Tag Archives: economic crisis

Greek NPL’s: Is there light at the end of the tunnel?

Dr. Periklis Gogas Associate Professor

 

Dimitrios Karagiozis

Ph.D. Candidate

Department of Economics Democritus University of Thrace, Greece

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The year 2018 is a milestone for Greece, as it moves towards to the completion of the third economic adjustment program. That means that after the official end of the program in August 2018, Greece must take fate into its own hands, and try to borrow from the markets to meet its future debt obligations. As the country leaves behind the 8-year long memorandum era, the two main concerns for the Greek government and the banking sector are: a) a decision on the debt relief measures that should follow and b) a solution to the Non-Performing Loans (NPL’s) problem.

The International Monetary Fund openly declares what anyone with basic training in economics can see: Greece requires substantial debt relief from its European partners to restore debt sustainability. The main issue here is that the resolution of this problem mainly depends on political decisions from Greece’s EU partners that are hard to sell to their voters-tax payers. This is of outmost importance for the medium to long term stability of the Greek economy. On the other hand, the NPL’s problem is urgent and imperative.

Continue reading Greek NPL’s: Is there light at the end of the tunnel?

Is Greece losing its reform drive?

Mr. Hugo Dixon is Editor-at-Large, Reuters News. The opinions expressed are his own. This article has also been published in kathimerini.gr

Is Greece losing its reform drive? Prime Minister Antonis Samaras has stuck to a harsh fitness program for two years. But just as it is bearing fruit, he has sidelined some reformers in a reshuffle. There is only one viable path to redemption for Athens: stick to the straight and narrow.

The Greek economy is not out of the woods yet, although the measures taken to balance public finances and restore the country’s competitiveness are having their effect.

Athens partly regained access to the bond markets in April. Banks have been able to issue equity on the markets. The unemployment rate has fallen for four months in a row, albeit to a still terrible 27 percent. The economy has also either just stopped shrinking or will do soon.

Continue reading Is Greece losing its reform drive?

Why do we (Europeans) vote in Euro elections?

nikos_konstandarasMr. Nikos Konstandaras is managing editor and a columnist of Kathimerini, the leading Greek morning daily.
He is also a contributor to The BusinessThinker.com

This editorial has appeared in elathimerini.com as well-

On last Thursday the British and Dutch voted. The next day voters went to the polls in Ireland and the Czech Republic, yesterday, Saturday, Saturday in Latvia,
Malta and Slovakia. Today, Sunday, the rest of the EU will vote. In the 28 member states, 400 million citizens are eligible to vote for 751 members of the European
Parliament, who will, in turn, elect the new president of the European Commission. This is the eighth such vote since 1979. But this time there is a sense that the
Union is in decline that it is losing in economic and strategic significance. Even so, the electoral debate in each country focused on domestic issues. Very often
those issues stemmed from EU membership, but the elections remained stuck on local problems, not on EU-wide solutions.

Throughout the EU people worry about where the EU is headed. The years of crisis showed up weaknesses in the bloc’s construction. This created
the need and the opportunity for solutions through the adoption of new mechanisms and institutions. Precious time was lost, as was the even more
precious sense that Europe was the home in which we could all feel safe. However much the Greeks may have been to blame for their problems, they
were not the only culprits in the EU. For the good of all, Europe should have shown that its grand construction was not in danger because one of its
rooms had caught fire. “Personifying” the crisis, presenting Greece as a scapegoat and a “unique case,” renewed old enmities and ethnic stereotypes.
It sowed division. In the markets, Europe appeared as weak as its weakest member. It abdicated the power and the responsibility that it would have
had if it functioned as a single force, with the world’s largest economy (with a combined GDP of 13 trillion euros in 2012), with 500 million citizens
constituting the wealthiest and best-educated group of people the world has known. Instead, the EU found itself on the brink of losing its common
currency. Many people felt threatened by strangers – either immigrants or citizens of other countries who needed their support. Some were angered
because they were asked to help, others because they lost benefits and security.

The debt crisis is one of many important issues. How can developed countries continue to provide their citizens with everything to which they are
accustomed when the global economy has made them uncompetitive? How can each country gain the most from being in the EU when the EU does
not project its power because each member acts according to its own narrow interests? When voters reject austerity and reforms because they consider
them unjust, how do economies become more competitive? Is the solution to be found in reducing social security in Europe or should we demand that
competitor countries take equal care of their own citizens?

The problems remain unsolved and can be dealt with only at the EU level. Europe will be saved only if the serious debate begins within the next
European Parliament – the one that will represent powerful centrifugal forces