Eurozone Greece: It Made Sense Back Then, No Mistake

Much is being written lately about Greece's joining the eurozone (see image left) being a romantic mistake. Romantic because Greece is, after all, the cradle of democracy and how could we do without the cradle; mistake because Greece could not keep up with the requirements and disciplines of a common "hard" currency.

Ex President G d Estaing of France practically admitted it was a mistake.
I cannot comment on the sentimental bit: it either is or isn't and if the "is" affects decision makers -- so be it!

I can however comment on the latter. I propose that there was no mistake:
Not only was Greece more or less within specs, it was a promising small country with a big history, a democratic regime (they invented after all), a land of some opportunity, a growing economy -- as far as one could tell -- and excellent prospects. At the time.

Add to that, Greece Inc is, on the whole, a small operation by most European standards and, thereby, manageable even if something went wrong.

But no-one could have predicted just HOW wrong!

No-one could have predicted the utter indifference Greece's politicians and their cronies would show to the country's fate. For the past thirty years, Greek political history is one of scandal, misappropriation, mismanagement, and impunity for the few.

Even today, two years after Greece unofficially went under and is being kept alive by those same "romantics", nothing has been done to assuage public sector deficit. Not even by reducing the payroll.

"Nothing" is not an exaggeration: nothing is the fact. Zilch.

Zilch: the public sector has actually increased in size -- albeit only by 7000 new recruits (soon to become 10000 new recruits).
The state income had decreased by 33% in 24 months.
Greece's present government, ruling a country of 10mill comprises 51 persons. Italy's only 15.

Greece's ruling socialist party politicians publicly assert they have avoided the worst and succeeded in the saving the country.

One hesitates to use the ill-used word "Mafia" -- even though the same families seem to be key players in the Greek politics for the past 30 years just as we see in Hollywood (and probably real) Mafia.

It is probably a first in the political history of the contemporary world. Even Attila settled down to peaceful growth after the first pillaging; not so Greece's ruling families and their followers!

No where else has such bewildering indifference to the fate of the common good been reported!

And no-one could have predicted the Greek voters' deep rooted naivete to vote for the same people who have resulted in the virtual death of their country. Even when everything around them was already crumbling down! They accepted to be hoodwinked, time after time, again!


So, I repeat my vehement conviction: no mistake when Greece was invited to join the Eurozone.
It all made perfect sense -- and where the numbers were close, a little bit of romantic will made the way.

There could be no predictability because there was no historical precedent!


Now we have historical precedent.

Too bad it comes from that beautiful small country with the big, glorious, history!

Political Tolerance Back-fired. Democracy: over.

The image on the left portrays the Ancient Greece -- more to the point, many Greeks' dream Greece.

Greece today, falls short of anyone's dreams.

On Nov 3rd 2011 in a speech of, as yet unprecedented, political trickery, lies, hypocrisy, and shameless propagandist mantra, Greece's Prime Minister informed the assembly that he (and his party) have succeeded in gaining Europartners' trust, in saving the country from defaulting, in reversing the dire situation the country used to be in -- which situation was not his/ their fault.

When asked to step down, his unequivocal answer was, "Nah-nah-nah nah-nah, I ain't goin' nowhere".

Greeks are in a difficult situation: they have elected to power a person & a party who campaigned upon false pretences. But that's not the big problem.
The real problem is, the Greek government came to power normally -- through elections. So, Greeks can not claim that they are suffering under the yolk of a junta -- and expect immediate support.
Yet, a junta is exactly what the present (3rd quarter 2011) Greek Socialist government is.

The Greek government has gradually centralised power to a degree that in 3rd world countries would be termed at least authoritarian (legislated impunity for politicians; rampant nepotism, total disregard for popular dissent, blatant disregard for institutions - legal requirements - fiscal requirements - even paying their to enter a museum, soviet-type propaganda...).
Greeks have seen themselves made a fool of, ridiculed globally, and ostracised by the global community.

In the G20 meeting, the Euro leaders called the Greek PM's bluffs and cornered the situation. A further crisis ensued back as Greeks realised that their Prime Minister had lied outright -- to both the Europartners and the voters...

And yet, the good fellas in government are not ready to let go. For that matter, nor did the mob let go until forced to do so.


BUT, a few big buts,
* The mob was the mob and everyone knew they were the bad guys. Even they knew it. Anyone will run to help you if you are a victim here.
* The junta -- any junta -- is a junta and everyone accepts they are bad guys by Western democracy standards. You don't have to explain it. Countries have repeatedly shown their solidarity to the victims of oppressive regimes.
* Soviet type or Stalinist regimes were totalitarian, and everyone recognised the plight of the people living under such regimes. That's where the word "dissident" got star-billing for while.

But in Greece, the present junta is NOT self-evident. No one can recognise the present Greek political regime for what it is outside the country itself -- indeed, many cannot do so within the country itself if they live far from information providing centres. So the people are accountable for what their (legally recognised) government has done & is doing.

Greeks pushed their tolerance for their incompetent & immoral politicians too far.

The Greeks' political tolerance backfired.
They can't even expect sympathy from their allies.

HELP!

Is there anybody out there?

Please help rid Greece of the man in the middle image, and his pack of cronies.

Help!

Before this man in the middle switches the country's flag from the top image to the bottom image.

Officially!

It is good to be a civil servant in Greece

EU officials apply pressure, the "Troika" "strongly urge", the IMF throws a supporting comment here and there-- but no cigar:

Greece's socialist government doggedly refuses to reduce the Public Sector. It does of course make all sorts of noises and calculated leaks that sparks TV chatting and general speculation -- to appease EU officials and support local speculation.
It is also an indication that some structural change is being implemented -- even none is.

Despite media indications to the contrary and Greek politicians' supporting noises, Greece's Public Sector including nationalised companies is still running at just under 1mill. strong, up 11.000 from last year. These people do not fear redundancy: the only action Greece's merry socialists will take is early retirement for c. 30.000 civil servants who are in pre-retirement age at this moment.

So, Greek civil servants -- many of whom are uncivil and most of whom do not serve -- are keeping their jobs. Whatever the stakes and against all odds.
A rare display of loyalty from the country's ruling socialist party, Pasok, to its equally loyal fans: the Greek public sector votes in favour of Pasok at an overwhelming rate of 60-70%


Meanwhile, private sector unemployment continues in growth mode.


In paper, this trend (public sector job conservation vs. private sector job losses) can lead to nicely centralised country, with a unique, large national, employer -- the State.
A state controlled, centralised economy boasting full employment.
Foreign employers will be tolerated as will be the odd craftsman as well as small private shop owners.
This is reminiscent of the Soviet Union in the late '70s & '80s; especially in the auxiliary countries such as Hungary, this model dominated.

But this model was abandoned along with the (soviet) Union.


Perhaps however not totally abandoned.
Could it be that Greece in the running to become the Neo-Soviet state?

Greece's tolerant population

In a country where every new day brings a new tax (or tariff, or whatever instrument payable by the population at large), a relatively small political elite still drives around in high-end state funded Lexus & Mercedes Benz Hybrids, keeps its reasonably good and usefully tax free salaries, and lives in & owns impressive real estate.

The fact that such politicians exist in what is termed a first-world country is worthy of repeated head-scratching.

The fact that many are ostentatious about it would be amazingly sci-fi if it weren't for the apathy of the Greek population around them.

Arguably, in any country of the first world, these people would have been the subject of various ignominies -- simplest of which is, they simply wouldn't be there!

Not in Greece.

In the 18 months since Greece signed the EU-IMF bail-out plan, the ruling Socialist government has succeeded two things:
1) To increase sovereign debt by 33%
2) To save ALL government employees jobs.


Incredible!

Which begs the politically sociological question:
What is better?
a) "Eliminate" such politicians -- as in Romania's final dealings with ex president Ceausescu;
b) Be tolerant and await for the emigration permit from Australian authorities'.

Greece in 2011 in the fall...

Greece in "free fall" would be a more apt title.

I just returned from a business trip in Germany and, while most all of my colleagues were sincerely sympathetic of Greece's plight, they asked the obvious question:
"what the *$* wrong with your government -- why don't they do something?"

The answer to this question probably lies in a number of reasons.
One of these reasons is the cretins that compose Greece's present Socialist government: these are people trained to be PR con-men. Not administrators, planners, decision-makers... let alone being adept at crisis management.

Another is the sedentary civil servants & unions mafia that resists any change as far as possible; for them, the Euro & the EU membership are no longer important issues as they have already capitalised upon them through the Development and solidarity programmes of the past. No surprise, Greece's infrastructure is not far from what it was 30 years ago; likened to Africa relief funds -- had these funds been invested in the country, Greece would boast highways, rail, airports, administrative efficiency, & operational renewable energy sources.

The most important of all these reasons, I think, is Greece's Feudal type of government: over centralisation and an overpopulated Public Sector are, both, the hallmarks of a the typical feudal state where the leader held all the privileges, and bestowed them sparingly according to his most devoted subjects.
Accordingly, in Greece, closed professional, exclusive importers, exclusive suppliers... all are still carefully guarded.
The voting troops get positions for life within the civil service in exchange for unfailing devotion during elections.

In Greece every four years, the people vote the Lord into Parliament. The question is still out which form of government is better for the country: traditional hereditary or global suffrage?

Greece's debt crisis, Greece's sovereignty , and the demonstrations

While many people are worried about many matters arising from or surrounding Greece's sovereign debt problem (which is indeed a handful), and the effectiveness or otherwise of the country's Socialist government's austerity measures, Greeks continue to gather and peacefully demonstrate.

Despite the media propagated and supported viewpoint whereby Greeks in Greece rise against the "bad IMF", the "Eurogroup rodents", since "Greece belongs to Greeks" and similar sentimental slogans, most Greeks loyal to their afternoon meetings at Syntagma, a large central square in Athens, flanked on one side by the Boule (house of parliament) have been consistently voicing one, at least, matter: their parliamentarians' -- "corrupt", "arrogant", "unethical", "insensitive", "ruffians", "thieves", "curs", "bastards"...

There is more, but this is indicative.

There are 300 members of parliament in Greece, quite a few it must be said for such a small country. Most of them, unfortunately, do not shine in their public life (or personal life for that matter) giving credence to the descriptive chaff hurled at them.

Not unlike their kith & kin in other countries, Greek politicians have not put in a day's work in their lives. While this is neither here not there, here, in Greece, given the untenable situation, some work experience in the real work would have come in handy...


Unfortunately for Greece, the people customarily bestowed with power have definitively shown they are impotent & incapable of dealing with the situation -- or any situation for that matter.

More unfortunately, the Eurogroup & IMF seem incapable of getting their act together in the case of Greece. Both organisations have sent a small rep team who have not yet, in more than one year, been received by the Prime minister of the country -- or any minister for that matter!

Even more unfortunately, the austerity measures implemented are designed to put a definitive lid on value-adding activity and initiative in the country.

The rantings and ravings of S&P (a company belonging to pulp & educational publisher mcgraw hill), are unlikely to help: neither S&P nor probably McGraw Hill knows the whereabouts of Greece in the first place.


Ultimately Greeks can only hope for God-sent salvation.

Greek Socialist Politicians are Above Investors & the Law

One of our Clients has been considering an expansion of the company's operation in Greece. Most unusually in this dire era, they were considering direct & indirect investment. This investment entails recruitment, so the whole scheme was looked upon in a very positive light by all and sundry -- not least by us, players in the operations and recruiting industry.
Unfortunately, the corporate powers that be froze any and all "Greece growth" action. Given the country's present volatility and unstable, unpredictable politics, freezing investment in Greece does not come as a surprise; the actual reason given, however, was a surprise.

"I cannot even begin to consider any kind of involvement in a country where my corporate and personal equity could very well end up being used by its government for political expediency"

In other words, the person speaking is adamant that any investment interest candid or implied is likely to be aired by Greece's present government as indication of investor confidence in the country.

While this seems too arcane to be true, so many unexpected things happen in Greece at the present time that this indifference could be seen as just another expression of political arrogance Greece's politicians are known for.

Whatever the case may actually be, whether or not the speaker is suffering delusions or not -- the investment will be abandoned. Definitively. Unfortunately.

The following message, received today from a very structured and self-composed friend of mine does not help the delusions solution above.


Quote:
Let me share with you the following excerpt from a recent e-mail by a friend. It speaks for itself.

"I was boarding a flight yesterday and triggered the alarm as I went through the metal detector. Naturally enough I was frisked and waved through. The alarm was also triggered by the man behind me who refused to be frisked. I turned around to see what the fuss was all about and it was the parliamentary speaker Mr. Petsalnikos (note: Mr PetsAlnikos is a member of Greece's ruling Socialist party, which may contribute to the arrogance).

Presumably irritated by the fact that security hadn't recognised him, he went on and on about his position, his privileges and refused to be subjected to a body search. I tried biting my tongue but failed and asked him why he felt he was above the law and shouldn't be subjected to the same search any another passenger would be subjected to before boarding a flight.

The arrogant bastard went on and on about his privileges as speaker. His lack of sensitivity given the present circumstances was unbelievable It was so typical of an attitude by our politicians that they are somehow above the law. The same attitude that makes them so corrupt and that has lead to their total and absolute rejection."

Now spread the good word. The man deserves to have his arrogance made known to all.

As you witnessed, he had no reservation letting anyone near him know who he is. Therefore, he will not mind a little extra publicity.
UNquote.

Right.
Those of us still in Greece: let's hope that arrogance does not contribute to unemployment Greece.
(Unemployment: 17% private sector exclusively; private sector accounts for 60% of active population.)

Greeks Rise Against the Parliamentary Junta. The first step?

Consider the following wisdom snippets:
There's a 1st for everything,
Better late than never;

Well, Greeks finally got together to remonstrate and demonstrate against the parliamentary junta and the censorship, both of which have been tightened in the past 18 months.

For the first time since the tightening of the screw and the control over media by Greece's socialist government, over 120.000 persons gathered at Syntagma square, outside the house of parliament (Boule) at the centre of Athens -- likewise in other cities -- to express their discontent with widespread corruption, mismanagement & misappropriation of public funds, and control of the media, all of which helped lead the country, literally, beyond the brink of bankruptcy.

Also for the first time, the gatherings were organised in a very novel manner: quite simply through facebook.

The slogans were less original:
"Thieves", "cronies", "traitors", "criminals", "journalists, snitches, liars", "pathetic oafs", and other similarly descriptive expletives.

None of this reached the air in Greece's major channels.But then, who needs television when we've got the internet.
Right?

Putting your money where your Greek mouth is...

The Greek socialist government failed to deliver on its various promises and faces the obligation to actually implement some reform in its back yard. Back yard being, the country's Public and semi-public sectors, encompassing an incredible number of agencies (531), publicly funded organisations (+13000), and the mainstay of civil servants whose number increased by 6,460 in the year since May 2010. Or, paid more than lip service to the amazingly loss-making National Train Organisation, OSE, whose secondary crossings masters have salaries ranging from € 4.5-5.2k and the corporation manages to lose more than its turn-over.

Promises abound.
Among other things, the present Greek government will crack down on tax evasion... as will the previous one and scores of Greek governments before that.

They all will crack down on tax evasion... The present finance minister alleges that he has already cracked down on evasion, and will do more...

(One Greek prime minister has gone down in history as the I/we/he/she "will" man: Mr Andreas Papandreou, father of Geoff, the present prime minister. Thus, tax evasion Will be controlled... in the future.)

Unfortunately for Greece, just as its politicians in power repeatedly fail to deliver on promise, thus they also seem to fail to practise what they preach...


What you see in the picture above is the Socialist government's Finance minister's holiday home on Serifos, an island in the Aegean off the coast of Central Greece. The man's name is George Papaconstantinou.

Swimming pool, nice view, large stone house, newly built, unsurprisingly called "the stone house". Not bad for a guy who never actually held a steady job until recently...

The best part is, you can rent it direct from Elysian Holidays.

You do have to pay a rent for it (scroll down on the same page).

Be advised that your landlord, the finance minister, has never declared the rent in the past. Chances are he won't in the future, either.
So, don't bother asking for a receipt. You'll only embarrass the minster and his wife.


Generally speaking, it seems that in Greece the rules apply to others, not to the vociferous few promulgating them.

Privatisation -- Greek style

Or, how to raise money even when the crisis is hitting you hard and you have no money: recruit a crony as a contractor to make sure the money does not go astray!
God forbid that we waste money on education, pensions, improving public facilities, or public health...

Incredulous?
See below:

The Greek Socialist government has announced its decision to embark upon an extensive privatisation and assets sell-out programme, expected (by said government) to raise Euro: 50 billion by 2015. The figure was revised to "between 15-50" billion later.

Two ministries (Finance & Commerce) contracted out this job to NBG Group and CC&C advisors.
While NBG is Greece's largest banking concern and has been around for a while, CC&C advisors has the obvious advantage of not having been around for any while; it is a 1 GBP, same day on-line formation, company formed 14th December 2010. CC&C does not exist in fact.

CC&C is a 1 pound company formed by one Christopher Uregian, researcher at the World Bank. Chris exists, of course! Presumably one of the Cs in CC&C is for Christopher; the jury is still out on the remaining two.
This is a relatively recent photo of Chris:
Christopher has 4 years working experience. Christopher entered a quickie company in London and signed on with the Greek State as a contractor.
He will receive Euro 50k as consieration for his services, as well as a "bonus" from any success based on his services... not bad for a young researcher at the World Bank.
One of Campion's more successful graduates, to be sure!

Of course, it is useful if your family lives in Greece and owns an investment and estate development firm, ARIS UREGIAN... and a financial broker's license.

The point ιs, of course, that Chris is NOT at fault in any way. On the contrary he has an excellent assignment to show on his resume, following which he may negoatiate a better position at WB or back home.

The same cannot be said of the inane dignitaries that plague the country.-


This is a photo of Christopher's firm's (CC&C) declared headquarters in London England:Of course, no company of that name is known to inhabitants of that building -- let alone the first floor of that building where the company offices are declared to be.

Leather Lane, a well-known and busy business abode is seen below:
Just the place to set up office if you are to consult a country on privatising its assets.
Obviously, Christopher, entered a quickie company in London and signed on with the Greek State as a contractor.

Isn't it good to know that Greek politics have turned over... the same leaf!

Many Greeks deserve better -- not Greece...

Most, in fact.

Until recently, Greece was a country that was doing OK on borrowed money and little real income. A pretend country, Greece operated as a facsimile of a real country -- i.e. as if it actually had infrastructure, national consensus, a sense of national identity, communal values, etc...

Greece was very much a large corporation with its major shareholders (a score of business families) & Board (politicians and sundry, around 10,000 strong) which played at being a country...

Then the going got tough and the Greek government and Administration fell apart -- because it never was there for tough times in the first place. It was never, nor was intended ever to be, tough "enough".

The crisis blew the pretence sky-high.

The crisis also left 9.5 million odd Greeks in the middle of a wasteland.
These are the normal people, little people, who thought they lived in a normal country, who had their doubts, aspirations, hopes, etc...

• who saw their property prices rise and smiled at the easy way they made money out of gran's old piece of in the village;
• who did their best to avoid tax;
• some of whom also evaded tax (apart from the country's quasi owners: lawyers and doctors).

Now, the burden of paying for other peoples' money has fallen on those Greeks who cannot -- or know not how to avoid tax. So they pay more. Even retirees saw their pensions cut.

Greek politicians increased their income.

Really Greeks deserve better -- even if their official State does not.

Thems Greeks must be crazy!

Greece's present socialist government never ceases to surprise:
instead of clamping down on corruption or, at least, focusing on tax EVASION, it continues to attack the disposable income of those people who are taxed -- i.e. people who actually declare their income!
In other words, Greece's socialists are sinking the socialist state's hand deeper into the same pockets and not at all in any other pockets!

I don't get it: why don't they ask Greece's rich to contribute -- rather than bandy hooh-ha and hot air about getting "the bad guys", which they never will. There are probably only a few really bad guys in Greece... i.e. open, large-scale tax evaders. Excepting (allegedly) corrupt civil servants and Greek politicians of course.

In its latest recipe geared at pouring income into the state coffers, further taxation is planned for people earning over Euro 60k...
...Which means that people actually declare their earnings are called upon to carry more weight!

With less disposable money,and in many cases lower salaries, it should come as no surprise to Greece's Socialists that state income from indirect taxation, consumer spending, as well as direct taxes is going downhill: 22% lower in 2011 than the same period in 2010.

So what is the savings recipe for executives?

Simple:
a) make sure your declared income falls below 60k -- it makes no sense to waste corporate added-value (i.e. money your sorp will give you to hand over to Greek authorities) on Greek socialists playing at statesmen;
b) pack your bags, leave family in Greece for the time being and get a job less than 2hrs plane ride away (Bulgaria, Cyprus, Turkey, Albania, MEast),
c) pack your family bags and move your family to a normal country.

Here is a link to an on-line ticket office to reserve your aeroplane seats: aeroplanes

Modern Greece: the big heist!

Let's simplify, curt many corners, and reach an immediate conclusion: modern Greece seems very much like a country set up as a vehicle for making money for nothing. There is a song money for nothing -- but I do not think its composer was thinking of Greece.
However, as there is no free lunch, the unsuspecting inhabitants of the country are the ones to foot the bill.

Consider the following:
* out of of the very first two loans subscribed in the name of the new State, less than 10% actually reached the country coffers and this was spent on rifles and ammunition. The rest was siphoned away at the source and neighbouring pockets.

* Since the beginning, the country always lived on loans that overwhelm its capability to service them; indeed the actual terms of the loans up until the late '70s are so injurious they seem to have been generally indifferent to the receivers. As if the objective was, get the money and run!
Or, just as credibly, "who cares, we're not going to pay it back anyway!".

This plan seems to have counted on the indigenous population's having an infinite capacity for paying back loans. Not very kind to the people who actually justified the declaration of modern Greece as an independent state -- and made the heist possible.
The people have not had an infinite capacity for apying back loans and the country has been bankrupt 5 times (including the present grey bankruptcy). Greece has declared bankruptcy 4 times in the past. As a result, the inhabitants of Greece have been impoverished by loans servicing for most of their history since the creation of modern Greek state following the revolution of 1821.

No surprise, there is not much of a middle class to speak of in Greece. Greece is a neo-feudal society.

Following a short honeymoon, the result of Greece's joining the EU, the country is now facing a major crisis again. Politicians are openly ridiculed, yet they all stick to their guns. Moral fibre is very weak. Corruption is rampant and the gross indifference of Public administration to anyone and everything is overwhelmingly obvious whenever you speak to any Greek civil servant.

In a similar vein: public services operate at scientific minima.

This is a pity. Europeans and, to an extent, many Americans, heralded the return of Greece to independence. Lots of money and even lives were lost to the cause of Greek independence.

Yet, still now, the heist lives on.
At the wake of raising an alleged Euro 50 bill through the sale of State owned property, a man named K. Nikolopoulos and his Lamda SA, are the primary consulting contractors. He has been around since the late '80s, just as active during the summer Olympics (2004) as during the negotiations and the construction of Athens new airport.

What a coincidence: The man is member of the Sultan's privy council! Only that in Greece, there are 2-3 Sultans who alternate in power. Let's make the above statement: the "Sultans' privy council".

Of course, the object of his trade -- real estate -- is what warrants his choice; R-E is the only real value in Greece and lots of money can be made while Publicly owned property changes hands...
The man is a very respectable executive and, of course, he is not alone in this story.

If only Dashiel Hammett were here to provide us with a happy ending!

Greece's CFO changes

There is to be a replacement, it seems.
This is the current Minister of Finance, and this is the replacement.

Alleged replacement.

"Not that it will make any difference", claimed a top executive at the Greek ministry of finance, yesterday.
"Just that George (the current) is presentable while the other makes you cringe -- the way he acts & the things he says".
He added, "It's time I pull out my other passport!"

The alleged replacement is credited with having discredited Greece's national security service, "EYP", when he was interior minister, to a US ambassador in Athens:
“Chrysochoidis said bluntly, “EYP is nothing.” It does not serve its mission of protecting Greece and in fact is dangerous to national security because of its many shortcomings, not the least of which is a unionize d labor force. As a result, Chrysochoidis declared, he intends to “collapse and rebuild it” via a draft law that is in the process of being drawn up.”

The draft law is still in the works.

What Chryso probably meant and means by "shortcomings" is that many EYP employees do not vote for the Greek Socialist party.

Ultimately, the top functionary's idea to use his other passport may be very wise!

Japan, off the north-east coast, 5.46 a.m. 11th March 2011

This is Sendai airport, 11th March 2011, at 5.45 am:And this is Sendai airport, 11th March 2011, a short tsunami later:Many thanks to ABC Australia for the images.

Just one moment in the life of....

I think I've Got It!

Greeks vote for their politicians according to who they know and what they need to be done.
Speculation on the chosen politician's ability to get things done also plays a role -- we mean of course, the politicians' efficiency once they actually accede to power.

Which means, politicians are chosen primarily and voted into office on the strength of their readiness to serve voters' individual /family /corporate and whatever purposes -- not the country's.

In other words, Greeks recruit their politicians to act as "fixers" -- i.e. in to help get the voters' job(s) done.


It should come as no surprise therefore, that when asked to actually govern a country and manage situations, these same politicians are clueless. Incompetent.


It's as simple as that!




Remember the cardinal rules of working / investing Greece:
Without connections to help you cut corners, doing anything in Greece other than holidaying is an exercise in patience and perseverance. For example, ("fast track") licensing for an energy-producing company can take years.
The simple task of registering with authorities and obtaining the obligatory social security papers, the medical cover, and the medication book (yes, a book) can be an ordeal requiring three half-day trips to as many different administrative offices -- as the (Greek - German nationality) Human Resources director of a major retailer discovered, 8 months ago.

Licensing a restaurant can take many months of waiting (in a operational venue!).

Think of what major investing is like -- and, worse, how vulnerable the investment can be if profits are at the mercy of administrative and political manipulations.

Whereas, if one is connected, these same tasks become plainer sailing. As to investments, what better guarantee against a hungry and hostile administration than a politician -- better still, the investor can hope for some public sector business as well.

Such gross incompetence is a statistical impossibility

Greece's socialist government leaves so much to be desired, is so much of a dunce, has displayed so much incompetence, the matter smacks of statistical improbability!

Apart from the Soviet communication tactics, that is, which are still going strong even if their effectiveness has weakened.

Unemployment is 15% (17% unofficial), income is down, retail T-O is -7%, latest GDP is -6.6% on annual basis, labour legislation continues to be restrictive, the Greek state is recruiting. None of the so-called scandals have been seriously investigated, so there is no retribution.

Euro 0.85 bill is to be distributed to the Labour Office for temporary respite. Positions in many state owned companies and organisations (e.g. hospitals) are now limited to only confirmed Socialist party "fighters" as activists of any self-professed left-wing inclination are called...

A new Environmental Protection bill falls short of its title -- but helps owners of land.
Protecting the environment Greek way means you can build anywhere, anything, as long as you have 4 "stremma" (1 hectare = 10 stremma). Real estate is still the only real value in Greece, producing until recently real added value, so any effort to curtail its reach can only be doomed.

Greece's Socialist Prime Minister, Mr Geoff Papandreou has stuck by his government chosen among his friends
and acquaintances who, one must admit, have made a mess of colossal proportions.

Presumably, these people are no more incompetent than other people -- so, what gives???

Greece's Sovereign Debt, season 4: Time to Pack it in?

Greece has a new tax & fiscal law every year. In other words, doing business in Greece is always full of surprises, with changes occurring at least once a year -- EVERY year.

The country's socialist government has finally passed a law proposing very strict rules against tax evasion, including incarceration with summary process (of law presumably). This applies to private individuals for personal income tax & VAT as well as CEOs, for corporate tax & VAT, etc.


This is surely to be lauded; stricter rules against tax evasion are long overdue in this country. Unless more things change however, it seems that it is time for expatriates and would-be investors to start packing their bags, pronto.


There are four reasons why this new law, welcome as it may be in principle, may be put the definitive and proverbial spanner in the works:

1) Trustworthiness
In a country where, by its representatives' admission, the rule of law often depends upon whom you know, the cost of, say, a mistake in ANY tax related issue, made by ANY of the stakeholders, can mean that on Friday night, CEO's kids will have to run to the closest gaol to see their dads until the whole thing "is sorted out". How confident are you that it will be?

What is the price of uncertainty?

2) Corruption:
According to Mr Geoff Papandreou, Greece's Socialist Prime Minister, "there is a lot of that around". And we believe him; and many people having built a house, filed for a license, cashed in a tax return, etc, can actually corroborate this through personal experience...
YET, the Greek government continues to protect the taker, and penalise the giver. Strict rules apply to abbetting Were we to attack corruption, it would make sense to exculpate the giver and penalise the taker, surely?

3) Uncertainty:
Doing business in Greece has just become more complex and more uncertain. We all like the rule of law and the new tax law is no doubt welcome in this respect. But it does not come with a loosening of rigid bureaucracy -- in fact, quite the opposite.

4) Justifying recruitment:
Despite the 7% fall in real GDP, Greece's socialists still bow to the country's restrictive labour regulations: flexible employment is so regulated that temporary, agency work is proscribed. One has to JUSTIFY recruitment in no uncertain terms upon the employment contract -- or the employer and the agency are subject to steep fines. Justifiable temporary or other wise flexible employment seems to be too complex a matter.
No-one but the most courageous employ temps any more in Greece! Most prefer to downsize.

With "real" (i.e. beyond "Greek statistics") unemployment running at 17.1% according to Ministry of Labour sources, one completely fails to understand:

Why???

Why, for goodness sake, do Greeks in power not liberate their employment market? What is there to gain by abetting grey & black labour -- which sidesteps regulations of course -- and aiding unemployment?

Understanding the reasons justifying this apparent paradox is beyond me.

Greece's sovereign debt. Season 4: the final season?

F O R S A L E --- S P E C I A L D E A L S, P L E A S E L O O K I N S I D E!

The Greek government's idea / promise / ad lib / to raise Euro 50 million by selling off real assets, constitutes a partial solution, short-term, to the country's cash flow imbalances. So we found a one-off source of working capital.

But the question still remains: what's the plan, longer term?

How is Greece's sovereign debt to reduce to workable levels? Where is the money to come from -- other than from friends and neighbours?

In 2010 Greece saw its economy reduce by 6.6% in (very) real terms.

The tangible added-value produced in Greece is not very high and 60% of the country's GDP is in the services sector with a ominous-looking 67% of that, accounted for by the Greek Public Sector.

Shipping is one sector where Greeks -- i.e. Greek individual shipowners -- are global leaders. But some companies are switching flags... following Louis Cruises move to Malta, no major cruise ship operator is left under the Greek flag.




It is time to say: time for global brainstorming!

Greece's sovereign debt, Act 4, Episode 1

In which Greek government officials inform the IMF-EU reps of its intent to market Public Assets to raise Euro 50 mill; said reps announce this inter alia in their customary press conference;
following the press conference, Mr Horseshoe, the Greek government spokesman (yes, there is one!), pretends to strongly resent this reference to a garden sale of Public Assets; the IMF-EU Rep Office agrees and normality is restored amidst cheering from Greek television buyers for the free Weekend content.

And all is well.

Meanwhile, a building belonging to the Greek state in Brussels, has been on the market for some time now; it has not attracted any firm interest -- for a very tangible reason: there is no interlocutor i.e. no physical person to speak to about buying the building!
Mr Geoff Papandreou, the US-Swedish prime minister of Greece is constantly changing the boss of the Greek Agency for the Exploitation of National Assets; no-one else is empowered to sell the building...

In case you were interested in it...

Siemens Greece, redux: should Greece have only paid lip service?

The (ill)famed Mr Christoforakos, so famed for allegedly having authorised, or failed to stop, kickbacks from the corporation he headed to Greek government officials, politicians and sundry, was not a king.

But, in his own way, he was important: he was, in the wake of the 2nd millenium, one of Siemens Corporation's Regional Directors. In this respect, he was also that Corporation's youngest Director.

This is no small deal. Mr Christoforakos' region was large indeed and comprised much of the old Soviet Union -- a promising (if troubled) market if there ever was one!

Add to this that the (ill)famed Mr Christoforakos is a Greek-German citizen of Greek origin.

In all cynicism: doesn't all of the above indicate that it's good to have one of our own at the head of one of the world's largest corporations? Or, that's what I have thought if I were in the Greek politicians' shoes, politicians worried more about their country's and countrymen's fate than about their personal finances...

Let's say... "you won government contracts on the strength of generous kickbacks -- how about you make a major investment in Greece? And we'll all extol your Corp's as well as your personal virtues!"

Isn't this delectably politically incorrect!!!

Maybe Greece is lucky after all...

Given Greek authorities' legendary incompetence to deal with any situation, it comes as no surprise that illegal immigrants managed to waltz into Athens' Law School's main building, settle in relative comfort, and stay there, while politicians, TV presenters, and sundry just looked on and talked -- doing nothing.

Greece's institutional shambles hasn't lost its knack to amaze!

Greek television, probably Europe's most idiotic, should be grateful for the royalty-free content -- and it is, showing its gratitude with full-range real-time coverage and tedious speculative discussions.

Greek politicians, reputedly Europe's most nepotist, should be grateful too: these misguided aliens provided the opportunity for declarations, commentary, and no action.

The Greek government should be grateful: while largely indifferent to indigenous matters, the fact did provide an opportunity to make declarations and take the news focus away from the increasingly austere austerity measures.

And, last of all, the aliens themselves should be grateful: what started out as an uncertain adventure on a journey for survival turned into a media party... and, ultimately into a matter blown out of all proportion with excellent trade-offs: shelter in a renovated 1930's villa, adequate food, and tacit recognition of "rights" for which the local taxpayers will pay.

Where does that leave law students??? Barring the Law School;s prestigious President, Prof. T. Fortsakis, no-one else complained, so they must be happy.

The mind boggles at the thought (God forbid) of a Moscow-like incident taking place in Athens! More casualties are likely to ensue from incompetence than of the criminal event...
Please God, be Greek -- or a philhellene!

A happier new year for Greek MPs

Greece's MPs are subject to a special Statute of limitation. It only applies to MPs and, in effect, lasts one year more than a regular tenure. As the assignment procedure is tenuous at best and certainly lengthy, Greek MPs are practically, if not legally, guaranteed complete immunity.
Public opinion being what it is in Greece -- fragmented, emotional, and thereby immaterial to politics and ineffective in any case -- it is a wonder that Greek MPs have not walked off with the loot, lock stock and barrel!

As it is, they seem to be little affected by rumours and TV scandal-mongers and even less interested. Indeed, a game starring TV<-> politics seems to be a more realistic view of things: TV mentions a purported scandal, politics promise to check the allegations for possible tort, committees are organised, reported and analysed by TV, inconclusive conclusions are reached effectively clearing everyone -- and by which time of course... the statute of limitations has done its good deed anyhow.

Greek MP must be one of the best jobs on the Planet! Not only during tenure, but also beyond: all you need is TWO tenures and you are set for life.

Annual remuneration is € 180.000 + car + expenses (70k) + notebooks + utilities. Work is nominal.

Breaking news: MPs in Greece will be glad to learn of a salary increase effective as of JANUARY 2011. In line with austerity measures for the rest of the population!

€

Happy New Year!

We wish you safety, health, friends, a cosy nest, lots of laughs and heavy laughter...