OPINION

A bankrupt model

Evaluating the government’s rhetoric on economic issues, one realizes that it has been reduced to an endless repetition of economically blind arguments. Economic stagnation and the indebtedness of firms and households is met with remarks about high growth rates, Moody’s decision to upgrade Greece is held up to refute the fiscal crisis, high jobless rates and falling competitiveness merely prompt the standard «everything-is-on-track» mantra. The government’s defensive attitude and the reasons that mandate it are clear to everyone. It is trying to contain the wave of public disaffection so as to win political time, in the hope of reversing the negative climate. In essence, the government is continuing with its media campaign, unwilling to make a radical break with the past or to admit the shortcomings of its economic policy. Nor does it aim, at the current juncture, to set a central and binding target that will guide its policy. This puts a growing burden on the economy without creating any prospects for the future, and carrying the risk of creating new, burdensome obligations that could bring the country to its knees after the spotlights go off. Indeed, Greece’s fiscal figures look poor, public debt remains high while the organization of the Athens Olympics is a huge, growing strain – as are Greece’s armaments programs. The private sector is largely dependent on the State, competitiveness is faltering and, most importantly, there is no clear aim for the future. In the present phase, Greece is spending without a sense of moderation or control as if it were a rich state with endless resources. Clinging to this model will bring big trouble – which will hit us the day after the Olympic closing ceremony.