BUSINESS INNOVATION & DEVELOPMENT NETWORK
The Greek economy, after five years of deep recession, managed to even out macroeconomic imbalances (fiscal deficit, trade balance deficit), and on the other hand has experienced a huge reduction in the Gross Domestic Product by 25% leading to a rise of unemployment to levels over 27 to 30%.
Alongside, several sectors of the economy have experience a downfall, business were forced to flee because of this unstable environment, moving their operations in other safer markets, making the mistrust and crisis in the future of the Greek economy now more apparent.
The aforementioned bad economic climate together with political incapacity, and the absence of deep technological reforms picture a strong bureaucratic state govern system, which increases the difficulty of restarting the economy. The last five years investors, people and business
where the leaders in the massive capital and business migration.
The recent bank run (from the banking system) has result to a further crisis in the Greek Banking System which led business activity in a downward spiral, absence of job creation, and money shortage.
Poverty levels have grown dramatically and the society has been abandoned to be influenced by cheap political speech leading to a rise of the extreme left and right wing parties in Greece.
DEKA today presents its proposals to the Greek government and THE INSTITUTIONS believing to the re-launching of the economy and the development of healthy market that is encouraging entrepreneurship, without bureaucratic constrains and models, based on the reduction and the reform of an old and slow state, from a fragmented system into a fast transparent and trustworthy liberal system, which will mark the beginning of the development of the Greek economy by ensuring social cohesion. Introducing fast track in all levels of investments.
Reversing the mistrust and the damaged psychology of the consumers in the Greek market is a crucial element for any future success , on financial target ratios and indicators.
Now days we cannot speak for prosperity if we don’t ensure stability, ensuring stability will gradually lead to trust, investments, growth and sustainability. Public debt can be financed with growth - development and a higher GDP.
Greece needs a chance and the ability to enter a development process in order to meet its obligations to the creditors, not as a beggar but as an equal partner to the European Union.
The Greek government has to commit to the following:
- In order to attract investments a Friendly and simple business environment with stable tax rules is needed
- Protection of country's vital resources, (labor, capital) with absolute separation of the Executive from the Legislative authority, is essential in order to diminish corruption and avoid electoral clientele practices.
- Functional modernization of dynamic service organizations, starting with pharmaceuticals, mining, primary industry and processing, tourism, chemical industry etc. will drastically reduce cost and increase productivity-competitiveness of the total economy. This, in addition to improving productivity, will lead to transparency and increase the possibility of effective control by simple methods but also support to the increase of GDP.
- Opening and liberalization of markets in order to create competitive enterprises. This will develop innovation and will introduce new "players" in the markets. As a result, it will increase labor mobility. All this will create increased output, more competitive business, reduce costs of inputs, will give the opportunity to the efficient allocation of scarce resources. Ultimately this will create new and sustainable jobs thus contributing to social security fund.
- Rationalization of public expenditure and procurement through implementation of expert systems in order to tackle corruption. Restructuring and re-organization of the public sector, including merging certain overlapping departments thus reducing an extended bureaucratic model. In this way, the organizations will be able to reduce cost and solve problems without further support. The end result will be reallocation of resources the reduction costs and increase of performance in public institutions.
-Re evaluation of public sectors by reevaluating staff –performances and organization charts.
-Reduction of public spending in organizations with complex charts and costly procedures in order to improve transparency. Meanwhile, immediate close down of all government organizations that their are not producing value.
- Reduction of non-wage labor costs in the public and private sector (black economy).
-At the same time implementing a fair and viable model of awarding pensions schemes based on contributions, in the public and private sector. Merging of all pension and security funds into one in order to reduce public spending.
The Institutions need to be committed to:
- Immediate financing of the Greek banking system by the ECB
- Immediate participation of Greece in the "quantitative easing" of the ECB
- Direct promotion of investment in Greece with the participation of the European Investment Bank
- Creation of "investment securities" (and offering for investment to the European Investment Bank) of assets of Greek export and tourism businesses (sales agreements or MOU's). In this way, the overall funding of the Greek banking system by the ECB may be increased by the amount of "investment securities" and therefore liquidity in the Greek economy will grow to be directed to the real economy. A total amount of 50 bl € could be available to finance other investments in Greece without affecting the total debt
- Creation of resource transfer mechanism within the euro zone to fund economic areas in decline in order to keep up the cycle with other economies
- Restructuring of the Greek debt if all the aforementioned reforms from both sides are successfully implemented
- Greece and institutions have to agree to work towards a common goal. The Greek crisis has to became European ISSUE, that will promote the European vision
The European Union must show its interest in the development of all European members and the abolition of the gap between the weak and the strong member states by promoting development schemes and job creation.
In order to succeed growth across Europe A Common Monetary Policy has to take into accpunt the needs of all all the partners even the weakest ones.