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Friday, November 22, 2013

Alexis Tsipras - Convert 7 Key Aims Into Just One!

This article reports the answers which Alexis Tsipras gave when asked by the newspaper Avgi what his key aims would be during his first 100 days of governing (the bold emphasis is mine): 

* Cancelling the EU-IMF memorandum and replacing it with a national reconstruction plan.
* The plan will include bringing back collective bargaining laws and restoring the minimum wage to the pre-crisis level of 751 euros, from which it was reduced by 22 percent in 2012.
* The creation of an assets register to help with taxation, and the drafting of a new tax system.
* The renegotiation of Greece’s loan agreement.
* Increasing social welfare.
* Reopening public broadcaster ERT and legislating for the awarding of digital licenses.
* The overhaul of Greece's banking system, providing greater state control of lenders and the creation of small, regional development and cooperative banks.

I would suggest that the way Tsipras formulates his first key aim (in bold) may have as a consequence that his government won't last for 100 days. I would recommend to rephrase that key aim as follows: 

"Negotiate with our EU-partners to consensually transform the current EU-IMF memorandum into a long-term economic reconstruction and development plan for the Greek economy. The plan’s objective will be to transform, within one generation, Greece into a self-sustaining, value-generating economy on the basis of a sound, market-based private sector supported by an efficient and modern public administration, adequate in size and competency. A major pillar of the plan will be a focus on direct foreign investments in Greece’s productive sector, thus bringing not only financial resources but also know-how in all areas to Greece; thus enabling Greece to increase its productive capacity, to increase employment and to import less; thus enabling Greece to make products which other countries will want to buy. The primary responsibility for developing such a plan will be with Greece but we seek active participation of and know-how contribution by our EU-partners. We are confident that, once that comprehensive plan is on the table, our EU-partners - seeing that the plan has our unequivocal support - will willingly assist with financing it because such financing will be a good investment”. 

I would further suggest that if Tsipras were to focus on the above key aim, all his other key aims would fall into place naturally (because they would be part of a long-term economic reconstruction and development plan for the Greek economy).

3 comments:

  1. Yeap. But Tsipras is speaking to Greece and the moment they will hear the word (re)"negotiate" they will remember that this is what Samaras promised, Venizelos tried, etc. Of course, reasonable people -not actual/potential Tsipras voters- know that negotiation/cancelling cannot happen without catastrophic consequences for the country.

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  2. " A major pillar of the plan will be a focus on direct foreign investments in Greece’s productive sector, thus bringing not only financial resources but also know-how in all areas to Greece; thus enabling Greece to increase its productive capacity, to increase employment and to import less; thus enabling Greece to make products which other countries will want to buy. The primary responsibility for developing such a plan will be with Greece but we seek active participation of and know-how contribution by our EU-partners."

    Weasel words.

    Germany or German-run EU policy?
    To end up like Ireland, whose sovereignty is now taken over by KfW?

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    1. I interpret your comment to mean that you are against foreign investment. If that is so, you should answer yourself the question where Greece is going to get the money and know-how from which it will need to bring its economy into the 21st century. Or do you prefer the Greek economy to remain in the archaic state that it is in? Remember, over time, archaic economies have as a result archaic living standards!

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