Now, two months of negotiation progress between the Greek and European institutional side, Greek government faces a dilemma, which the same government has adventurist created.
To reinforce the pressure, Alexis Tsipras went so far as to describe a dystocia repayment of IMF.
This intention has not been welcomed from our financial partners, so Christine Lagarde called the Greek Finance Minister in Washington so this intention substantially alleviated.
On the day of Catholic Easter , Mr. Varoufakis visited Washington and he presented himself as a staunch supporter of the position the installments, directly without incident, to be repaid by.
Continuous escalation and de-escalation of tensions was the main strategy of the Greek side from the beginning. But the tolerance shown to shrink. The government should take a solution, capable of influencing governance conditions.
The economy is at serious risk, as doubts about the repayment ability, creates insecurity to the real economy as well. As citizens reduce the appetite for consumption, as businesses reduce availability for production, the money is not flowing easily in the market, the economy dries up.
The main rhetoric of the government is that the previous program did not bring Greece’s exit from the crisis. The thought of Syriza is totally disconnected with the policy of the Memorandum, its financial target and its reforming dimension. Based mainly on Keynesian policies, Syriza rejects the classical liberal policy of the Memorandum and essentially seeks to increase liquidity by increasing consumption through the perfect confrontation of unemployment.
However, the Greek economy is in the process of transformation, due to the existing Memorandum. The primary objective raises budgetary discipline. In fact, the previous government had managed to streamline public finances, forming the first, after many decades, balanced budget.
The deficit was disciplined and the debate on the debt sustainability would be the next target. The program was lacking acceptance, as the opposition has developed an intense war, which eventually made the defense of the Memorandum impossible.
The main opposition party from 2012 believed that there could be conditions for a leftist government. To achieve this objective, Syriza promised even the complete abolition of the Memorandum.
The lack of consensus might be the dominant cause of failure a sound economic transformation of the country take place
Part of Greek society believed in alternative and halted the political decision on the program. The society did not believe that the previous government could relax the terms of the program, so the margin of flexibility, even in the household, exist.
Syriza understands, if they had not initially understood all these years, that Greece is in need of funding. The Greek economy has black holes, which are fed on the income from domestic production. This means that no growth will exist, unless these black holes are closed.
• The reform in the sense of having an administrative plan, which aims at automation, reducing the time, the removal of counterproductive public officials, is the first object.
• The gradual and targeted task against tax evasion, whose proceeds will be used to meet basic needs, is critical objective.
• The stabilization of the tax system, with the adoption of a single low tax rate is a critical objective.
• The mobilization of public officials by removing unproductive and targeted recruitment, which will be educated and suitable for the requirements of the position, is a critical target.
• The gradual consolidation of cooperation between the public and private sectors through external partnerships will contribute to the development of speed and quality of public services, while at the same time it will save costs by reducing the inexperienced staff. This would create strong incentives for the engagement of society with the private sector, which is something that still scares the majority of Greeks.
• The openness of the public sector through involvement with technology issues, information, and innovation is important. This will be achieved through innovation competitions. Public partnership with innovation will result in interactivity and transparency of government.
• The interactive information and honest quality will create the conditions for strengthening the credibility of the government, which creates obligations for constant reliability improvement.
This planning requires or is to be consistent with regular financing of the country.
Reforms in exchange for financial assistance.
This is a profitable deal.
The program should continue. It makes sense, after years of austerity, required flexibility to be achieved, but in the direction of completing the program.
The reversal is a danger to our partners, who as introverts become, the more difficult the deal can be closed based on trust.
SYRIZA is the government so this has to be understood by them.
The detour endangers the country’s sovereignty, the international status and inner dignity.
The political winner and constant powerful rival of the next day will be the one who will express this reasoning. The elections were only four months ago, the economy still expects renewal, freshness and boldness of political decision. Inaction no benefit, causing concern. Elections created inability, economy demands political will and targeting.