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    Posted April 25, 2015 by
    mariosef
    Location
    Dubai, United Arab Emirates
    Assignment
    Assignment
    This iReport is part of an assignment:
    Greek life: Should it end?

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    Any Strategic Debt Relief Action?

     
    Dr. Marios Panagiotis Efthymiopoulos,

    Assistant Professor, International Strategic Affairs & Security College of Media and Mass Communication
    American University in the Emirates, Dubai, UAE

    Email: marios.panagiotis@aue.ae


    Dubai, April 25 2015,

    Uncertainty in the face of economic hardships, requests, and tight deadlines for economic viability are still ahead to be negotiated and completed, for the government of Prime Minister Alexis Tsipras.

    Greece’s problematic economic situation is a true European issue of long-term Euro zone viability. Current negotiations are financial risk seen from the point of view of economists.

    Some say that this is a new strategy of the new government in lead. A long-term process of negotiations at all levels and possible actions are to be followed. It is the strategy of this government to question any current decisions made, tactical processes of payment of dues but also current and future forms of investment and development processes.

    For some it is believed that this process does not further European integration processes, does not allow to welcome new ones and damages the Euro-currency credibility vis a vis global market shares and exchanges of rates.

    This new political debate in Europe seemingly questions, a past due, but yet revived issue: Is it possible that Greece may exit the euro-zone, with which way Europe can remain free of a not viable debt?

    Are there any true options which may relieve both Europe and Greece as member to the Euro zone? Are there any tactical approaches with which one can battle recession and pay off debt in practice? Will Greece eventually negotiate a new Europe-Group – deal, otherwise known till recently as troika-, and lead to new options with more sustainable numbers and objectives? Or will Greece suddenly emerge to –revolutionize- the European sector by requesting to join forces with regional powers that seek global status yet again and by such way bypassing other security related questions and current embargo s made? Will Greece ally with new investment and banking sectors that are emerging suddenly in the East?

    Greece situation is complex. Both in causality and objectivity in and about its economic crisis. It is a developing social to humanitarian crisis, claims the Prime Minister of Greece. So we need be to be attentive now.

    Recent decisions concerning immigration policies of the EU, as counter-measures taken as reactionary moves of human security threats emerging in the Mediterranean, brings Greece, as key partner in battling immigration issues again at the epicenter of Europe. Only this time it has to counter emerging global challenges consequences.

    Mass taxation increase directed to the everyday market and citizens has phenomenally damaged the market. Now the Government is establishing a series of payments as for affordability of payment debts (personal and company ones).

    Prior to elections of January 2015, Greece had returned to positive GDP growth of 0.8% and a balanced budget of expenses and incomes for the first time, a program that must be kept but we are not sure of. But what about private and government consumption? What about income per capita. Is it stable? Has it decreased or will it suddenly be decreased yet again after the agreement of the Euro-group?

    The gross public debt remains high at a 175% of GDP and add to this the high interest fees. Hopes of the new government is to bring a balanced debt, a controllable debt. Yet we do not know by when. It was estimated that the debt would be paid off by 2068…. While the former government was in power, yet the variable of change of governance and sudden policies was not attributed to this assessment.

    The Banking system of Greece now renovated and re-structured with stress-tests passed and mergers and acquisitions at the top fiscal agendas call the world markets and investors for long-term investment while making and taking a more serious role on their social responsibility policy and actions, eradicating private debt of people that cannot afford spending. Yesterday it was publicly stated on national TV, that a leading bank has implemented such policy. It is anticipated that more will also do in the next period of time.

    The fear of a Grexit because of reasons as aforementioned above that do not provide long-term stability nor sustainable growth and development renders insecurity to the markets.

    National capital is continuously been exported from Greece. Number estimate to this day, a 94 Billion Euros of exports from Greece- being told as unofficial numbers- to this moment, while the private sector is in a “Stock Shake” and where mergers and acquisitions seem the only option and opportunity for survival and revival.

    Greece does not hold such great numbers in strong industrial infrastructures. Greece is a service provider with the inability to revive and renew in their complete forms their infrastructures of services as they need to be competitive at all times.

    The Eurozone faces similar problems. It is already caught in a world viscous pressure cycle, where recession, unemployment, higher debts, insolvencies, high national and EU taxation and now issues of Humanitarian action and large scale numbers of unwanted immigration is on the rise, while global economies request pure everyday global market action and development actions in developing areas not already developed market economies such as the European Union.

    A Strategic plan is needed. A structural plan, with a time frame of swift changes, that makes the market more competitive, innovative and responsible. It requires re-creation of capital and investment opportunities and a truly re-structuring plans, which combines basic infrastructure with expertise in services by area, location and natural sources which can be used. Taxation and bureaucracy system should be tackled. Life should be made more affordable and renewable.

    Economic problems both national of Greece and European need to become truly and practically viable. We need to render more options with neighborhood policies as Europeans.

    We need to seek a strong, long-term global market and opportunities share future for EU, in combining in such ways the importance and the need to upgrade Euro-Atlantic ties and link.

    Greece’s economic prosperity and debt relief depends on development procedures not debt options for new or renewed taxation. European solidarity and effective engagement of lenders and major cooperative sides can lead and show to the way to prosperity.

    Greek and European citizens are tired of economic hardship and painful reforms at all levels and one need to distinguish only Greece but rather other stronger economies. Fatigue is evident in the European political establishment.

    Time is of essence and a stability is required. Leadership is requested urgently that may take decisions now.

    Governments that do more in practice.

    Europeans and global market share-holders need not to be stressed.

    However, I believe that they should be waiting for a new tactical approach of the debt payment process that will come about eventually, which may render some process of stability and perspectives for future investments as opportunities will arise certainly in Greece.

    There is no alternate solution but to look at the problems at hand but to look at the objective of giving birth to sustainable strategic planning of restructuring the state from the beginning at all levels of productivity and service providers.
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