Monday October 20, 2014 Search
Weather | Athens
24o C
16o 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)  
Stop moaning and get in the game
Exorcising the ghosts
Greece’s closed society is central to its current malaise
Between West and East
Health Ministry looking to hire 4,000 new staff
The Health Ministry wants to hire 4,000 permanent staff, including 1,500 state hospital doctors, next year. It made a written request to the Administrative Reform Ministry on Monday as appro...
Parliament´s draft budget sees reduction of some 2 mln euros
Parliament’s budget for next year has been reduced by almost 2 million euros to 139.9 million, according to a draft unveiled on Monday. Of the total amount, 20.5 million euros is for MPs’ pa...
Inside News
Fresh growth for banks buoys Athens benchmark higher
Greek stocks continued along the path toward recovery on Monday after the big sell-off observed last week, as banks appear increasingly confident ahead of the announcement of the stress test...
Greek 5-year yields rise 55 bps to 7.62 pct
German bunds advanced and Greek securities declined on Monday, extending losses that sparked a sell-off in the periphery last week. Greek five-year yields rose 55 basis points to 7.62 percen...
Inside Business
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
SOCCER
OFI stuns Panathinaikos, Mitroglou hits twice
OFI Crete produced the upset of the week in Greek soccer beating Panathinaikos in Athens for only the second time in its history on Sunday, while PAOK stayed on top beating Atromitos at home...
Inside Sports
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Health Ministry looking to hire 4,000 new staff
2. Parliament´s draft budget sees reduction of some 2 mln euros
3. Trial of GD members accused of 2012 attack postponed to April
4. Stavros Niarchos Foundation donates 26.8 million to social projects
5. Fresh growth for banks buoys Athens benchmark higher
6. Greek 5-year yields rise 55 bps to 7.62 pct
more news
Today
This Week
1. Greece must stick to reforms, says Schaeuble
2. Bakers encircle Thessaloniki's White Tower with giant 'koulouri'
3. Turkish vessel enters Cypriot Exclusive Economic Zone
4. European leaders pivot back to debt crisis after wake-up call
5. Hardouvelis does not see 'big surprises' in ECB stress tests
6. Samaras to visit Cyprus on November 7, ahead of Egypt talks
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Less haste, more focus
3. Greece to contribute 1 mln towards Gaza reconstruction
4. Greece nearing bailout exit, says gov't spokesperson after IMF talks
5. Istanbul skyscraper casts shadow over Greece's banking ambitions
6. Coalition shooting itself in the foot
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.