The "Troika" to Be Pulled Out of Greece?

Or, that's what is rumoured in numerous publications including the Irish Independent.

Putting national pride aside, that's bad news for Greeks and other inhabitants of the country.

So far, the (very) few reforms have been implemented either because the "troika" put their foot down -- which is rare -- or because the "troika" suggested and served as the scapegoat.

A photo of the 3 "reps" together in Athens

Without the Troika, who will be the one to uphold common sense in Greece? Certainly not the Greek politicians -- they haven't produced an inkling of communality since the advent of time... The main opposition party is still harping about leaving the Euro zone (and the EU) and having the country live happily on its own -- they probably have not caught on to the existence of the internet yet.


So what are the poor Greeks to do? They will be left to the merciless mercy of hungry predators who have 5 years of austerity-experience under their belt and they have thereby discovered a very dangerous truth: that Greeks have proven very tolerant in the name of "we have to survive and there is no money". They have not seriously questioned the barrage of nuisance taxes that has wiped out much of the middle classes. They are likely to accept any pillage that they are victims of as... "financial fate".


And, dangerously enough, there may be less and less Greeks will be able to do about it: if you are in power in Greece and you wish to do something that is reprehensible in some way, all you need to do to make it acceptable is legislate:
 Let us not forget that Greece is probably the only country where giving "presents" to civil servants is legal. And politicians are not liable for anything. By law.



Meanwhile the rodents will be chewing away at the spoils and dancing happily knowing they are safe from public fury, creditors' supervision, and annoying legal constraints...

"How (...) we feel as Greeks"? Or Rather, "How We Feel About Greece..."

Peter Economides is the evangelist for re-branding Greece, i.e. Greeks, i.e. showing them for what they really are, as opposed to what others and they themselves think of themselves -- miserable, loser-minded and not surprisingly lacking in self-confidence. Let's hope that many join his bandwagon.

I admit that Peter is addictive and, having listened to him last W-E I looked him up. He is into people and so am I. And being addictive, he has no side effects, other than good ones, so I can say that Economides is good for you, especially if you're Greek.

At one point in one speech, speaking about self-realisation and how one communicates (works on "branding") and he says: "we have to describe /show, Who we are, where we come from, where are going, how we doing it, why..."

The unfortunate answers to a mostly silent majority of Greeks nowadays is "I don't know anymore, from Ancient Greece, I don't know, fortuitously, den variese (oh well, let's not bother...).

Economides points to Greeks who stand out because they shed the constraints of a miserable, depressive, attitude and acted.

These very successful Greeks that stand out because they have genius, resilince, they wanted to do things, and were not afraid to do them against all odds and demons...

The challenge is to rally the silent majority as well; get them out of the rut and into the sunlight -- of which there is much to have in Greece.

For very many years I have felt that a lot of Greece's misery hinges upon the misery of the Greeks and it comes as a great relief that a public figure such as Economides also makes this point.

I.e. the fundamental question is "How we feel, as Greeks"

I will answer that question as well I can through my experience.

First, a small story that may offer more than any of my own analyses and conclusions. There was a very popular and heated discussion -- subject-related heat, not controversy -- on huge special interest site (diy, music & audio) 7-8 years ago. It attracted responses by the minute, as usual, 24/7 and the attendance was impressive as well: industry designers and figureheads were following.
Two of the active posters in this discussion were Greek - apparently as their residence indicated and confirmed later. One young in his 20's, one in his early 60's. Some altercation took place between them, and one responded in scathing tones -- such that it created a lull in the discussion and one other contributor, from Norway and another from the US, both very senior, chipped in to placate what had become an personal affront. The US poster noted that it was just a discussion, an exchange of opinion and of objective info and we are all, at the end of day, friends here -- not only, but we share a common interest! The Norwegian went further: he posted something along the lines of ".. you are both from Greece, a prestigious and very important country, and this is a very international site, so in a way you are representing the country..."

The young poster's response was shocking and saddening and ultimately very revealing: "I have nothing to do with that country, it doesn't represent me, I don't want to have ties..."

The guy was 27 years old at the time, Greek.

I think he said what many Greeks think. And when they do, it is the Administration they think of, the politicians they think of and ultimately, the impression these people give to the outside world. And they say, that's not me!
They say, I am not a genius, not a self-starter, not crazy pioneer -- but, neither am I a thief, lazy, con man, hypocrite, etc. I too am entitled to a country where negativity, corruption, inefficiency... do not prevail!

They say, "as I see things, it is an insult for me to have a GREEK NATIONALITY for all that that represents; yes I am Greek, but I don't want to be linked to "Greece" the brand. I am Greek but not a citizen of Greece...

How can Greeks pull themselves out of this rut???

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?

A tighter Euro-union, especially one where decisions are made by persons other than Greece's political leaders and inspired by Greece's administration, could be the best thing that can happen to Greece this side of the end of WW-2.

Greece is in the wake of new elections. This, in and of itself, would not be very troublesome -- bar the cost of elections that Greece can hardly afford.
The problem is that Greek voters seem to persist in their preference for the partisan, "we will show 'em" type, of party.
The dregs of popularity of Pasok, Greece's dying socialist party, were picked up by another party named "Syriza" that is, in many aspects, a re-launch of Pasok, with a refurbished "left-wing" architecture; Pasok had lost the lustre of the left in recent years and the brand has eroded -- hence the re-branding and repositioning.

Fortunately for Greeks, 70-80% of the vote is NOT in favour but coalitions may serve where voters do not!

In matters political, Greeks are fatally attracted to things left of centre. The left syndrome does not affect Greeks' predilection for expensive cars, designer clothes, condos and sundry, but it manifests itself in their elections. You do not have to be a staunch leftist to attract, in Greece it is enough to brand yourself left... SO, the "left" parties bunched together do gather a sizeable chunk of the vote.


Scandal after scandal, in the 30 years after Greece joined the EU, the Greek "political-administrative" complex has plundered billions of euro, if one is to believe the reports, the court-cases, the media allegations and what seems to be a plethora of evidence. Yet Greece's politicians are still vowing for a seat in parliament promising to "turn over a new leaf". Presumably, the idea is that having made their stash Greek politicians vow to keep their hands away from the till. For now.



So, since the powers that be are not interested in the welfare of their country and the Greek electorate is confused, hoodwinked or, for whatever the ailment, unable to take charge,there are three ways of saving the country:
a) change the rules of government
b) keep the rules and appoint a foreigner to do the job.
c) hope for a miracle.

All Greeks should opt for c anyway.

The rest is up to them, unless the EU saves the day. Again.

How do you dupe 11 million people?*

You lie to them*. If you are a Greek politician.

Or withhold information from them. If you are Greek media.


It is not enough that Mr Tsipras, rep for Syriza, a party that won 17% in the May 2012 Greek elections, is much sought after by EU media & some US channels, as the clown of the day "to make our day"; back home the media let it be understood that the popularity is due to the man's scintillating wit (chaff would be more to the point)! Amazingly, no one in Greece seems to realise that people are laughing ΑΤ the man!

There is worse.
In a yet fresher case in the never ending spiral of Greece's abysmal plunge into the bottomless pit of unethical waste, it has come to light that the son of a Syriza political preacher is a criminal convicted of armed robbery and possession of explosives.

"I am not responsible for what my son does" you might say -- even though "you raised said son" I would say. However, the father of said son, said neither of the above. He, the father, and his wife, the mother, maintained that in some circles their son's armed robbery "could be construed as a revolutionary act, an act of defiance against....(whoever, whatever)".

How nice.Why don't we all unite to bail out people like this Mr Voutsis... so that they can proliferate and
perhaps teach our children why what are hitherto known as common criminals are in fact uncommon revolutionaries...

In another corruption sideline, aptly represented by the image of trash below, authorities unearthed large quantities of expensive medication, prescribed by a GP to fictitious patients charged to Social Security (named IKA in Greece) and purchased at said GP's spouse's pharmacy -- unsurprisingly, both GP & pharmacist are MP for PASOK, Greece's scandal-ridden Socialist party.



The matter was brought to the attention of various Ministers, including the then Health Minister, Loverdos and one of his cronies, a certain Koutroumanos (ex union dignitary and general purpose activist). Of course, the matter was promptly forgotten.


In the light of these never-ending cases that see the light of day only to be buried by their media, Greeks face a very difficult future.



So, why should we get together to bail out yet again a country where, confidence in its representatives is the last thing that comes to mind, the preceding words listed comprising beauties such as corruption, swindling, fraud, etc similar soft-core characterisations.

We shouldn't.


Not unless Greeks change their representatives in some magical way... Given the latest polls where the adolescent rantings of Syriza (we'll show 'em we don't owe anything to anyone") seem to be gaining ground, radical change seems unlikely.

Maybe Greece will get lucky and a political Maecenas will come forth and will be imposed upon the country --Imposed is the operative word because in Greece people who seem to favour common sense over bullshit only manage a paltry ~3% of the vote, testimony to contemporary Greeks' insistent addiction to the absurd.




* Paraphrasing the fascinating book by Mr A. Andrews "How do you kill 11 million people". {The answer being, "you lie to them" -- but that is only a small part of the whole answer. Read the book!}

Ethics as the fall-back position

Many of us were taught that ethics are the the right sort of rules defining human behaviour. Ethics help us distinguish between right and wrong, just and unjust
Added to that, we were taught that common sense should prevail -- even if it doesn't always...

Yet, life shows us that ethics do not always prevail. Nor is common sense upheld by much of our legislation which is enacted -- as us law grads know -- to protect the haves from the have-nots and, subsidiarily, to keep the have-nots happy with confidence inspiring mass-directed services.
What with politicians' impunity (Greece), some bankers' illicit international dealings (G_Sachs), and most governments' impotence in dealing efficiently with the issues... it all gives credence to the motto, "the price of democracy is corruption".

This difference is confusing; those in the know and off the ethical bandwagon, as we learnt it, seem to reap visible benefits. All the while, the ethical lot seems to be left out of the good things in life (good, as defined on television), and this is disconcerting to say the least and most probably leads to critical personal, inner confusion.
When our our neighbour moves to more exclusive pastures on his illicit gains, the matter comes much closer to home and is even less liable to be ignored -- if anything it rankles.

Which leaves the rest of us with little to do but be patient -- or hope to join those in the know. We can complain and oppose the ethics we were taught to single the naughtiness of those of transgress these ethics. But, decent people rarely do inflict damage on others; decent people are interested in bettering a situation and would not be vindictive.

Until, one day the patience bursts. I don't think it would run out -- but burst. As the patient Romanians patience burst decades ago when they traced and tracked down the late (and largely unlamented) Mr Caesescu. There the ethics banner received star billing: and the actions, however heinous from a human standpoint, were absolved by the prevailing ethics.

Greeks must take care they do not reach the bursting point -- unless bursting is exactly what Greece needs: there is no government to speak of, the people who mismanaged the country continue to do so, chunks of the bail out package are still, allegedly, siphoned away by politicians in Ministerial office...

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?

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!

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!

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.

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...

On the 6th day of Xmas.... the Greeks' "father authority syndrome"

...school's OUT again.

No, not really, but some Athenians are demonstrating all over Athens in memoriam of two years since the untimely death of a school boy from (unintended, we would like to believe) police fire.

Some time later, in similar fashion, a policeman died and two more were injured during an attack on their precinct.
No Athenian seems to find that fact particularly moving. No demonstration.

Speculating on this I come to an obvious conclusion: Greeks need something or someone to demonstrate against. I think Greeks feel oppressed by their everyday existence and demonstrating is their way of getting some temporary respite from the unbearable burden of being Greek...
So, in Greece, we revel in actions of defiance and love to demonstrate against oppression. Accordingly, when there is no visible oppression (because political authoritarianism there is in Greece) and there is no visible cause, people feel obligated to fabricate a cause. And there will always be an obliging ruffian somewhere to provide an excuse for a cause! Hence the demonstration today.

On the other hand, Greeks do not seem to have developed a national social feeling: the idea of one standard (one law, one yoke, etc) for all does not seem to enjoy much popularity in the country.
In this light, perhaps the best would be many official causes: one for each Greek interest group. There are many of those -- literally, one for each citizen. They are sanctioned by Greek TV, probably Europe's most propagandist, and weak and change-averse governments.

The most vociferous of these interest groups are typically the least populated: left wingers and 60s communists. There used to be the 70s socialists (this guy for example) but "social" in Greece is now just a byline for a political party. Indeed, most if not all of the erstwhile "socialists" have become stinking rich and can't be bothered with demonstrating. They no longer feel "oppressed". This man leads the bunch.

So wealth is an antidote to demonstrating. Hence we conclude that those demonstrating are not, of themselves, wealthy.

But what is the underlying reason for which Greeks will demonstrate at any occasion that offers itself?

One reason would be that Greeks are romantics, ready to support the cause of anyone who, in their eyes, is less fortunate than themselves. For the more fortunate, they would still demonstrated -- but against rather than for.
I believe there is a common denominator to all this activism, and the Greek oppression mania: I am oppressed therefore I am.

I think Greeks are heavily into Bogey-Man resistance: it's a psychological state whereby adults, primarily male, never manage to accept, endorse and subsequently get over the paternal authority. Thereby they act like thwarted adolescents throughout their adult life unto their middle age: most demonstrations, seen through this point of view become palatable.
In getting to the streets, most Greeks are demonstrating against the paternal authority they never got over. I.e. they are shouting against their fathers. It is called congenial father syndrome (CFS). It is a congenial matter, perhaps there is a drug for it?

A second hellene - neurosis is the random feeling of injustice; another name for this pathology is greco-victimism syndrome (GVS).
The short description follows:
Whatever happens, wherever, the Greek is a victim of an injustice. Swindling. This is called neohellenic - swindle syndrome: NSS

Put another way, "Just deserves" never are!

It's the first day of Xmas! May God Bless...

...Greece.
Because if He does not, who will??? Anyone???
The Greek government knows not its right hand from its left.
Private spending has reached an all time low -- until the next all time low, that is.
Growth is not around the corner, probably not around any corner as things stand.

If one is to read Paul Krugman writing in the NYT about Spain, "a catastrophic bank crisis (...) seems plausible for Greece and increasingly possible in Ireland"

Oh my.
Can anyone help?
Greek government officials and related bodies need not apply.

Invest in Greece (the oldie but goldie, in its latest guise)

This time round, Greece's socialist government took their non-socialist predecessors' version and remastered it (using music industry lingo) as their own product:
* fast track for strategic investors
* special treatment

OK. It's a lot like the music industry's "best of" rehashes.

A) So the way to putting up my money is now paved with less red tape - presumably.
B) Equally presumable, is that money can be made, other investments bearing testimony to this fact -- albeit, the last foreign investment took place a very long time ago...

What else am I looking at as an incoming investor?

1) Setting up a company in Greece is a relatively painless, if lengthy, procedure for a socialist and business averse country.

2) License. Extremely difficult to obtain. Very costly. Even costlier if one wishes to accelerate the procedure: kickbacks have to be distributed to civil servants from numerous agencies & ministries. Briefly, this is the way it goes: you set up the company, employ the people (as required often by law), and file for the license. Filing requires a large number of documents and controls by numerous government agencies; the need for some of these documents surfaces unexpectedly along the way.
Meanwhile, the company must be already set up -- after all, who is to receive the license if not the company?

As an example, licensing a photovoltaic park may take anywhere from a minimum of 22 months to eternity.
Licensing a temporary employment agency, 24-36 months.
In all cases, the money required is deposited and the company set up...

The delays above can be shortened if the investor appoints a top level Greek politician as partner -- but that is an added cost in and of itself.
Of course there are simpler cases: opening a small importing business or a small shop (non-food, non-pharma, non-medical sector), for example. But then, you are not a strategic investor, are you?

In other words, the motto to strategic investors is, "we welcome your money, pay up front please". "Now, what else do you want?"

3) People. Greece has a healthy executive market with a good 14% of the population holding some sort of university degree. Salaries tend to be high compared to most other countries, especially at mid and high management level. At entry level, minimum income is reasonably low at 800 euro, but certain professions (e.g. engineers, accountants...) and industry sectors (e.g. banking) command higher bases. There is also a plethora of statutory "bonuses" in addition to the set base. One of the best is the "degree" bonus: anyone holding a uni degree is entitled by law to 20% extra on account of that degree.

This excellent incentive dates back to the Public Sector in the 50s where it was offered to attract more qualified personnel.

4) Labour law and regulations and reporting. Labour law in Greece is extremely complex, while the reporting (much of it in hard copy still) is repetitive, time consuming and compulsory -- strict fines apply for delays.
There are few on-site controls, but such as they are they usually entail a fine -- just for good measure. The fine can later be taken to administrative court and annulled.
Of course, a faster settlement method is the kickback: less hassle, no fine just a small consideration.
Complexity is evident in day-to-day operation and requires commensurate extra personnel and bonding with local labour authorities to keep up. As an example, a sales rep must have the recruitment card on him during working hours -- or a fine can apply. An extraordinary change in a shift must be recorded and submitted to proper authorities in advance (how, since it is by definition "unexpected")?


5) Taxation changes annually. Mostly, the changes from one year to the other are small, nevertheless keeping up requires the services of an experienced fiscal consultant.

6) Capital markets: as Franklin Templeton recently became one of the largest independent investors at Athens Stock Exchange, making the case for capital investment in Greece.
True, taxation has risen from 10% on capital gains, to 40%; on the bright side, however, none of the above 1-4 apply if capital are your markets and you MUST invest in Greece.

After this wordy report... the watch-phrase seems to be:

Investing in Greece? Watch for the hiding!
Exception: ONLY if the investment does NOT require operation, does NOT involve buildings, does not require recruiting people. So,
* Invest in Greece only in non-productive projects, capital markets, real estate.

(DIS) Invest in Greece...

Why?

Because the government and administration of this country, do not want you to operate in Greece. They tell you so, but you aren't taking the hint!

You ARE however invited to consider the country, so do come and visit us and join us; we will throw a huge party for the event. We like parties...

We like parties, and you are a most welcome justification for a few extra do's...


Back to (dis)investing. In case you have not got the message, this is the way it goes: this man, Geoffrey "Yiorgos" Papandreou, currently Prime Minister of Greece, invites you to

invest in Greece. You are welcome and you can qualify for incentives (poor) if you do invest undefined, "large", sums of money.

On the other hand, THIS man, Something Chrisohoidis, now minister of commerce etc, tells you that certain multinationals' way of operating in Greece and their high pricing tactics, will not be tolerated.

"I.e., we'll raid them and fine them a few pennies each time"! Carrefour, a french hyper market chain, was fined Euro: 13.5 mill for having identical pricing in its outlets...!!! Accordingly, Fnac, the french non-food chain and Aldi, a German, packed their bags.

So: Which man's advice do you go for?

Geoff 's or Something's?

Your call!

(Bulgaria has 10% standard tax rate for investors. Cyprus 7%. Greece 33%)

Beware of Greeks bearing bonds...

...is the title of an article in "Vanity Fair" by Michael Lewis, an american writer and financial columnist. It is 7 pages long and an interest and often humourous read. The three outtakes below indicate an unusual understanding of the present day Greece status quo and (no surprise) say it all.


"(4) Oddly enough, the financiers in Greece remain more or less beyond reproach. They never ceased to be anything but sleepy old commercial bankers.
Virtually alone among Europe’s bankers, they did not buy U.S. subprime-backed bonds, or leverage themselves to the hilt, or pay themselves huge sums of money. The biggest problem the banks had was that they had lent roughly 30 billion euros to the Greek government—where it was stolen or squandered. In Greece the banks didn’t sink the country. The country sank the banks.

(p. 7) In Athens, I several times had a feeling new to me as a journalist: a complete lack of interest in what was obviously shocking material. I’d sit down with someone who knew the inner workings of the Greek government: a big-time banker, a tax collector, a deputy finance minister, a former M.P. I’d take out my notepad and start writing down the stories that spilled out of them. Scandal after scandal poured forth. Twenty minutes into it I’d lose interest. There were simply too many: they could fill libraries, never mind a magazine article.

(p. 8) No success of any kind is regarded without suspicion. Everyone is pretty sure everyone [else] is cheating on his taxes, or bribing politicians, or taking bribes, or lying about the value of his real estate. And this total absence of faith in one another is self-reinforcing. The epidemic of lying and cheating and stealing makes any sort of civic life impossible; the collapse of civic life only encourages more lying, cheating, and stealing. Lacking faith in one another, they fall back on themselves and their families. The structure of the Greek economy is collectivist, but the country, in spirit, is the opposite of a collective. Its real structure is every man for himself. Into this system investors had poured hundreds of billions of dollars. And the credit boom had pushed the country over the edge, into total moral collapse."






Need we say much / any / ... more?

Get Greece back...

...dot com.

Not that Greece had been lost -- or, if it has or had, that happened long ago. But Greeks woke up to that fact recently.

Now, a few people got together and set up a network on social media, hoping to wake the others from soporific government propaganda and deep apathy.

Unsurprisingly, the site is called "getgreeceback dot com"; so is the facebook.

The proposal is to get out on the street; no shouting, no noise, no nothing except in the words of the visionary: "get (our) country back, ... no IMF, ...no people we did not vote for..."

I would immediately add, get rid f the people you voted for, keep the IMF people. They're better than your politicians, more efficient, much cheaper.

Council decision 2010/320/EU of 10th May -- or what Greece agreed to do to get bailed out...

In May the EU Council agreed to provide the much-needed bail-out, thereby offering a solution to the matter of Greece's sovereign debt problem.

This decision comes with some duties on either side: one side promises to provide bail-out money (EU partners & IMF) while the other vows to implement certain deficit-curtailing measures.

Salient bits of this decision are reproduced below.

Having regard to the Treaty on the Functioning of the European Union (TFEU), and in particular Article 126(9) and Article 136thereof...

Article 1 1. Greece shall put an end to the present excessive deficit situation as rapidly as possible and, at the latest, by the deadline of 2014. Article2 1.Greece shall adopt the following measures before the end of June 2010: a) a law introducing a progressive tax scale for all sources of income and a horizontally unified treatment of income generated by labour and capital assets; b) a law repealing all exemptions and autonomous taxation provisions in the tax system, including income from special allowances paid to civil servants; c) the cancellation of the budgetary appropriations in thecontingency reserve, with the aim of saving EUR 700 million; d) the abolition of most of the budgetary appropriation for the solidarity allowance (except a part for poverty relief)with the aim of saving EUR 400 million; e) a reduction of the highest pensions with the aim of saving EUR 500 million fora full year (EUR 350 million for 2010); f) a reduction of the Easter, summer and Christmas bonuses and allowances paid to civil servants with the aim of saving EUR 1 500 million for a full year (EUR 1 100 million in 2010); g) the abolition of the Easter, summer and Christmas bonuses paid to pensioners, though protecting those receiving low pensions, with the aim of saving EUR 1 900 million for a full year (EUR 1 500 million in 2010); h) an increase in the VAT rate, with a yield of at least EUR 1 800 million for a full year (EUR 800 million in 2010) That's it for now, folks. Unfortunately there's more to the above.