Greece

Change in purchase value since 2007 after the IMF in 8 European countries

Change in purchase value since 2007 after the International Monetary Fund in 8 European countries


In this chart we see the evolution of Greece’s Gross Domestic Product after the outbreak of the global economic crisis in 2017, compared to other European countries that requested memorandum loans from
International Monetary Fund. These eight countries are Hungary, which requested a memorandum in 2008, Latvia in 2008, Romania in 2009, Greece in 2010, Ireland in 2010, Portugal in 2011, Spain in 2012, and Cyprus in 2013. Hungary. , Latvia and Romania do not belong to the Eurozone and for this reason they have been granted memorandum assistance exclusively by the International Monetary Fund. In this chart I chose to compare Net Purchasing Power Standard in Eurostat terminology, that is, subtracting the effect of inflation. We notice how much better all these countries, without exception, have gone compared to Greece. For years, the national income (Gross Domestic Product) of all states has exceeded the level it had before the crisis. In fact, all the countries with a memorandum achieved higher growth rates than the EU average.

The only exception is Greece, which from the first moment was dominated by the anti-memorandum narrative created by Samaras in 2010 and where the deeply misinformed people gave power to the anti-memorandum. ND and Syriza parties. With the expected result, unlike the other states in Greece, the memorandum will not be implemented. Neither the fiscal prescription of the memorandum (ie the zeroing of the deficit to be achieved mainly through reductions in government spending and not through tax increases, nor the structural reforms of the memorandum (towards a more liberal and rational economy that could be competitive ) That is why today the average income in Greek market value is now at the bottom of the EU (with the temporary exception of Bulgaria, which is growing rapidly).

This was when in 1980 our income was a period In the center of the states of western Europe and of course much higher than the communist states of the east. Here are three conclusions. First it turns out what a big lie the “International Monetary Fund is destroying the states where it goes”. Secondly, Greece is denied the first European country where the International Monetary Fund came ”(in fact, long before it had gone, for example, to the UK). The third and most important thing is that the allegation that the memorandum is to blame for the great impoverishment in Greece is refuted. As we can see, the memorandum helped all other countries, without exception, to quickly achieve significant to impressive growth rates. So the memorandum is not to blame for the stagnation in Greece, but the fact that we did not implement it.

So after so many years of memoranda, we have not corrected the great distortions of bureaucracy / corruption, the cost-effectiveness of the public sector, slow justice – all important prerequisites for growth. And in terms of competitiveness and entrepreneurship, our country remains not only at the bottom of the EU, but also in the Balkans, and behind many more states in Latin America and Africa. Greece is currently ranked 79th in the world. Behind Peru in 76th place, Uzbekistan and Oman in 69th and 68th place, Bulgaria in 61st place, Romania and Hungary in 55th and 52nd place, Rwanda in 38th place, Turkey in 33rd place. At least we are a little better from Albania in position 82. Otherwise we expect businessmen to come and invest in Greece. In 2018, during Syriza, we were in a much better position # 67.

Apparently, the international evaluators do not pay attention to how good the CV is and how well the Prime Minister of a country speaks English.

 

Dianelos Georgoudis, May 2020

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