial data, and even hired the Wall Street financial giant Goldman Sachs as “staff”, closed his partner through the complex financial transactions to conceal the true fiscal deficit and government debt levels.

Fraud scandal exacerbated the crisis

With the escalating debt crisis, Greece, Spain and its influence gradually spread to other countries in the euro area, staged a formal debt crisis in Europe, the euro since 1999, facing the most severe test since the birth. Behind the crisis worsens, the Greek statistical data is important to the scourge of fraud can be said.

Greece repeated false market confidence in the data that were difficult to heal wounds. Although the Greek leaders have repeatedly stressed that Greece does not need outside assistance, nor will there be debt default, the EU has repeatedly propaganda, even behind the Greek, but still can not convince investors. In contrast, Greece is bound to default on concerns about continued fermentation, resulting in increasingly higher cost of financing the Greek Government, the ultimate desperation, had to seek help from the EU.

In addition, the debt crisis started to spread in Greece when, Spain and other susceptible “infection” of the euro-zone countries are eager to draw a line and Greece, but they made one important reason is that its not like Greece did in the statistical data hands and feet done, so credit is guaranteed.

In fact, the euro zone established in accordance with the idea when, if the members of the region in violation of fiscal discipline, excessive deficits would have been the market’s punishment as worsening financial situation will lead to increased funding costs in the country, with the invisible market hand to ensure that relevant members of the corrective measures in time, but this ideal model has missed the point that the market must be able to know the truth.

Reflections on the EU for many years lead oversight

It now seems that Greece is not an occasional false statistical data, but the EU has been kept in the dark, it had to rise to reflection.

EU oversight for many years exposed significant gaps in statistical systems. Luxembourg-based Eurostat, the EU statistical services has been responsible for the main body, its mandate was originally limited to sorting data provided by Member States and the European Commission to submit these data to assist the implementation of EU policies, but no the authenticity of the data right to interfere.

Similarly, following the Greeks, the other EU member states, Bulgaria also be exposed scandal false statistical data. Exactly the same and Greece, Bulgaria, the new government came to power last year in April this greatly increases the deficit estimates.

The debt crisis in the EU a profound lesson that accompanied the European economic integration, member states increasingly close economic links between the emergence of loss for both sides, or prosperity of the situation. In order to avoid recurrence of similar crises in the EU has begun to strengthen fiscal discipline, but the prerequisite is to have reliable statistical data, if not prevent Member States from the system “false accounts”, then re-strict financial discipline is useless.

After the debt crisis as an important reform that the EU recently passed legislation, Member States decided to give Eurostat statistical data audit powers, by strengthening the role of Eurostat, the Member States of the relevant financial data for more rigorous review the timely detection of data problems.

Too late, too late to fix. Hope that the reform of the EU member states move to tie the hands of statistical fraud, lying to avoid one another love the “baby sheep” appears.

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