“There is
no time to lose.” This was the unanimous cry sounding more as a warning than as
an imploring, launched by the European institutions to Greece.
Greek
Finance Minister Yanis Varoufakis repeated again not to share the requests of
his European partners, labeling them a failed recipe.
The reality
of these days is that two EU member states, Cyprus and Spain, are painstakingly
getting out from past troubles by applying the “failed recipes,” although the
conditions of their economies were not as serious as Greece. The banking sector
in the Republic of Cyprus, the heart of the crisis, strengthened after the
interventions agreed with the much abhorred Troika. Government bonds are back
in the market, as well as bank bonds. Ultimately the Cypriot banks have
overcome the crisis, returning to solvency. In Spain, the recovery is in place,
thanks to the structural reforms adopted by the government, always agreed with the
institutions in Brussels and Frankfurt. Unemployment is still high, but on a
downward trend.
These, in
summary, are the facts indicated by Eurogroup President Jeroen Dijsselbloem and
European Central Bank President Mario Draghi, all of them speaking from Riga.
The latter stressed Greece suffers continuous outflows of capitals and savings
are leaving the country - an ugly sign of lack of confidence.
It can be
added that the Irish economy, by applying similar formulas, is recovering
vitality. It does not seem, therefore, that the economic recipes suggested by
the EU’s institutions are unsuccessful. Greece began to show signs of recovery
last year, although more precariously than most of the sick or former sick of
Europe, by implementing the agreed reforms. Then the political crisis, leading
to early elections, the Syriza victory and the new course...
What is
happening is that a relationship for anything constructive is taking form
between Greece and the other eighteen Euro partners. The latter calls for precise
commitments on economic reforms, while the former insists in providing vague
data. We have been witnessing, since January, a sort of tug-of-war, which is
not promising at all. This is because there is a country in the middle whose
citizens are likely to see their salaries and pensions not just curtailed but
unpaid, all because of the obstinacy, ideological style of the Greek government
in proposing/imposing an unsuitable economic line. For these very reasons the
Eurogroup ministers accused Varoufakis of being incompetent. In fact the Greek
recipe, whether implemented, soon after producing a short but doped recovery,
would generate a new collapse of the economy.
Only
productivity private sector development will put Greece on the road of
investment recovery and job creation.
In Athens
at the same time as the Eurogroup was pressing Greece to submit an acceptable
reform plan, Katainen was informing the parliament about the opportunities
offered to Greece by the Juncker Plan. In order to restart Europe’s stagnating
economies, the European Commission has prepared an investment facility financed
by his own budgeted resources and by credit lines of the European Investment
Bank. The plan aims to finance innovative projects. The private sector could
benefit, in particular small and medium-sized enterprises (SMEs). The Single
European Market has to be completed as far as the digital economy, energy
networks and financial markets are concerned. To get these funds Greece, like
any other EU country, must present healthy projects.
From Riga
to Athens, the warning is clear: time is running out, credible reforms must be
presented, rapidly put on the track and aim to boost the competitiveness of the
economy. There is no other way to avoid the default.
*Angelo Santagostino
is Jean Monnet, ad personam Chair at Yıldırım Beyazıt University.
(Πηγή: hurriyetdailynews.com)
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