Interesting approach by Philippe Legrain, economic adviser to the president of the European Commission from 2011 to 2014. In his opinion article in Foregin Policy, Legrain favors a debt relief and argues that left-wing Syriza is the best option for Greece given the current and past economic and social circumstances.
Some excerpt here:
Why Greece Needs Syriza to Win
Debt relief isn’t just a matter of justice. It’s an economic necessity. Contrary to the propaganda from the EU and Samaras’s government, Greece is not putting the crisis behind it. Yes, the economy is finally growing a little: by 1.9 percent in the year to the third quarter of 2014. Employment has edged up. The government has achieved a primary surplus — its revenues now cover its outgoings, excluding interest payments. And it managed to sell investors some longer-term bonds last year. Briefly, Samaras even thought that Greece could escape the EU’s clutches and fund itself freely from the markets when its EU loan ends in February.
Without debt relief, the economy looks set to remain depressed. While it has scope for a bounce from its depths, a sustained recovery strong enough to make up lost ground, put Greeks back to work, and bring down debt is not in the cards. Even at its current annual growth rate, the economy would recover to its 2008 level only in 2030. Domestic demand is depressed by the debt overhang, while exports remain weak. Even with imports suppressed by crunched incomes, the country is running a whopping (and widening) trade deficit. The banking system is bust. No wonder businesses aren’t investing.”
This report says it all, stay as you are Greece and you can expect to be back to the financial situation of 2008 in 2030.
So here’s the choice – Hang on in there for another 15 years and you will drag yourself (UP?)to the situation which existed 22 years previously.
OR Vote Syriza – grab a little democracy back – stand up and be counted and put the people of Greece before continued austerity to finance the rich
Alternative 1 is probably correctly described if one assumes that things won’t change all that much in Greece. Yes, at the present pace of change and reform, it will probably take a very, very long time until Greece returns to former living standards.
Alternative 2 could turn out to be correct if SYRIZA became indeed that super-ethical white knight who will once and for all eliminate all those evils which have plagued Greek society since independence. Obviously, what could also happen is that, once in power, SYRIZA will behave just like all the others who have had power in Greece before.
we have no previous singatures therefore we have to wait and see.
I have had few discussion with my Greek friends while watching the news on cafeterias. The majority thinks the previous ruling parties (ND & PASOK) are filled with crooks.
They have not yet tested mr. Tsipras. Some are even deaf to the SYRIZA’s program, but this party gives them hope.
it happens: people vote for A party and get governed by B party
Roger Bootle (the winner of the competition of ‘how to dissolve the euro’): “To some European commentators, what Syriza wants seems mad. Yet if anything is mad, it is surely continuing on the current course.”
http://www.telegraph.co.uk/finance/economics/11338549/Greece-leaving-the-euro-would-be-no-disaster.html