Greece debt crisis, Mekong drought a global ‘flash point’

The government is closely monitoring the Greece debt crisis and the drought in the Mekong delta in southwestern Vietnam, which could affect the Philippine economy and its rice supply, a top official of the planning department said on Tuesday. Dennis Arroyo, policy director of the National Economic and Development Authority (NEDA), said the Greece debt crisis “can be a flash point for the global economy." He said Greece’s national debt was already 115 percent of its gross domestic product and it has been plagued with workers’ strikes following wage cuts and tax hikes on fuel, alcohol and tobacco. “We are monitoring what’s happening now. Greece is on the radar for the global economy," he said. Greece’s runaway debt and deficit due to unrestrained spending, cheap lending and failure to enforce financial reforms were exposed when the global economic crisis hit. The government of Greece has raised taxes and implemented austerity measures and stringent tax evasion rules. Some members of the European Union are expected to be affected by Greece’s huge debt, while others try to set up firewalls and bailout plans to keep their economies and the euro from being damaged. Arroyo also said the drought in the Mekong region, which is affecting Thailand and Vietnam, may affect the country’s rice supply because it imports rice from the two Southeast Asian countries. El Niño is already impeding the Philippines’ rice and corn production, forcing it to increase imports. Thai Prime Minister Abhisit Vejjajiva is planning to ask China for help because its dams in the Mekong River are depriving the countries in the lower part of the river. — NPA, GMANews.TV