Mr. Tsipras may have the leading role in the well-known theater of populism and demagogy that we have grown accustomed to when he wants to galvanize his party audience and cover up his responsibilities for the country’s state, but the problems unfortunately persist and demand answers. The hollow statements made by ministers and party officers every now and again reflect the absolute lack of politics and planning in managing the many problems that are rocking the economy and society.
The refugee crisis may be turning out to be a ticking time bomb that dominates the headlines and seriously harming our country’s public image, however the situation in the economy is just as tragic. With the review being postponed week after week, the situation in the real economy is taking a dramatic turn for the worse.
The government’s only “plan”, as it would seem, to counter the troika’s demands, is to impose new unbearable taxes and pauperize more and more sections of society. Although everything indicates that business owners and employees cannot pay their already excessive taxes, on top of their obligations towards the banks, the government insists upon the same inefficient recipe.
Nobody within the government appears to realize that however much you hike the taxes, not only will public revenue not increase, but it is also very likely to create a new vicious cycle of red loans, with all the painful consequences in consolidating the banking system. If the non-performing loans carry on increasing at the same rate this year and a satisfactory solution for their management is not provided, then the banks will need a new recapitalization. Mr. Schäuble has already warned that he will not go the German parliament and ask for new help for Greece.
The government’s permanent tactics – to negotiate, but not get anywhere, because it cannot bear the political cost of a decision – leads nowhere other than extending the uncertainty and exacerbating the situation in the economy. This recipe is ultimately catastrophic and may lead to an absolute dead end.
TO VIMA
