Britain vs Greece

Both countries have racked up similarly farcical debt levels, around 13 per cent of the GDP - yet Greece are in much more trouble.

The problem started when Greece joined the ERM at a rate that suited Germany. This is attested by the rising prices in Greece. They are bound by eurozone regulations to keep below 3 per cent. Good job Britain left the ERM in 1992! Otherwise, our debt levels would be even more pressing than it already is.

So what's the difference between Greece and Britain? Although our debts may be equally dire proportionally, the markets have a markedly lower confidence with Greece. They are more incredulous that Greece will be able to 8.7 per cent this year, as forecasted by their finance minister. Like Britain, for years the government have underestimated the structural budget deficit. The difference between tax receipts and government spending have worringly diverged this decade. To put it simply, they have overspent.

It must be noted that Greece is plagued by a black economy, whereas Britain is not. Tax evasion in Greece is prominent, which is a significant drain on the public purse on an already poor country.