Thursday April 24, 2014 Search
Weather | Athens
23o C
15o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
The deadly spiral of unemployment

By Nikos Xydakis

The most recent report on unemployment in Greece comes like a bad prognosis from a doctor regarding a patient in intensive care. The numbers are so frightening that we almost automatically disassociate them from their human content unless, of course, we have someone in our own family circle looking for work.

Only the worst predictions, the bleakest scenarios regarding the course of the countrys jobless rate, are believable any more, and according to those, by the end of 2013 one in three people in Greece will be out of work. As far as young people are concerned, meanwhile, the door to their future will remain shut for an indefinite period of time.

What we are looking at is a disaster of historical proportions. The chairman of the US Federal Reserve, Ben Bernanke, said recently that a high jobless rate over an extended period of time does not just eat away at the social fabric, but also undermines the economy in the long term.

In the case of Greece, where the demographics paint no less scary a picture, the damage runs even deeper: Within the space of a generation, the country will lose the vital momentum and rejuvenating spirit of a younger generation consigned to a life in the professional deep freeze, on the margins of society.

The only way out of this deadly spiral of recession and unemployment would be an amendment to the memorandum of understanding signed by Greece in exchange for bailout funding from its creditors. This would be possible on the condition that the architects of the agreement recognize it was based on false assumptions and that its effects have been devastating. They would have to agree that internal devaluation more than tripled unemployment and has killed off competitiveness completely.

However, to get any changes made to the memorandum, we would first have to sway the German mind-set away from monetary orthodoxy and the worship of austerity. It is true that Berlin is under pressure from the United States, but the months until the German elections in the fall are going by too slowly. The German obsession with austerity will only be overcome with a radical shift in the already tenuous balance within the European Union as a whole.

The Italian elections on February 24-25 may prove to be such a destabilizing factor, as a possible strong showing by the unpredictable Silvio Berlusconi or by the populist and euro-skeptical Beppe Grillo could completely change the balance of power in the bloc and accelerate developments.

The fate of Greece lies beyond its borders more than ever before.

ekathimerini.com , Friday February 15, 2013 (21:30)  
Its too soon for Europe to declare victory
Realitys other side
Enough barbarity
Unanswered questions
Free drugs for uninsured Greeks
There are between 1.9 and 2.4 million Greeks, or roughly 20 percent of the total population, without social insurance, Health Minister Adonis Georgiadis said on Wednesday as he announced pla...
SYRIZAs preparation for elections upset again
SYRIZA's preparations for next month's local and European Parliament elections suffered another blow on Wednesday as Ahmet Kurt, one of the leftist party's candidates for the regional counci...
Inside News
Expanding the social dividend base
The Finance Ministry is set to make some adjustments to the plan for the distribution of the so-called social dividend, so that more recipients get a share of the 2013 primary budget surplus...
National Bank determined to remain in the Turkish market
National Bank sources made clear on Wednesday that the upcoming 2.5-billion-euro share capital increase is to ensure that the group retains its majority stake in Turkish subsidiary Finansban...
Inside Business
BASKETBALL
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
BASKETBALL
Reds and Greens stay alive in Euroleague
Easter and home advantage worked wonders for Panathinaikos and Olympiakos who stayed alive in the Euroleague play-offs beating CSKA and Real Madrid respectively on Monday in Greece. Shak...
Inside Sports
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Never underestimate the Greek hoopsters
2. Expanding the social dividend base
3. National Bank determined to remain in the Turkish market
4. Ferries to start using LNG
5. Investment fund off the ground
6. Stocks decline after three days of growth
more news
Today
This Week
1. FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
2. Greek debt swells again as Samaras looks to creditors for relief
3. Greece qualifies for new debt relief after 2013 budget surplus
4. Woman dies after falling off state building roof
5. Tunisian sought over employment scam
6. Greece sees 2013 primary budget surplus at 1.5 bln euros, says deputy finance minister
Today
This Week
1. Greece startup leaders say they cant break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Government looks to kick on
5. Greece offers to help find Turkish F-16 lost in 1996
6. EU struggles to unpick the knot of Russia-Ukraine gas logistics
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.