Skip to main content

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated Cookie policy, Privacy policy and Terms & Conditions

Greece Mauro Orlando/Flickr

A Blueprint for Greece’s Recovery

Months of negotiations between Greece’s government and the International Monetary Fund, the European Union, and the European Central Bank have produced little progress. To break the current impasse, it is necessary to envisage a healthy Greek economy.

ATHENS – Months of negotiations between our government and the International Monetary Fund, the European Union, and the European Central Bank have produced little progress. One reason is that all sides are focusing too much on the strings to be attached to the next liquidity injection and not enough on a vision of how Greece can recover and develop sustainably. If we are to break the current impasse, we must envisage a healthy Greek economy.

Sustainable recovery requires synergistic reforms that unleash the country’s considerable potential by removing bottlenecks in several areas: productive investment, credit provision, innovation, competition, social security, public administration, the judiciary, the labor market, cultural production, and, last but not least, democratic governance.

Seven years of debt deflation, reinforced by the expectation of everlasting austerity, have decimated private and public investment and forced anxious, fragile banks to stop lending. With the government lacking fiscal room, and Greek banks burdened by non-performing loans, it is important to mobilize the state’s remaining assets and unclog the flow of bank credit to healthy parts of the private sector.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

https://prosyn.org/GUIGsni;
  1. op_campanella7_Aurelien MeunierGetty Images_billgatesrichardbransonthumbsup Aurelien Meunier/Getty Images

    Abolish the Billionaires?

    Edoardo Campanella

    Even many of the wealthiest Americans would agree that the United States needs to overhaul its tax policies to restore a sense of social justice. But, notes Edoardo Campanella, Future of the World Fellow at IE University's Center for the Governance of Change, such reforms would not be enough to restart the engines of social mobility and promote greater equality of opportunity.

    16