Ι recently read a great article in HBR by Michael G. Jacobides entitled “Greece’s Problem Is More Complicated than Austerity“. I’d like to urge my FB friends (especially non-Greek ones) to read it carefully and give it some serious thought if they want to really understand what is taking place in Greece.
After the latest Greek deal in July, the parliament indeed voted for some (not all) prior actions necessary to re-start negotiations on a new long term bailout program (the third since 2010). Nevertheless, the ruling party is (as most of us expected) heavily divided between more than one of its political components. The most influential of which are the radical neo-communists led by the Former Minister of (non) Development, P. Lafazanis, who believe that the new Drachma is the solution to all our problems. Unfortunately, they are not offering any solid justification of how leaving the Euro will actually help the country and not their own political nomenclature.
So now, between “hide and seek” with the new members of the “Troika” (or whatever you want to call it), political manoeuvres inside SYRIZA party, daily appearances of the former Finance Minister, Yanis Varoufakis and revelations about his ludicrous (1) Plan B, we struggle to see our personal and professional future in Greece.
And I have to tell you it is grim. Very grim. Despite the fact that we have a successful company, the repercussions to our reliability (as a country) due to the political gambles of Prime Minister’s Tsipras former team are almost catastrophic. Greek companies are only as trustworthy as the country they reside in. And today this is as low as it can get.
Despite the catastrophic last months for the Greek economy, Greek people seem to still support Tsipras as a prime minister. I guess mainly because there is no other political figure, popular enough to unite the purely pro-European political forces.
The government accepted, brought to the parliament and voted for an agreement it neither believes nor wants to implement. Frances Coppola got this one right. All previous governments were also incompetent to implement necessary changes and disrupt the status quo. Will this one be any better ? I do not think so, but I do hope it will. It is our last hope.
(1) I fully agree that the government was obliged to have a solid Plan B. But this should not be a plan to take us out of the Euro, in one night. Not to mention the “naif” descriptions of Y. Varoufakis about the “secret team of 5”, lead by his “friend from Columbia” that would “hack the Greek TAXIS system”. If you want to understand what building such a system means, you can read Yves Smith’s article at Naked Capitalism here.