Global Competitiveness Index: Why Is Greece Rated So Low....

In the "Global Competitiveness Index 2013-2014", the top country is, not surprisingly, Switzerland. Singapore is 2nd and Finland is 3rd.

Greece is ranked 91, well behind Estonia, Kazakhstan, the Russian Federation and the Ukraine. The low rating is due to any number of "inefficiencies" among other things the report notes "The country’s inefficient labor market (127th) continues to constrain Greece’s ability to emerge from the crisis(...)"

A wise remark and one that will persist in coming years as Greece's current government with its minister of labour (a man named Vroutsis) continues to pay only lip service to labour law reform -- purportedly to appease its unions.

Licensing -- a procedure that is mandatory if you want to set up shop in Greece -- is easily Europe's most cumbersome. Any investment has to be agreed - the problem lies in obtaining said agreement: often this requires patience or, it is rumoured, payment of a "speed-stamp" ("grigorosimo"): i.e. an under the table payment to speed things up.

Or, your investment can be anulled by the local mayor who does not like you - or simply want to throw his weight around. Case in point: Siemens wanted to invest in a new plant on the outskirts of Athens. They have (still have) the land. The local mayor vetoed the investment with a very simple note: "we do not want you".  Too bad for the 60-100 new jobs that would have been created...

Greece seems to tout the we are good for "investment" mantra, yet, when anyone tries, they fall flat on their face. OR, they need special government by-passes which spell uncertainty for the future.

Why? Why should Greece be so resistant - hostile, even - to investment and generally speaking to private enterprise? Why is Greece ranked 142 out of 148 as a destination for investment...

There is a simple explanation: Greece is still very much a Soviet minded, centralised and centrally controlled economy and Greece's political-administrative complex is not ready to accept liberalisation. The Greek state is loth to let go the reigns.
China's (communist) leaders seem to have proven far more liberal in their  long run, practically as well as conceptually, than Greece's lawmakers -- even in the 6th year of recession!


No wonder then that Greece is one of the few countries where people speak of "private enterprise" as something new and wondrous. In other countries he name of the game is, just plain business.

Greece, Austerity, the Greek Government and its Lenders...

...and the saga continues.

In a repeat episode, Greece's lenders commonly referred to as "the Troika" are in deadlock with Greece's government over purported further austerity to cover a still lingering deficit in the 2014 budget: the hole is 2.5 bill Euro according to the Lenders, 0.5 according to the Greek government that claims it will bridge the remaining 2 bill from tax evaders and structural reforms. As neother of these have been dealt with in the past 6 years, the lenders are unsure as to why the Greek government will raise money from tax evaders who seem to be either existent or so good at what they do there is no indication that they are ready to give up their "evader" status.

Hence "deadlock". The lenders say "you have not implemented any structural reform to write back home about, so why should I reasonably expect you to do so now, all of a sudden?" Also, you have not succeeded in increasing cash inflows through clamping on tax evasion, so why would it work now? Or, maybe it (loss of tax revenue) is not as high as it is presented?

"Better turn to austerity measures," allegedly say the Lenders.

This deadlock comes at a particularly inopportune moment, as these are the moments the EU budget goes to vote -- and it would have been nice to have aid-Greece all settled and tucked away.


 It would seem, yet again, that the unflinching, faceless, humorless, cold-heart apparatchiks of the "Troika" (i.e. the EU, ECB, IMF), many of whom, be it noted and not surprisingly, are Greek are the ones requesting more austerity measures. The Greek government is said to be resisting, claiming the people cannot take any more.

Truth be told,however,  in 6 years of austerity, Greece's successive governments  have done little to promote structural reforms and  reduce the huge Public Sector. They have not even reigned in the Public Sector Union which, along with the Communist Party,  regaled in siphoning much of the latest European social  funding.

Accordingly, the Troika seem to have given up on the idea that the Greek politicians will ever touch the backbone of contemporary Greek establishment: the Civil Service and its Union. Which is a pity, because Greece needs reforms and "the bad guys who imposed said reforms" that serve as the eternal excuse will not be around forever...

Contentious items are, inter alia: foreclosure on homes, complete restructure of the labour law, privatisations; not easy to tell people that they are likely to loose their home to the bank -- especially in a country that boasts 29% unemployment so, no job no mortgage payment, and a singularly investment-averse fiscal legislation so, no new jobs and no little chance of recovery and finding a new job.

• Clamp down on tax evasion. A succession of Greek governments have made this their patriotic target -- but no cigar. Be that as it may, one important element in the hunt for tax-evading money What I mean is, the expected inflow depends on who is included in the "tax evader" category: for example,there are ~22.000 contractors wishing to close their books who are unfortunately in arrears in their payments to the social security. Pending payments, they cannot close their books and of course, the debt compounds (because their books are not closed).
  Presumably, if these ~22.000 self-employed contractors could spare the money, they would have regularized their payments to the social security organisation. Since they have not, at the expense of increasing their debt, we can safely assume they do not have any money to offer... 
• Structural reform, Public Sector... So unlikely, we can join the Troika who do not believe it is going to happen any time soon.

Which leaves one thing: more austerity for the Private Sector in Greece, retirees, unemployed, social benefits...

Any takers?

Europe's Politicians Don't Seem To Be Up To Snuff...

In general Europe's present politicians don't seem to be capable of measuring up to some of their more illustrious predecessors.

How does president Hollande fare compared to, say, the General de Gaulle? We choose the General because we now have tough times -- and when times are tough, the tough get going. But how tough is he?
Not very...

Ms Merkel from Germany and her "conservative" penny controlling policy and Thatcher German style presence.Compared to Adenauer, not very inspired, compared to Thatcher not very inspiring.

Mr Cameron? Nice chap. Compared to illustrious predecessors (and we do not mean president Bush's sidekick). Best not go there.

What about Greece's Mr Samaras. At best tepid. Exciting as dishwater, perhaps not quite as, but close.


Think: how well do these people fare in a negotiation with, say, the CEO of a major Bank?
Think: the experience and track record that led said CEO to the C E office...

Exponents of a political modus operandi that dates them back to the 19th century, negotiating with people well into the 21st century -- even if they're bankers, not the brightest of the bright. 

It's scary!

Cowboy tax No 69 -- The incomprehensible Greek minister

Greece has an incomprehensible minister of labour. To begin with the title of minister of unemployment would be more apt in a country that has over 1.5 million unemployed, representing just under 30% of statistical workforce and ~55% of private sector work-force. Of these only 160,000 get unemployment benefits.

Clearly, the woes of the unemployed are not high up on Mr Vroutsis' agenda.

Holiday camps for his cronies' children are, however. Mr Vroutsis decided to levy a 20 euro tax from employers for each employee.
How bout that!
Do you think your son or daughter qualifies?
They don't: if you have to think about it, your kids are not part of the deal.

Best of all, it's the way it's done: shut up and pay.

So, if you're thinking of investing in Greece, here's your chance to help the incomprehensible Minister confirm a few votes.

So far, what he does is totally comprehensible: he is using other peoples' money. An old story in Greece.

The only thing that's incomprehensible is why the Prime Minister has not sacked this man: even by Greek standards this person is a living disgrace....

Greece's Government Celebrates the Country's "NO" to Fascism... Shouldn't it be all the Greeks Celebrating????

It is customary to have a parade (students, etc) parade downtown High street in major cities. In doing so they pass before "dignitaries" in the form of, you guessed it, politicians.The participants have booed them accordingly them.
Greek politicians' continued rock bottom popularity (for just cause, admittedly), the whole police force and then some was enlisted to protect Greece's politicians who insist on being present at the parade... a celebration that is, to all intents and purposes, their private affair.

{The 28th October commemorates the day Greece's premier (himself a military dictator, in fact) refused to allow safe passage to Mussolini's troops and, upon the latter's envoy's insistence, Metaxas declared "Alors c'est la guerre". (Easier said than done.) }

Many -Greeks believe that politicians are the root of all evil and all that is still evil in Greece. Accordingly, they protest against the presence of these same politicians on important historical occasions such as the National Day -- especially as such days commemorate heroes; Greeks, not unjustly it would seem, consider many of their politicians as traitors....


While it is unpolitic to provide opinion on the subject, one can see that, in some cases, Greek politicians act in a not-so-composed manner.
One of these, a chap called Paggalos, managed to reroute the NSA spying scandal all by himself: like any adolescent, he declared that spying is not much -- "...we tapped the mobile phone of the US ambassador to Athens and the US ambassador to Turkey..." by which he means, someone in the intelligence service fortuitously logged onto said ambassador's frequency while he was speaking to the other said ambassador, and proceeded to listen in for a while...

That's what we call, "shooting yourself in the foot", or "the guy's not all there" or "the guy's out of focus for the time being..."




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10 Years After and Telecom Advertising in Greece

Of course, I mean "Ten Years After" i.e. Alvin Lee's super-group from the seventies. Their song, "I'd Like to Change the World", one of their most successful, from their (excellent) album "A Space In Time" has enjoyed a renewed success due to its selection as the title music for a major Greek mobile operator.
Said mobile operator probably did not check the song's lyrics -- or (more probably) their advertising agency does not speak English.

I like the song and the album, and actually have the album in both digital and analogue medium. I enjoy listening to TYA's music and sing along.I, along with very many English - speaking people, understand the lyrics.

Usually, the name of a song implies the colour of its lyrics. In this respect, I'D like to change the world" is superb and comes out nicely for a company touting a similar message in its own corner of the business universe.

Sometimes, however, the title hides the true portent of its lyrics... and the insinuations are legion. In this case, unintended, for sure.

I'll let you be the judge of whether the mobile operator is actually identifying with Alvin Lee's cynical approach to life. Here is the first stanza to the chorus:

"Everywhere is freaks and hairies,
Dykes and fairies, 
Tell me where is sanity
Tax the rich, feed the poor
'Til there are no rich no more

I'd love to change the world,
But I don't know what to do
So I'll leave it up to you"


What say you?

Is it "cowboy" taxes we get in Greece -- or just plain catastrophe?

Greece's minister of Labour suddenly decided to impose, what he probably considers, a teeny little one-off tax of  EURO 20/per employee.

Presumably, this one-off, teenie-weenie little tax doesn't really affect employers' financial fate and we all know that employers have money.
Presumably, it is Mr Vroutsis (such is the name of said minister of labour) understanding that most employers only have a 1-2 employees -- as in the bodega down the road or the Periptero up the road. All in all, they will pay 40 euro and be done with it.
Hmmmm!
What about the bank, in-between? How about 2,500 employees, i.e. a sudden tax of EURO 50,000?
Or 2,000 employees at the private employment agency, across from the bank: a teenie tax 40,000 euro.

In the old times and in another country, tiny little taxes similar to this one would be imposed by the people who were there to "protect you".
Said tiny little extraordinary contributions were "implemented" in order to, purportedly, help immigrants' children, or artistic development in the area, or revamp the "protection company's" headquarters...

Whatever the case, these one-off, happy, teenie-weenie taxes were never a suggestion -- they were always compulsory enforced in a variety of methods.

All of the above took place in another country, different times.

Indeed, the people who conceived and enforced those creative, teenie-weenie little taxes were not called "ministers" at all. At the time...

Scorpions & Friends "MTV Unplugged in Athens" concert: I went there with family

We were in Athens and on Saturday 14th the three of us (my daughter was preparing to move to London) went to see the Scorpions  concert up on the difficult-to-spell Lycabettus outdoor theatre. The venue is beautiful, on a high rock in the centre of Athens commanding a breathtaking (I don't use this word lightly) view of the city, down to the sea. The night was pleasantly cool, too.
The concert itself, as any Scorpions concert, was a pleasant, enjoyable event, more so for the mtv unplugged (i.e. acoustic) feature;

The Scorpions do have a knack of bringing families together to enjoy a good moment with cheerful, rhythmic, or nostalgic tunes. Heck, they've been around for a good 40 years (give or take) and their concerts are very much a family affair; the young fans of early years are parents themselves now -- some with grown up children! One of the advantages of being around long enough is that people of all ages know the lyrics to their songs...

What the Scorpions are not, is passionate, full of rogue, raw energy, ready to blow you away and the venue to smithereens. It's not Queen in their heyday, nor the young Who or the Stones (to name a few).

What the Scorpions ARE however is "middle" European. And their lyrics commemorate, sing, reflect and remind us of the times and events of continental Europe in the way no US or UK group has -- or can. The Scorpions sing for us, the unknown middle & East European: many of their lyrics strike a uniquely European chord. The Scorpions are part of this "old world". They capture the old world's rainy, overcast, small-time, stuffy and struggling Old World life; the quiet insufferable boredom behind closed doors; the sooty interiors hidden behind the luster of our purported artistic design, our supposed refinement, and our snobbishness; Europe is a plethora of tiny to medium-sized countries all packed together in a continent where 2 hrs plane ride will take you across 4 different national languages....

So when we see expansive cities, lit like Xmas trees, it is awesome. We may never admit it, but it is daunting .The "Big City Lights" captures that : the little European's awe at the Eastern light & technological structure extravaganza. I know, that: I have personal experience of these "big city lights".
It's not that we don't have big cities in Europe, it's just that for us, huge is about the size of an average apartment building on East 6th ave N Y. And the lights are usually low to save on energy. Oh yes: we are mostly in bed by ten on weekdays.

Take that same 2 hour plane ride a few years ago and you would have crossed 4 languages and 6 different political regimes... For continental Europeans, the long-forgotten "iron curtain" was part of everyday life.

For anyone who has lived in or experienced a Soviet country before the demise of that parody -- and I am one such person -- "The Wind of Change" lyrics speak to the heart.
It may not be Keats, but for us, the line "the children of tomorrow dream away / in the wind of change" is real: we have lived and breathed in that wind and we have met these children, now grown up. In fact we have breathed in previous winds as well, where "change" had been relegated to miracle territory.

For most of us it's the little things that count; that one little moment in time, that moment that will change everything.

Check out the Scorpions' lyrics: how many times Klaus & Co sing about "a moment (in time)", directly or indirectly?

Anyway, towards the end of the concert Klaus picked up a Greek flag, put it on his shoulder and, with Morten Harket, sang "Wind of Change". OK, so Greece is going through the toughest time in its modern history and the symbolic effect of singing the words "close like brothers" and "change (for the better)" is a winning PR gesture before the public of a debt-ridden country.

It's a small gesture so he didn't really have to do it -- but he did.

So I choose to believe that deep down, the Scorpions wanted to do it, PR or not.

Greece: Secures a Further 6.8 billion EURO of Bailout Money

6.8 billion: not bad for a Soviet democracy!

Greece is to receive yet another bail-out instalment; not bad!

The performance of successive Greek governments in recent years has been nothing short of text book best practise in do nothing and / or, otherwise put, preservation of the sub-species -- preserve own own. In four years of "reforms" not ONE job has been lost in the Public Sector & State-owned companies in Greece: clearly, the Greek governments are protecting their own -- the Greek public sector payroll.

At all cost.

The private sector is dessicated, but that does not seem to daunt Greek politicians at all; unemployment is hardly on the Parliamentary agenda even though, at ~37% of the private sector workforce it is well above anyone else's in the EU club.

Indeed, in the words of one Greek senior civil servant, Greece may be the only "western developed democracy to be under Soviet rule". Within the Ministry of Finance, private initiative is still seen as suspicious and, largely, fraudulent and exploitative and to be closely monitored at all times.

In Greece flexible employment schemes are suspicious and legally reprehensible (i.e. temporary employment is prohibited unless there are exceptional & transitory reasons).
Investment is not particularly welcome and therefore filtered VERY closely through a web of administrative hurdles & licenses -- the latter sometimes taking years (or greased palms). The gold-mines in Northern Greece are still lacking a few documents that would allow them to operate -- and employ people by the same token.

The list can go on, but the important point to make is that, contemporary Greece is a unique case study of paradox and exception to common sense of any kind.

And, maybe, as such, it has some educational value...

Alternatively, and if the Greek powers that be continue in doing nothing, there will come the moment when Greeks will have to pay breathing & living rent o foreign landlords.

It is difficult to understand why the politicians presently active in Greece fail to see what everyone else does see?

A German firm suggested that a private "experts task force", comprising top class experts, could  implement reforms in Greece much better than any government -- if only because politicians are beset by considerations which would be inapplicable in the case of private individuals.
Maybe.
IF the target is, to make Greece viable and still belonging to its indigenous population, then anything that can do the job goes.

An Englishman's Home Is His Castle -- Not So for the Greek?

In no uncertain terms, the same applies to the Frenchman's house or the Spaniard's.
It usually means that the government is there to provide and uphold a sense of security for its citizens.

Unfortunately, this does not apply to the Greek's house.

Over the years, and more so recently, successive governments in Greece have shown that they are in charge...and that the rules of the game can be and are, changed at any moment.

So, if you are planning your life on what applies today you may be surprised or dismayed to discover it no longer applies tomorrow...

A few examples:
* It was announced that hybrid cars were exempt from road tax. One year later, the government revised this decision: now they, too, pay road tax.
* The income tax of last year no longer applies this year. Chances are, next year's will not be identical to this years, either. So if you are budgeting your family income -- or the corporate Human Resources budget -- you are probably in for a surprise.
* If you had planned on retiring on a specific pension, such as stipulated on your Social Security plan, and have contributed for upwards of 45 years to that effect, you are in for an unpleasant surprise: the amount you get is less that 60% of what was officially promised!
* If you purchased your house and paid all taxes and thought you were thereby free of all obligations, you are mistaken. Recently, the Greek government decided you will continue to pay taxes, additionally in solidarity or otherwise.
* If you had agreed last year to invest in Greece in, say, mineral quarries, you should not be surprised by now to discover today that today your investment is no longer welcome in the community in which you have unwittingly established your company...

There are ample examples...

Given the Greek experience thus far, we can only expect these inconsistencies to proliferate.


If ever there was an exception to the rule "people get the politicians they deserve" it would be present day Greeks; the political world in Greece seems to be populated by authoritarian, largely ignorant, inefficiant and self-serving nepotists.

What a mess.

World premiere: Greece legalises bribery. Henceforth, kick-backs R OK, corruption is dead, everyone is happy!

The Greek parliament voted yesterday in favour of a text, hidden within a bill, which effectively legalises "presents given in appreciation of (services rendered)".


Greek MPs, in a show of solidarity to their most staunch supporters and loyal alleged clients, the civil servants, voted with overwhelming majority to put an end to investigations in alleged corruption -- simply by legalising kick-backs.

In doing so, Greece has now eradicated corruption in one easy move: by legalising the means to corruption, corruption is no more. All those reading news about Greece have been made painfully aware of how fast  appreciation escalates, from a bunch of rare bonzai to a padded bank account in eastern Switzerland.


The good news is, now that it is legal, the "fee" should go down.

The bad thing is that in any dealings with Greek administration will require that which in other countries still, but in Greece no longer, is called, a "bribe".

Greek Government Technology Rises to New Heights

We are all used to the often comical and sometimes tragical and most always catastrophic bloopers successive Greek governments of the past 4 recessions years have been making.
There is great material here: "invest in Greece" only to find that the tax burden you used in your business plan no longer applies; Greece relies heavily on tourism and the VAT for Food & Bev services triples (from 8% to 23%).

There is no lack of misconduct, incompetence and, sometimes, just sheer idiocy to satisfy the most demanding of comedians worldwide.

But this one is a really good one, it stands out above the rest: original, unique, and going against anything anyone can fathom, including logic and its corollaries; it is unique in the recorded history of mankind. These people surpassed themselves...

Read on:
Recently, the Greek administration (laughter) implemented a new, on-line system to follow and control employment in the private sector. What was a half filled "EDP" hard copy form from the '80s now is 6 ASP and the central system of course crashes as it does not (yet) has the bandwidth to repsond to employers' efforts. But that neither here nor there: in Greece no one expects a Public Sector system to work. Ever.

The great, beautiful and unique aspect of this new data-gloat system is: it will not recognize youth employment!
That's right.
IN GREECE YOU CANNOT OFFICIALLY REPORT (i.e. RECRUIT) PERSONS FIRST ENTERING THE JOB MARKET! DO SO AND YOU RISK A HEFTY FINE! *

 I leave it up to you to choose your response between the two pics.






(* Ministry of Labour official declared (10 days ago): "we'll fix this in no time. Meanwhile, relax -- just don't recruit new market entries...")

Horsemeat and Bullschitt

There is a lot of hullabaloo raised about horsemeat found in what should have been beef ~burgers, ~mousaka, ~lasagna, etc. Rumour has it, there are traces of said meat even in high street branded frozen meals -- let alone distributors' own labels.
A French company, Spanghero, suspected of providing said incorrectly labeled products has seen its operation suspended.

The matter raises fundamental ethical issues -- i.e., do we know what we are eating, and, isn't anyone reliable anymore? -- and could also shed light on business practice -- distributors' low price pressure is strangling manufacturers' margins and stretches their ethics.
More than that, I think it has provided a much needed cause for Eurocrats to assemble, get together, bandy chaff and generally take a break from the daily highly paid Euro-tedium.

It is said (taking it from the BBC) that European agri-ministers will get together to discuss the subject. In other words, let's all have a quick get-together, drink some drinks, exchange information and discuss Easter & summer hols.

Some of these ministers are surely very well read in matters of agriculture; others may be less so. The one from Greece believed until recently that some fish look like sticks.

All in all, horse meat is not only a matter of mis-labelled products and another thorn in the flailing trustworthiness of institutions and commerce alike; it is also a welcome opportunity for Euro-crats of all types to show their concern (and temprarily abandon their usual physical inertia) and produce some new horse-schitt.

If you'll allow the exression!