Nobody can seriously blame tax evasion for this. It has happened because 60,000 small firms and family businesses have gone bankrupt since the summer.
The VAT rate for food and drink rose from 13pc to 23pc in September to comply with EU-IMF Troika demands. The revenue effect has been overwhelmed by the contraction of the economy.
Overall tax receipts fell 7pc year-on-year.
This is a damning indictment of the EU-imposed strategy. Greece is chasing its tail. The budget deficit is stuck near 8pc to 9pc of GDP because the economic base is shrinking so fast.
Let me just add that it makes little difference whether or not Lucas Papademos secures triparty agreement today – or soon – for a debt deal.
The Greek parliament still has to vote and there is a sauve qui peut mood among MPs who don’t want to be stoned to death (metaphorically) by the polloi – hoi or otherwise.
