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. Read the rest of this entry »