Connecting to the source…The 2014 the Greek economy was close to exiting the memorandums and the prospects looked very good. The period of "proud negotiation" completely turned the tide. The cost of this period for the Greek economy is much higher than all the estimates that have been mentioned in the public debate. Even if we assume that the economy from the 2017 achieve those predicted for the period after the 2014 growth rates, its GDP 2016 is reduced by 10 and now billion. euros compared to what was expected. At any reasonable discount rate the net present value of this sum far exceeds the 100 billion, without counting other losses (B.C. in the value of banks).The third memorandum that followed the operatic referendum was based mainly on increasing taxes and, to a lesser extent, in timed cost cutting (insurance). At the same time, it contained terms that if signed by previous governments, the then opposition of SYRIZA and ANEL would ask for the heads of the rulers on a table (B.C. Super fund). While the declared goal of the government was to complete the evaluations in a short period of time, the negotiations seem endless and often seem to take place in a highly confrontational atmosphere. These maintain a climate of uncertainty, lead to postponement of important investment and consumption decisions, lower growth rates and persistence of very high unemployment rates. Low asset valuations and high unemployment of skilled labor could be a lure to attract investment. However, a series of ministerial decisions created a particularly negative climate. Privatizations in particular are seen even today as a necessary evil, rather than as a development tool.
Continue at source ....
