After many years of debate, the Greek government seems to have warmed to the idea of a Formula 1 capable track in their country. According to former Patras mayor and project manager Evangelos Floratos via Ta Nea daily.

“It has taken many years to reach this point,”

The project is estimated to cost 94 million euros ($135 million) and is to be partly subsidised by the Greek state. The completion date is estimated at three years.

“The track will help support development, Western Greece stands to gain a great deal,” regional governor Apostolos Katsifaras told the daily.

This seems like good news but I am a tad perplexed on just how this will be funded with strikes against austerity programs and the general financial condition of Greece. I may be missing something but this report from the Wall Street Journal doesn’t sound very glowing:

“There comes a point where too big to fail, becomes too big to bail,” says an EU diplomat, adding this may be Greece’s last chance to come to prove that it belongs to the euro zone. He argues that the Greek crisis has fuelled the increasing prominence of nationalist parties in Europe like the True Finns who have run campaigns that enough is enough as far as help from the European north to the troubled south is concerned.

And this story here.

Greece’s recent notion of renegotiating the terms of its bailout in 2010 has the Euro tumbling and it gives one reason to pause when discussing such expensive notions as a circuit but I humbly submit that I may be looking at two different areas of Greece and identifying distinctly different budgets, financial viabilities and needs. As an American, I have little to offer in the right or wrong of Greece’s desire for an F1 circuit but from this side of the pond, it seems very expensive for a country facing strikes over austerity programs and asking Germany and France to help buy their toxic bonds and debt.

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Alessandro Forconi
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Alessandro Forconi

I guess millions, not billions. Otherwise germans will become more upset…..!

F1 Kitteh
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F1 Kitteh

Keynesian at its best, if you owe the bank $100 you have a problem but if you owe $1million the bank has a problem.. lets rack up the debt boys..

UniversalExports
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UniversalExports

Are we sure about the 94 billion euros instead of million??? Seems a wee bit too much, unless they’re planning on building a city as well.
In the more likely event that the project is in the millions of dollars range I still wouldn’t like this it, and I’m sure the Germans wouldn’t either (seeing that it was German cash that bailed Greece out)
The last thing that Greece needs is for their government to sink borrowed cash into a currently unneeded venture (for Greece and the Greek people) that would ultimately require subsidized cash to keep itself in the black.

UniversalExports
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UniversalExports

derp… that would be “… still wouldn’t like it…”

frankpat
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frankpat

Remember, we’re talking about Greece. Millions? Billions? Financial savvy is not exactly their strongest suit.

wchrisg
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wchrisg

They should just sink some dough into promoting the heck out of the Acropolis Rally. WRC wants the Stages to be longer and travel some distance. How about from Corinth to Athens.

positiveCamper
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positiveCamper

This is great news! Grace to build F1 circuit!!

Mario Balza V
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Mario Balza V

Here we go again… :¡

Williams4Ever
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Williams4Ever

a) Did Greece go bankrupt recently?
b) How much did they Greece Bernie’s palms for the slot on the calendar?

Kiril Varbanov
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Kiril Varbanov

Yeah, Greece’s finances went very bad recently, I wonder how they are going to build an F1 circuit, but let’s see.
I’m not sure how it’s going to make in the anyway full calendar.

Alejandro
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Alejandro

I can picture the boys in the Greek Treasury…. “We have about 100million Euros left….and some Drachmas….any ideas on how to spend it?”

Alexander
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Alexander

Boys the goverment only gave an approval and 70% of the money will be from private sector.

Parik
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Parik

Does not seem like a wise investment. This will only add to the anger of the people.

F1derbar
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F1derbar

Here in Austin we have private-sector money building our entire track and we STILL have folks getting their knickers twisted.

UniversalExports
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UniversalExports

Ahem, do you call the Texas Major Events Trust Fund private-sector money??? The Fund just sounds like a state government bean counter throwing tax payer’s money around in places it doesn’t belong. Well, it shouldn’t be in the government’s hands to begin with… but that’s just a whole different can of worms.

Johnny41
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Johnny41

Good evening from Athens. Right now the Greek government doesn’t know if it will be able to pay its employees in the summer and every expence has been slashed. There is absolutely no way that the parliament can vote for an expense like that, under these circumastances. It just doesn’t have the money and it would anger the Greek people, who have suffered huge austerity measures lately and a huge rise of under- or un-employment. I believe the F1 track reports are some kind of propaganda. As for Germany and other countries that have loaned Greece, I don’t believe that… Read more »

Sakis Pastras
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Sakis Pastras

This is an example on how you bring money to your country…you invest people spend money and you create jobs…whats the problem…if not the country enough ivestors would be interested to boost tourism and take a piece of the action…. first the biggest robbery in the history of capitalism is been done by banks and exactly they loose money with greek debt…should anybody feel guilty… cheap comments! the welfare of modern societies is through exploitation of countries with problems…by helping them to create wars over oil, gold, diamonds…. The restructure is not for greece alone but also for the complete… Read more »