Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Banks hold the key to growth

By Alexis Papachelas

As odd as it may seem, Greece is beginning to stabilize and move forward. I am not oblivious to the pain and suffering brought on by the crisis, nor the new challenges that lie ahead when the austerity measures for 2013 start to bite. But our European partners under pressure from other forces as well have decided to put an end to speculation about Greeces future in the eurozone. At the same time, the situation is beginning to improve in the rest of Europe as well, as Spain appears to have dodged the bailout bullet, and Italy and France are now able to borrow on reasonable terms.

Given the relatively positive environment overall, Greece will most likely start regaining some of its lost credibility, from the markets, from depositors who have taken their money abroad and even from investors. This is a vital part of recovery, because without faith in Greeces future in the eurozone, no one can estimate how much further the country might tumble into the abyss of recession.

On the domestic front things also seem to be gaining momentum, starting with the justice system and oversight mechanisms that are getting into gear. As much as some may argue that the recent wave of prosecutions and investigations are simply foils to divert peoples attention from the measures, the country has never before seen such powerful people being put under scrutiny and in some cases even behind bars. The people see this as a sign that the country is turning over a new leaf.

Much is also being done in terms of improving the operation of the state mechanism, from the management of hospitals to the promotion of non-cash transactions that are so important in getting a handle on tax evasion. Is this enough to get Greece out of the mess? Of course not. The biggest challenge is to change the prevailing mentality toward entrepreneurship and business, because without these, growth will remain out of reach. To achieve this, the government will have to pass a lot of reforms that will require the support of Parliament and ensure that key positions are properly staffed.

Meanwhile, banks are the ones that will ultimately determine what kind of growth we will have in the next few years. If they choose to help out the serious small and large businesses that are suffering as a result of the crisis, the country will see healthy growth. If they opt instead to continue propping up badly managed and nonviable businesses in order to serve certain other interests, they will drive the final nail in the coffin of any healthy business that has managed to survive this far. Thankfully, there are enough Greek bankers who have been around long enough to know what is what, and who have the integrity to play an important role in the rebuilding of the Greek economy.

ekathimerini.com , Thursday Jan 3, 2013 (21:12)  
EUs three big problems all linked
A great president
Dont feed the zombies
Keeping an eye on international developments
Education minister calls for probe into predecessors reform plan
Following reports that a plan to reform the tertiary education sector launched in the spring of 2013 failed to lead to millions of euros in savings, Education Minister Andreas Loverdos on Mo...
Anti-racism bill goes back to Parliament
An anti-racism bill, foreseeing stiffer penalties for individuals and political parties that engage in racism or incite racist violence, is to be debated in Parliament on Tuesday following m...
Inside News
Tourism targets rise ever higher
The latest data have allowed the Hellenic Association of Tourism Enterprises (SETE) to raise its target for tourism arrivals and revenues this year higher still. During a meeting with main o...
Horse race betting hurdle removed for OPAP
The new tender for the concession of the right to organize and operate wagering on horse races in Greece for the next 20 years will include a number of changes in its terms, despite assuranc...
Inside Business
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Dont feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.