If Conventional Economic Weapons Work “Nuclear Option” is Out

The Samaras Government by stupendous, sagacious, and painful efforts, and by using “conventional economic weapons,” is pulling Greece out of its economic crisis. For the first time after four years, Greece next week will be able to borrow funds on the international financial markets.

I’m republishing this short reply that took place early in 2012, for the readers of this blog.

By Con George-Kotzabasis

A reply to Bruce Wilder, suggesting default for Greece and Italy as the remedy for their economic crisis.

In serious discussion it is wise to enter it carrying a sieve in one’s hands to separate the wheat from the chaff.

Your crystal clear “efficient calculating machine” that would implement your proposal of default, would be no other than a wise, brave, imaginative, and humane technocrat. So what exactly you have against technocrats? They are OK if they adopt your plan and only transported to Hades in toto for their ‘mortal sins’, if they don’t! Default was and is always an option. The distinguished economist Deepak Lal and exponent of the Austrian School of economics, long ago suggested such a schema. Lucas Papademos and Mario Monti, Prime Ministers of Greece and Italy respectively, both presumably have this option in their arsenal to be used as a last resort if everything else fails. But before they use this ‘nuclear’ option, they must try, and be given the right by all objective analysts and commentators, to resolve this economic crisis by ‘conventional’ means that could avoid a default which would open a big hole in their countries GDP and throw their people into pauperization for decades to come.

Pasok Jeopardizes Greek Government by Refusing to Pay Twenty-five Euros

By Con George-Kotzabasis

The present politically negative stand of Pasok to the Samaras government introduction of the payment of twenty-five euros for medical treatment in public hospitals for those who can afford to pay it is utterly unwise and politically reprehensible and condemnable as it could destabilize the coalition government of New Democracy and Pasok. The latter must realize that its political fortune and éclat is tied up solely with the success of the Samaras government in pulling the country out of the crisis and by putting it on the trajectory of economic development and hence to the gradual reduction of unemployment, and not on any ephemeral gains, on the polls. In the event which is most unlikely that the electorate will not render to Pasok the justified plaudits for the economic success of the government, history will pass the ultimate judgment and write in golden letters the prudent participation of Pasok in the formation of the Samaras government as its ultimate contribution toward saving Greece from economic and political catastrophe.

This stupendous success of the Coalition Government will erase all other parties, from Syriza to the Golden Dawn, from the electoral map and will be their Nemesis for their sinister and perfidious populist policies that shamelessly deceived a sizeable part of the people by their totally false promises and completely screwball inapplicable policies. Only New Democracy and Pasok will reap the fruits of this tremendous success that had prevented Greece from falling into the abyss of disaster. It is for this reason that Pasok must immediately cease its adverse stand toward the twenty-five euro payment whose raison d’etre is the restructuring of the medical system so it can render better services to its more indigent patients.

Serious economic analysts both within and outside Greece are forecasting that the country by the end of 2014 will be out of the economic crisis as a result of the painful but necessary austerity measures that the Samaras government had taken, by reducing the public sector that impeded economic growth, by privatizing public corporations, and by making the economy more competitive and entrepreneurial. Hence the prudent policies of the Samaras government would draw foreign investment into the country that in turn would lead to the resurgence of the economy and for the first time in six years 2014 would show, according to economic predictions, a fiscal surplus and a small growth of 0.5 in Gross Domestic Product.

Needless to say political stability is a prerequisite for starting a spree of investment. Pasok by foolishly shaking this stability for electoral interests apparently seems to be unaware that by doing so it hinders and discourages indigenous and international entrepreneurs from making any investments that are so vital for the economic recovery of the country.

It is this great achievement of the government in pulling Greece out of the crisis that Pasok in an unprecedented conduct of political frivolity could jeopardize by refusing to pay a twenty-five euro fee for treatment in a public hospital, which could bring about the collapse of the Samaras government.

Greece: The “Closure” of the National Broadcaster

By Con George-Kotzabasis

The politically thoughtless and opposing stand of Pasok and Demar (Democratic Left) to the closure of the corrupt, wasteful, and non-transparent opaque ERT, by the Samaras government, that needed three or eight times more staff than it was necessary, and its replacement in the next few months by a new public broadcaster employing its personnel on axiocratic criteria and not on corrupt government appointments, could endanger the cohesion of the tripartite coalition that is so crucial of Greece’s exit from the economic crisis. Venizelos and Kouvelis must realize that the political fortunes of their parties, since they made their intelligent, brave, and politically responsible decision to support a New Democracy government, are tied-up with the success or not of the Samaras government of extricating the country from its economic woes and thus saving the country from a devastating and calamitous bankruptcy. The electorate will not remember or extol their parties for their stand against the closure of ERT or for any other issue that is secondary to the main goal, i.e., pulling Greece out of the crisis, but will punish them electorally if the Samaras government fails in this great task.

That is why it is stupendous foolishness on the part of Pasok and Demar to jeopardise the up till now correct policies of the Samaras government that show clearly, according to all serious economic commentators and institutions such as Standard and Poor’s and Finch, that Greece has been put on the right track to overcome the crisis and these policies will reignite its economy at the beginning of next year.

The respective leaders of Pasok and Demar must be constantly alert and on guard not to derail the Samaras government, either by inadvertence or by frivolous, doltish, and politically irresponsible stunts, which with accelerating speed reaches the goal of putting an end to the crisis. As the corollary to the derailment of the Samaras government will be the total political obliteration of Pasok and Demar as a result of their association with a failed government. But it will be worse; their destruction will lead to the destruction of Greece itself. The collapse of the Samaras government will be followed by the rise to power either of the extreme left or the extreme right. Thus Pasok and Demar by contributing accidentally if not stupidly to the collapse of New Democracy will be opening the doors of totalitarianism to the country. Will they persist to oppose the Samaras government on secondary issues with the danger of creating an unstoppable momentum against it that could fracture the ideologically brittle composition of the tripartite government? Will Venizelos and Kouvelis foolishly sow their political wild oats on a ground whose pernicious crop will be the fascistic twins, Syriza or Golden Dawn?

Hic Rhodus hic salta

Greece:What to Do with Missed the Mark Politics of Coalition Partners?

By Con George-Kotzabasis May 3, 2013

The Samaras’ Government, like Atlas on his back, is carrying and attempting to transform and move Greece’s awesome heavy burden of unprecedented economic insolvency, since the ending of the Second-World-War, onto the stage of economic recovery and development. By succeeding in this most difficult enterprise it will also justify the positive, against the negative, economic remedies formulated in the second Memorandum by the European Union (EU), the European Central Bank and the International Monetary Fund, the so called Troika, for the purpose of saving Greece from economic catastrophe, and thus simultaneously enhance the credibility, and indeed, the survival of the EU as an institution of crucial influence and guidance in world affairs.

In this call to national salvation three politically and ideologically disparate parties 0f New Democracy, Pasok, (Panhellenic Socialist Movement) and the Democratic Left (Demar) decided to form a coalition government whose main goal was to keep Greece within the European Union and salvage the country, with the financial help of the latter, from economic bankruptcy that would have devastated the standard of living of the major part of the population and would have brought a proud nation to the status of indigence and economic despair for at least a generation. The two leaders, of Pasok and Demar, Evangelos Venizelos and Fotis Kouvelis, respectively, seeing the prodigious dangers the country was facing, raised their height to these dire circumstances and wisely decided to stand hand in hand with an ideological opponent, that is, the liberal conservative party of New Democracy and its leader Antonis Samaras, for the purpose of saving Greece from this imminent catastrophe. Hence the two leaders of the left put their ideological reputation and the future viability, and, indeed, the existence of their parties at immense risk by their decision to support a government led by Samaras, their erstwhile conservative opponent, and tie themselves and their parties to the fortunes of the latter, that is, whether the Samaras’ government will succeed or not in pulling the country out of the crisis and start the economic development that is so vital in overcoming the terrifying economic difficulties that Greece countenances at the moment.

There are grounds to make one believe that Greece economically and politically might be at a turning point. The Samaras government after succeeding in convincing its European partners, in exceedingly difficult negotiations, to provide the funds Greece needed, to ignite its economy and place the country on the path of development, under less onerous terms of the bailout than the initial ones the Europeans were demanding. This was a great success and a great achievement of the government and demonstrating at the same time its virtuoso skills in the art of negotiations.

The government announced last month that it had beat its budget targets for 2012. Finance Minister Stournaras claimed that the government was close to achieving a primary surplus—the budget surplus before taking into account payments on the debt—this year that would deliver, according to the mutual agreement of the parties, a further package of help from the Euro-zone.  Employment statistics also showed, that within the span of the last two months the number of workers hired exceeded by nearly nine thousand the number of workers dismissed for the first time since the crisis. Furthermore, the recapitalization of the banks was on track and bound to be consummated in the next few weeks and the spigots of liquidity were therefore ready to be opened that would provide the private sector the funds for investment. Last week, the president of the National Bank stated that levels of liquidity are progressively established and 10 billion Euros could flow into the real economy. And already 50% of one thousand of small and large private enterprises announced that they were preparing to start investing within the current year. The internationally renowned telecommunications company Nokia is planning to establish a branch in Athens that would employ hundreds of highly skilled technicians and could become a magnet that would attract other foreign corporate giants to the country and thus by their presence would provide a continuous economic confidence for the country’s future. The Task Force of the European Commission last week issued favourable reports that the Greek economy was about to be re-ignited although it warned the government that small businesses had been dried of funds and their future operations were at risk. Also the credit ratings agency Moody’s estimated that Greece would have a positive rate of growth in 2014, after five years of negative growth.

Thus we see that there are ample encouraging signs that Greece might be at the crucial point of overcoming the crisis. It is most important therefore that the two parties, Pasok and Demar, that support the Samaras government, must first take note of these auspicious indices and that the current measures of the government are putting the country on the axis of economic development, and second, must not jeopardise this favourable situation by rigidly sticking to their parties position on other issues, such as labor relations and on the restructuring of the public sector, which are contrary to the overall current policy of the government and could endanger the economic progress the latter is making in overcoming the crisis.

The coalition partners must become fully aware that their political viability is tied up not with the sacred ideological position these parties hold on a variety of issues, contra the neo-liberal position of New Democracy, and pushing these toward their consummation, at this critical juncture whose primary goal is the salvation of the country, is a most imprudent diversion from the main goal. On the contrary, their political future is tied up with the success of the Samaras government in pulling the country out of the crisis. The electorate will not remember them and will not elect them for being pure to their ideological position but for their pragmatic support of a neo-liberal government that saved Greece from economic oblivion and mass poverty. In the event the Samaras administration fails in this complex immensely difficult and great task would likewise totally discredit and everlastingly condemn and cast to political oblivion both Pasok and Demar for their support of this failed government, no matter how favorable the former have been on other minor issues, in comparison to the major issue, that are dear to the hearts of the many. Their responsibility to the country and to themselves therefore lies in their pragmatic assessment of the policies of the government beyond ideology as to whether they are better placed to extricate the country from the crisis.

It is for this reason that in this process of the Renaissance of Greece, under the wise and strong leadership of Antonis Samaras, the cohesion of these partners in the salvation of the country is of unaccountable importance. Thus for Pasok and Demar not to miss the mark is to realize that the failure or success, in this uniquely historical venture of saving Greece, will determine their political viability in the future and not their ideological hues on secondary issues.

I rest on my oars:your turn now

Samaras Government the Phoenix of Greek Renaissance

By Con George-Kotzabasis

With the advent of the Pasok socialist government in Greece with its profligacy of over spending against its revenue for nearly thirty years, and the enforced imitation of conservative governments to do the same, due to the spoliation of the populace by this lavish over spending, so they too would have a chance to be elected, the present crisis, which is the result of those economically irresponsible policies, has given rise to a Greek Statesman of Periclean dimensions, Antonis Samaras. Only under his politically and morally strong and sagacious leadership will the phoenix of the ‘Renaissance’ of Greece will rise from its present economic ‘ashes.’