An unexpected number of friends and supporters were present for the presentation of the recent report conducted by the European Research Network on Social and Economic Policy, leading the way –and now with hard scientific facts– to discussing the new direction for Greece and the prospect of total reform of economic and social policy beyond political calculations.

On February 15 in Athens, the Network presented documented solutions for a feasible change of course for Greece. A change which can prevent the country from staying on this current course of economic death, provided that there is willingness and a specific strategy.

The campaign of exaggeration and fear cultivated by certain power centres, Greek or foreign, created the impression that the “rescue” programmes are the only way out. The U-turn of SYRIZA allowed the old political system and the dominating circles in Greece to declare that it has now been “proven” that there is no choice other than the memoranda.

The research carried out by the Network demonstrates that there is another way, which is necessary for the country. This new path requires regaining monetary sovereignty. The short-term issues which are expected to come up due to the exit from the Eurozone are manageable, provided there is essential planning, preparation, and determination.

More specifically, the process of Greece exiting the Eurozone is described analytically in the direction of a total reform of economic and social policy. The country needs a short-term stimulation in demand, centering on the service sector, and in the medium-term an industrial policy for development, stimulation of employment and an increase in income.

In particular, the study:

  • Describes the necessary steps that Greece must take, aiming to minimise the cost of regaining monetary sovereignty.
  • Analyses the main consequences, including inflation.
  • Analyses the prospect of changing the fiscal policy, aiming to reduce unemployment.
  • Examines the basic elements of industrial policy, regarding the agricultural sector, in order for the country to move towards sustainable development.
  • Sets out the course of the labour market, including the deregulation of labour relations, the increase in unemployment and part-time employment.
  • Analyses the international position of the Greek economy, as well as imports and exports, and mainly the losses abroad.

The full report, published with the support of the Rosa Luxemburg Foundation, is available here .


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Credit: Giorgos Georgiou