Friday March 6, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Now the tough task: implementation

By Costas Iordanidis

The new fiscal adjustment program and the restructuring of the country’s economy after the frenzy of back-to-back elections in May and June will cost the people of Greece a great deal. There is no point in arguing about the logic or effectiveness of the measures outlined in the new program, or the consequences of a “voluntary” buyback of bonds by banks or social security funds at 30 percent of their nominal value. Privately held Greek bonds have already undergone a “voluntary” haircut of 53 percent, so let the powers that be examine the problems that could arise from a write-down of publicly held debt.

The government has created the impression that the disbursement of the new aid tranche, worth some 44 billion euros, is in the bag and that the Greek economy will begin to grow within the next year. Exercises in optimism have their limit, however, especially given that the success of any fiscal adjustment program does not depend on political grandstanding or good intentions, but on the existence of a state mechanism that can implement the new measures effectively so that they may bring about the anticipated result. Those who believe that Greece’s problems can be solved merely with political decisiveness are sorely mistaken. Sure, it is necessary to some extent, but it certainly is not enough on its own. With the state machinery in disintegration and civil servants who are seriously disgruntled at the political system, there is little to be optimistic about.

Greece has failed to honor its commitments on several occasions over the past three years, but the new deal with its creditors leaves little if any room for maneuvering. Greece’s creditors will be brutal about making sure that the measures are implemented and that any deviation from their terms is swiftly augmented by equal cutbacks – to salaries and pensions, most likely.

In other words, the deal, which is supposed to ensure the sustainability of Greek debt, will be socially unmanageable. This, of course, does not necessarily mean huge protest rallies and clashes with authorities. There will certainly be some of those, but public discontent will more likely take an ostensibly passive form that will manifest itself in the complete rejection of the political system.

It took three meetings of the eurozone’s finance ministers for some of the differences between Germany and the International Monetary Fund to be bridged. But it will take much, much more for the Greek government to implement the fiscal adjustment program.

ekathimerini.com , Thursday November 29, 2012 (00:09)  
PISA, Schengen, mediocrity and isolation
Greek-Turkish relations
Government policy
Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
PM, FinMin in diplomatic push to sell measures
Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis are launching a diplomatic offensive, with calls to several European counterparts, in a bid to lay the groundwork for anot...
Police seeking missing student to recall key witnesses
Police in Ioannina, northwestern Greece, are to conduct a new round of interviews with students at the city’s Dairy School and other acquaintances of missing student Vangelis Giakoumakis in ...
Inside News
Jobless rate starts picking up again
Greek unemployment started to rise again in December following 14 months of gradual decline, reaching 26 percent according to figures released on Thursday by the Hellenic Statistical Authori...
Election lifted consumers’ mood
Consumer confidence in Greece jumped almost 20 points in February to reach the highest level observed in the last six years, and led to an improvement in the economic climate despite the sta...
Inside Business
SOCCER
Greece need to attack more, new coach Markarian says
Greece coach Sergio Markarian said Thursday he wanted Greece to play more attacking football against Hungary in a Euro 2016 qualifier on March 29 as his side strive to move off the bottom po...
SOCCER
Super League restarts, but behind closed doors
Deputy Minister for Sports Stavros Kontonis announced on Wednesday the resumption of the Super League this weekend after it was suspended last week following crowd trouble at the Athens derb...
Inside Sports
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PM, FinMin in diplomatic push to sell measures
2. Jobless rate starts picking up again
3. Police seeking missing student to recall key witnesses
4. Election lifted consumers’ mood
5. State will keep paying priests´ salaries, Greek gov´t says
6. ECB decisions may prove to be a blessing in disguise
more news
Today
This Week
1. Greek-Turkish relations
2. Greece seeks to plug its 'Bermuda Triangle' of lost taxes
3. Greece struggles to make debt math work amid bailout standoff
4. Greece has backup plan if March bailout cash fails to arrive, says Varoufakis
5. Draghi details sought as ECB's QE plan poised to be fleshed out
6. Government policy
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. SYRIZA feeling the pain
3. The Greek tax drama
4. Varoufakis to make six reform proposals at Monday's Eurogroup
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.