Trade deficit. That’s it. Greece has a trade deficit of around 20 billion Euros a year.
That means, Greece as a country, spends 20 billion Euro a year more than it makes.
Until the trade deficit is balanced Greece will always be dependent on charity from foreigners, Greece will always be dependent on banks inflating the currency, Greece will be easily blackmailed by people with money to give.
Until Greece become competitive with other countries like Germany, Greece will always be vulnerable to manipulation to people and organisations with money, be it banks or other governments.
The solution to the trade deficit problem is simple, everybody knows the answer.
1. Greece simply has to be a place that companies want to be based in and
2. A country specifically, where exporters want to be based in.
There is only one way that these things can happen and that is through low regulation and low taxes.
Can you imagine the export business that Greece would do if there were no VAT?
I am pretty sure Greece would have no money worries within the year, there would be an absolute boom in exports and all those exporters will be paying income tax, employments taxes, company taxes and so on which will more than offset the reduced VAT revenues ( I am guessing here but I think it is reasonable).
What if there were no income tax?
Labour in Greece would be so much cheaper than any other country in Europe, manufacturers would be queuing up to set up businesses here.
These are pretty big changes I know so how about something more realistic.
How about all government offices where there is contact with the public having to conduct their business in Greek and English?
I am pretty sure that would open up the floodgates to new business opening in Greece. At least foreigners would then be equally equipped to deal with the bureaucracy as Greeks.
Whatever the realisticness of these ideas the fact remains. Greece has to be attractive to businesses and people.
More businesses in Greece means less need for people to import goods. More exporters means money coming from foreigners into Greece.
Until Greece stops sending 20 billion Euros a year out of the country with money it does not have Greece will always be vulnerable to manipulation from people who have money to give in return for something they want. Be it Greece’s resources, it public utilities etc.