The poet says that the night does
not succeed the night. Today a big pioneering part of the Greek society
converges in certain basic admissions and choices. The Greek avant-garde should
seek an economy that will be the foundation for the social and cultural
progress. An economy supported in enterprising decisions that diffuse profits
and economic results in all the layers of society. “ALEKOS PAPADOPOULOS The steps of Esternach. Greece
After 30 years of
extreme economic liberalism, the fiasco of self-adjusting markets led the world
economy on the verge of collapse. Aiming at the prevention of a new big
recession, all hopes consigned in the state. Throughout the economic history,
there has never been, in such extent and intensity, a monetary and budgetary
intervention like the one we are experiencing now from the total of
governments, so that the world economy is rescued from the worst nightmare of the
last 80 years.
One could easily
and calmly realise that the collapse was averted, however, any economic recovery
that may emerge, remains exceptionally precarious and fragile. The big
structural problems which caused the crisis remain unsolved. Unfortunately, the
unusual and unprecedented government intervention was not accompanied by
essential interventions and reforms. Let us stand to certain remarkable lessons
which, despite their undoubtedly high cost, will constitute reliable guides and
guidelines for the future prosperity.
The markets cannot be self-
adjusted.
In conclusion, it could be argued that without
the appropriate regulations and interventions by the state, the markets are led
to exaggeration. The blind hunting of profit and the greed did not lead the
society to a general prosperity.
Certainly, there was no help for the workers who were found unemployed, for
the householders of real-estate who risk losing their fortunes, for the
pensioners who face the future with uncertainty and of course, for the tax
payers who paid hundreds of billions for the rescue of the commercial and
investment banks.
Indeed, with the
argument that the rescue of banks could maintain the lending, thus the “blood
donation” of economy and trade, the medium tax payer was the
one to support with his money the big financier organisms. However, up to this day, the rescued banking
system has not channelled fluidity in the market, always with the aim of the
support of employment and the interception of unemployment. More and more
prevails the opinion that political control over the financier system is
required, so that the drain of credits in the real economy is ensured and not
in the re-establishment of the cost of mistaken investment choices.
Confrontation of the crisis
and Greek economy.
As far as the Greek economy is
concerned, everyone today recognizes that it is found in a serious crisis. The awareness
of this undoubtedly very unpleasant reality also constitutes the basic
condition for the mobilisation of all productive forces, aiming at the
confrontation of this difficult situation and our exit from the crisis. Unfortunately,
while the European and world economy recover, even if important dangers still
remain, in our country the recession will be continued also in 2010 as well. The international crisis brought to light the
pre-existing big macroeconomic imbalances as well as the structural weaknesses of
the Greek economy. The Greek state is
judged as an organism anorthologically and irrationally organised and
overgrown. It is distinguished for the total waste of precious resources
without offering to its citizens corresponding services. Moreover, the without
precedent divergence of development of budgetary sizes during 2009 had a
dramatic effect on the issue of reliability of the country. This situation is reflected in the reactions
of international markets which influenced the cost of lending of the state. The
effort that is required for the emersion of the country out of the crisis is undoubtedly
enormous.
Structural reforms
are required, with basic parameters the improvement of competitiveness and
productivity, while one essential course of action is the creation of
conditions for the final and definite cleansing of public finances. Actions in the direction of the reduction of
public expenses, the drastic restriction of cost of government mechanisms, the
reduction of tax evasion but also the radical confrontation of insurance problem,
would have positive impact for the re-establishment of reliability of our
country and confidence in its potentials.
However, it has
been proven that none of the above can be brought into effect without the
change of mentality from all of us. In theory, there is the among all of us
commonly accepted opinion for the essential reforms and the stabilisation of
economy, as long as what everyone considers as his own or of his own interest
is not offended. It is easy to discuss about national challenge, but without
collectiveness as far as the commonly accepted goals are concerned, any effort
strikes as hopeless.
Now, however, we do
not have any other choice, we do not have any more time.
No one is going to help
us regulate our internal affairs. On the contrary, if we do not do it on our
own, the consequences will be severe and painful not only for us but also for
the next generations.
John Stathis is an economist.
He served in the private and public banking industry as a high level official .
( jstathis@gmx.com )
