Merger provides some hope

The merger of two major private Greek banks, Alpha Bank and Eurobank, was a welcome piece of news, especially given the fact that the new structure will attract an influx of foreign capital.

The Greek economy is in desperate need of some good news, which might succeed in reversing the particularly negative mood that has been governing the markets for some time now.

At the same time, Greece needs healthy banks, organizations operating solely with banking criteria, as opposed to clientelist relationships or any other kind of special relationship.

There is a risk, however. In order for any decisive move made by the private sector to bear fruit, and in order to attract international investment, the country?s credibility has to be restored.

This will not be achieved unless the government and the political system as a whole do their job properly by streamlining the public sector and reducing the deficits that led the country almost to the point of bankruptcy in the first place.