The weather is so sweet and nature such a joy during the festive days in mid August, when people are so relaxed that everything is smoothened out. Perspectives and moods can be different. One could say that in August you can see the glass half-full rather than half-empty.
Our sorely tried economy, for example, is not on death’s bed. In macroeconomic terms it is true that we are not going the best of times, but stability is no more a fleeting dream.
Public finances seem to be mostly under control, despite the many concerns over the 300 million euro shortfall from the ambitious target that was set at the start of the year. It is interesting that the Bank of Greece – which is being hounded by government officers – is not revising its predictions and insists that fiscal management in 2016 will result in a 0.9% GDP primary surplus, which is significantly greater than the 0.5% target.
As it would seem, the automatic expense “cutter” will not be implemented and the recovery of tourism indicates that the recession this year will be limited, about 0.3%.
It should also be noted that despite the tax burden, private deposits increased by 4.5 billion euros after May 24, when the new bailout agreement was signed with our creditors and partners.
The state of finances would be much better if the government as a whole was focused on implementing what was agreed and most ministers did not do everything in their power to confirm the existing climate of suspicion and doubt.
The attacks against the head of the TAIPED Stavros Pitsiorlas every time a privatization is completed, such the recent acquisition of the majority stake of the Piraeus Port Authority by the Chinese Cosco, are indicative of the problem.
The results, of course, are what will indicate the path which the Prime Minister must take; the results will also be the first to indicate any problems.
From here on the government will either attempt a complete and full turn or the results will be disheartening and capable of of dragging the government in the muddy waters of stagnation.
Everything else – the television licenses, the selective prosecutions, the court measures and targeting of businessmen and publishers – amounts to political handiwork that does not thrill anyone and certainly won’t change the state of finances for the country and its people.
The financial circumstances will only improve with a persistant and laborious focus on stability and creating the conditions for recovery.
With Pappas’ catastrophic Pappas and Papangelopoulos’ vindictive legislative constructs we will not prosper. Hopefully the Virgin Mary will enlighten them and they will realize it!
Antonis Karakousis
Originally published in the Saturday print edition
